Dive Brief:
- Seafood restaurant chain Red Lobster tapped industry veteran Bob Baker to serve as its CFO, roughly a month after the company announced it was exiting bankruptcy.
- The Yum Brands alum will take the Orlando, Florida-based company’s top financial role as it revitalizes its executive leadership in the wake of being acquired by RL Investor Holdings — backed by Fortress Investment Group — and receiving $60 million in new funding as part of its restructuring plan. Red Lobster also hired Nichole Robillard to serve as its chief marketing officer, according to a Wednesday announcement.
- Baker’s “wealth of experience gained across the restaurant industry, combined with his hands-on approach, will be invaluable as we continue to position Red Lobster for long-term growth,” newly-minted CEO Damola Adamolekun said in a statement included in the Tuesday release.
Dive Insight:
Baker and CMO Robillard will step into a reformatted leadership team that faces the tall task of revamping the seafood chain as it looks to recover from bankruptcy proceedings that led to the closing of more than 100 locations, Industry Dive’s sister publication Restaurant Dive previously reported.
Baker has logged decades in the restaurant industry, including serving as finance chief for Checkers & Rally, Benihana, Pieology Pizzeria, and Café Rio Mexican Grill, according to his LinkedIn profile. He also previously served a 16-year span at Yum Brands, including roles such as senior director of planning and USA controller. Most recently, he served as consulting CFO for business consulting service Amplēo.
The incoming CFO’s experience in the space could be critical for Red Lobster as it looks to reposition itself with a new executive team and operational structure following its bankruptcy.
Though Baker may not have the “traditional corporate America turnaround background,” the Checkers alum “brings strong experience in both the QSR and FSR sectors, working with both large and small brands, including Cafe Rio during a growth period,” Shawn Cole, president of boutique executive search firm Cowen Partners told CFO Dive in an emailed response to questions. QSR and FSR refer to “quick service” and “full service” restaurants, respectively.
“The terms of the restructuring will primarily be dictated by Fortress Credit Corp, and they benefit from Bob’s expertise as a solid operator in an industry with thin margins,” Cole said.
After filing for Chapter 11 protections in May, Red Lobster received approval for its restructuring plan in early September. The plan has left Red Lobster an independent company set to operate 544 locations across the U.S. and Canada, according to a company release.
With the completion of the acquisition, Red Lobster appointed Adamolekun, himself a veteran of restaurant chain P.F. Chang’s, to the CEO chair, with CEO Jonathan Tibus, who had led the business throughout its restructuring, departing the company, Red Lobster said.
The new leadership team will also be looking to drive new growth at the recovering chain as Red Lobster continues to butt heads with its executive old guard and its previous minority owner, Thai Union. In its bankruptcy filing, Red Lobster pointed to losses associated with its “Ultimate Endless Shrimp” promotion — as well as mismanagement by executives associated with the promotion — as a key factor in its bankruptcy.
While the endless shrimp promotion was initially meant as a limited deal, in May 2023, former CEO Paul Kenny “made the decision to add UES as a permanent $20 item to the menu despite significant pushback from other members of the Company’s management team,” the docket reads. “This decision created both operational and financial issues for the Debtors, costing the Debtors $11 million and saddling the Company with burdensome supply obligations, particularly with its equity sponsor, Thai Union.”
The company’s restructuring plan includes a trust established for general unsecured creditors “that will pursue litigation against equity holders and former officers and directors,” that is likely to be centered around the UES promotion, Sarah Foss, global head of legal for Debtwire, previously told Restaurant Dive.
Red Lobster did not immediately respond to requests for comment.
