Full Breakdown
Red Lobster to Close Times Square Location on June 14, 2026
6/2/2026, 10:25:57 PM
Closure Announcement
Red Lobster announced that its Times Square restaurant at 5 Times Square, corner of 41st Street and Seventh Avenue, will close permanently on Sunday, June 14, 2026. The chain cited extensive and prolonged construction that reduced access, visibility, and foot traffic, and the building’s planned conversion to residential use, as reasons the operation is no longer viable.
Background & Context
The Times Square location opened in 2003 and served tourists, office workers, and theatergoers for 23 years. Red Lobster emerged from Chapter 11 bankruptcy protection in May 2024 after a court-approved reorganization that transferred ownership to RL Investor Holdings, backed by Fortress Investment Group. The restructuring involved closing over 100 restaurants nationwide and focusing on cost reduction. The 5 Times Square building is undergoing a multi-year renovation that will convert the office tower into residential apartments, a project coordinated by New York State’s Empire State Development agency.
Timeline
Key dates: 2003 – restaurant opens; May 2024 – Chapter 11 filing; late 2024 – reorganization approved, Fortress Investment Group acquires Red Lobster, Damola Adamolekun becomes CEO; 2025 – chain reports >500 locations, $1.56 billion sales, 6.2 % decline; June 14 2026 – closure.
Official Statements & Responses
Red Lobster said the prolonged construction at 5 Times Square has reduced customer access and visibility, and that the building’s conversion to residential use removes the economic justification for continuing operations. The company expressed gratitude to staff and patrons, and announced that affected employees will be offered transfers to other Red Lobster locations with supplemental pay to aid the transition.
Why It Matters / Impact
The closure ends Red Lobster’s sole New York City location, reducing dining options in a high-traffic tourist corridor and illustrating broader pressures on legacy restaurant chains after bankruptcy. The building’s conversion supports a citywide shift toward residential development in Midtown Manhattan, potentially altering foot traffic for remaining businesses. Employee transfers mitigate immediate job loss but highlight the chain’s ongoing consolidation.
Verbatim Quotes
- "Times Square has been an important chapter in Red Lobster's history, and this was a difficult decision." — Red Lobster spokesperson
- "Extensive and prolonged construction at the building has significantly impacted access, visibility, and foot traffic at this restaurant." — Red Lobster spokesperson
- "We are grateful to the team members and guests who have made this restaurant special over the years." — Red Lobster spokesperson
- "Given those conditions, along with the building's planned conversion to residential use, continuing to operate at this location was no longer viable." — Red Lobster spokesperson
What's Next
Empire State Development and the city are converting the 5 Times Square tower into hundreds of residential apartments, a project that is part of a citywide shift toward residential development in Midtown Manhattan. Red Lobster’s CEO, Damola Adamolekun, says while some locations are closing, the chain may open new restaurants in upstate New York, New England, and internationally as part of its post-bankruptcy growth strategy.
