NEW YORK -(Dow Jones)- Darden Restaurants Inc.'s (DRI) Red Lobster is spending close to $350 million to remodel all of its roughly 700 locations, hoping that updates to the buildings, decor and lighting will help improve the seafood chain's value in the eyes of guests.
The renovations will be carried out over the next four years, potentially fixing over the long-term what has been perceived as lackluster value at Red Lobster, whose prices of around $19.50 per person didn't match up to the dated decor.
Thus far, remodeled Red Lobster locations are seeing same-store sales lifts of 4% to 5%, results that "more than hurdles" internal goals, Kim Lopdrup, president of the chain, said in a recent interview.
More immediately, Red Lobster plans to introduce a new menu this month that adds more entrees priced around $15, such as pecan-crusted jumbo shrimp, to address the value gap. The chain has found the $15 price to be a sweet spot for guests.
To read the rest of the story, please go to: Dow Jones.