Struggling Seafood Chains That Are Making Waves Again

Brian Boone

Mon, Jun 2, 2025, 3:40 PM 8 min read

Seafood can make for a luxurious meal, particularly if one isn't lucky enough to live near the ocean. It's a real treat to eat flaky cod or halibut, big meaty shrimp, or delectably tender clams, all lightly breaded and deep-fried and served alongside french fries, some great-tasting restaurant coleslaw, and maybe some hushpuppies. Chain establishments offering a beloved line of seafood staples have traditionally been big players in both the sit-down restaurant industry and its more populist and informal counterpart of the fast food scene.

For better or for worse, consumer tastes change and cycle. Every so often, the restaurant companies that specialize in indulgent seafood seem to suffer mightily. Not only do they face the same problems as other restaurants, but they also need to grapple with the ever-changing prices of seafood. By and large, fish-focused restaurants aren't as prominent in North America as they once were, with all kinds of seafood chains closing down an alarming number of locations in recent years. But there's hope for the future. Many of those restaurants that were once seemingly close to drowning are coming back up for air. Here are some seafood chains that are still swimming and making big splashes.

Read more: Pizza Chains That Might Not Be Around Much Longer

At one point, it appeared as if Red Lobster was dead in the water. The laid-back but classy seafood chain had been a go-to for those seeking a straightforward business lunch, date night, or celebratory meal of crab, lobster, shrimp, chowder, and a basket of Cheddar Bay Biscuits since 1968. In 2024, it looked like it was only a matter of time before the venerable seafood chain sank. After suffering some significant financial losses — and, specifically, losing a lot of money on its Endless Shrimp promotion after making it permanent in 2023 — Red Lobster filed for bankruptcy to stay afloat. Within three months of doing so, as many as 99 Red Lobster restaurants had closed.

Not only did Red Lobster recover, but it recovered in a remarkably swift fashion. Parties associated with Fortress Investment Group formed RL Investor Holdings LLC and injected over $60 million into the operation. By September 2024, and with the blessing of a court, Red Lobster emerged from bankruptcy. The downsized and salvaged Red Lobster then began a program of economic reinvention, simplifying the menu, changing some recipes, and planning a new look for its dining rooms.

With a menu built around its distinctively diamond-shaped fish filets encased in a salty, crispy brown shell, hushpuppies, clam strips, and surprisingly delicious crumblies, Long John Silver's became one of the first names in fast food fish and seafood not long after its 1969 founding in Kentucky. By the end of the 1980s, Long John Silver's was one of the most commonly found fast food restaurants in the United States, with approximately 1,500 locations. But just a few years later, the company was in trouble. In 1998, after shutting down 25 outlets, Long John Silver's Inc. filed for Chapter 11 bankruptcy protection. It cited $457 million in debt and assets of only $329 million.