The restaurant industry specialized in seafood offerings is not going through a good time, mainly due to inflation in the United States. This is the case of the chain Joe’s Crab Shack, which, having had more than 150 locations across the country, now only has 15. According to Yahoo Finance, the locations have been decreasing due to the closures of its parent company, Landry’s Restaurant Group. The 15 establishments that remain are located in Texas, Florida, California, Tennessee, Kentucky, Missouri, and South Carolina.
Some of these locations have been replaced by other Landry chains, such as Mastro Ocean Club and Dos Caminos. According to Landry executive Karim Tamir, the closures are due to strategic decisions aimed at adapting to customer needs. Other chains that are also being affected by the price of products such as seafood are Red Lobster and Bonefish Grill, which have seen the amount of snow crab in the Bering Sea decreasing and the price increasing.
Joe’s Crab Shack
Founded in 1991 in Houston, Texas, Joe’s Crab Shack has been one of the best-known seafood restaurant chains in the United States. The chain offers a variety of foods beyond the sea, with comfort food staples like soups, salads, burgers and sandwiches on the menu. However, what was once more than 150 locations across the country has been reduced to just 15. According to Yahoo Finance, this decline is related to closures by its parent company, Landry’s Restaurant Group. According to its website, the 15 remaining locations are in Texas, Tennessee, Florida, California, Kentucky, Missouri, and South Carolina. Specifically:
- Garden Grove, California.
- Oceanside, California.
- Sacramento, California.
- Daytona Beach, Florida.
- Destin, Florida.
- Jacksonville, Florida.
- Orlando, Florida.
- Louisville, Kentucky.
- Branson, Missouri.
- Myrtle Beach, South Carolina.
- Sevierville, Tennessee.
- Corpus Lighthouse, Texas.
- Fort Worth, Texas.
- Galveston, Texas.
- San Antonio Riverwalk, Texas.
Why have they closed?
According to Landry executive Karim Tamir, these are strategic decisions: “As a company with more than 500 locations, some of which have been open for more than 20 years, we made the strategic decision to close certain locations due to traffic patterns and new developments”. Additionally, back in 2017, Ignite Restaurant Group Inc., the previous parent company of Joe’s Crab Shack, had already declared bankruptcy, according to Mashed.com, which led to the closure of more than 40 of its outlets. Moreover, some of the locations have since been replaced by Landry’s newer chains, such as Mastro Ocean Club and Dos Caminos.
Seafood Industry
This is not the only chain specializing in seafood that is going through hard times. In general, all restaurants have experienced a decline in traffic, primarily due to price increases aimed at combating the inflation affecting the country. According to SeafoodSource, chains like Bonefish Grill have reported an 8.3% drop in sales. Red Lobster has also reported a 23% decline in sales and a 20% reduction in physical locations in 2024.
According to Darren Tristano, CEO of the consultancy FoodServiceResults, “Now you can get good fish at most steakhouses and upscale restaurants. There are fewer reasons to go to a place that only serves seafood”. In addition to diversifying the menu and raising prices, another problem is the cost of crab. According to Mashed.com, the price increase is due to the decline of snow crabs found in the Bering Sea.