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Red Lobster is famous for its ‘Endless Shrimp’ promotion. For $15.99 in most cities, you can eat all the shrimp you want. But one man recently posed an interesting question on Reddit: how much food would you have to eat for Red Lobster to lose money?
A commenter whose brother-in-law worked as a restaurant manager gave an estimate:
“I called him, he said that it differs restaurant-to-restaurant. His store buys the shrimp wholesale at $4.55/lb for 31-35 shrimp per pound. He said that the other ingredients, including fry oil are negligible, and probably a few pennies per pound of shrimp. He guesses total cost to you on your plate is around $5/pound, including plates, cook’s pay, etc.
So, at $5/pound, you’d need to eat a little over 3 pounds, or about 100 shrimp, to make it a net loss. He said even if you came in and ate 100 shrimp they would probably still make money because you will come with other people or you will order a drink or something. He has had two customers that have done it.”
In other words, it’s pretty much impossible for Red Lobster to lose money on your “Endless Shrimp” order.