Red Lobster has announced the closure of its iconic Times Square restaurant, which will shut its doors permanently on June 14 after 23 years of operation. The decision comes due to prolonged construction at the building and plans to convert the property into residential housing, according to restaurant officials.
The three-story restaurant at 5 Times Square opened in 2003 and became one of the chain's most recognisable locations, serving tourists, theatregoers and New Yorkers. It gained national attention for promotions such as a free lobster giveaway in 2023.
In 2024, as Red Lobster struggled to keep the location open, the building's owners sought approximately $2.2 million in annual rent for the 16,482-square-foot space. Employees had been reassured that the restaurant was not slated for closure and was considered 'high-performing'.
Staff at the Times Square restaurant will be offered transfers to other Red Lobster locations of their choice, though this was the chain's only remaining outlet within New York City's five boroughs. The company stated it is grateful to team members and guests and will provide additional pay to support the transition.
This closure adds to more than 100 Red Lobster locations that have shut in recent years as the company restructures following its Chapter 11 bankruptcy filing in May 2024. Despite operating over 500 US locations at the end of 2025, the chain's sales fell 6.2 per cent year over year to $1.56 billion.
