Red Lobster is calling it quits in NYC.
The seafood chain will permanently close its flagship restaurant in Times Square on June 14, ending a 23-year run in one of the world’s busiest tourist destinations, WABC reported on Friday.
Red Lobster officials said years of construction at the restaurant’s address — 5 Times Square — on the corner of 41st Street and Seventh Avenue have kept customers away and turned the once-bustling location into one it could no longer afford to operate.
“Times Square has been an important chapter in Red Lobster’s history, and this was a difficult decision,” Red Lobster said in a statement. “Extensive and prolonged construction at the building has significantly impacted access, visibility, and foot traffic at this restaurant.
“Given those conditions, along with the building’s planned conversion to residential use, continuing to operate at this location was no longer viable.”
All employees at the Times Square location will be offered transfers to other Red Lobster restaurants and additional pay to help with the transition.
“We are grateful to the team members and guests who have made this restaurant special over the years,” the statement continued.
“All team members are being offered the opportunity to be transferred to the Red Lobster location of their choice and to receive additional pay to support them through this transition.”
The closure marks the end of Red Lobster’s only NYC location.
Since opening in 2003, the sprawling restaurant occupied a prime corner of Times Square, serving tourists, office workers and theatergoers while acting as a showcase location for the national chain.
The restaurant also became known for splashy promotions, including a one-day free lobster giveaway in 2023.
In 2024, the Post reported that the owners of 5 Times Square asked for an annual rent of $2.2 million as the three-level, 16,482 square-foot space scrambled to remain open.
Employees were previously told that the eatery wasn’t on the chopping block, describing the location as a “high-performing store.”
The shutdown comes as Red Lobster continues to recover from its Chapter 11 bankruptcy filing in May 2024.
More than 100 locations have closed in recent years as the company works to cut costs. The Times Square restaurant was already on a list of locations the company warned could be at risk during the bankruptcy process.
Since emerging from Chapter 11, Red Lobster has said more underperforming restaurants could still face closure.
The Orlando-based chain ended 2025 with more than 500 restaurants nationwide and $1.56 billion in sales, down 6.2% from the previous year, according to Restaurant Business citing Technomic data.
Just last week, Red Lobster confirmed that its oldest continuously operating restaurant, in Tallahassee, Fla., closed on Sunday, May 24 after 56 years in business.
[Notigroup Newsroom in collaboration with other media outlets, with information from the following sources]
