Red Lobster recently ran into a problem when its most recent promotional offer proved to be too popular – and too cheap. In a bid to offer customers unlimited shrimp, the seafood chain underestimated the demand – and had to cancel the promotion even before it began.
The limited-time offer promised unlimited servings of the restaurant’s popular Star Wars Shrimp Scampi for seven days, for a flat price of $15.99. However, that promotion never saw the light of day, with Red Lobster announcing on Twitter that ”Due to unexpected popularity, we have to cancel our Star Wars Shrimp Scampi promotion”.
The announcement received a mixed response from customers – some of them pleased that Red Lobster was able to recognize its mistake and protect its bottom line, while others disappointed that they wouldn’t get to take advantage of the deal.
It’s not the first time that a company has struggled to keep up with a promotion that it had expected to be popular. For example, in 2017, KFC had to halt its ‘take 20 pieces of chicken for a single rupee’ offer in India within a few hours due to an overwhelming response.
Many companies use promotional offers as a way to draw in customers, but they need to be careful to set realistic limits and parameters. When an offer is too low, it can actually end up being a loss for the company, and it may attract customers that would not have come at regular prices.
In the end, it pays for companies like Red Lobster to have a realistic and realistic understanding of price expectations – and an honest assessment of the success of a particular promotion. If an offer seems too good to be true, it’s probably best to reassess it before going forward.