Red Lobster Times Square Closure Sparks Viral Rumors of Financial Collapse, But the Real Reason Is Much Weirder
If you’ve been scrolling social media today, you’ve likely seen the viral alarm: “Red Lobster Times Square closure signals the end of the chain!” Memes of the restaurant’s iconic Cheddar Bay Biscuits being left behind on empty tables have flooded TikTok, with users claiming the location “abandoned ship” due to massive debt. But here’s the truth—the real story is fake news, or at least a case of out-of-context viral hysteria.
The Red Lobster Times Square closure is real, but it’s not a bankruptcy meltdown. The lease expired, and the landlord (a major Times Square property owner) refused to renew unless Red Lobster agreed to a four-fold rent increase—to over $1 million a month. Rather than paying that, the chain quietly closed the location last week, relocating staff to nearby outposts.
What’s fake: The viral video claiming the restaurant was “cleaned out overnight by repo crews.” That footage? Actually a decade-old clip from a different chain’s closure in Ohio. So no, Red Lobster isn’t disappearing from NYC—or your local mall—anytime soon. But the rumor mill? It’s still sizzling.