Red Lobster’s Iconic Times Square Location to Serve Final Feast
After more than two decades of serving up its signature seafood in the heart of New York City, Red Lobster’s flagship Times Square restaurant is set to close its doors for good. The well-known establishment, situated at 5 Times Square, will cease operations on June 14, marking the end of a 23-year run. Restaurant officials have cited extensive and prolonged construction in the vicinity, coupled with plans to repurpose the property for residential use, as the primary drivers behind this difficult decision.
“Times Square has been an important chapter in Red Lobster’s history, and this was a difficult decision,” a statement released by Red Lobster indicated. “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.”
The three-story eatery, which first opened its doors in 2003, quickly became one of the chain’s most recognisable outlets. It played host to a diverse clientele, including a steady stream of tourists, eager theatregoers, and local New Yorkers, all drawn to its presence in one of the world’s most bustling and iconic locations. Over the years, the restaurant garnered national attention for its various special promotions and events, most notably a highly publicised free lobster giveaway in 2023 that captured widespread public interest.
However, the financial realities of maintaining such a prominent location became increasingly apparent. In early 2024, as Red Lobster grappled with the challenges of keeping its Times Square venue afloat, the owners of the 5 Times Square property were reportedly seeking an annual rent of approximately $2.2 million for the expansive, three-story, 16,482-square-foot space. Despite these financial pressures, employees at the time were reportedly assured that the restaurant was not slated for closure and was still considered a “high-performing” location, even amidst broader concerns about the chain’s overall financial health and ongoing lease negotiations.
A New Chapter for Employees and the Chain
With the closure of the Times Square restaurant, employees will be offered the opportunity to transfer to other Red Lobster locations. This comes as a significant development, as this particular outlet was the chain’s sole remaining presence within the five boroughs of New York City.
“We are grateful to the team members and guests who have made this restaurant special over the years,” the Red Lobster 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.” This initiative aims to mitigate the impact of the closure on its dedicated staff.
The shuttering of the Times Square restaurant adds to a growing list of closures for the seafood giant. It will become one of more than 100 Red Lobster locations that have ceased operations in recent years. This trend coincides with the company’s ongoing restructuring efforts, which were underscored by its Chapter 11 bankruptcy filing in May 2024.
Despite operating over 500 locations across the United States at the close of 2025, Red Lobster has experienced a downturn in sales, with figures falling by 6.2 percent year-over-year, amounting to $1.56 billion. These financial challenges highlight a broader industry shift and the strategic decisions facing established restaurant chains in the current economic climate. The closure of a location as prominent as the Times Square restaurant underscores the significant adjustments Red Lobster is undertaking to navigate these headwinds and chart a path towards future stability. The iconic red lobster sign that has been a beacon in Times Square for over two decades will soon be a memory, signalling a new and uncertain chapter for both the brand and its loyal patrons.
