Dive Brief:
- Red Lobster named Jonathan Tibus as its CEO six months after Horace Dawson was promoted into the role, the company said in an press release emailed to Restaurant Dive.
- Dawson is retiring at the end of the month after working at Red Lobster for 21 years. Prior to becoming CEO, Dawson served as EVP and general counsel since 2014.
- Tibus, who has been a managing director at the management consulting firm Alvarez & Marsal for over 20 years, has spent short stints in various leadership roles at restaurant brands such as Kona Grill, Real Mex Restaurants and Ignite Restaurant Group, according to his LinkedIn.
Dive Insight:
Tibus is known as a restructuring expert, who served at Kona Grill when it went bankrupt in 2019 and was chief restructuring officer at Krystal after it filed for Chapter 11 protection in 2020, according to his LinkedIn profile. His appointment could signal a shift in operations at Red Lobster, especially as minority investor Thai Union Group said earlier this year that it plans to sell its shares in the casual dining company.
Red Lobster has struggled since the COVID-19 pandemic began, facing industry headwinds including high interest rates and growing labor and operational costs. Red Lobster’s net loss worsened during Q4, reaching over $10 million (387 million TBH) compared to a loss of over $9 million (348 million TBH) in the year ago quarter, according to Thai Union Group’s yearly financial report. The investor said in that document that it has recorded a one-time, non-cash impairment charge relating to its exit of Red Lobster.
Dawson’s departure will leave a hole in the company. He started at Red Lobster when it was still owned by Darden and he worked in nearly all legal specialties, including contracts, commercial, litigation, employment, intellectual property, licensing, M&A, purchasing, distribution and franchising, according to the press release. He also held other business roles, including roles in international franchising and lobster aquaculture.
Tibus’ appointment marks the third CEO Red Lobster has named since 2021. Dawson was appointed CEO in September, more than a year after Kelli Valade left her post in 2022. She had been CEO for less than a year before leaving to take the CEO post at Denny’s.
Tibus and Alvarez & Marsal all did not immediately respond to a request for comment.
