Neither Red Lobster nor Kelli Valade, a veteran of the restaurant industry, gave an explanation for her abrupt departure from the position of CEO. The outgoing leader described the move, which takes effect on April 15, as an “incredibly difficult, but necessary, decision.” “We have achieved a lot in a short period of time, including building an excellent leadership team that together with the board will promote the business to achieve our vision,” Valade said in a statement. “I really enjoyed my time here at Red Lobster.” Valade took over as CEO of Red Lobster last August and took on the brand’s recovery from the COVID-19 pandemic – with major challenges such as a nationwide labor shortage and rising seafood costs. He joined the company after a tenure at the restaurant analytics company Black Box Intelligence and two decades at Brinker International, the parent company of the restaurant chain Chilli’s. Kelli Valade took over as CEO of Red Lobster last August and was commissioned to recover the brand from the COVID-19.LightRocket pandemic via Getty Images Red Lobster said its executive team would work with the board to “ensure business continuity in the search for a permanent replacement” for Valade. The company selected board member Paul Kenny as the point person during the transition. Restaurant analyst John Gordon told the Orlando Sentinel that Valade’s decision to head out was a “very, very, very bad” sign for the company. “Nowhere does a CEO want to be in a company for only eight months. That says it all, “Gordon told the report. “This is an indicator of severe stress and dysfunction that you can only stay at work for eight months before some kind of irreversible downtime occurs.” Red Lobster representatives did not immediately respond to a request for comment on Valade’s departure and subsequent criticism. The Red Lobster experienced a downturn in its operations during the COVID-19 pandemic. Bloomberg via Getty Images Valade’s departure followed a series of recent management changes at Red Lobster, which announced the hiring of a new CFO and a new head of marketing in January. Thai-based seafood company Thai Union led a group of investors who acquired Red Lobster from Golden Gate Capital in 2020. Thai Union brands in the US include Chicken of the Sea. The chain was facing some financial difficulties before the sale, with former CEO Kim Lopdrup describing the pandemic as the “most demanding period” in the company’s history. Red Lobster’s recovery slowed earlier this year during the Omicron variant eruption.
