Red Lobster reveals why its iconic Times Square location is closing after 23 years – UK Times

Red Lobster is closing its iconic Times Square restaurant after more than two decades in the heart of New York City.

The restaurant, located at 5 Times Square, will permanently shut its doors on June 14 after serving customers for 23 years. The prolonged construction work on the corner of 41st Street and Seventh Avenue, combined with plans to convert the property into residential housing, made it impossible to continue operating the location, restaurant officials told the New York Post.

“Times Square has been an important chapter in Red Lobster’s history, and this was a difficult decision,” Red Lobster said in a statement to NYP. “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 restaurant opened in 2003 and became one of the chain’s most recognizable locations, serving tourists, theatergoers and New Yorkers in one of the world’s busiest spots. It gained national attention over the years for special promotions and events, including a widely publicized free lobster giveaway in 2023.

However, in 2024, as Red Lobster struggled to keep its Times Square restaurant open, the owners of 5 Times Square sought approximately $2.2 million in annual rent for the three-story, 16,482-square-foot space.

At the time, employees were reassured that the restaurant was not slated for closure and were told it remained a “high-performing” location despite concerns about the chain’s overall finances and lease negotiations.

Now, employees at the Times Square restaurant will be offered transfers to other Red Lobster locations of their choice, though the restaurant was the chain’s only remaining location within NYC’s five boroughs.

“We are grateful to the team members and guests who have made this restaurant special over the years,” Red Lobster’s 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.”

The Times Square restaurant will become one of more than 100 Red Lobster locations that have closed in recent years as the company restructures following its May 2024 Chapter 11 bankruptcy filing.

Despite operating more than 500 U.S. locations at the end of 2025, Red Lobster’s sales fell 6.2 percent year over year to $1.56 billion.

The Independent has contacted Red Lobster for comment.