• Seafood chains have struggled overall.
  • The cost of shrimp, lobster, and crab has generally gone up.
  • Consumers have been less interested in seafood restaurants.

Affordable seafood has been a challenge for restaurants. Red Lobster fell into bankruptcy partly because it offered an all-you-can-eat shrimp promotion.

Shrimp is an expensive protein, and people can eat a lot of it. That promotion, which was only one factor in Red Lobster’s eventual Chapter 11 bankruptcy filing, cost the company $11 million.

The challenge with offering affordable seafood is that seafood just isn’t cheap. In theory, you can lure people in with shrimp, lobster, and crab leg deals, hoping to sell them high-margin drinks or desserts, but historically, that hasn’t worked all that well.

Joe’s Crab Shack, which is owned By Landry’s Restaurants Group, used to have nearly 150 restaurants nationwide. That number has dwindled to under 20 with a number of recent closures.

This has cast real doubt on the chances Landry’s will keep operating the concept, or switch locations to other brands it owns.

Recent Joe’s Crab Shack closures

  • San Diego, CA: The waterfront location near the San Diego Symphony is set to close permanently between August 24 and 28, 2025, after over 20 years of operation. All 61 employees will be laid off.
  • Fort Myers, FL: The restaurant at 2024 W. First St. closed on May 26, 2025, due to the conclusion of its lease agreement.
  • Deptford, NJ: The location at 2000 Clements Bridge Road closed on May 26, 2024, following a natural lease expiration.
  • Clifton, NJ: This restaurant closed on December 31, 2023, also due to a lease expiration.
  • Kissimmee, FL: The location at 7903 Irlo Bronson Memorial Highway closed in September 2024.
  • Kemah, TX: The Kemah Boardwalk location closed in November 2024. Plans are underway to convert the space into the entrance for a new water park, with construction expected to begin in July 2025.
  • Corpus Christi, TX: The Joe’s Crab Shack here closed on January 26, 2025, and was replaced by a new restaurant concept called Landry’s Kitchen.

Current Joe’s Crab Shack status

As of May 2025, Joe’s Crab Shack operates approximately 18 locations across the United States. The closures are primarily due to lease expirations, declining sales, and strategic shifts by parent company Landry’s, Inc.

Rising seafood costs are a factor for Joe’s Crab Shack.

Red Lobster

Joe’s Crab Shack filled a niche

As a displanted New Englander, I liked Joe’s Crab Shack and often visited one in Kissimmee, Florida. It offered plentiful, decent-quality seafood at reasonable prices.

It wasn’t cheap. It was maybe 50% more expensive than a comparable meal at Red Lobster, but it was better, and offered a wide choice of crab that’s hard to find elsewhere.

Joe’s Crab Shack faces most of the same issues that drove Red Lobster into Chapter 11 bankruptcy.

More Restaurants 

  • Mexican restaurant chain makes comeback after 20-year hiatus
  • Mexican chain files Chapter 11 bankruptcy; 24 restaurants closed
  • Chick-fil-A launches a new drinks-based restaurant brand

“Inflationary pressures from increased wages, alongside unfavorable leases and underperforming locations, led to financial woes for Red Lobster,” Restaurant Dive reported.

But Red Lobster, unlike Joe’s Crab Shack, had an ownership (seafood seller Thai Union) that wanted out. Landry’s has not made a public comment on the Joe’s Crab Shack Brand, but allowing it to become so small and converting some locations to other concepts suggests that support may be limited.

Declining traffic at seafood restaurants

  • 2024 Traffic Decline: According to research firm Circana, seafood restaurant traffic fell by 1% in 2024, while sales remained flat for the year. SeafoodSource
  • Chain-Level Struggles: Major seafood chains faced significant challenges in 2024. For instance, Joe’s Crab Shack reduced its locations by a third, from 30 to 20, with sales dropping 27.5%. Similarly, Bonefish Grill saw a 5.8% decline in sales, leading to a leadership change. Nation’s Restaurant News
  • Broader Industry Impact: The National Restaurant Association reported that 42% of restaurant operators experienced lower customer traffic in August 2025, marking the seventh consecutive month of decline.
  • Economic Pressures: Rising menu prices, particularly for seafood items, have deterred budget-conscious diners. For example, seafood appetizer prices increased by 3.7% in 2023. SeafoodSource
  • Competition and Consumer Behavior: Consumers are increasingly opting for more affordable dining options, leading to reduced patronage at higher-priced seafood establishments. Restaurant Dive