Red Lobster is closing its prominent Times Square location after 23 years of operation, citing prolonged construction and the planned conversion of the building into residential housing. The three-story restaurant at 5 Times Square, opened in 2003, has long served tourists, theatergoers, and locals in one of the world’s busiest intersections. Despite being labeled a 'high-performing' location, ongoing disruptions to access and foot traffic made continued operation unviable.

The closure on June 14 marks another step in Red Lobster’s restructuring following its Chapter 11 bankruptcy filing in May 2024. Over 100 locations have since shuttered, even as the chain maintains more than 500 U.S. restaurants. The Times Square site, once a marketing centerpiece with events like a 2023 free lobster giveaway, will vacate a 16,482-square-foot space for which landlords had sought $2.2 million annually.

Red Lobster has offered all employees transfers to other locations of their choice and additional pay during the transition. The closure underscores broader challenges in urban retail, where high rents and redevelopment can disrupt even well-established tenants. The company’s sales declined 6.2% year over year to $1.56 billion by the end of 2025.