The struggling seafood chain keeps closing restaurants, with only 18 left

• Seafood chains in general have struggled.

• The price of shrimp, lobster and crab has generally increased.

• Consumers were less interested in seafood restaurants.

Affordable seafood has been a challenge for restaurants. Red Lobster went bankrupt in part because it offered unlimited shrimp.

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

The challenge of offering affordable seafood is that seafood just isn’t cheap. In theory, you can lure people in with offers of shrimp, lobster, and crab legs in hopes of selling them high-profit drinks or desserts, but historically, that hasn’t worked.

Joe’s Crab Shack, part of the Landry’s Restaurants Group, previously had nearly 150 restaurants nationwide. That number has dropped to less than 20 with a number of recent closures.

This has raised serious doubts about whether Landry’s will continue with the concept or switch locations to other brands it owns.

• San Diego, CA: The waterfront location near the San Diego Symphony Theater will close permanently in 2025. August 24-28, after more than 20 years of activity. All 61 employees will be laid off.

• Fort Myers, FL: Restaurant 2024 W. First St. closed in 2025 May 26 regarding the conclusion of a lease agreement.

• Deptford, NJ: The location at 2000 Clements Bridge Road closed in 2024. May 26, after the expiration of the natural lease.

• Clifton, NJ: This restaurant was closed in 2023. December 31, also due to the end of the lease.

• Kissimmee, FL: 7903 Irlo Bronson Memorial Highway closed in 2024 in September

• Kemah, Texas: The Kemah Boardwalk location closed in 2024. in November. The plan is to turn the space into the entrance to a new water park, with construction set to begin in 2025. in July

• Corpus Christi, Texas: Joe’s Crab Shack closed here in 2025. January 26 and was replaced by a new restaurant concept called Landry’s Kitchen.

in 2025 in May Joe’s Crab Shack has approximately 18 locations across the United States. The closure is primarily due to an expiring lease, declining sales and strategic decisions by parent company Landry’s, Inc.

As a relocated New Englander, I loved Joe’s Crab Shack and frequented it in Kissimmee, Florida. It had plenty of decent quality seafood at reasonable prices.

It wasn’t cheap. It was maybe 50% more expensive than a similar meal at Red Lobster, but it was better and offered a wide selection of crabs that are hard to find elsewhere.

Joe’s Crab Shack faces many of the same problems that led to Red Lobster’s Chapter 11 bankruptcy.

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“Inflationary pressures from rising wages, unfavorable leases and underperforming locations have caused financial problems for Red Lobster,” the Dive restaurant said.

But Red Lobster, unlike Joe’s Crab Shack, had ownership (seafood retailer Thai Union) that wanted out. Landry’s has not commented publicly on the Joe’s Crab Shack brand, but after allowing it to become so small and replacing some locations with other concepts, support may be limited.

• in 2024 decrease in traffic: According to research company Circana, in 2024 traffic at seafood restaurants was down 1 percent, while sales were flat year-over-year. SeafoodSource

• Chain level battlesin 2024 major seafood chains faced major challenges. Joe’s Crab Shack, for example, cut its locations by a third, from 30 to 20, and saw a 27.5% drop in sales. Similarly, Bonefish Grill saw a 5.8% decline in sales, prompting a management change. News of the nation’s restaurants

• Broader industry impact: The National Restaurant Association reported that 42% of restaurant operators by 2025 in August decreased customer traffic, which is the seventh consecutive month of decline.

• Economic pressure: Rising menu prices, especially for seafood, are discouraging frugal diners. For example, seafood snack prices in 2023 increased by 3.7%. SeafoodSource

• Competition and consumer behavior: Consumers are increasingly choosing affordable dining establishments, resulting in less patronage of more expensive seafood establishments. Restaurant Dive

This story was originally reported by TheStreet in 2025. on October 18, where it first appeared in the restaurant section. Add TheStreet as a preferred source by clicking here.