People who acquire things beyond their usefulness not only will derive little or no marginal gains from these acquisitions, but they also will experience negative consequences, as with any form of gluttony. Ray Dalio
Gluttony, Greed, Red Lobster, and the Tall Poppy Syndrome
This is an investigation and review of the Seven Deadly Sins and their role in TPS. While researching my observational study of TPS for my book The Tall Poppy Syndrome – The Joy of Cutting Others Down I noticed certain emotions were characteristic of cutters. In contrast, others were involved in TPs.
I then searched for a mnemonic to assist the readers in remembering and identifying the common emotions in TPS. The seven deadly sins fit the bill; envy, anger, and sloth were commonly found in the cutter; pride, greed, and lust were frequently detected in the PT. Gluttony is part of the mnemonic but I rarely noticed a connection to TPS. I never stopped looking.
Before beginning today’s exploration, please remember that TPS is best understood if divided into two components – private or peer-to-peer and public. Private TPS is encountered within one’s tribe and does not require tall poppydom. The cutter is guilty of envy, anger, or laziness. Public TPS involves TPs who are prideful, lustful, or greedy, and the public feels justified in cutting them down (see Anatomy of the TALL POPPY SYNDROME).
The Seven Deadly Sins originated with the fourth-century Christian monk Evagrius Ponticus, who compiled a list of eight “evil thoughts” or “tempting demons”.This list included gluttony, sexual immorality (lust), avarice (greed), sadness, anger (wrath), acedia (sloth), vainglory, and pride. Ponticus’s work, however, was largely considered heretical due to his denial of Original Sin, and much of it was lost or attributed to other authors.
In 590 AD, Pope Gregory I, also known as Gregory the Great, revised Ponticus’s list into the more familiar Seven Deadly Sins we know today. Gregory’s list included pride, greed, lust, wrath, gluttony, envy, and sloth. Using his influence as Pope, Gregory popularized this concept, which became a fundamental part of Christian doctrine despite not being explicitly stated in the Bible.
During the Middle Ages and Renaissance, the Seven Deadly Sins became a popular subject in art and literature. Theologians like Thomas Aquinas further refined the concept in the 13th century. The sins were often depicted in paintings, such as Hieronymus Bosch’s “The Seven Deadly Sins and the Four Last Things”. This period saw the sins become deeply ingrained in Western cultural consciousness.
Alongside the development of the Seven Deadly Sins, a corresponding set of virtues emerged. In the 5th century, the poet Aurelius Clemens Prudentius defined seven virtues in his poem “Psychomachia”. These virtues – chastity, temperance, charity, diligence, patience, kindness, and humility – were seen as antidotes to the seven sins.
It was Christianity that gave the seven sins their negative disposition. Today’s psychologists assert that emotions are emotional states without assigning adjectives. Like money, they are intrinsically neutral but can be used constructively and destructively.
I like to add the adjectives good and bad to these functional states which assists in understanding the person’s functional state of mind at that moment. Everyone possesses envy. Good envy is coveting someone’s good traits and emulating them to self-improve. Bad envy is coveting someone’s traits but denigrating the person which causes perceived self-improvement (TPS).
Gluttony is often associated with overindulgence in food and drink but can be extended to any form of excessive consumption. It is about more than just quantity; it also encompasses an obsession with quality and the pleasure derived from consumption. Gluttony is seen as a form of self-indulgence that prioritizes personal pleasure over moderation and the needs of others.
Red Lobster was founded in 1968 by Bill Darden in Lakeland, Florida. The restaurant aimed to provide affordable, high-quality seafood to the masses, especially in landlocked areas where such options were scarce. This concept quickly gained popularity, filling a gap in the market.
In 1970, General Mills acquired Red Lobster, which had only five locations. This acquisition provided the resources for rapid expansion across the country. By 1978, Red Lobster had grown to 236 restaurants with $291 million in sales, and by 1985, it had nearly 400 locations generating $834 million in sales. In 1995, General Mills spun off its restaurant division, which included Red Lobster, Olive Garden, and other chains, into a separate company called Darden Restaurants, Inc.
There will be many learning experiences for this company’s failures but they started shortly after Darden Restaurants, Inc. was formed. Diversification gives stability but the parent company took profits from TP Red Lobster and invested the proceeds in other companies growing faster instead of updating Red Lobster.
Throughout its history, Red Lobster introduced several popular menu items and promotions: in 1983, “Lobsterfest” was launched which became a staple promotion; in 1991, Cheddar Bay Biscuits were introduced; in the early 2000s, an updated menu included more pasta dishes and spicier seafood options.
Despite its initial success, Red Lobster faced challenges. The ill-fated “Endless Snow Crab” promotion cost the company $3.3 million in profits (original sin – gluttony) causing a significant drop in stock value. Changing consumer preferences and increased competition from fast-casual restaurants put pressure on the chain.
Faced with dwindling profits Darden Restaurants sold Red Lobster to Golden Gate Capital for $2.1 billion in 2014. Golden Gate sold the real estate under 500 restaurants for $1.5 billion.
This transaction is called a “sale-leaseback,” and netted a quick and immense windfall for Golden Gate and its shareholders (mortal sin – greed). It produced something else for Red Lobster managers: a new expense called rent. It was a financial group taking advantage of a compromised restaurant company (another learning lesson).
Thai Union, a large international frozen-and-canned seafood company, initially invested $575 million for a 25% stake in Red Lobster in 2016, with an option for another 24% stake. This was seen as a strategic move (their first) into retail dining for Thai Union.
In 2020, Thai Union led an investor group that acquired Golden Gate Capital’s remaining equity stake in Red Lobster, increasing their control over the company. As one of Red Lobster’s biggest shrimp suppliers, Thai Union aimed to become the main seafood supplier to Red Lobster and cut restaurant costs to increase profits. Thai Union reportedly changed Red Lobster’s menus based on cost-cutting decisions rather than customer preferences.
The timing could not have been worse. The COVID-19 pandemic exacerbated existing financial pressures on the company as it did to many in the restaurant industry. New management frequently begins with cost-cutting which includes more work without more pay for employees with less satisfaction.
Ultimate Endless Shrimp was an annual promotion in September when restaurant clients decreased as students returned to school. It was a Monday-only offering during the rest of the year.
In June 2023, it became an everyday fixture on the menu – all the shrimp you could eat for $20 (mortal sin – gluttony). This consisted of various shrimp dishes and two sides with the first round. It was a huge traffic success but a financial failure. It produced worker fatigue, dissatisfaction, and stress.
Patrons ate for extended periods, complained when secondary helpings took too long, and openly or secretly shared and carried shrimp home. Cooks and servers were overwhelmed with no time to revitalize.
The promotion menu was financially unsustainable, nor were the rent costs of $200 million per year (killing the geese that lay the golden eggs). Red Lobster filed for bankruptcy in May. It closed 140 restaurants and was $1 billion in debt. It lost $76 million in 2023 because of the Ultimate Endless Shrimp. Thousands of employees were laid off.
Fortress Investment Group in Manhattan, another investment management firm and only bidder, acquired the chain as it floundered in a bankruptcy court for $375 million (Golden Gate Capital paid $2.1 billion).
This previously prideful company with employee esprit de corps was once the largest table-service dining chain in the country. Its descent was dramatic and multifactorial but customer gluttony and company greed played prominently.
If you don’t know where you are going, you might wind up someplace else. Yogi Berra
