The restaurant industry is constantly facing challenges when it comes to fluctuating prices of ingredients, especially proteins like beef and seafood. When beef prices rise, restaurants often turn to chicken specials as a more affordable option to entice customers. However, for chains that have built their brand identity around a specific protein, such as Buffalo Wild Wings with wings or Long John Silver’s with seafood, the options become limited.
One example of this is WingStop, known for its wings, which started selling chicken thighs in 2021 when wing prices soared. Similarly, Long John Silver’s, a seafood-based fast-food chain, has been struggling to adapt to changing market conditions. At its peak, Long John Silver’s had over 1,000 locations, but now it has fewer than 500 stores. The chain closed 30 locations in 2025, according to franchise disclosure documents.
Despite its efforts to remain relevant, Long John Silver’s continues to face challenges in a market where seafood is often seen as an expensive option. Red Lobster, another seafood chain, fell into bankruptcy in part due to an all-you-can-eat shrimp promotion that cost the company $11 million. Offering affordable seafood deals can be tricky for restaurants, as seafood is inherently more expensive than other proteins.
Seafood chains like Long John Silver’s and Red Lobster have struggled to find the right balance between offering affordable options and maintaining profitability. While enticing customers with deals on shrimp, lobster, and crab legs may seem like a good strategy, it often falls short in driving overall sales. Additionally, fast-food chains like Long John Silver’s have limited options for upselling customers on high-margin items like drinks or desserts.
In a competitive market where prices are constantly fluctuating, seafood chains face unique challenges in adapting to changing consumer preferences and economic conditions. As Long John Silver’s continues to shrink its store count, it remains to be seen how the chain will navigate the complex landscape of the restaurant industry and maintain its position as a player in the fast-food seafood market. Seafood has always been a luxury item on the menu, and it comes as no surprise that consumers are increasingly turning away from it due to rising costs. According to a report from Seafood Source, the average retail price for seafood in 2025 was $10.52 per pound, significantly higher than other protein options such as beef ($7.18/lb), pork ($3.27/lb), and chicken ($3.17/lb). This makes seafood the most expensive protein choice for consumers, leading many to opt for more affordable options.
Anne-Marie Roerink, Principal at 210 Analytics, highlighted consumer concerns about inflation and job security at the 2026 Global Seafood Market Conference. She noted that while over half of Americans expressed a desire to eat more seafood, a third of them considered seafood to be the least affordable protein option. This sentiment reflects the challenges faced by seafood chains like Red Lobster, where higher prices may deter potential customers from placing orders.
In addition to the cost factor, seafood chains like Long John Silver’s are facing a challenging operating environment in the saturated restaurant market. Victor Fernandez, Chief Insights Officer at Black Box Intelligence, highlighted the intense competition in the restaurant industry, with many establishments struggling to maintain sales levels. According to data from Restaurant Dive, 9% of full-service restaurants experienced a significant decline in sales between 2019 and 2025, compared to just 4% in limited-service establishments.
Despite the popularity of seafood among consumers, the high prices associated with it continue to be a deterrent for many. As the restaurant industry grapples with intense competition and changing consumer preferences, seafood chains like Red Lobster and Long John Silver’s must find innovative ways to attract customers while addressing concerns about affordability. Only time will tell if these seafood chains can weather the storm and remain competitive in an increasingly challenging market. Amid a challenging economic environment in the second half of 2025, a significant number of full-service and limited-service restaurant locations experienced a substantial decline in sales. According to Black Box, 3% of full-service restaurants and 1% of limited-service establishments saw more than half of their peak sales vanish over this period.
“The softening economy that took hold in the second half of 2025 pushed many of those struggling units past the point of viability,” noted Fernandez, an industry expert. He added, “That tips [them] over the edge,” indicating that the economic downturn had severe consequences for these businesses.
As a result of these financial pressures, many distressed units were forced to close their doors permanently. Among them was a seafood chain, Long John Silver’s, which shuttered over 30 locations in response to the challenging operating environment.
This trend of store closures and financial distress is not unique to Long John Silver’s, as evidenced by the recent announcement from the grocery giant Albertsons regarding plans to close more stores. The impact of the economic downturn is being felt across the retail and restaurant sectors, leading to increased closures and operational challenges for many businesses.
This article was originally published by TheStreet on Jul 29, 2026, in the Restaurants section. For more industry news and updates, be sure to follow TheStreet as a preferred source by clicking here.
