Seafood restaurant chains are the latest to face financial turbulence as Americans cut back on spending, leading to a decline in sales.

Joe’s Crab Shack is one of the latest casualties. The chain, once boasting around 150 venues, has seen its numbers dwindle to a mere 14 locations, reflecting a nearly 90% drop similar to the struggles faced by Red Lobster.

In Jacksonville, Florida, the Joe’s Crab Shack site is set to undergo a transformation. Its parent company, Landry’s, plans to reopen it as a Bubba Gump Shrimp Company restaurant on January 24.

Terry Turney, the COO of Joe’s Crab Shack, expressed gratitude towards the dedicated staff, stating, “We appreciate our Joe’s Crab Shack team members and are committed to finding them positions at other nearby restaurants during this transition to a Bubba Gump Shrimp Co.”

This predicament is shared by another Landry’s brand, McCormick & Schmick’s, a steakhouse chain, which has also seen its numbers shrink to just 13 locations earlier this month.

Joe’s got its start in Houston in 1991, a beach themed casual eatery offering signature seafood boils and steam pots along with other iconic items like fried shrimp.   

The concept took off after Landry’s acquisition in 1995 until its sale to JCS Holdings in 2006.

JCS rebranded as Ignite Restaurant Group and was running 122 locations of Joe’s Crab Shack when it declared bankruptcy in 2017. Landry’s scooped the chain back up, and like McCormick & Schmick’s, its footprint rapidly began to shrink.

Joe’s Crab Shack (pictured) is the latest seafood restaurant chain to fall

Joe’s got its start in Houston in 1991, a beach themed casual eatery offering signature seafood boils and steam pots along with other iconic items like fried shrimp

The staple menu has stayed largely the same over the years, with customers still choosing between crab prepared to their liking or steam pots

The chain fared even worse in 2024 than Red Lobster’s infamous collapse, according to National Restaurant News, shutting down a third of its locations – from 30 to 20 – as sales plunged 27.5 percent.  

The staple menu has stayed largely the same over the years, with customers still choosing between crab prepared to their liking or steam pots – coastal–style seafood boils packed with shellfish, sausage, corn, and potatoes. 

What has changed over time is the seafood consumers themselves.

A pullback in eating out during the pandemic, along with more consumers cooking seafood at home, has strained the whole seafood restaurant industry.

The GLP-1 revolution has also put a dint on restaurant eating, as the effective weight loss drugs grow in popularity, leaving Americans less hungry for massive restaurant portions. 

Now, if you want to find a Joe’s Crab Shack for a steaming bucket of seasonal seafood, just 14 remain in seven states, but maybe it will manage to claw back some success like Red Lobster. 

That iconic seafood chain fell on hard times in 2024 after its well-publicized promotion, all-you-can-eat shrimp for $20, was permanently added to menu. Raising it to $27 didn’t do anything to curb the American appetites.

One customer even boasted of eating 108 shrimp in four hours, and others joined in the gluttony costing Red Lobster’s majority owner Thai Union $11 million in just three months.

The once-popular chain has been whittled down from about 150 locations to just 14 – a nearly 90 percent collapse 

if you want to find a Joe’s Crab Shack for a steaming bucket of seasonal seafood, just 14 remain in seven states

Red Lobster fell on hard times in 2024 after its well-publicized promotion, all-you-can-eat shrimp for $20, was permanently added to menu (pictured: Red Lobster CEO Damola Adamolekun)

Remarkably, this was the second time Red Lobster made this mistake, after a 2003 promotion for endless crab led to costing the chain $3.3 million in losses, dunking its stock price and ending the tenure of its then CEO.

But seafood isn’t the only restaurant brand that have been taken down in the past few years. 

Coffee chains, like Starbucks, which closed 400 locations during its restructuring, and fast food mainstays like Wendy’s all took hits in 2025.

Fast casual brands like Denny’s, TGI Fridays and Applebees also haven’t fared any better.