'I am hurt': Red Lobster loyalists saddened by Tosa closure; auction for restaurant items ends Thursday

 

WAUWATOSA, Wis. (CBS 58) -- When she pulled into the parking lot of the Red Lobster on Mayfair Road Wednesday afternoon, Blossom Grant was ready to celebrate.

As a regular diner at this location, estimating she and her husband eat here once a month, Grant said she was craving just one thing for her birthday: the shrimp scampi and Cheddar Bay Biscuits she loves.

"[My husband] said, 'Well we'll do it this weekend,'" Grant said. "I'm like, 'No, I wanna go today.' Today is my birthday. I'm going today!"

However, Grant soon realized her birthday wishes had been 86'd. There was not a single car in the lot, alerting her something was off. At that point, a CBS 58 reporter notified her the location had closed. It was one of two Wisconsin Red Lobster stores to abruptly close Monday, with the La Cross location also shutting down.

The state's other six Red Lobsters remain open in Appleton, Ashwaubenon, Eau Claire, Greenfield, Madison and Mount Pleasant.

"I am hurt," Grant said. "I'm very hurt. I'm disappointed."

The contents of those shuttered stores are now up for auction. TAGeX Brands is running that auction, calling it "the biggest restaurant equipment auction ever."

Neal Sherman, CEO of TAGeX, said he'd gotten wind the closures were coming several days before they happened.

"We've known the people involved in the management of Red Lobster for many years," he said. "And these things come together fairly quickly, so in the last couple weeks [we found out.]"

Sherman said the closures are indicative of a country whose dining habits are shifting. Higher-quality fast-food options, along with the proliferation of delivery services have cut into the market share of longtime sit-down restaurant chains.

"I think a certain percentage of the casual dining space has gone to the fast-casual, the higher-end fast food, like Chipotle and Cava and some of these other ones," Sherman said. "And I think delivery has taken a big chunk out of the business, as well."

TAGeX is auctioning all of a restaurant's contents as a single option. That includes kitchen equipment, such as refrigerators, freezers and ovens, as well as dining room furniture. 

Sherman said timing was the main reason for the decision to confine each store's contents to a single auction. The Wauwatosa auction ends Thursday morning at 8:30 a.m. As of Thursday night, the highest bid was $4,900. 

Sherman said once upon a time, wholesale businesses would typically be the only players for such auctions. Now, he said independent restaurant groups are often interested in collecting such a wide array of equipment.

"They have multiple concepts, these restaurants," Sherman said. "They have needs for equipment across different operations and new ventures they get involved with."

Those most affected by the sudden closure were workers who learned they were out of work. Sherman said if there is a silver lining in such scenarios, other restaurants will typically try to immediately recruit the laid-off staff.

A sign posted on the front door Wednesday encouraged people to call a business called the "Starboard Group" and speak to Colin. The Starboard Group listed online boasts of owning several franchise locations in multiple states, including Wisconsin. A search of online job postings under Starboard shows openings at Applebee's, CiCi's Pizza and Subway restaurants.

A CBS 58 reporter called the number Wednesday, and a person who answered said he was Colin. After saying nobody had yet reached out to inquire about a job, Colin asked if the reporter was calling about a "job opportunity" before declining to answer more questions. 

Meanwhile, the parking lot was packed Wednesday evening at the Greenfield Red Lobster location. As they walked in, one family said news of the closures influenced their decision to eat there. 

For Grant, another location's survival was cold comfort. She had no interest in traveling to the southwestern suburb about 15 minutes away after already coming from the city's northwest side.

"I have to drive such a long ways to get there," she said.