Copyright The Street
Seafood has always been a challenging restaurant model simply because fish, shrimp, lobster, and other seafood only can be sourced from limited places. It’s an expensive model to operate simply because the seafood itself can’t be purchased cheaply and shipping it comes with its own costs and challenges. Restaurant prices have been increasing overall, but rising costs for restaurants have forced many to pass on price increases to consumers. “The rise in prices is particularly prevalent in seafood. Technomic found that prices for appetizers that include seafood increased 3.7% in 2023; prices for entrees with seafood jumped 1.2%, and sides with seafood jumped up 4.7% in price. Price hikes on other proteins have not been as significant, according to Technomic. Prices for entrees with poultry increased 1.3% over the last year, while prices for entrees with beef rose 2%,” Seafood Source reported. In a market place where prices have been rising broadly, seafood has been hit the hardest. “Menu prices overall continue to rise, so seafood dishes rising in cost is in line with the rest of the industry,” Technomic Editor Katie Belflower told SeafoodSource. “Additionally, the perceived health halo of seafood as compared to other proteins could be driving demand and, thus, driving prices.” It’s a situation which has contributed to a number of Chapter 11 bankruptcy filings in the seafood space, highlighted by Red Lobster, which has since emerged from bankruptcy with new owners. Now, another restaurant group that operates a seafood eatery has filed for Chapter 11 bankruptcy protection. Galbreath Restaurant Group files Chapter 11 bankrutpcy Galbreath Restaurant Group, which operates Goodrich Seafood & Oyster House has filed for Chapter 11 bankruptcy protection. The company plans to reorganize and the restaurant remains open. “Galbreath Restaurant Group’s state of financial troubles can be understood through its major liabilities to the Small Business Administration for an Economic Injury Disaster Loan (EIDL) and a series of high-cost merchant cash advances,” Whatsnow.com reported. The restaurant, which traces its roots back to 1910. “Over the decades, the business built a loyal following for its locally sourced seafood before being acquired by Galbreath Restaurant Group in 2010. The local prominence of Galbreath Restaurant Group was clearly observed in 2013 when the restaurant operator was mentioned in the ‘Emeril’s Florida’ program on Food Network,” according to the website. More Bankruptcy: Hollywood movie and TV company files for Chapter 11 bankruptcy Major seafood company files for Chapter 11 bankruptcy Women’s fashion company files Chapter 11 bankruptcy Despite being purchased by Galbreath Restaurant Group, Goodrich Seafood & Oyster has deep family roots. “The Goodrich family now spans 9 generations in this great little city. Goodrich Seafood was started about 1910 by brothers Jeff and Clarence Goodrich and did not initially include a restaurant. These Brothers were sons of Axson Quarterman and Ann Cleopatra Goodrich and had successfully operated the business until the retirement in the mid 1950s. At this time the business continues under the supervision of Jeff’s son Broward Goodrich,” the eatery shared on its website. Galbreath Restaurant Group/Goodrich Seafood & Oyster House Chapter 11 bankruptcy: The company filed a voluntary petition for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Middle District of Florida on November 4, 2025. The filing lists assets between US$500,000 and US$1 million, and liabilities between US$1 million and US$10 million. It shows between 50 and 99 creditors. The business is based in Oak Hill, Florida, and operates a full‑service restaurant under the brand Goodrich Seafood & Oyster House. The business cited several major financial burdens, including an outstanding loan from the Small Business Administration (EIDL) and high‑cost merchant cash advances. The filing appears structured as a reorganization under Chapter 11, which means the company intends to continue operations during the process rather than immediate liquidation. Source: PacerMonitor Recent seafood‑restaurant Chapter 11 filings Red Lobster filed for Chapter 11 on May 19 2024 in the U.S. Bankruptcy Court for the Middle District of Florida. It secured over US$100 million in debtor‑in‑possession financing. The chain remained open during proceedings and planned asset sale and location closures. The filing followed large losses (including from a problematic “Endless Shrimp” promotion) and mounting debt. The chain has exited Chapter 11 bankruptcy and continues to operate under new owners. Sources: redlobster.com, PacerMonitor Razzoo’s Cajun Café, a seafood‑centric dining chain, formally filed for Chapter 11 in early October 2025. Source: Nation’s Restaurant News Cozy Harbor Seafood (including subsidiaries Art’s Lobster Co., Inc. and Casco Bay Lobster) filed for Chapter 11 on July 1 2025. Source: PacerMonitor Seafood restaurants have struggled “Even if you factor out Red Lobster, which filed for Chapter 11 bankruptcy protection in May of 2024 and saw sales decline by 20.2%, the other 21 seafood chains within the Top 500 brought in $63 million, or about 1.6%, less than they did in 2023, according to Technomic. That’s compared to 3% growth for the industry as a whole,” Nation’s Restaurant News reported. That shows a broad weakness in the restaurant space because seafood restaurants generally appeal to higher income consumers. “Seafood restaurants tend to cater to higher-income consumers, who are comparatively recession-proof and who, unlike lower-income and middle class consumers, do not seem to be pulling back on restaurant spending,” the industry publication shared. Revenue Management Labs noted the Red Lobster bankruptcy which illustrates a broader pricing problem in the seafood restaurant space. “Endless shrimp is a perfect example of a company focusing on one or two metrics without considering the bigger picture. Originally a once-a-year event, they made it an everyday promotion last year. During this period, shrimp prices surged by over 10%. You can imagine customers indulging in 10-15 plates of shrimp with no margin left for the restaurant,” the analysts shared. There may also be another factor dragging down seafood restaurant sales. “One reason for the decline in sales at seafood restaurants is that consumers are cooking more seafood at home. A survey by the Food Industry Association released in March of 2024 found that home seafood consumption had grown to 59% compared to 53% a year earlier,” Nation’s Restaurant News added. Seafood sales, it should be noted, are rising, albeit slightly, according to data from Future Market Insights. “Over the projection period (2024 to 2034), global Seafood sales are projected to rise at a compound annual growth rate (CAGR) of 3.1% and reach a sales size of USD 149 billion by 2034 end,” the website reported.
