Once-Popular Seafood Restaurant Known For Crab Legs Down To Just 15 Locations

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It's a sad day for seafood lovers, especially those with a fervent desire for crab legs. Joe's Crab Shack is reportedly struggling as the restaurant steadily cuts down the number of its locations around the U.S. Based on the website, the chain currently operates a mere 15 locations throughout seven states, including Texas, California, Tennessee, Missouri, South Carolina, Kentucky, and Florida. This is a stark contrast to more lucrative times at the restaurant, as Joe's Crab Shack purportedly operated roughly 150 restaurants at one point. 

As for what's contributing to these closures, Landry's Restaurants Group (parent company of Joe's Crab Shack and other establishments) hasn't shared any comments publicly about the spate of closures. In some instances, restaurants have shut down after failure to renew leases. In others, Joe's Crab Shack locations have been converted to other restaurants within Landry's portfolio. It's worth mentioning that the chain fell into the "worst" category in our ranking of the best and worst reviewed seafood restaurants in America. For instance, diners at the restaurant's Myrtle Beach, South Carolina location (courtesy of Yelp) complained of rubbery calamari, spotty service, and puny shrimp. As one customer stated, "Sitting here blown away at just how horrible [Joe's Crab Shack] has become."

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This isn't the first time Joe's Crab Shack has found itself in hot water. Back in 2017, the chain's previous owner Ignite Restaurant Group filed for bankruptcy, which was quickly followed by the closures of approximately 40 locations. While the chain was able to weather the storm since the previous filing, its recent troubles highlight the complicated economic landscape that many dining establishments face these days. There's no denying that dining out has become exceedingly expensive thanks to factors like increasing labor costs and food inflation. In particular, seafood restaurants face additional strife as this dining concept becomes less appealing to consumers. 

As reported by Seafood Source, overall foot traffic to seafood restaurants decreased by 1% in 2024, and many establishments have experienced declining sales figures. Then there's the alarming decrease in snow crabs within the Bering Sea, which has caused an increase in the price of crab over the last few years. These factors make it doubtful that Joe's Crab Shack will be able to stage a meaningful comeback in the days and weeks to come. In the event that the restaurant's parent company decides to shutter the chain, it's possible that Landry's Restaurants Group will pivot the remaining locations to another food brand. The company is at the helm of numerous restaurants, including Houlihan's, Morton's Steakhouse, and Del Frisco's Grille.