Recently, Cousins Maine Lobster announced they will close their restaurant inside Morgan Street Food Hall in downtown Raleigh from September 1st onwards. A popular food brand known for its fresh Maine lobster rolls, first became famous after appearing on Shark Tank in 2012.
Back then, their famous lobster roll cost $13, a fair price for a special treat. But now, in 2024, the same roll costs $22. This big jump in price has caused some problems for the business. So What happened to the Cousins Maine Lobster?
From Food Trucks to a Real Restaurant
After their big success on Shark Tank, Cousins Maine Lobster decided to expand. They moved from just food trucks to opening real restaurants, including one at Morgan Street Food Hall in Raleigh.
They wanted to take advantage of their growing popularity and give customers a regular place to enjoy their famous lobster rolls.
However, running a restaurant is different from running a food truck. It costs more money because of things like rent, utilities, and paying more staff.
Unlike food trucks, a restaurant needs steady customers to cover these high costs. But in a busy food hall with lots of cheaper food options, the high prices at Cousins Maine Lobster started to become a problem.
The Problem with High Prices
When Cousins Maine Lobster appeared on Shark Tank, their $13 lobster roll was seen as a nice, affordable luxury. But now, with the price at $22, many customers think it’s just too expensive. People started to complain.
One customer wrote, “I paid $22 for a ‘lobster’ grilled cheese lol,” while another said, “They were good but not affordable for lunch!!”
The increase in price over the years, even if it was because of rising costs, turned many people away. In a place where other vendors offer cheaper options, Cousins Maine Lobster’s high prices began to hurt their business.
As one person put it, “If you charge more than $10/item on your food truck, you deserve to go under.”
Customers Push Back
The high prices didn’t sit well with many customers. Some felt they were being charged too much for a casual dining experience. Many people shared their frustration online, saying things like “They priced themselves out,” and “Try not charging an arm and a leg.”
These comments showed that the market didn’t like Cousins Maine Lobster’s high prices. The gap between what the business thought it was worth and what customers were willing to pay was getting wider. With more competition and changing customer expectations, the restaurant started losing customers.
Tough Times for Businesses
Besides the pricing issues, Cousins Maine Lobster faced other challenges. The cost of renting a spot in Raleigh, especially in a busy area like Morgan Street Food Hall, kept going up. This made it hard for many businesses to survive.
As one commenter said, “Commercial rentals are getting pretty expensive in the area, it makes it harder on businesses to survive.”
There were also complaints about the food hall itself. Some customers said it was dirty and needed better cleaning. One customer mentioned, “Morgan Street Food Hall is gross… it needs a seriously big spray down with bleach and a good scrub.” These issues added to the problems facing Cousins Maine Lobster.
The Decision to Close
With fewer customers or due to rising costs, Cousins Maine Lobster has decided to make a tough choice. They decided to close their Raleigh restaurant.
In a heartfelt message on Facebook, the company announced the closure, thanking their customers and staff for their support. They set the last day for the restaurant as August 31.
But this was not the end for Cousins Maine Lobster. They decided to go back to what they knew best—their food trucks.
Food trucks cost less to run and can move to where the customers are. This gave them a better chance to succeed in tough economic times.
