Another top Red Lobster leader out the door

CFO leaving to be president of Keke’s Breakfast Cafe

The revolving door of top management at Orlando-based Red Lobster is continuing, and it opens at Denny’s.

David Schmidt, who started in March as the chief financial officer at Red Lobster, is becoming president of Keke’s Breakfast Cafe, which South Carolina-based Denny’s bought earlier this year.

He follows Kelli Valade, who was named CEO and president of Denny’s after her resignation as CEO of Red Lobster in April, where she had spent just eight months on the job.

She took the helm at Red Lobster last August after the retirement of the brand’s longtime leader Kim Lopdrup.

“This sometimes is the problem with being in a company that is undergoing management change, is that it has an effect up and down the ranks in terms of difficulty in recruiting people,” said San Diego-based restaurant analyst John Gordon.

“Anytime there’s a change at the CEO level, then that causes change all throughout the organization.”

Gordon, who in April said Valade leaving Red Lobster after just eight months was “very, very, very bad,” said Thursday it is, “very regular and routine that you would find executives from one company following their boss to another company.”

Schmidt will report to Valade at Denny’s. The Orlando Sentinel asked for an interview with Valade or

Schmidt on Friday, but they were not available.

Schmidt started at Red Lobster on March 14 and his last day is Sept. 9, according to a statement sent by Red Lobster spokeswoman Nicole Bott.

“David Schmidt has made the decision to leave Red Lobster,” the statement said. “While we are sad to see him go, this is a great new leadership opportunity for him, and we wish him all the best.”

Schmidt, a 30-year restaurant veteran, had also worked as group vice president and CFO of casual dining brands at Tampa’s Bloomin’ Brands. He has also worked as president of Bonefish Grill.

Denny’s completed its acquisition of Keke’s in July. The 52-restaurant breakfast and lunch spot started in 2006 in Orlando as Florida Waffle Shop.

Schmidt starts as president of Keke’s on Sept. 12. Denny’s has said it is looking to expand Keke’s beyond Florida.

Red Lobster, meanwhile, has experienced significant change over the past couple of years.

In 2020, seafood supplier and Red Lobster stakeholder Thai Union along with a group of investors and Red Lobster management acquired the rest of the 700-restaurant chain from private equity firm Golden Gate Capital.

The investor group in the deal was named Seafood Alliance and included key shareholder Paul Kenny, former CEO of Asia’s Minor Food.

Kenny, a Red Lobster board member, was expected to be a “liaison” between Red Lobster’s leadership and the board after Valade’s departure.

Schmidt