Red Lobster's $20 promotion backfired, signaling how desperate diners are for cheap deals

• Red Lobster introduced a $20 all-you-can eat shrimp promotion that backfired. 
• The chain said they underestimated the response for the "very cheap" deal, which led to losses.
• Diners face sticker shock at restaurants. They're clearly seeking value, a Red Lobster exec said. 

Americans are hungry for cheap deals. Red Lobster learned that the hard way.

In its latest quarter, profits tanked due to an overwhelming response to the chain's $20 Ultimate Endless Shrimp deal.