{"id":14088,"date":"2016-11-04T18:00:48","date_gmt":"2016-11-04T22:00:48","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/let-them-eat-lobster\/"},"modified":"2016-11-04T18:00:48","modified_gmt":"2016-11-04T22:00:48","slug":"let-them-eat-lobster","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/let-them-eat-lobster\/","title":{"rendered":"Let Them Eat Lobster!"},"content":{"rendered":"

Today\u2019s Lobster Market<\/u><\/strong><\/p>\n

\u201cUp in Maine, lobsters are thriving\u2026. Down the coast, however, the story is different. In southern New England, lobster stocks have plummeted to the lowest levels ever recorded, putting many lobstermen out of business\u201d \u2013 The New York Times8<\/sup><\/em><\/p>\n

The trend towards declining lobsters in southern waters is ominous. And climate change, is likely to blame.<\/p>\n

\u00a0<\/strong><\/p>\n

Climate Change Threatens the Future of the Lobster Market<\/u><\/strong><\/p>\n

Climate change has a significant effect on oceans: over the last 100 years, ocean temperatures have risen by about 1.3\u00b0F. For many species sensitive to rising ocean temperatures, this trend may ultimately prove deadly.7<\/sup><\/p>\n

And, lobsters happen to be one of those species.<\/p>\n

Climate change is closely \u201cassociated with the success of lobster recruitment in the Gulf of Maine.\u201d 2<\/sup> Data suggests that there exists \u201can optimal thermal condition\u2026 for some limiting stage in the life cycle of the lobster and [that] enhanced recruitment follows this optimum up and down the coast with each climatic oscillation.\u201d 2<\/sup> And, there seems to be a temperature threshold above which \u201cnatality or survival during early life history stages\u201d is acutely threatened.1<\/sup><\/p>\n

High temperatures that remain below the threshold \u201cmay be speeding up their metabolism, leading to the population boom.\u201d But, once the threshold is crossed, the lobsters are unable to survive.8<\/sup><\/p>\n

In water 5\u00b0F warmer than current conditions, lobster larva \u201cstruggle to survive.\u201d And, the United Nations\u2019 Intergovernmental Panel on Climate Change expects the Gulf of Maine\u2019s temperature to increase by 5\u00b0F in 2100.9<\/sup><\/p>\n

Therefore, climate change poses a significant threat to Luke\u2019s Lobster and other Maine-style lobster restaurants.<\/em><\/strong><\/p>\n

\u00a0<\/em><\/strong><\/p>\n

Luke\u2019s Lobster Overview<\/u><\/strong><\/p>\n

Founded in 2008<\/strong><\/p>\n

Mission<\/strong>: Serve traceable sustainable Maine-style seafood<\/u> to guests around the country<\/p>\n

Early Success:<\/strong> $20.9 million sales in 2015, projected to reach $42 million in 2018. 19 Luke\u2019s Lobster restaurants, with plans to expand to nearly 60 restaurants by 2020.3<\/sup><\/p>\n

Concept:<\/strong> Keep stores minimal, take orders at the counter to reduce overhead, serve high volume seafood to enable low margins, and \u201coffer a product that is so fresh it doesn\u2019t seem like fast food.\u201d4<\/sup><\/p>\n

Strategy:<\/strong> Complete vertical integration, providing complete \u201cocean to table\u201d service.3<\/sup><\/p>\n

\u00a0\"sustainable\"<\/a><\/u><\/strong><\/p>\n

 <\/p>\n

Control Through Vertical Integration<\/u><\/strong><\/p>\n

Vertical integration enables Luke\u2019s Lobster to better control the following:<\/p>\n