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Gulf Coast Seafood Scandal: 60% of restaurants falsely advertise imported shrimp as local, study says

‘I’ll bet diners have no idea how much they are being duped.’

Shrimp from Galveston and Kemah restaurants used during the study conducted by SeaD Consulting. (SeaD Consulting, Copyright 2025 by KPRC Click2Houston - All rights reserved.)

GALVESTON, Texas – Imagine dining at a coastal Texas restaurant, savoring what you believe to be locally caught Gulf shrimp, only to discover it’s actually imported and farm-raised—this is the reality for many unsuspecting diners in Galveston and Kemah.

A recent investigation has uncovered ‘seafood fraud’ at restaurants in Galveston and Kemah.

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The study, conducted by SEAD Consulting, revealed that roughly 60% of the tested restaurants were serving imported shrimp while implying they were offering Texas wild-caught Gulf shrimp.

SEE ALSO: Where Houston restaurants get the most fresh and flavorful produce from farm to table

This misrepresentation not only deceives consumers but also poses a threat to the local shrimping industry and the regional economy.

“The local Gulf shrimp we pull in is now sold for less than $1.00 per pound, when it used to be $3.00 a pound, because of these deceptive practices. A 60% fraud rate is not shocking to me, but I’ll bet diners have no idea how much they are being duped”, said Galveston Commercial Shrimper and Texas Shrimp Diva Nikki Johnson-Kunz.

The investigation involved genetic testing of shrimp samples from 44 restaurants, revealing that 26 of them were serving imported, farm-raised shrimp instead of the Gulf shrimp they claimed to offer.

Shrimp from Galveston and Kemah restaurants used during the study conducted by SeaD Consulting. (Copyright 2025 by KPRC Click2Houston - All rights reserved.)

This practice was found to be rampant, with several restaurants explicitly advertising Gulf shrimp on their menus while serving imported varieties.

The fraudulent labeling has led to higher costs for these dishes, misleading tourists and locals into believing they are consuming authentic Gulf shrimp.

The implications of this seafood fraud are far-reaching.

“We take pride in supporting local shrimpers because it’s a better-quality product and is what we are promising on the menu“, said Raz Halili, Owner of Prestige Oysters and Pier 6 Seafood, a restaurant not tested but known by wholesalers to source and purchase Gulf Shrimp and label appropriately. “We are in a time where Americans are concerned about where their food sources are coming from in general, and rightfully so. Anyone who’s serving imported shrimp and calling them local should take a good look in the mirror and start doing the right thing. It’s not hard to source local shrimp. It’s pathetic for restaurants to be using imported shrimp and portraying them as local. There’s not enough of a price difference for anyone to be doing that.”

MORE STORIES ABOUT SEAFOOD

Honest shrimpers face unfair competition from restaurants falsely claiming to serve Gulf shrimp, which undermines the industry’s integrity.

It’s not just the shrimpers who are taking a hit in the wallet. Consumers are being deceived, often paying a premium for what they believe is high-quality, locally sourced seafood.

To combat this issue, the investigation highlights the need for accountability in seafood sourcing and dining transparency. Tools like SEAD’s Rapid ID Genetic High-accuracy Test (RIGHTTest) can help ensure shrimp authenticity, while increased consumer awareness and stronger regulations are crucial in promoting fair practices.

Several local restaurants have been confirmed to serve genuine Gulf shrimp. Here’s a list that SeaD Consulting shared to be true:

  • Benno’s Cajun Seafood
  • Black Pearl Oyster Bar
  • BLVD Seafood
  • Coopers Landing
  • Fish Company Taco
  • Gaido’s
  • Katie’s Seafood House
  • Kritikos Grill
  • Little Daddy’s Gumbo Bar
  • Mario’s Seawall Italian
  • Miller’s Seawall Grill
  • Outriggers
  • Nick’s Kitchen & Beach Bar
  • Sunflower Bakery & Café
  • Shrimp N’ Stuff
  • The Gumbo Diner
  • The Spot
  • Yaga’s Café

The findings of this investigation serve as a wake-up call for stronger measures to combat seafood fraud in Galveston and Kemah.

Check out KPRC 2′s Eat Like a Local with Chris Shepherd

By promoting transparency, raising consumer awareness, and supporting local industries, the region can reclaim its reputation for authentic Gulf seafood and protect the livelihoods of its shrimpers.


About the Author
Gage Goulding headshot

Gage Goulding is an award-winning TV news reporter and anchor. A native of Pittsburgh, PA, he comes to Texas from Fort Myers, FL, where he covered some of the areas most important stories, including Hurricane Ian.

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