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Thu Dec 20, 2012, 11:27 AM

Olive Garden, Red Lobster See Sharp Drop In Profits After Anti-Obamacare Campaign Backfires

Olive Garden, Red Lobster See Sharp Drop In Profits After Anti-Obamacare Campaign Backfires

By Rebecca Leber

Ever since Darden Restaurants — the owner of the Olive Garden and Red Lobster chains — first announced its anti-Obamacare campaign, the company has had a tough couple of months. Darden admitted as much when it revised its predictions for latest quarterly earnings down in December, attributing the drop to “recent negative media coverage on Darden and how we might accommodate healthcare reform.”

The negative press led the company to reverse course on its threat to shift employees to part-time status to avoid covering them under Obamacare. The latest report on Darden’s earnings prove that was a good move, since the restaurants did take a turn for the worse as a result of their bad publicity. Its net income fell 37 percent:

The decline in traffic comes despite the company’s efforts to revamp the menus and marketing for its flagship chains. At Olive Garden, the company rolled out an updated advertising campaign and introduced more light and affordable dishes. At Red Lobster, it added options for people who don’t like seafood.

But the company said revenue at U.S. restaurants open at least a year fell 2.7 percent for its three biggest chains during the quarter; it fell 3.2 percent at Olive Garden, 2.7 percent at Red Lobster and 0.8 percent at LongHorn Steakhouse. The figure is a key metric because it strips out the impact of newly opened and closed locations.

- more -

http://thinkprogress.org/health/2012/12/20/1365461/olive-garden-red-lobster-see-sharp-drop-in-profits-after-anti-obamacare-campaign-backfires/



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Reply Olive Garden, Red Lobster See Sharp Drop In Profits After Anti-Obamacare Campaign Backfires (Original post)
ProSense Dec 2012 OP
Panasonic Dec 2012 #1
closeupready Dec 2012 #2
loudsue Dec 2012 #11
closeupready Dec 2012 #14
still_one Dec 2012 #3
tk2kewl Dec 2012 #4
kentauros Dec 2012 #12
Doctor_J Dec 2012 #5
cascadiance Dec 2012 #9
jillan Dec 2012 #6
cascadiance Dec 2012 #7
Sarah Ibarruri Dec 2012 #8
loudsue Dec 2012 #10
Crowman1979 Dec 2012 #13
Initech Dec 2012 #15
Eric the Reddish Dec 2012 #16

Response to ProSense (Original post)

Thu Dec 20, 2012, 11:28 AM

1. Book this under "No Shit, Sherlock" file.

 

when you're invading other peoples bodies to try to control, expect people to find other business.

We have. Repeatedly.

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Response to ProSense (Original post)

Thu Dec 20, 2012, 11:29 AM

2. I wonder if the imperative of fiduciary duty to shareholders

could lead to some kind of lawsuit? That they knew, or should have known, that getting involved in politics as they did would have had a financial impact on profits?

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Response to closeupready (Reply #2)

Thu Dec 20, 2012, 12:35 PM

11. That's a good question. Any legal eagles care to weigh in? n/t

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Response to loudsue (Reply #11)

Thu Dec 20, 2012, 01:42 PM

14. If I were a liberal investor, I would certainly look at that angle.

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Response to ProSense (Original post)

Thu Dec 20, 2012, 11:31 AM

3. When you tell over 50% of the populous you don't believe in healthcare for everyone, they get what

they deserve


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Response to still_one (Reply #3)

Thu Dec 20, 2012, 11:48 AM

4. not to mention that most people would rather have their food prepared and served

people who can see a doctor when they're sick so that they can be healthy and not spread viruses or disease

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Response to tk2kewl (Reply #4)

Thu Dec 20, 2012, 12:50 PM

12. This is a most important point,

and something that the majority of Americans don't know about the food "industry". That is, if you are employed in that field, the common mantra from management is "If you aren't either dead or dying, you come into work or you're fired!" And having worked as a pastry cook before, I know that attitude firsthand.

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Response to ProSense (Original post)

Thu Dec 20, 2012, 11:55 AM

5. We can simultaneously Fight The Right while fighting

Obama's cave-ins. Olive Garden, Applebee's, Denny's, Red Lobster, Domino's, and Papa John will not be getting another penny from me until further notice. Not that they got much before.

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Response to Doctor_J (Reply #5)

Thu Dec 20, 2012, 12:30 PM

9. I've avoided Applebees for some time as they put too many lizards in their salads for my taste!

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Response to ProSense (Original post)

Thu Dec 20, 2012, 12:06 PM

6. Hello idiots! Liberals like to eat food too.

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Response to ProSense (Original post)

Thu Dec 20, 2012, 12:24 PM

7. I'd debated earlier this year going back to Red Lobster as a heavy Current TV advertiser...

Earlier I'd kept away from them for quite some time as some years back these restaurants were listed on the Rush Limbaugh sponsor list that people were boycotting then.

Thought perhaps new management, etc. had changed their direction when they were putting many ads out on Current. And then Darden pulls this crap on being anti-Obamacare, etc. Makes you wonder why they advertise on Current so much then. Hoping to get us to come in and ignore their other activities?

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Response to ProSense (Original post)

Thu Dec 20, 2012, 12:24 PM

8. If you wish to let Olive Garden know you will not be visiting their restaurant again....

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Response to ProSense (Original post)

Thu Dec 20, 2012, 12:31 PM

10. Do these asshole owners really think that faux news is telling them the truth...that Obamacare

is really unpopular? Are they really that stupid?

Fox is about 98% of what is wrong in this country right now. Some stupid people are believing their lies and propaganda.

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Response to ProSense (Original post)

Thu Dec 20, 2012, 01:37 PM

13. I make better Italian food than "Olive Garden" ever will.

And I'm not even Italian!

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Response to ProSense (Original post)

Thu Dec 20, 2012, 02:10 PM

15. Put this under "what the fuck did you think was going to happen" file.

If you publicly announce your intention to screw over your employees you will pay for it big time. We are fucking sick of wealthy sociopaths stomping on us and taking our pay for themselves.

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Response to ProSense (Original post)

Thu Dec 20, 2012, 02:22 PM

16. I'l let Nelson address this

 

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