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Amerigo Vespucci

(30,885 posts)
Mon Jun 25, 2012, 02:18 PM Jun 2012

Olive Garden, Red Lobster Struggle To Revive Sales (O.G. "didn't emphasize value enough")



http://www.huffingtonpost.com/2012/06/22/olive-garden-red-lobster-sales_n_1620102.html

NEW YORK -- Darden Restaurants Inc. is struggling to revive sales at its flagship Olive Garden and Red Lobster restaurants. A key sales figure fell at the chains during the latest quarter, and the company issued a profit forecast that fell short of Wall Street expectations.

The Orlando, Fla.-based restaurant operator has been reworking the menu and pricing to reverse declining sales at Olive Garden, which is its biggest chain and accounts for almost half its revenue. The 10 percent rise in Darden's net income for the quarter came primarily from the opening of new locations, including those for its smaller specialty chains.

Revenue at Olive Garden restaurants open at least a year fell 1.8 percent in the quarter. At Red Lobster, the figure fell 3.9 percent. The metric is an indicator of health because it strips out the effect of newly opened and closed stores.

Darden attributed the drop at Olive Garden in part to its "Taste of Tuscany" promotion, which it said didn't emphasize value enough at a time when diners are watching their budgets and have so many more casual dining options.
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Olive Garden, Red Lobster Struggle To Revive Sales (O.G. "didn't emphasize value enough") (Original Post) Amerigo Vespucci Jun 2012 OP
Que the series of Olive Garden jokes... I've been there once in my life. But, I don't want hlthe2b Jun 2012 #1
A while back, a DUer who used to work at Red Lobster posted... Amerigo Vespucci Jun 2012 #8
someone must make their cheese biscuits. but as for the rest I can't say I'm surprised... hlthe2b Jun 2012 #13
The cheddar biscuits come from a mix. antigone382 Jun 2012 #17
I'm thinking they probably have a few deep fryers to go along with those microwaves... Puddy Jun 2012 #26
Didn't Darden restaurants announce last year B2G Jun 2012 #2
Perhaps they should try selling real food, MadHound Jun 2012 #3
You read my mind (see my response directly above). n/t Amerigo Vespucci Jun 2012 #9
Chicken? UnrepentantLiberal Jun 2012 #10
We used to go to Olive Garden Woody Woodpecker Jun 2012 #20
Here in Cleveland there are tons of mom and pop Italian restaurants.... WCGreen Jun 2012 #30
I saw the CEO on CNBC last week grasswire Jun 2012 #4
Fear? Turbineguy Jun 2012 #6
I guess radiation and oil Politicalboi Jun 2012 #5
Better use those gift cards TeamPooka Jun 2012 #7
business is down because that demographic has less money. HiPointDem Jun 2012 #11
RL is in a classic squeeze. Customers are being drained by the 1%, and RL's cash by the CEO and SDjack Jun 2012 #16
I can eat at 1/2 dozen local Italian places nearby Mosby Jun 2012 #12
We went to Olive Garden a few years ago railsback Jun 2012 #14
The paycheck ain't a lot to miss. antigone382 Jun 2012 #18
Other than their biscuits, I'm not a fan of Red Lobster Freddie Stubbs Jun 2012 #15
My Local Olive Garden Is Usually Crowded Dirty Socialist Jun 2012 #19
This message was self-deleted by its author SalviaBlue Jun 2012 #24
I haven't been to either of them in years. lpbk2713 Jun 2012 #21
I get suspicious when the food all looks the same and moves on its own TrogL Jun 2012 #22
The real question is: how are sales at the Times Square Olive Garden? Make7 Jun 2012 #23
Maybe they should focus more on real food and service, and less so on right-wing politicians Hugabear Jun 2012 #25
OG and RL are like Wal*Mart. The sooner they close, the sooner local eateries will recover. leveymg Jun 2012 #27
Time to allow breastfeeding. FLAprogressive Jun 2012 #28
Darden also owns Seasons 52... meaculpa2011 Jun 2012 #29
When people lose jobs and their incomes drop they don't eat out - TBF Jun 2012 #31
I love taking dates to Olive Garden... sadbear Jun 2012 #32
It's my fault Olive Gardens are failing TlalocW Jun 2012 #33

hlthe2b

(101,700 posts)
1. Que the series of Olive Garden jokes... I've been there once in my life. But, I don't want
Mon Jun 25, 2012, 02:21 PM
Jun 2012

either to fail... More so Red Lobster, although I am not a frequent customer there either.

Amerigo Vespucci

(30,885 posts)
8. A while back, a DUer who used to work at Red Lobster posted...
Mon Jun 25, 2012, 02:50 PM
Jun 2012

...that there are no "chefs" at Red Lobster. Everything is nuked in the microwave. They have employees who re-heat food in the microwave. That's it. Nothing is "cooked," just "nuked."

hlthe2b

(101,700 posts)
13. someone must make their cheese biscuits. but as for the rest I can't say I'm surprised...
Mon Jun 25, 2012, 02:58 PM
Jun 2012

Last edited Mon Jun 25, 2012, 05:03 PM - Edit history (1)

But, since i generally only go for the steamed shrimp, I suppose it doesn't really matter.

Few restaurants now-a-days truly cook everything from scratch-- thus I don't feel like eating out much, even if money were not an issue. I can eat processed food all day, if that was my goal--and it is NOT. Perhaps others are feeling similarly.

antigone382

(3,682 posts)
17. The cheddar biscuits come from a mix.
Mon Jun 25, 2012, 04:36 PM
Jun 2012

They're mixed with water and shredded cheddar cheese, and then brushed with a version of the scampi sauce--a mix of a buttery vegetable oil, a bag of seasonings, but without the white wine. At least that's how they made them when I worked there a couple of years ago.

I don't even know if they still make the scampi sauce in the restaurants, given that the shrimp scampi now comes in pre-frozen little disks, complete with a dollop of frozen sauce, all the way from their processing plant somewhere in Southeast Asia (Viet Nam or the Philippines, I forget where). You just pop the little frozen arrangement in the scampi dish and run it through the broiler.

Everything is not microwaved. There's a steamer, a grill, and a broiler. But the veggies and most of the sauces that go on the pastas, etc. are microwaved, and most everything comes frozen solid--the shellfish, soups, sauces, mashed potatoes, etc--to be thawed and mixed as minimally as possible.

Fresh fish and fresh produce do come in a few times a week. But a lot of things are basted with super-salty, MSG heavy seasonings. Some things are done well, but all in all I don't really miss it much.

Puddy

(51 posts)
26. I'm thinking they probably have a few deep fryers to go along with those microwaves...
Mon Jun 25, 2012, 06:06 PM
Jun 2012

but I believe that poster is mostly right. I've always thought their baked potatoes tasted nuked.

 

B2G

(9,766 posts)
2. Didn't Darden restaurants announce last year
Mon Jun 25, 2012, 02:21 PM
Jun 2012

That they were changing their menus to reduce calories and sodium?

I guess folks aren't liking the change.

 

MadHound

(34,179 posts)
3. Perhaps they should try selling real food,
Mon Jun 25, 2012, 02:23 PM
Jun 2012

Prepared by real people from scratch. Not this frozen, pop in the microwave shit that currently passes as their standard fare.

 

Woody Woodpecker

(562 posts)
20. We used to go to Olive Garden
Mon Jun 25, 2012, 04:47 PM
Jun 2012

when we could get a fresh one for the same price elsewhere - a bistro nearby called Nonna's Chicago Bistro is a current favorite.

WCGreen

(45,558 posts)
30. Here in Cleveland there are tons of mom and pop Italian restaurants....
Mon Jun 25, 2012, 06:15 PM
Jun 2012

I use to stop in at Olive Garden for their salad and soup lunch.

But for Italian Food, Frankie's or Angelo's are my first bet and for fish, many local options.

My aunt use to love going to the Lobster so we would take her a couple times a year.

grasswire

(50,130 posts)
4. I saw the CEO on CNBC last week
Mon Jun 25, 2012, 02:24 PM
Jun 2012

He attributed the downturn in their business to economic fear in the consumers. Fear driven by European economics, and fear at home. I was surprised at his bluntness.

SDjack

(1,448 posts)
16. RL is in a classic squeeze. Customers are being drained by the 1%, and RL's cash by the CEO and
Mon Jun 25, 2012, 04:23 PM
Jun 2012

senior managers. Restaurant margins are just too thin to carry a large super-structure.

Mosby

(16,158 posts)
12. I can eat at 1/2 dozen local Italian places nearby
Mon Jun 25, 2012, 02:58 PM
Jun 2012

that cost the same as Olive Garden but are WAY better.

Red Lobster needs to start selling fish again, instead of just shrimp and lobster.

 

railsback

(1,881 posts)
14. We went to Olive Garden a few years ago
Mon Jun 25, 2012, 03:24 PM
Jun 2012

and it was ok. Then, for some reason - maybe for nostalgic reasons - my oldest daughter wanted to celebrate her final day in 5th grade by going there again. What a difference a few short years make. Smaller portions, tasteless, the kids menu (for my youngest daughter) was now a crappy black and white xerox with one crayon, and the desserts were really tiny. This is what happens when corporations favor quantity (money) over quality. We'll never waste money there again, and I'm sure that's a general consensus among former consumers. I don't think the disappearance of Olive Garden is going to make anyone sad.. other than those who work there for a paycheck.

antigone382

(3,682 posts)
18. The paycheck ain't a lot to miss.
Mon Jun 25, 2012, 04:38 PM
Jun 2012

Speaking as a one-time Darden employee. I've never worked in a place that combined such a high stress level with so few rewards.

Response to Dirty Socialist (Reply #19)

lpbk2713

(42,696 posts)
21. I haven't been to either of them in years.
Mon Jun 25, 2012, 04:49 PM
Jun 2012



I usually try to avoid the mega chain restaurants. I find them too noisy and impersonal.
Give me the established local mom and pop operation any time.

Hugabear

(10,340 posts)
25. Maybe they should focus more on real food and service, and less so on right-wing politicians
Mon Jun 25, 2012, 06:00 PM
Jun 2012

For those who aren't aware, Darden is a very heavy sponsor of right-wing politicians

http://www.opensecrets.org/pacs/lookup2.php?strID=C00108282

leveymg

(36,418 posts)
27. OG and RL are like Wal*Mart. The sooner they close, the sooner local eateries will recover.
Mon Jun 25, 2012, 06:11 PM
Jun 2012

They offer nothing but blandness and uniformity to a country that already has too much of both.

meaculpa2011

(918 posts)
29. Darden also owns Seasons 52...
Mon Jun 25, 2012, 06:14 PM
Jun 2012

and The Capital Grille. Great food, great service. If they can import these concepts to their other brands they might lift them up. I've been to the Olive Garden once and same with Red Lobster. The Olive Garden is to Italian cuisine what Castrol GTX is to extra virgin olive oil.

BTW: Drinks and dinner at Season's 52 was very reasonable and the food was outstanding. The Capital Grille, expensive, but they make an incedible dry-aged porterhouse and everythinhg else is fabulous. It's a once-in-awhile splurge.

TBF

(31,919 posts)
31. When people lose jobs and their incomes drop they don't eat out -
Mon Jun 25, 2012, 06:34 PM
Jun 2012

and they especially aren't going to choose over-priced food if they do manage to eat out.

Welcome to the new 3rd World United States of America.

TlalocW

(15,358 posts)
33. It's my fault Olive Gardens are failing
Mon Jun 25, 2012, 06:57 PM
Jun 2012

I normally get my orders to go, and I insist on the all you can eat salad and breadsticks along with it.

TlalocW

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