Olive Garden and Red Lobster In Financial Trouble

Olive Garden and Red Lobster In Financial Trouble


Back in the day, there were restaurants that were favorites for upscale dining.  Folks got dressed up and looked forward to this special night and men always chose these select restaurants if they wanted to show their date they love them or…well…for other reasons.  But now that society has gone “casual” on nearly everything, these restaurants have transformed with the times.  But there are many more options for casual dining and the old favorites have gone by the wayside as many more casual options have sprung up over the years.

Olive Garden and Red Lobster lost their upscale tag long ago and are being frequented less and less…although some of you are thinking, “What the hell?  I was there last night with me and my crew!”  Well, if that is the truth, maybe that’s the reason a lot of folks are abandoning the restaurant chain and trying other local restaurants and/or other popular restaurant options.

According to the Huffington Post, Olive Garden’s revenue fell 1.8 percent while Red Lobster fell 3.9 percent.  Darden Restaurants Inc. owns the two favorites and place blame on a menu option at Olive Garden for part of their financial problems:

“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.”

But there is probably little to no reason to worry about the restaurants closing their doors anytime soon.  They have new locations sprouting up all the time and they are constantly reworking the menu and its prices.  The report stated:

Executives noted that a new promotion starting next week – two meals for $25 – will go back to underscoring value. A new core menu and advertising campaign are also slated for next year.

Put your purses and wallets down!  They said next week!

Read more here.

-J.C. Brooks