Olive Garden, Red Lobster to Revamp Menus

Parent company hopes menu changes will revive sales

   

Darden Restaurants (NYSE:DRI), parent company of several restaurant chains, last week reported sales losses at its Olive Garden, Red Lobster and LongHorn Steakhouse subsidiaries. Drops at the seafood and Italian chains were deeper than those the steakhouse experienced. In an attempt to prevent the slip in sales from becoming a long-term habit, the company is revamping its menus at Red Lobster and Olive Garden.

“We’re making progress on our efforts to elevate the guest experience at Olive Garden, and over the next 12 months guests will see more and more of the improved food, service, value and advertising we’ve been developing,”  Clarence Otis, CEO of Darden said in a press release.

In a post-earnings call with analysts on Friday, Darden President and COO Drew Madsen, said that both Red Lobster and Olive Garden will be introducing new “core menus” later this year, Nation’s Restaurant News reports.

One change at Olive Garden will be the inclusion of a “two for $25″ promotion. The deal, which will debut this week, brings price to the forefront by offering customers a choice of various pairing options.

Darden has even bigger changes in mind for Red Lobster. This fall, the seafood chain is slated to introduce what Madsen says is “the most comprehensive core menu change at the brand in the last decade.”


Article printed from InvestorPlace Media, http://investorplace.com/2012/06/olive-garden-red-lobster-to-revamp-menus/.

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