Olive Garden plans to hike menu pricesOlive Garden plans to hike menu prices The CEO stated that the company is still not offering discounts to attract customers, despite a decline in sales and customer losses. During the company’s earnings call on Thursday, executives attributed the revenue decline to the financial stress of inflation, which is hitting some customers more than others. “The decline is primarily at household income below the median … our other (customer) groups are stable or growing,” said Raj Vennam, chief financial officer of Olive Garden parent Darden Restaurants. Darden Restaurants, which also owns and operates restaurants such as Longhorn Steakhouse and Cheddar’s Scratch Kitchen, said it will increase prices companywide by an average of 2% to 3% over the next year. Olive Garden already saw a 1% increase in menu prices last year. Vennam pointed out that Olive Garden menu price increases have been lower than inflation in recent years. With this plan, Darden estimates they will see revenue growth of 1% to 2% through 2025, the company said in its recent earnings call. Prices at restaurants – from local restaurants to major chains and fast food franchises – have risen significantly in recent years to keep pace with the rising cost of doing business. As rising prices scare away some customers, many chains have begun offering discount deals in an attempt to lure people back. McDonald’s recently announced a new $5 meal deal to help ease concerns about rising prices. Wendy’s and Starbucks also joined in offering value meals. Wendy’s offers a $3 breakfast and Starbucks offers a $6 breakfast sandwich and coffee combo.
(WJET/WFXP) — Olive Garden announced it will continue to raise prices after a sales decline last quarter.
The CEO stated that the company is still not offering discounts to attract customers, despite a decline in sales and customer losses. During the company’s earnings call on Thursday, executives attributed the revenue decline to the financial stress of inflation, which is hitting some customers more than others.
“The decline is primarily at household income below the median … our other (customer) groups are stable or growing,” said Raj Vennam, chief financial officer of Olive Garden parent Darden Restaurants.
Darden Restaurants, which also owns and operates restaurants such as Longhorn Steakhouse and Cheddar’s Scratch Kitchen, said it will increase prices companywide by an average of 2% to 3% over the next year.
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Olive Garden already saw a 1% increase in menu prices last year. Vennam pointed out that Olive Garden menu price increases have been lower than inflation in recent years.
With this plan, Darden estimates they will see revenue growth of 1% to 2% through 2025, the company said in its recent earnings call.
Prices at restaurants – from local restaurants to major chains and fast food franchises – have risen significantly in recent years to keep pace with the rising cost of doing business.
As rising prices scare away some customers, many chains have begun offering discount deals in an attempt to lure people back. McDonald’s recently announced a new $5 meal deal to help ease concerns about rising prices.
Wendy’s and Starbucks also joined in offering value meals. Wendy’s offers a $3 breakfast and Starbucks offers a $6 breakfast sandwich and coffee combo.
