Popular Restaurant Chains Don't Plan On Raising Prices Olive Garden
Since February, Outback Steakhouse has increased its pricing by 5 percent, McDonald's by 8 percent, and Chipotle by 10 percent in comparison to April of last year.
The price of a cup of coffee at Starbucks increased by a staggering 20 percent within the same time period. However, not all restaurants intend to pass on such huge price increases to customers.
In light of the rising popularity of its Olive Garden and LongHorn Steakhouse brands, restaurant operator Darden says it would continue to prioritise value and offer lower rates than its competitors.
The company reported growth in sales across its entire portfolio of brands, with same-store sales increasing by almost 12 percent compared to the previous year.
The gain is primarily attributable to its fine-dining brands, such as The Capital Grille and Eddie V's, which contributed to a 35% increase in same-store sales.
Olive Garden reported a growth of 6.5% for the quarter, while LongHorn Steakhouse's same-store sales increased by 10.5% due to the expanding popularity of steakhouses.
The corporation believes that inflation prices are not permanent and that food prices will eventually settle. And by enduring inflation and opposing price increases, it will acquire an advantage over rivals who cannot be as adaptable.
LongHorn has managed to keep its rates stable, even offering a $5.99 & Under menu, while other steakhouses have increased their prices. However, Olive Garden has disappointed customers seeking the once-popular endless pasta promotion.
This does not imply that prices at Darden restaurants are frozen in time. Last year, Olive Garden reportedly increased its costs by 2 percent, which was less than the industry average but still more than nothing.
Last quarter, Darden as a whole increased its prices by 2 percent, and a further 4 percent hike was in the works. The company also revealed intentions to open between 55 and 60 more restaurants in 2023.
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