Restaurants fight back against reservation scalpers
Amy Zhou, executive director of operations at Gracious Hospitality Management, shares how reservation scalping affects the restaurant industry.
Darden Restaurants is experimenting with smaller servings at Olive Garden, testing out a "Lighter Portion Entrées" menu across 40% of its locations, the company announced in its quarterly earnings call on Thursday.
The new menu section, which offers smaller portions and a reduced price on seven of its existing entrées, is an additional option for guests and is "not replacing anything" on the Italian-American restaurant chain's menu, a spokesperson for Darden Restaurants told Gxstocks in an email.
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The reduced portions section includes Olive Garden's Chicken Parmigiana, Eggplant Parmigiana, Lasagna Classico, Five Cheese Ziti al Forno, Cheese Ravioli, Spaghetti & Meatballs and Fettuccine Alfredo, according to Darden Restaurants.
Customers enter an Olive Garden restaurant in Pittsburg, California, on Dec. 9, 2022. (David Paul Morris/Bloomberg via / Getty Images)
The lighter portion entrées are priced between $12.99 and $13.99, though they vary by market, the spokesperson told Gxstocks.
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The initial response from customers has been "encouraging," with customers rating the chain 15% higher on affordability, Rick Cardenas, president and CEO of Darden Restaurants, said on Thursday's earnings call.
In this photo illustration, a smartphone shows the logo of Darden Restaurants Inc. (Cheng Xin/Getty Images / Getty Images)
Diners have also said they were satisfied with the amount of food they received despite smaller servings, according to Cardenas.
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"These items, available at dinner and all day during the weekend, still offer abundant portions and come with Olive Garden's never-ending first course of unlimited breadsticks and unlimited soup or salad," Cardenas said. "… I have confidence in Olive Garden's initiatives for the year, as well as their five-year roadmap to sustain long-term growth and success."
Olive Garden pasta is photographed in Hyattsville, Maryland. (Deb Lindsey For The Washington Post via Getty Images / Getty Images)
Darden Restaurants, based out of Orlando, Florida, is also the parent company of restaurants, including LongHorn Steakhouse, Cheddar's Scratch Kitchen, Yard House and Ruth's Chris Steak House. The company's stock fell roughly 7% on Thursday after reporting mixed quarterly results.
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Darden Restaurants announced in June it was planning to open more Olive Garden and LongHorn Steakhouse restaurants. Earlier this year, Texas Roadhouse replaced Olive Garden as America’s top casual dining chain. Olive Garden had held the title since 2018, but a resurgence in Texas Roadhouse’s popularity pushed the casual steakhouse ahead.
