American restaurants, from Chilli’s to Wendy’s, are running a variety of promotions to lure customers back.
But Olive Garden has said it won’t do that, much to the anger of customers.
“We’re not going to do that,” Rick Cardenas, CEO of Darden Restaurants, the parent company of Olive Garden, said on an analyst call last month.
‘Even at a time when our competitors have increased their discounts.’
He was referring to competitors that offer a full range, such as Chilli’s, which offers an appetizer, entree and drink for $11, and Applebee’s, which offers two dishes for $20.
Fast food chains have also all rolled out deals. Such as McDonald’s, Burger King and Wendy’s are offering a $5 meal deal that includes a burger, nuggets, fries and a drink.
Olive Garden has pledged not to offer discounts, unlike Chilli’s, Applebee’s, McDonald’s, Burger King and Wendy’s
Olive Garden has even indicated that it will raise prices this year.
Due to the pandemic, retail chains have raised their prices due to rising costs and consumers’ willingness to pay more.
But recently, guests have started to resist this, leading many restaurants to offer temporary discounts on the higher prices.
Not only is Olive Garden refusing to make deals, it is also raising prices by 2.5 to 3 percent this year.
This step is being taken despite a 1.5 percent year-on-year decline in turnover.
Cardenas added: “We think everyday low value … is more sustainable than deep discounts to entice people in,” he said. “This is a long-term play for us.”
Instead of big discounts, Olive Garden wants to attract customers by drawing attention to regular offers, such as free baguettes or extra soup and salad.
He said: ‘The best way to drive sales is to focus on a back-to-basics business philosophy and let our guests know how much they value coming to our restaurants.’