Olive Garden CEO Blames Obamacare, The Media And Bad Promotions For Its Struggles
Editor's note: This post originally appeared on Business Insider
The CEO of Darden Restaurants (DRI) is the latest restaurant executive to complain about the Affordable Care Act's effect on his business.
Darden, the parent company of Olive Garden, LongHorn Steakhouse and Red Lobster, is going to announce earnings next week and has already warned that results aren't going to be good.
CEO Clarence Otis blamed President Obama's healthcare law for part of the problem.
The company lowered its profit and revenue projections for the quarter that ended Nov. 25 and blamed bad promotions, Hurricane Sandy and its purchase of the Yard House USA chain for the bad results, according to a report in the Los Angeles Times.
Otis said there's been an adverse impact on the company from the "negative media coverage."
"Earlier in the fall, Darden tested plans to cut back on healthcare costs by putting more workers on part-time schedules," according to the article. "President Obama's healthcare law would slap Darden and other large companies with fines unless they offer basic health insurance for full-time workers."
Restaurant chains and retailers haven't been shy about their hatred of "Obamacare," which they say would hurt profits and force layoffs.
Cheesecake Factory CEO (CAKE) David Overton spoke out against the healthcare law on Monday, saying it was "very costly" for his business.
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