Olive Garden warns huge says revenues will fall !!
If olive garden squeezed - can you imagine mcdonalds...
common man is broke on massive food and fuel inflation along with soc sec tax increase..
ORLANDO, Fla. (AP) -- Darden Restaurants, struggling to draw more customers into its Olive Garden and Red Lobster restaurants, predicted a third-quarter profit Friday that was below Wall Street's expectations and cut its outlook for the year.
The Orlando, Fla.-based chain has tried to revamp menus and marketing for its flagship chains. But revenue at Olive Garden, Red Lobster and LongHorn Steakhouse locations open at least one year is expected to fall 4.5 percent in the quarter ending Feb. 24, indicating those efforts have yet to pay off.
"We recognize there is still more to do to further address affordability and to improve other important aspects of the guest experiences we provide," said CEO Clarence Otis in a statement, adding that re-establishing growth at the three chains was Darden's top priority.
Otis said the first half of the fiscal third quarter was "encouraging," but higher payroll taxes and rising gas prices, along with severe winter weather, sent sales sliding in February.
Darden isn't the only company saying the higher payroll tax has cut into its business. On Thursday Wal-Mart Stores Inc. said higher taxes, along with rising gas prices and delayed income tax refunds, were also crimping spending by its customers.
Maybe you are worried, but I think folks who are abandoning Olive Garden are more likely to seek less expensive meals at fast food chains like McDonalds. I used to eat at Olive Garden on a regular basis when the chain first opened, but over the years they tinkered with their menu and recipes to cut ingredient costs and they raised menu prices. What was once a good dining experience, at a reasonable price, became a mediocre one that I didn't perceive as a good value. I stopped going there. The same can be said for Red Lobster. I suspect a lot of folks have come to the same conclusion about Olive Garden that I have.