Despite rising inflation, some restaurant chains have kept menu prices stable: Olive Garden is again launching the Never Ending Pasta Bowl promotion on August 25 at a fixed price of $13.99 – the fourth year in a row at the same level.
According to the National Restaurant Association, overall menu price increases have surpassed 30% from February 2020 to April 2025. Such changes require establishments to maintain an average profitability of around 5%.
Last year Olive Garden raised prices by only about 2%, which was below the inflation rate; at the same time, profitability in the latest financial quarter rose by 12.7% compared with the previous year.
How does this promotion work? The chain is likely encouraging guests to make additional purchases, such as appetizers, desserts, and cocktails, while saving through bulk purchasing.
“If pasta brings people into the restaurant, and they buy other profitable items, it certainly makes sense in the long run.”
– Maeve Webster, CNN
The Pricing Strategy in Inflationary Times
A network with nearly a thousand locations handles substantial pasta volumes, enabling it to build strong relationships with suppliers and influence prices overall.
“They likely have strong and cooperative relationships with pasta suppliers, which could contribute to lower prices.”
– Maeve Webster, CNN
Never Ending Pasta Bowl runs until November 16 and offers a choice of four pastas (fettuccine, spaghetti, angel hair, rigatoni), six sauces (alfredo, marinara, and other meat sauces) and toppings for an additional $4.99, including crispy chicken, meatballs, or Italian sausage.
The package also includes unlimited soup or salad and endless breadsticks. The promotion was introduced in 1995 and has appeared annually since, except for a brief pause during the Covid-19 pandemic. It has become a staple of the menu, attracting families seeking affordability and savings.
“People are facing many expenses as back-to-school season returns, and consumers are looking for ways to save.”
– Jamie Banker
Competitors’ reactions also reflect changes in consumer behavior: for example, Applebee’s posted almost 5% higher sales compared with the previous quarter after implementing new pricing and promo events; the chain is also testing $14.99 offers that allow customers to choose three appetizers and three sauces or dips.
Overall, Olive Garden’s strategy during inflationary pressure demonstrates a balance between staying affordable for families and supporting profitability by encouraging additional purchases and efficient sourcing.
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