Not ready to bust a gut with the Never-Ending Pasta Bowl? Olive Garden has a new option for wallet-conscious customers: “Lighter Portions.”
Darden Restaurants, which owns the ubiquitous red-sauce chain, has been adding smaller, lower-priced dishes to its menus this fall as fast as it can – and it’s not because customers are suddenly watching their waistlines.
Seven new dishes under the new “Lighter Portions” section of the menu include Chicken Parmigiana, Lasagna Classico, Five Cheese Ziti al Forno and Fettuccine Alfredo, the company said on an earnings call on Thursday. They’re priced between $13 to $15.
That’s versus regular entrees that range between $16 and $23.
Darden is accelerating the rollout of these smaller portions “because they are doing so well,” chief executive Rick Cardenas said. The Washington Post via Getty Im
The new dishes have fueled “a double-digit increase in affordability perceptions” for the chain, which has seen “higher frequency among lighter portion guests,” Darden’s chief executive Rick Cardenas said on the call.
Accordingly, Darden is accelerating a nationwide rollout to January versus a previous plan to complete it by the end of May, Cardenas said. About 40% of Olive Garden menus offered the “Lighter Portion” dishes in the most recent quarter and another 20% were added recently.
Asked whether a marketing blitz was in the works, Cardenas said he wasn’t sure it will even be necessary.
“Currently, we’re not expecting or we’re not thinking about marketing it to our guests,” the CEO said. “Because it’s doing pretty well on the menu the way it is.”
Olive Garden is luring customers with smaller portions that cost less than regular entrees. Christopher Sadowski
Olive Garden’s rollout comes as chain restaurants have recently seen increased demand for smaller, cheaper options as inflation continues to goose menu prices. As reported by The Post, budget-minded customers lately have been ordering appetizers as entrees and hitting happy hour for dinner.
While Olive Garden’s smaller dishes may also appeal to customers who are taking popular diet drugs like Ozempic or Wegovy, that crowd is mainly cutting back on alcohol consumption, Cardenas said. The so-called GLP-1drugs are “impacting drinking more than its impacting eating,” he said.
Smaller portions “just so happens to benefit the consumers that might want smaller portions that are on GLP-1 medications,” the executive said on the call.
Plenty of diners also noshed on the chain’s seasonal Never Ending Pasta Bowl – the promotion runs from August through November – refilling their bowls at a record pace, the company said. It’s the fourth consecutive year that the promotion costs $13.99 as the chain responds to rising food costs.
The Never Ending Pasta bowl promotion has remained the same price $13.99 for four consecutive years. Olive Garden via AP
Orlando, Fla.-based Darden, which also owns LongHorn Steakhouse, The Capital Grille, Yard House and Ruth’s Chris Steak House, said it saw more high-income customers trade down to its casual eateries while customers who earn less than $50,000 a year pulled back.
Darden’s restaurants also attracted more customers who are at least 55 years old — some of whom had left the chain after the pandemic.
For the second straight quarter, the company hiked its full-year outlook for revenue growth. Its revenues rose 7.3% to $3.1 billion while comparable sales increased 4.3% in the quarter ended Nov. 23.
Comparable sales for Olive Garden, which accounts for 44% of the company’s revenues, grew by 4.7% in the quarter.
Darden’s shares were up by less than 1% to about $190 on Thursday.
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