Olive Garden owner tests smaller portions as diners seek cheaper options
The Olive Garden, which has four restaurants on Long Island, is testing smaller portion sizes to attract more cost-conscious consumers. Credit: Olive Garden/Jeffery Patrick
Darden Restaurants Inc. rolled out smaller-portioned, lower-priced entrées at select Olive Garden locations during the quarter, part of its strategy to make menus more affordable and boost sales, Chief Executive Officer Rick Cardenas said on an earnings call.
The initiative is designed to offer guests “more variety at approachable price points,” Cardenas said, as the company focuses on sales growth and reinvestment for long-term expansion.
The test, launched during the quarter, features seven entrées in lighter portions, available at dinner and throughout the weekend. These meals are served with Olive Garden’s unlimited bread sticks and soup or salad, and are currently offered at about 40% of restaurants. Early results have been “encouraging,” Cardenas added.
“They’re the right portion size for the right price for a group of consumers that will that will eventually drive more traffic,” he said.
Darden reported fiscal first-quarter results Thursday, with shares slipping after same-store sales at Olive Garden and LongHorn Steakhouse fell short of expectations.
A survey by point-of-sale technology firm Lightspeed Commerce published in August found that 44% of U.S. adults are ordering from kids’ menus, citing lower prices, smaller portions and simpler options, and lower prices, underscoring how consumers are pulling back amid a weakening economy.
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