OLIVE Garden customers are protesting against the company’s plans to increase menu prices.
The restaurant chain has confirmed that its Italian-inspired favourite dishes will become more expensive next Year.
Olive Garden has announced that it will continue to raise prices, putting pressure on guests.
Parent company Darden Restaurants said it would raise prices across the company by an average of 2 to 3 percent next year.
Chief Financial Officer Raj Vennam explained in a conference call that this increase was chosen “to better align with inflation“
Last year, Olive Garden already saw a 1% increase in menu prices.
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But Vennam pointed out that Olive Garden’s menu price increases in recent years have been less than inflation.
“We feel we have done a lot to keep prices low and we will continue to do so,” he said.
Darden CEO Rick Cardenas said on the conference call that consumers are currently “generally concerned about inflation and their concerns about the labor market are increasing.”
He also noted that Olive Garden’s sales to customers below the median income were lower last year.
“Providers that deliver on their brand promise and value will continue to be attractive to consumers despite economic challenges, and that is exactly what we are focused on,” Cardenas said.
“We are focused on providing consumers who come to our restaurants and spend their hard-earned money Money great value for money and a great experience. They will tell others to come back.”
Customer backlash
However, customers are not happy about paying more at Olive Garden.
In a Facebook discussion, many argued that the food at the restaurant was not worth the higher price.
“Some places the quality of the food is so good they get away with it. Olive Garden is not one of those places,” wrote one user.
We focus on providing good value and a great experience to the consumers who come to our restaurants and spend their hard-earned money, and getting them to recommend others to come back.
Rick Cardenas, CEO of Olive Garden parent company Darden Restaurants
“Maybe they’ll figure it out and improve their performance.”
“Olive Garden always seemed overpriced to me. But my kids love it,” said another.
“That’s the only reason I went there. There are too many other places that are cheaper. And you get better food. For your information, all the food is frozen they are not freshly cooked. So basically they are just reheating frozen meals.”
“From the looks of things, it’s no longer worth eating out,” said a third.
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