Olive Garden raising prices again amidst struggles
FILE-A sign hangs on the front of an Olive Garden restaurant in Chicago, Illinois. (Photo by Scott Olson/Getty Images)
Olive Garden is raising its prices amid financial challenges related to inflation and patrons spending less and scaling back on restaurant visits.
This news comes after the Italian restaurant chain’s menu prices increased by 1% in 2023.
Although the price hike is expected soon, executives on a Thursday earnings call did not provide details.
During the earnings call, Darden chief executive Rick Cardenas noted that consumers are concerned about inflation and the job market.
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Darden, the parent company of Olive Garden, noted in the earnings call that restaurant same-store sales or sales at stores open for about a year dipped 1.5% in the quarter ending May 26.
This skid marks the second straight quarter that sales at these restaurants dropped after a nearly 2% tumble in the last quarter, the New York Post reported.
Darden operates Olive Garden, LongHorn Steakhouse, Yard House, Ruth’s Chris Steak House, and others, and plans to raise prices companywide by 2% to 3% during the next 12 months. The Orlando, Florida-based company reported fiscal fourth-quarter net income of $308.1 million.
Olive Garden has nearly 900 restaurants nationwide.
The Associated Press contributed to this report. This story was reported from Washington, D.C.