Olive Garden raising menu prices again
Why is Olive Garden planning to increase menu prices?
Olive Garden plans to increase menu prices due to rising inflation, commodity, and labor costs. The increase is expected to be more in line with inflation at 2.5% to 3% over the next four quarters. The restaurant chain has kept prices low and underpriced by around 20% compared to the overall consumer price index over the past five years.
What were Olive Garden's same-store sales figures for the last two quarters?
Olive Garden's same-store sales fell 1.5% in the most recent quarter and 1.8% in the prior quarter. The decline was attributed to financial stress among lower-income consumers due to inflation, with Olive Garden's sales to customers below the median income being lower last year.
How much will Olive Garden's menu prices increase this year?
Olive Garden's menu prices are expected to increase by 2.5% to 3% this year, as parent company Darden Restaurants aims to align prices more with inflation. This increase will be spread over the next four quarters.