Olive Garden Operations

Alpha8472
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Olive Garden Operations

Post by Alpha8472 »

Olive Garden is bringing back their Unlimited Pasta Bowl October 3, after a 2 year break. They seem to be desperate to try to get customers these days. The price is $13.99. Isn't this a little high?

https://www.nrn.com/casual-dining/olive ... year-break
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Re: Olive Garden Operations

Post by storewanderer »

Economy of excess consumption is in a literal free fall due to all of the printing of money during COVID combined the attack on fossil fuels that started in January 2021. We would still be in trouble even if the fossil fuel attack had not taken place but not this much trouble. The declines in the stock market in September do not help the sour mood many have regarding the economy at large.

So places like Olive Garden are obviously seeing a major traffic drop in recent weeks and they are reacting like this. This also explains all the free fast food recently after that was so dry all summer.

This pasta bowl last time it was offered was 10.99. In 2014 it was 9.99 and meat sauce was $1 and add ins were 2.99 and up.

At 13.99 plus 4.99 for a meat add in, I'm not sure how great of a deal this is or how much traffic it will generate. It is also labor intensive to keep offering refills, including the increased volume of dirty dishes, and no refill on to go which is a far larger portion of the business now than in 2019.

A more effective promotion probably would have been some sort of a little tour of Italy type dish at a 14.99 price point for to go orders only; portion controlled item and saves a lot of labor as to go only.
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Re: Olive Garden Operations

Post by Brian Lutz »

As a point of comparison, meals at The Old Spaghetti Factory near here tend to fall into the range of $15-21 depending on what you order. Of course for that price you do get the full meal (including salad, bread and ice cream) but they've gotten rather expensive lately.
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Re: Olive Garden Operations

Post by babs »

Brian Lutz wrote: September 30th, 2022, 6:53 pm As a point of comparison, meals at The Old Spaghetti Factory near here tend to fall into the range of $15-21 depending on what you order. Of course for that price you do get the full meal (including salad, bread and ice cream) but they've gotten rather expensive lately.
We went to The Old Spaghetti Factory a few weeks ago. Sat down, looked at the menu. We got up and left after seeing that most entrees were in the ballpark of $19.99. I know food inflation is out of control but no entree is worth $20 at the Spaghetti Factory.
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Re: Olive Garden Operations

Post by storewanderer »

babs wrote: September 30th, 2022, 7:29 pm
Brian Lutz wrote: September 30th, 2022, 6:53 pm As a point of comparison, meals at The Old Spaghetti Factory near here tend to fall into the range of $15-21 depending on what you order. Of course for that price you do get the full meal (including salad, bread and ice cream) but they've gotten rather expensive lately.
We went to The Old Spaghetti Factory a few weeks ago. Sat down, looked at the menu. We got up and left after seeing that most entrees were in the ballpark of $19.99. I know food inflation is out of control but no entree is worth $20 at the Spaghetti Factory.
This point of reckoning is coming for many of these chain restaurants and I am going to go out on a limb here and include fast food. A fast food burger combo meal just is not worth $10 either. Just like I question if a Red Robin Burger is worth $15. The Old Spaghetti Factory is not worth $20. An IHOP Breakfast is not worth $13. They are just not worth their prices.

The reality is you can find a nice independent Italian restaurant with much more flavorful food and a more interesting experience for a lower or slightly higher price point.

I'd rather see portion sizes reduced vs. these price hikes. Way too much food waste occurring in restaurants due to portions being too large.
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Re: Olive Garden Operations

Post by Super S »

storewanderer wrote: September 30th, 2022, 11:34 pm
babs wrote: September 30th, 2022, 7:29 pm
Brian Lutz wrote: September 30th, 2022, 6:53 pm As a point of comparison, meals at The Old Spaghetti Factory near here tend to fall into the range of $15-21 depending on what you order. Of course for that price you do get the full meal (including salad, bread and ice cream) but they've gotten rather expensive lately.
We went to The Old Spaghetti Factory a few weeks ago. Sat down, looked at the menu. We got up and left after seeing that most entrees were in the ballpark of $19.99. I know food inflation is out of control but no entree is worth $20 at the Spaghetti Factory.
This point of reckoning is coming for many of these chain restaurants and I am going to go out on a limb here and include fast food. A fast food burger combo meal just is not worth $10 either. Just like I question if a Red Robin Burger is worth $15. The Old Spaghetti Factory is not worth $20. An IHOP Breakfast is not worth $13. They are just not worth their prices.

The reality is you can find a nice independent Italian restaurant with much more flavorful food and a more interesting experience for a lower or slightly higher price point.

I'd rather see portion sizes reduced vs. these price hikes. Way too much food waste occurring in restaurants due to portions being too large.
A lot of it has to do with supply issues and increases in the minimum wage. Restaurants are crossing into an area where people are reaching their spending limits. A Dave's Single combo is now over $10 after tax at my local Wendy's, and it's getting harder to get out of places such as Denny's or Shari's for less than $20. (not including tips) As for local independent restaurants, $30 meals are becoming more common, and some of these local operations leave a lot to be desired in many aspects of their operations. I have been eating out a lot less than I used to. When I do, I usually go for breakfast because pricing is usually more in line with what you get.
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Re: Olive Garden Operations

Post by storewanderer »

Super S wrote: October 1st, 2022, 7:24 am

A lot of it has to do with supply issues and increases in the minimum wage. Restaurants are crossing into an area where people are reaching their spending limits. A Dave's Single combo is now over $10 after tax at my local Wendy's, and it's getting harder to get out of places such as Denny's or Shari's for less than $20. (not including tips) As for local independent restaurants, $30 meals are becoming more common, and some of these local operations leave a lot to be desired in many aspects of their operations. I have been eating out a lot less than I used to. When I do, I usually go for breakfast because pricing is usually more in line with what you get.
The restaurant business is clearly moving the wrong way but maybe this is the only way it can survive. What is worse is these higher prices will cause fewer customers, impact food freshness, etc. Menus need to shrink. Portion sizes need to shrink. Customers will not pay these prices.

Watch the combo at Wendy's, they are now showing the "default menu price" or "default app combo" as the Medium combo, there is still a Small combo, at .80 or so less. I think some other chains do this too now but I don't know which ones.

I am seeing more and more single location but medium size type restaurant operations start having a credit card surcharge, they clearly want cash payments. It is interesting given historically restaurants of any significant size pushed credit cards due to the theft that can easily take place with cash. Reconciling cash at the end of the night is miserable at a restaurant and the more cash there is the more miserable it is. There were always the smaller owner operated type restaurants that clearly preferred cash.

The restaurants that will be successful in the future are the ones who build a strong take out business. Going and eating in a restaurant will become a less frequent and a luxury sort of thing with the way the food and labor costs have gone up so much.

It is also possible some restaurants will need to re-format in an effort to cut labor and other issues. The Sizzler type format of order/pay at counter, partial buffet, and a server to deliver food and "check on you, refill drinks, etc." may be one that we see rolled out on a more wide scale in the future as it does cut down on a lot of labor.
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Re: Olive Garden Operations

Post by Bagels »

Restaurant prices are fast increasing. El Torito charged $12.99 for its signature ‘Sizzling Fajita’ in 2009, and $16.99 ten years later in 2019. Three years later, it’s increased by $11 to $27.99. (The price increase is more than that, since they added a “service charge” to every bill to offset the high costs of operating in CA - never mind the high prices to begin with). Heck, even McD’s and BK have crossed $10 for their value meals.

I consider Olive Garden’s price to be reasonable, although they no longer issue perpetual $2 off entree coupons, so if you’re in their e-club, the price increase is even higher.

My friend and I actually did their unlimited pasta card in 2015. We went everyday for lunch, and would get a salad or light soup and just the protein. We’d tip the servers $10 total and they’d give us a large portion (no pasta) - that was a fantastic deal. It also included a soft drink, but later promotions included neither the drink or protein.
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Re: Olive Garden Operations

Post by veteran+ »

Service charge?

What is that?
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Re: Olive Garden Operations

Post by Alpha8472 »

I remember some independent restaurants adding service charges for random reasons during the pandemic. One sushi restaurant said it was to build the wooden hut outside for outdoor dining. Customers were complaining left and right.

Whatever happened to outdoor dining? Most restaurants got rid of those tents outside. They still have some kind of service charge. Maybe a charge to pay waiters? Isn't that supposed to be included in the price of the food already?
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