Darden is setting Red Lobster adrift

The company, based in Orlando, Florida

Otis of Darden just does not get it, most of their customers did get it long ago, if you want to make it in today’s world, you must be willing to change.

Otis says, “Red Lobster in particular is increasingly unable to attract the higher-income customers Darden caters to.”

In other words, Darden must wait for the rich customers trickle down business just as the citizens of this country must wait for the rich people’s money to trickle down to their business?

Because of computers this is fast pace world, people are no longer willing to park in a parking lot, sit on a bench to wait for a seat, then sit and wait for their waiter, if the order comes back wrong, sit and wait while a overworked cook does whatever to correct the order, tip the waiter pleased or not with the whole experience and then get the shock from the bill.

As it suffered sales declines more recently, executives blamed a variety of factors, including a refusal among customers to swallow price increases.

In 2012, for instance, executives cited a $1 price hike for its “Festival of Shrimp” special in explaining a quarterly decline in sales.

Places such as Chipotle Mexican Grill and Panera Bread, where customers feel they can get the same quality of food without paying as much or waiting for table service.

Bottom line, if you also had changed your prices and the above mentioned problems to match today’s business world you may still be in business.

http://www.sanluisobispo.com/2014/05/16/3067826/darden-announces-sale-of-red-lobster.html

http://abcnews.go.com/Business/wireStory/darden-announces-sale-red-lobster-21b-23745090

http://www.dailyfinance.com/2014/05/16/darden-sells-red-lobster/

Red Lobster, which opened in 1968, helped popularize seafood among Americans and today has about 700 locations in the U.S. and Canada. The first restaurant in Lakeland, Florida, boasted a menu including half a dozen oysters for 65 cents and platters with frog legs and hush puppies for $2.50.

As it suffered sales declines more recently, executives blamed a variety of factors, including a refusal among customers to swallow price increases. In 2012, for instance, executives cited a $1 price hike for its Festival of Shrimp special in explaining a quarterly decline in sales.

More recently, the company tried to attract a wider array of customers by adding more non-seafood dishes to Red Lobster’s menu. The efforts didn’t take hold.

Darden sees more potential in fixing Olive Garden, which has about 830 locations. The company recently reworked the logo for the Italian chain and has been adding lighter menu items and smaller dishes like crispy risotto bites that it says reflect eating trends.

 

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