Olive Backyard’s menu of pastas and limitless breadsticks didn’t hold clients coming again this summer season, with gross sales wilting on the Italian-restaurant chain. Now, the corporate plans to deliver again some dishes it discontinued throughout the pandemic to persuade diners to return.
The chain is bringing again its steak gorgonzola alfredo and stuffed rooster marsala, two dishes that it stopped serving throughout the pandemic, in response to Ricardo Cardenas, the CEO of Olive Backyard guardian firm Darden Eating places. It is also increasing its By no means Ending Pasta Bowl supply by including a brand new sauce — garlic herb — as an choice.
Cardenas, who spoke throughout a September 19 earnings name, mentioned the returning dishes will give “friends another excuse to go to within the again half of this fiscal yr.”
Olive Backyard blamed its gross sales hunch on “the gross sales softness that impacted the trade in July,” in response to Darden Chief Monetary Officer Raj Vennam on the decision. A number of restaurant chains have reported struggling to draw inflation-weary clients this yr, particularly as restaurant costs have surged 28% since January 2020, previous to the pandemic, prompting some to roll out financial savings promotions, comparable to McDonald’s $5 worth meal.
“We all the time wish to give our friends extra of what they love once they come to Olive Backyard, which is why we’re bringing again our Steak Gorgonzola Alfredo and Stuffed Hen Marsala later in our fiscal yr,” mentioned Olive Backyard spokeswoman Brittany Baron in an electronic mail to CBS MoneyWatch.
The corporate has additionally seen a rebound within the first three weeks of September, she added.
Olive Backyard’s same-restaurant gross sales dropped 2.9% in its fiscal first quarter, which ended August 25. Darden CFO Vennam famous the corporate was “shocked by the numerous step down in site visitors starting with the 4th of July vacation,” but additionally added that gross sales picked up in August.
Olive Backyard’s new menu additions
The Italian chain added the garlic herb sauce as of September 23, Baron mentioned. She added that the $13.99 worth of the By no means Ending Pasta Bowl hasn’t modified since 2022.
The corporate had discontinued the steak gorgonzola alfredo and stuffed rooster marsala dishes throughout the pandemic as a result of it “streamlined our menus to assist simplify operations and make sure the highest degree of execution for our friends,” she added.
Darden CEO Cardenas mentioned bringing again the 2 dishes will assist the restaurant add extra protein-based important programs.
“Each have been recast with higher-quality elements and simpler execution for his or her restaurant groups,” Cardenas mentioned on the convention name. “This announcement obtained great applause from their normal managers at their GM Convention in August.”
Darden final week additionally introduced that Olive Backyard is teaming up with Uber to supply third-party supply service for the primary time. Particular person orders might be picked up and delivered by Uber Direct, a premium supply service. Olive Backyard will not be listed on the broader Uber Eats platform.
If the preliminary pilot is profitable, the supply choice will broaden nationwide by Could 2025, Darden mentioned on the time.
