Traffic Slump at Olive Garden, Red Lobster, LongHorn; Smaller Plates, Cheaper Items at Olive Garden

Townhall.com ^ | March 4, 2013 | Mike Shedlock

[Kaslin]

High gasoline prices coupled with 2% payroll tax hikes is going to take a bite out of restaurant sales this year. For some chains the slump has already started.

Consider Darden Restaurants, the owner of Olive Garden, Red Lobster, LongHorn Steak House. Darden Restaurant Traffic is down an average 4.5, with Red Lobster leading the pack down 7.5%.

Smaller Plates, Cheaper Items at Olive Garden

At Olive Garden, Smaller, Cheaper Plates are on the way, along with new uniforms including a more contemporary black button-down shirt and black slacks.

Don't worry, endless breadsticks remain.

Olive Garden is also creating a new logo and toning down its the "Old World Style" Tuscan stonework and wooden archways that have been a signature part of Olive Garden restaurants since 2000.

Saturation Everywhere

The main problem is saturation. I see endless miles of restaurants on strips nearby. Those restaurants include Steak & Shake, Red Lobster, Olive Garden, Pizza Hut, Subway, China Express, Chili's, Chipotle, Panera, and other chains intermixed with some local eateries.

If the problem is saturation (and it is), spending money on architecture style changes, creating a new logo, and the new uniform changes is a waste of money, especially the architectural revisions.

People want good food, fast friendly service, and good value.

To pick up market share, restaurants need to lower prices, not make logo changes. And lower prices will take a bite out of earnings. One final point: as soon as restaurants stop expanding (and they will), the hiring will stop with it.

Japan Central Bank Nominee Pledges to Do Whatever Needed to Combat Deflation; Mother of all Pyrrhic Victories

Those who thought Japanese Prime Minister Shinzo Abe was not serious in his pledge to defeat deflation (and destroy the Yen in the process) need think again.

Haruhiko Kuroda (Abe's nominee to head Japan's central bank) pledges to do Whatever Needed to Combat Japan Deflation.

Haruhiko Kuroda, nominated to be the next Bank of Japan governor, said that a central bank under his leadership would do whatever is needed to combat 15 years of deflation.

“I would like to make my stance clear that we will do whatever we can do,” Kuroda, the president of the Asian Development Bank, said in a confirmation hearing in the parliament in Tokyo today.

Prime Minister Shinzo Abe’s nomination of Kuroda has raised expectations for more aggressive monetary easing to revive the world’s third-biggest economy after Masaaki Shirakawa exits the job on March 19. The opposition Democratic Party of Japan, the largest party in the upper house, has signaled it will back Kuroda, easing his passage through a split parliament.

Kuroda said in an interview this month that falling prices exacerbate real debt burdens, and give an incentive to companies and households to postpone spending. Consumer prices excluding fresh food fell 0.2 percent in January. The price gauge hasn’t advanced 2 percent -- the central bank’s new target -- for any year since 1997, when a national sales tax was increased.

Mother of all Pyrrhic Victories

Any country determined to wreck its currency can indeed do just that. However, QE alone will not suffice if all the printed money sits as excess reserves. If QE fails, what's next? More bridges to nowhere?

Regardless, the idea that higher prices are a blessing is blatant stupidity. The last thing aging Japan citizens need is rising prices.

If anything, low interest rates are counterproductive because Japanese savers get zero % on their savings (having less interest income to spend). Sound familiar? It should because Bernanke has the same preposterous ideas.

Once sentiment turns (and it will - but I do not know when), Japan is going to have a hard time preventing the bottom from falling out of the yen. When that happens, the defeat of deflation is going to be the mother of all Pyrrhic victories.

[Kaslin]

the rest of the title is: Smaller Plates, Cheaper Items at Olive Garden

[bmwcyle]

I have not set foot in one of those places since they decided not to run ads on conservative shows. ‘m gone for good.

[Red Badger]

But the portion control is ridiculous!........

[bkepley]

It’s the sequestor. Scott Pelly will tie it all together tonight on CBS News.

[EQAndyBuzz]

Went to Red Lobster last week. It is worse than swill.

I do like Olive Garden.

[OKRA2012]

When a swanky joint like Red Lobster sees a slump in business, you know the economy is bad.

[GeronL]

They backed Obama and ObamaCare, let them suffer

[Mr. Jeeves]

Restaurant food quality seems to have taken a major dive during the Obama years. My wife and I have stopped going out, not so much because of the cost (which has gone up) but because we always walk away feeling ripped off by the quality.

Cooking at home is now not only healthier, it's mandatory if you want anything to eat that actually tastes good.

[Mr. Jeeves]

Restaurant food quality seems to have taken a major dive during the Obama years. My wife and I have stopped going out, not so much because of the cost (which has gone up) but because we always walk away feeling ripped off by the quality.

Cooking at home is now not only healthier, it's mandatory if you want anything to eat that actually tastes good.

[Safetgiver]

I do like Olive Garden...Too bad they don’t have Italian food.

[AlaskaErik]

I was just at the St. George, Utah Red Lobster a week and a half ago and there was a huge wait to get seated. We had to wait 10 minutes, but by the time we left, the waiting area was packed.

[1rudeboy]

Don't worry, endless breadsticks remain.

Those are breadsticks?

[laweeks]

I have not set foot in one of those places since they decided not to run ads on conservative shows. ‘m gone for good.

They also caved in to Mooch-elle's dictate for "more healthy" menus from the FLOTUS cow-butt herself. I vowed never to go into any of those restaurants again when they caved in to that overweight dictator-ass.

[MrB]

One of the funniest radio bits I’ve heard was this guy calling people at random and asking them “quiz questions”.

One call was with a lady and the host asked her out with this amazing pickup line: “I gotta coupon to Red Lobster...”

[Safetgiver]

it’s mandatory if you want anything to eat that actually tastes good...I go to Mexican restaurants around here where I can’t understand them and they don’t know what the hell I’m asking them about. I point at the beer, point at the menu and if I like it, tip like hell. They are always happy to see me, shake their heads ‘No’ if I point at something that isn’t good. Brought some dried peppers in one time and they put it on their own food and stared at me like I was nuts.

[I Drive Too Fast]

The food at Olive Garden is good. The service at Olive Garden in Glendale (CA) is TOO slow for me so I quit going. Our department called in an order for an office party and we still waited almost an hour from the time it was supposed to be ready.

[knittnmom]

When we go out, we typically stick with family style restaurants, where they owners are likely to also be the wait staff and cooks. Good quality, good prices, and friendly service.

[Pox]

If they want to increase traffic at The Olive Garden, I suggest they go back to their pre-2000 recipes.

[jeffc]

In Ocala FL, just across from the Paddock Mall on 200 (College Road) is what I call Restaurant Row. It is packed with the likes of Olive Garden, Red Lobster, Outback, etc. Chili's is a little down and across the street, and a Carrabba's a little further away going into town. All of them are packed almost every day of the week, almost from opening to closing. There is almost always quite a long wait (unless, of course, you get their when they open).

Only Chili's has seen fit to open another store farther away, but still in Ocala. Whenever we go out to eat, we plan on a non-standard time and figure we will still have to wait about 20-30 minutes for a table.

[KC_Lion]

I agree with that statement Geron and I am happy to watch those people get their comeuppance.

Sadly though it doesn't just impact them.

I remember up until my Sister graduated High School (which was 2008....what else happened that year?) Our Family would eat out all the time.

Any Excuse would do

Easter, Uncle Flying in, Vernal Equinox?-Red Lobster we go!

Now I can barley afford Fruit for my Kids.

This Deathcare tax/fine whatever is also gonna cost me thousands of Dollars I don't have.

So all you people who voted for and still support Ubama, I honestly Pray you hope and change yourselves into the Poor house! I HATE you all!