Olive Garden
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Olive Garden is an American casual dining restaurant chain specializing in Italian-American cuisine. It is a subsidiary of
Darden Restaurants, Inc. Darden Restaurants, Inc. is an American multi-brand restaurant operator headquartered in Orlando. As of January 2022, the firm owns two fine dining restaurant chains: Eddie V's Prime Seafood, Eddie V's and The Capital Grille; and six casual dini ...
, which is headquartered in Orange County, Florida. As of 2012, Olive Garden restaurants accounted for $3.8 billion of the $6.9 billion revenue of parent Darden.


History

Olive Garden started as a unit of
General Mills General Mills, Inc., is an American multinational manufacturer and marketer of branded processed consumer foods sold through retail stores. Founded on the banks of the Mississippi River at Saint Anthony Falls in Minneapolis, the company orig ...
. The first Olive Garden was opened on December 13, 1982, in Orlando. By 1989, there were 145 Olive Garden restaurants, making it the fastest-growing units in the General Mills restaurant division. Olive Garden restaurants were uniformly popular, and the chain's per-store sales soon matched former sister company Red Lobster. The company eventually became the largest chain of Italian-themed full-service restaurants in the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...
. General Mills spun off its restaurant holdings as Darden Restaurants (named for Red Lobster founder Bill Darden), a stand-alone company, in 1995. In 2009, Olive Garden was Darden's most inexpensive restaurant chain with an average check per person of $15.00 ( USD) versus over $90 at its sibling
Capital Grille The Capital Grille is an American restaurant chain of upscale steakhouses owned by Darden Restaurants. The brand has locations in twenty-five U.S. state, states, the District of Columbia, and Mexico City. History The original Capital Grille w ...
. Brad Blum, a former president of Olive Garden, said that sales in existing restaurants sharply decreased, with a 12% decline occurring at one point, even though the company was quickly establishing new restaurants.Pedicini, Sandra.
Olive Garden tries to woo back customers after falling into a rut
" McClatchy-Tribune Newspapers at ''
Chicago Tribune The ''Chicago Tribune'' is a daily newspaper based in Chicago, Illinois, United States, owned by Tribune Publishing. Founded in 1847, and formerly self-styled as the "World's Greatest Newspaper" (a slogan for which WGN radio and television ar ...
''. January 23, 2012. Retrieved on January 24, 2012.
Sandra Pedicini of the''
Orlando Sentinel The ''Orlando Sentinel'' is the primary newspaper of Orlando, Florida, and the Central Florida region. It was founded in 1876 and is currently owned by Tribune Publishing Company. The ''Orlando Sentinel'' is owned by parent company, '' Tribune P ...
''said that "Darden reinvented the Olive Garden in the 1990s, from a floundering chain into an industry star." As part of a February 2011, Darden analyst conference, the parent group announced it intended to add more than 200 Olive Garden locations in the following few years. The announcement came after a previous announcement that the company would be expanding into potential new international markets for the chain, including the Middle East and Asia, due to the maturity of the North American market. The company also announced it would begin licensing franchising partnerships, a new direction for the chain and its parent which had traditionally relied on expansion via company-owned locations exclusively. In 2011, Darden announced that it was going to begin co-locating Olive Garden and sibling chain Red Lobster locations. The new restaurants were designed for smaller markets and had separate entrances and dining areas, but unified kitchen and support areas. Menus remained separate, with customers only able to order from the location they are seated in. In 2014, Darden Restaurants announced intentions to sell Red Lobster, to close two Olive Garden and Red Lobster co-locations in Georgia and South Carolina, and to convert the remaining four co-locations into standalone Olive Garden restaurants. In 2010, Olive Garden generated $3.3 billion in sales. Its closest competitor,
Carrabba's Italian Grill Carrabba's Italian Grill (or simply Carrabba's) is an American restaurant chain featuring Italian-American cuisine. It is owned and operated by Bloomin' Brands, and headquartered in Tampa, Florida. History The chain was founded on December 26, ...
, had generated $650.5 million in sales during the same year. By 2012, sales had decreased at Olive Garden. At the final quarter of 2011, sales at established Olive Garden locations had decreased by 2.5%. The Darden president and chief operating officer, said that Olive Garden at that point was "a beloved, but somewhat expected brand." The company introduced a three-course meal for $12.95 to try to stop the decline. In 2011, Olive Garden implemented a mandatory tip-out program which allowed them to cut more of their employees' hourly wages to $2.13 per hour. In October 2012, Olive Garden became one of the first national restaurant chains to test converting most of its staff to part-time, aiming to limit the cost of paying for health care benefits for full-time employees. On July 9, 2014, Olive Garden launched a new logo and restaurant design. This included the addition of online ordering and smaller lunch portions.


Advertising and marketing

Olive Garden's original slogan was "Good Times, Great Salad, Olive Garden". This was used when their main advertising focus was unlimited salad. When unlimited soup and breadsticks were added to the menu, the slogan was changed to "When you're here, you're family". The new company slogan inaugurated in early 2013 is "We're all family here". In the fall of 2013, Olive Garden started a promotion for the "Never Ending Pasta Bowl", where customers can eat all the pasta they want starting at $9.99. During the event, the restaurant served over 13 million bowls of pasta. In 2014, the restaurant continued the promotion but added the "Never Ending Pasta Pass", where customers can eat all the pasta they wanted during a seven-week period for $99. This promotion was limited to the first 1000 people to purchase the pass online. The Pasta Pass promotion has been offered every year since. In 2019, Olive Garden added the "Lifetime Pasta Pass" offered to first fifty diners to sign up for the never ending one. After granted the first pass selectees were then offered the chance to sign up for the second one.


Locations

As of February 13, 2022, the company operates 900+ restaurants globally. There are eight locations in Canada, which are
Winnipeg Winnipeg () is the capital and largest city of the province of Manitoba in Canada. It is centred on the confluence of the Red and Assiniboine rivers, near the longitudinal centre of North America. , Winnipeg had a city population of 749,6 ...
,
Manitoba Manitoba ( ) is a Provinces and territories of Canada, province of Canada at the Centre of Canada, longitudinal centre of the country. It is Canada's Population of Canada by province and territory, fifth-most populous province, with a population o ...
(two); Calgary, Alberta; Edmonton, Alberta (two);
Saskatoon, Saskatchewan Saskatoon () is the largest city in the Canadian province of Saskatchewan. It straddles a bend in the South Saskatchewan River in the central region of the province. It is located along the Trans-Canada Yellowhead Highway, and has served as t ...
;
Regina, Saskatchewan Regina () is the capital city of the Provinces and territories of Canada, Canadian province of Saskatchewan. The city is the second-largest in the province, after Saskatoon, and is a commercial centre for southern Saskatchewan. As of the 2021 C ...
; and Langley, British Columbia near Vancouver. In the 1990s, there had been at various times between 10 and 15 locations in Ontario, but they were all closed in the early 2000s. Newer restaurants are styled after a farmhouse in the town of
Castellina in Chianti Castellina in Chianti is a ''comune'' (municipality) of c. 2,800 inhabitants in the province of Siena, in the Italian region Tuscany, located about south of Florence and about northwest of Siena. It is part of the Chianti Hills, between th ...
,
Tuscany Tuscany ( ; it, Toscana ) is a Regions of Italy, region in central Italy with an area of about and a population of about 3.8 million inhabitants. The regional capital is Florence (''Firenze''). Tuscany is known for its landscapes, history, art ...
, on the grounds of the Rocca delle Macie winery. The farmhouse is home to the Riserva di Fizzano restaurant adjoining the company's Culinary Institute of Tuscany which was founded in 1999. In late 2012, two restaurants were opened in
Mexico City Mexico City ( es, link=no, Ciudad de México, ; abbr.: CDMX; Nahuatl: ''Altepetl Mexico'') is the capital and largest city of Mexico, and the most populous city in North America. One of the world's alpha cities, it is located in the Valley o ...
: Interlomas and Reforma Ave. Currently, there are four restaurants in Mexico City; two in Monterrey, Nuevo León, and one in
León, Guanajuato () , coordinates = , subdivision_type = Country , subdivision_name = , subdivision_type1 = Political divisions of Mexico, State , subdivision_name1 = , establishe ...
. In May 2018, Olive Garden opened two new restaurants in Gran Plaza,
Guadalajara Guadalajara ( , ) is a metropolis in western Mexico and the capital of the list of states of Mexico, state of Jalisco. According to the 2020 census, the city has a population of 1,385,629 people, making it the 7th largest city by population in Me ...
, Mexico and Cancun, Mexico. In 2013, Olive Garden opened in
Kuwait Kuwait (; ar, الكويت ', or ), officially the State of Kuwait ( ar, دولة الكويت '), is a country in Western Asia. It is situated in the northern edge of Eastern Arabia at the tip of the Persian Gulf, bordering Iraq to the nort ...
. It is located in The Avenues. In 2014, Olive Garden opened in
Lima Lima ( ; ), originally founded as Ciudad de Los Reyes (City of The Kings) is the capital and the largest city of Peru. It is located in the valleys of the Chillón River, Chillón, Rímac River, Rímac and Lurín Rivers, in the desert zone of t ...
,
Peru , image_flag = Flag of Peru.svg , image_coat = Escudo nacional del Perú.svg , other_symbol = Great Seal of the State , other_symbol_type = Seal (emblem), National seal , national_motto = "Fi ...
under the name Olive Italian Restaurant but with the same menu of the original name restaurants, and it is also located in a main avenue. In 2014, Olive Garden opened its first restaurant in
Brazil Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
, located in terminal 3 of the Guarulhos International Airport in
São Paulo São Paulo (, ; Portuguese for 'Saint Paul') is the most populous city in Brazil, and is the capital of the state of São Paulo, the most populous and wealthiest Brazilian state, located in the country's Southeast Region. Listed by the GaWC a ...
. In 2020, Olive Garden opened its first restaurant in the
Philippines The Philippines (; fil, Pilipinas, links=no), officially the Republic of the Philippines ( fil, Republika ng Pilipinas, links=no), * bik, Republika kan Filipinas * ceb, Republika sa Pilipinas * cbk, República de Filipinas * hil, Republ ...
at
Ayala Malls Manila Bay Ayala Malls Manila Bay (formerly Ayala Malls Bay Area) is a shopping mall in Metro Manila, the Philippines developed by Ayala Land Inc. under the Ayala Malls brand. Opened on September 26, 2019, it is the first Ayala Mall in Parañaque. It is lo ...
. In March 22, 2022, Olive Garden opened its first restaurant in Guayaquil, Ecuador, located in Riocentro Los Ceibos. It was reported that Olive Garden will open more restaurants in Quito and in El Dorado, located in Daule that was planned in 2016. In June 21, 2022, Olive Garden opened its first restaurant in
Aruba Aruba ( , , ), officially the Country of Aruba ( nl, Land Aruba; pap, Pais Aruba) is a constituent country of the Kingdom of the Netherlands physically located in the mid-south of the Caribbean Sea, about north of the Venezuela peninsula of ...
inside the Gloria – Movies, Dining, Entertainment and Play complex.


Menu

Olive Garden serves several types of Italian-American cuisine including pasta dishes, steaks, and salads. The company advertises its breadstick product and centers its lunch menu around it. Additionally, the company advertises that its soups and sauces are made fresh in each location daily instead of importing them from a commissary or outside vendor. In June 2010, Olive Garden began to import parts of menu formats from its sibling chain,
Seasons 52 Seasons 52 is an American fresh grill and wine bar developed in 2003. The brand concept is to deliver a casually sophisticated atmosphere, seasonal menu, and offer fresh ingredients to deliver menu items that are naturally lighter. As of 2016, ther ...
; it began selling smaller dessert portions which it called "dolcini". These new products were modeled after Season 52's "mini-indulgences" product line.


Criticism


Tuscan Institute

Despite Olive Garden's advertising that it has a cooking institute in
Tuscany Tuscany ( ; it, Toscana ) is a Regions of Italy, region in central Italy with an area of about and a population of about 3.8 million inhabitants. The regional capital is Florence (''Firenze''). Tuscany is known for its landscapes, history, art ...
, news outlets have reported that, in fact, there is no institute or school. Olive Garden does send a number of managers, trainers, and cooks to Tuscany each year, but they stay in a rented hotel and spend only a few hours at a local restaurant in its off-season.


Activist investor critique

In September 2014, Starboard Value, an
activist Activism (or Advocacy) consists of efforts to promote, impede, direct or intervene in social, political, economic or environmental reform with the desire to make changes in society toward a perceived greater good. Forms of activism range fro ...
hedge fund A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction, and risk management techniques in an attempt to improve performance, such as sho ...
that had acquired a significant portion of Darden's stock and was challenging Darden's management, released a 294-slide presentation assembled by its founder Jeff Smith, that focused on ways the company was wasting money and failing to satisfy customers. Chief among them was the shortcomings of Olive Garden, which earned considerable media attention. Starboard claimed they justified replacing Darden's directors in an upcoming election with a slate sponsored by the hedge fund. It cited details such as the unlimited breadsticks the chain offered diners, of which too many went to waste since they tended to go stale, Smith claimed, and paying extra for custom-length straws. The chain's menu was too complex, with some of its 96 items making no sense, such as vegetable lasagna topped with chicken ("if you wanted meat on your lasagna, you would order the meat lasagna" the slide read). The chain also had stopped the common practice of adding salt to the water in which it cooked its
pasta Pasta (, ; ) is a type of food typically made from an unleavened dough of wheat flour mixed with water or eggs, and formed into sheets or other shapes, then cooked by boiling or baking. Rice flour, or legumes such as beans or lentils, are som ...
in order to secure longer
warranties In contract law, a warranty is a promise which is not a condition of the contract or an innominate term: (1) it is a term "not going to the root of the contract",Hogg M. (2011). ''Promises and Contract Law: Comparative Perspectives''p. 48 Cambrid ...
on the pots, which had Smith incredulous. "Pasta is Olive Garden's core dish and must be cooked properly." He included photos of poorly executed dishes purchased at Olive Gardens compared with the photos on the chain's website, along with quotes from online reviews posted by disappointed customers. Darden's management responded with a much shorter presentation two days later. Without going into specifics, it conceded most of Starboard's critique was valid and that the company was already responding to those issues. It defended the unlimited breadsticks policy as "convey ngItalian hospitality" and rebutted another claim the hedge fund had made: packaging for take-out food which the hedge fund had claimed was dishwasher-safe and thus needlessly expensive was in fact, merely
microwave Microwave is a form of electromagnetic radiation with wavelengths ranging from about one meter to one millimeter corresponding to frequencies between 300 MHz and 300 GHz respectively. Different sources define different frequency ran ...
-safe. Nevertheless, a month later shareholders voted to replace the company's entire
board of directors A board of directors (commonly referred simply as the board) is an executive committee that jointly supervises the activities of an organization, which can be either a for-profit or a nonprofit organization such as a business, nonprofit organiz ...
with Starboard's slate, an outcome described as an "epic fail" that happened very rarely.


False claims

In August 2019, Darden responded to false claims that Olive Garden was financing
Donald Trump Donald John Trump (born June 14, 1946) is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021. Trump graduated from the Wharton School of the University of Pe ...
's 2020 presidential campaign, stating: "We don’t know where this information came from, but it is incorrect. Our company does not donate to presidential candidates.” Financial records prove Olive Garden had not contributed to the campaign. Following the
2021 storming of the United States Capitol On January 6, 2021, following the defeat of then-United States President, U.S. President Donald Trump in the 2020 United States presidential election, 2020 presidential election, a mob of his supporters attacked the United States Capitol, U ...
,
Anderson Cooper Anderson Hays Cooper (born June 3, 1967) is an American broadcast journalist and political commentator from the Vanderbilt family. He is the primary anchor of the CNN news broadcast show ''Anderson Cooper 360°''. In addition to his duties at C ...
quipped the D.C. rioters would be going to celebrate at Olive Garden when they vacated the Capitol. Darden also replied to rumors that the chain would revoke its lifetime pasta pass to Sean Hannity was a “spoof”.


See also

*
List of Italian restaurants This is a list of notable Italian restaurants, which specialize in the preparation and purveyance of Italian cuisine: * Amato's * Bella Italia * Beppi's Restaurant * Buca di Beppo * Carrabba's Italian Grill * Cibo Espresso * Drago resta ...


References


External links


Official website
{{Darden Companies based in Orlando, Florida Restaurants established in 1982 Darden Restaurants brands Restaurant chains in the United States Restaurant chains in Brazil Restaurant chains in Canada Italian restaurants 1982 establishments in Florida