The Problem With Olive Garden
Huff Post: ‘One restaurant operator has just given us a small window into a huge problem with the American economy. Darden Restaurants, the Orlando-based purveyor of sit-down food chains, announced its fourth-quarter earnings on Friday, revealing that some of its restaurants have done much better than others in the past few months. What was the major difference between success and failure at its restaurants? The diners. Restaurants that serve the well-off are thriving, while those that serve the rest of us are struggling, in a microcosm of the broader economy. Struggling are Olive Garden and Red Lobster, which are largely geared toward middle-class customers, who have been squeezed during the recession and slow recovery. Families with young children cut back on restaurant spending during the downturn, and they haven’t come back, according to a recent survey by restaurant research firm NPD Group.’
