Olive Garden Is Suddenly Popular Again Thanks To an Unbeatable Deal
After months of negative sales, Olive Garden's popularity is on the rise again—thanks in part to a super successful meal deal that returned for an extended period this past fall.
Olive Garden parent company Darden Restaurants unveiled its latest quarterly earnings results on Dec. 19, reporting the first same-store sales increase for the Italian-American chain (2%) in four quarters. As executives revealed during an earnings call this week, Olive Garden's Never-Ending Pasta Bowl promotion was a major driver behind its improved performance.
The annual promotion returned on Aug. 26, offering customers unlimited pasta, breadsticks, and their choice of soup or salad for a starting price of $13.99. Guests who opted for the deal could create their own pasta dishes by choosing from a selection of noodle types and sauces. For an extra $4.99, customers could also upgrade their pasta with meatballs, Italian sausage, or Crispy Chicken Fritta.
The relaunch of Never-Ending Pasta Bowl in late August led to a "pretty strong" September for Darden, CFO Raj Vennam said during the call. Additionally, Darden CEO Rick Cardenas revealed that they extended the deal by four weeks, and a record number of Never-Ending Pasta Bowl customers opted for the $4.99 protein upgrade.
"So, the promotion did well," he added.
Olive Garden's impressive earnings results were only the latest indication that things are on the upswing for the chain. The foot traffic platform Placer.ai revealed in a report earlier this month that Olive Garden saw a 2.1% increase in customer visits in November compared to a year prior. Aside from Ruth's Chris Steak House, every other Darden brand also experienced an uptick in customer traffic in November.
Darden chains have gotten even busier during the holiday season in past years, and this "suggests that the company is well-positioned to sustain its current momentum into the holiday season and beyond," Placer.ai wrote.
In other Olive Garden news, Cardenas teased that a new dish will debut at the chain in January, but wouldn't divulge any specific details during the earnings call. Olive Garden also recently brought back its beloved Steak Gorgonzola Alfredo and Stuffed Chicken Marsala, both of which were discontinued during the COVID-19 pandemic but remained highly requested by customers. The dishes have "been recast with higher-quality ingredients and easier execution for their restaurant teams," Cardenas said in September.
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