In addition to those shifting tastes, Darden and other casual dining chains such as Applebee’s are dealing with customers who are being more careful about where and how often they eat out in the weak economy.
To address the “affordability many guests need right now,” Darden plans to dial back on its efforts to build its brands for now and increase the frequency of promotions that underscore value, said Drew Madsen, the company’s chief operating officer. He declined to specify the exact nature of the revamped strategy, however, noting that the element of surprise is critical in a “highly competitive” industry that is once again expected to see only modest growth in the year ahead.
He also noted that Darden had been “pre-empted” by competitors in the past by revealing its hand too early.