Meanwhile, in a today’s sturdy economy each business gaze for ways to hold back, thus Olive Garden restaurants followed suit and looked at their books to find a reasonable way to lessen increases to reveal a more capable outlook.
The restaurant group needs training and regulation though the servers are bringing too many breadsticks to the table, an investor, hedge fund Starboard Value, pointed out in a nearly 300 page report. He further says that leads to breadsticks getting cold and then thrown away. That results in waste and waste equals lost profits.
Certainly, the investor cites Olive Garden’s possess the policy to offer each person at the table with one breadstick at a time. Sorry to say, servers are bringing more than that either by mistake of their own kindness or a keenness to get a healthier tip or just through recklessness and unawareness of policy and this very simple could drag the company down.
“Darden management readily admits that after sitting just 17 minutes, the breadsticks deteriorate in quality” Starboard said. Moreover, they are not recommending that the company end the limitless breadsticks promise just that servers are more diligent of the hold time on each breadstick.
The Starboard released a document on Thursday, in which they present how Darden Restaurants (the parent company of Olive Garden) could immensely perk up their performance. Starboard also recommends that they need to take control of Darden’s board of directors, since sales fell by 1.3% at many locations last year.
Although it is believed that the breadsticks are not the only reason for Olive Garden’s fall in business. The fame of restaurants such as Chipotle, where people can sit and enjoy their food for near half the price of an Olive Garden entrée, has a hand in cutting their revenue. Starboard also condemns Darden’s lacks of vision in terms of marketing, calling their strategies are out-dated.