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Olive Garden is making more changes to its menu that are leaving customers unhappy
American restaurants from Chilli's to Wendy's have been rolling out deals to lure customers back.
But Olive Garden has declared it won't do that - infuriating customers.
'We're not doing that,' stated Rick Cardenas, CEO of Olive Garden's parent company Darden Restaurants, during an analyst call last month.
'Even at a time that our competitors have ramped up discounting.'
He was referring to full-service rivals like Chilli's, which has an appetizer, entree and drink deal for $11, and Applebee's which has two for $20 offers.
Fast food chains have also all rolled out deals. The likes of McDonald's, Burger King and Wendy's have a $5 meal deal that comes with a burger, nuggets, fries and a drink.
Olive Garden has vowed not to offer discounts, unlike Chilli's, Applebee's, McDonald's, Burger King and Wendy's
In fact, Olive Garden has said it will be raising prices this year.
The pandemic prompted chains to hike prices due to rising costs and consumers' willingness to pay more.
But recently, diners have started to push back - leading many restaurants to offer temporary discounts on these increased prices.
Olive Garden is not only refusing to offer deals, it is putting up prices too by 2.5 to 3 percent this year.
The move comes despite sales falling 1.5 per cent year on year.
Cardenas added: 'We think that everyday low value … is more sustainable than deep discounting to try to drive people in,' he said. 'This is a long game for us.'
Instead of deep discounts, Olive Garden plans to attract customers by highlighting its regular offerings - like its free breadsticks or refills for soup and salad.
He said: 'Our best way to drive sales is our focus on a back-to-basics operating philosophy and our guests telling others what a great value they have when they come to our restaurants.'
Olive Garden opting to increase prices has annoyed customers.
One person wrote on X: 'Olive Garden is raising prices because food inflation has reduced the number of people eating out. Can someone explain this logic?'
Another wrote that the restaurant 'may as well just shut down.'
Another person reacted on TikTok, saying Darden's executives are 'tone deaf.'
'If you're losing foot traffic and customers and you realize that consumers are struggling, it might not be the best time to brag about raising prices,' he said in the video.
Darden CEO Rick Cardenas was called 'tone deaf' on social media for raising prices
'The board needs to start looking for a new executive team and a CEO and CFO that are not so tone deaf.'
Across America, restaurants have increasingly been struggling this year. Faced with higher costs, they have put up menu prices - but that has led to a fall in customers.
Bigger chains like Applebee's, TGI Fridays and Boston Market have have all recently shuttered restaurants, as have smaller chains like BurgerFi.
Red Lobster filed for bankruptcy in May and also shuttered almost 100 restaurants.