Olive Garden offers smaller portions, lower prices to boost value

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By Jonathan Reed

Darden Restaurants, the parent company of Olive Garden, is strategically adjusting its menu offerings by introducing smaller portion sizes at a reduced price point in approximately 40% of its locations. This initiative, dubbed “Lighter Portion Entrées,” aims to provide consumers with more value-conscious dining options without compromising the brand’s signature “never-ending” first course of breadsticks, soup, or salad. The move signals a nuanced approach to managing consumer demand and perceived value in the competitive casual dining sector.

The newly introduced lighter portion options encompass seven popular existing entrées, including classics like Chicken Parmigiana and Fettuccine Alfredo. These scaled-down versions are priced between $12.99 and $13.99, varying by specific market. Importantly, these items are positioned as an additive choice for customers, not a replacement for the standard full-sized portions, ensuring a broad appeal to different appetite levels and budget considerations.

Initial customer feedback has been positive, with Darden Restaurants CEO Rick Cardenas reporting a 15% increase in customer ratings for affordability. Crucially, diners have expressed satisfaction with the meal quantity, even with the reduced serving sizes. This suggests a successful recalibration of expectations, where perceived value is linked not solely to volume but also to a more accessible price point and the continued availability of unlimited accompaniments.

This menu experimentation by Darden Restaurants occurs within a broader industry context. The company, which also operates brands like LongHorn Steakhouse and Ruth’s Chris Steak House, recently reported mixed quarterly results, leading to a stock decline. While Darden announced plans to expand its Olive Garden and LongHorn Steakhouse footprint earlier in the year, the casual dining landscape is increasingly dynamic. Notably, Texas Roadhouse has recently surpassed Olive Garden as America’s top casual dining chain, a title Olive Garden had held since 2018, indicating shifting consumer preferences and increased competition. The introduction of the “Lighter Portion Entrées” could be an effort to regain market share and appeal to a wider demographic facing economic pressures.

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