Working at Olive Garden myself
for the past two years, I have definitely seen the difference first hand.
Compared to last year, our wait times on a Friday or Saturday night is not as
long as they used to be, and the type of people that choose to come to the
restaurant are not the same either. I could only assume that Red Lobster is
having the same problem, only 10x worse.
Red Lobster seems to not be
able to attract the high-income customers that places like Yard House and
Capital Grill do, which causes them to not make as much money. The CEO of
Darden Clarence Otis feels this will be good for the company because they will
be able to focus more on its core audience. Jean Bertotti, who is a waiter in a Plantation Red Lobster, thinks it is a good idea, and agrees with the CEO
that it will help them rebuild their market and cliental.
"I think it is great that
Red Lobster is branching out into its own company because it gives us more
freedom to focus on our brand. They are down 32% I believe over the last
quarter and this will help the company reach its ultimate goal. The only
drawback is the uncertainty everyone is facing, especially with those who have
full careers. I know many people that are strongly considering leaving because
of this."
After talking to other
employees it seems to be that most are excited about the separation and think
it can only help make their restaurant better.
There is also another plan in
the works that may put Olive Garden in danger as well. I first heard about
this from my boss, but then after looking more into it I found everything he
said to be true. Barington Capital LP, an investor that owns more then two
percent of Darden stock, came up with the idea to separate Darden into two
companies. One would be just for Red Lobster and Olive Garden, while the other
would be home to all of the rest. As an Oliver Garden employee, I would not
mind getting separated and being able to work on our image again. I would love
to see my restaurant as nice, well known, and busy as it used to be.
As of now there seems to be
many ideas and plans on the table. In order for Red Lobster to become officially
separated all they need is approval from the Darden Board. They are thinking
this plan will close in the early part of 2015.
