This Is Exactly How Bad Things Have Gotten for Red Lobster

From Time Magazine

With the sale of Red Lobster, Darden Restaurants said its remaining restaurant chains, including Olive Garden, LongHorn Steakhouse and a growing roster of upscale brands, could now focus on reeling in their “core customers.” Darden CEO Clarence Otis Jr. offered a clue as to who those core customers might be. Hint: they’re “more financially secure.”

“At Olive Garden,” he explained during a recent investor call, “we had 11% more visits last year, fiscal 2013, from guests with household income over $100,000 than we did five years earlier.” And that was small potatoes compared with LongHorn Steakhouse, which wrangled 50% growth out of the same income bracket.

“In contrast,” Otis said, “Red Lobster traffic from this income demographic was flat.”

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