Legendary, family-favorite chain that will raise prices – customers tired of inflation say “just closed”

Olive Garden bosses have revealed they will raise prices this year despite poor sales, angering the customers they are trying to appeal to.

The Darden Restaurants chain, which owns Olive Garden, said the beloved Italian chain’s same-store sales – or sales at locations that have been open for at least a year – fell 1.5 percent in the quarter ending May 26.

In response, executives said they would increase prices by 2.5 to 3 percent not only at Olive Garden but across its vast portfolio of restaurants, including LongHorn Steakhouse, Ruth’s Chris Steakhouse and Yard House.

This decision was made even though the company’s overall sales for fiscal 2024 increased 8.6 percent to $11.4 billion, mainly due to improved performance by LongHorn Steakhouse.

Customers on social media said Olive Garden was headed in exactly the wrong direction and should “read the situation,” especially since years of very high inflation have left people unable to spend money on things like dining out.

Raising prices is nothing new, as Olive Garden already increased its menu by 1 percent last year.

It appears to be doubling down on higher fees, even though executives admit that food price inflation is hitting the least affluent customers.

“Consumers are generally concerned about inflation and are increasingly concerned about the labor market. We’re seeing some changes in behavior that we’ve already started to see,” Darden CEO Rick Cardenas said on the call.

Darden Chief Financial Officer Raj Vennam said the sales decline is due to lower-income customers withdrawing while deeper-pocketed customers use Olive Gardens’ services at the same or greater rate.

Cardenas, however, said Darden’s restaurants will not offer discounts like other fast food chains.

“We will not go out of our way to buy a sale, even with the increasing discounts applied by our competitors,” he said.

The overwhelming majority of Americans now say that due to inflation they almost never eat at fast food restaurants and view eating out as a luxury beyond their reach.

Given these facts, Olive Garden’s decision to increase prices even further is confusing and frustrating to many.

One person wrote on X: “Olive Garden is raising prices because food price inflation has reduced the number of people eating out. Can someone explain this logic(?)”

Another wrote that the restaurant “might as well close.”

Another person reacted on TikTok, stating that Darden executives are “tone deaf.”

“If you’re losing foot traffic and customers and you know consumers are struggling, it might not be the best time to brag about raising prices,” he said in the video.

“The board needs to start looking for a new executive team and a CEO and CFO who are not so tone-deaf.”

Chain restaurants have been under pressure to cut prices for months, especially as prices in grocery stores are rising more slowly.

Fast food restaurants seem to finally be bowing to consumer demands this summer, with McDonald’s introducing a $5 meal on Tuesday.

Wendy’s is offering a $3 breakfast combo for a limited time, and Burger King is bringing back its $5 Your Way meal for summer.

Even casual dining chains more like Olive Garden are testing discounted combo meals.

In addition to 24-hour daily happy hour at select locations, Chili’s also offers a $10.99 “3 for Me” meal that includes a drink, appetizer and entree.

Applebee’s hopes to attract couples with a “2 for $25” offer that includes two entrees, an appetizer to share or two salads.