Traffic and same-store sales at many well-known casual-dining brands, including Darden Restaurants’ Olive Garden, are declining for reasons besides general economic conditions and a bad winter. The fast-casual sector of the restaurant business is creating problems for casual-dining restaurants. Customers are simply finding the improvement in quality attractive.
The fast-casual model was first introduced by Chipotle Mexican Grill. The fact that customers can choose exactly what they want to eat and then watch their meal being put together has proven to be a very successful model. Customers also like the quick meals delivered without a waiter.
But some casual-dining chains are not taking this lying down. Instead, they are fighting back in their own fashion. For instance, Olive Garden has completely overhauled its menu and added lighter items, including a hamburger for lunch and a pasta section. On the other hand, Hard Rock Cafe has cut its menu while adding items such as more fashionable salads and smoked foods.