Olive Garden parent CEO says fast food inflation driving customers to sit-down franchises
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Sit-down restaurant prices at fast food chains are pushing some customers to skip the drive-thru in favor of the genuine casual-dining experience, according to Darden Restaurants CEO Rick Cardenas.
Cardenas said Darden, which owns popular franchises including Olive Garden and Longhorn Steakhouse, has not yet benefited from the trend, but noted competitors like Brinker International, which owns Chili's, and Applebee's parent Dine Brands have begun to market towards fast food customers with cheap deals.
On Darden's quarterly earnings call on Thursday, Cardenas said industry data shows «a little bit of a shift» from fast food joints to sit-down competitors.
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Customers enter an Olive Garden restaurant in Pittsburg, California, US, on Friday, Dec. 9, 2022. (David Paul Morris/Bloomberg via Getty Images / Getty Images)
«The consumer is really focused on what price they're paying everywhere, not just in restaurants,» Cardenas said.
His comments come after a recent survey conducted by LendingTree found 78% of consumers now consider fast food to be a «luxury» purchase based on high prices.
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Chain restaurants like Applebee's are increasingly offering deals to attract customers away from fast-food restaurants that have high prices. (Scott Olson/Getty Images / Getty Images)
Half of those polled said they view fast food as a luxury because they are struggling financially. This is especially true among Americans who make less than $30,000 a
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