Olive Garden is refusing to join chains such as McDonald’s Corp. in offering steep discounts to attract struggling consumers, saying it’s a less sustainable way to boost sales.
Darden Restaurants Inc., which owns nine chains including Olive Garden and LongHorn Steakhouse, has kept price hikes below inflation but won’t join peers in promoting value meals as a way to fix a pullback among lower-income diners.
“Couponing, deep discounting and all of those other things, we’re not doing that even at a time that our competitors have ramped up discounting — deep discounting — on television,” Darden Chief Executive Officer Rick Cardenas said Thursday.
The comments amount to a refusal to enter an escalating price war among restaurant chains fighting to attract Americans struggling with inflation and rising debt. McDonald’s and Burger King are both promoting $5 meals, while Wendy’s Co. is offering a $3 breakfast and Starbucks Corp. a $6 breakfast sandwich and coffee combo.
