Cracker Barrel’s results are in, Olive Garden shrinks its portions, and Starbucks is getting sued
Description
On this week’s Extra Serving, NRN editor in chief Sam Oches and executive editor Alicia Kelso discuss the latest restaurant industry news, including Cracker Barrel’s sales results from its eventful quarter, Olive Garden’s big bet on small portions, and Starbucks employees’ lawsuit against the company. First up is Cracker Barrel, which reported a sales increase in its most recent quarter — but also a drastic traffic decrease. All of this was against the backdrop of the company’s rebrand and new logo, which were met with such disdain from customers that the company reverted to its old logo and store design. Sam and Alicia discuss what could be next for Cracker Barrel and what other companies should learn from the company’s rebranding moves. They also touch on another casual brand that had a tough quarter: Dave & Buster’s. The company’s new CEO is pinning the blame on the former regime, but could something bigger be at play in the eatertainment category? Next they talk about Darden, which reported impressive sales growth across its portfolio, including over 5% growth for its two flagship brands: Olive Garden and LongHorn Steakhouse. Sam and Alicia consider what Darden is doing right when compared with other casual chains like Cracker Barrel and Dave & Buster’s. They also drill down on Olive Garden, which announced a new value play that includes smaller portions for a lower price point. Then they shift the conversation to Starbucks, which is being sued by some of its employees for the new dress code instituted by CEO Brian Niccol. What’s at stake for Starbucks in the new policy — and restaurant employees more broadly? Finally, Sam and Alicia talk about recent restaurant closures, including from Salad & Go and Maple Street Biscuit Company.
For more on these stories:
Cracker Barrel says traffic is down, but loyalty signups are up since rebranding controversy
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