Darden Restaurants reported strong Q2 sales driven by Olive Garden and LongHorn Steakhouse, raising its full-year revenue outlook due to increased demand for value-oriented dining options despite higher ingredient costs, with growth in same-store sales and a positive outlook for fiscal 2026.
Despite rising inflation and menu costs, Olive Garden has maintained the price of its 'Never Ending Pasta Bowl' at $13.99 for four years, likely leveraging increased customer spending on additional items and bulk pasta purchasing to sustain profitability, while other casual dining chains focus on value promotions to attract budget-conscious consumers.
Olive Garden's popular 'endless' breadsticks, soup, and salad originated in 1982 as a cost-effective way to manage demand and have become a core part of its brand identity, offering value and fostering customer loyalty despite profitability pressures. The chain continues to emphasize these offerings, which contribute to its recent sales growth and customer retention, with no plans to alter this tradition.