NEW YORK (AP) -- Olive Garden is defending its practice of giving customers as many breadsticks as they want, saying the policy conveys "Italian generosity."
The remark is part of a response by the chain's parent company, Darden Restaurants Inc., to a nearly 300-page criticism released by hedge fund Starboard Value last week. Starboard took Olive Garden and its management to task for a litany of issues, including its liberal distribution of breadsticks, its failure to salt the water used to boil its pasta and even the length of the asparagus it serves.
Starboard is lobbying to gain control of Darden's board of directors at the company's annual meeting Oct. 10. Darden, which is based in Orlando, Florida, has struggled to boost sales at Olive Garden with the growing popularity of chains such as Chipotle, where people feel they can get food similar in quality to a sit-down restaurant for less money. Under pressure to boost results, Darden recently sold off Red Lobster, which was doing even worse than Olive Garden. But Starboard and others took issue with the sale and wanted the company's breakup structured differently.
As for its breadsticks, Starboard said last week that Olive Garden was being wasteful because servers weren't sticking to the policy of providing one breadstick per customer, plus an extra for the table. The investor said servers lacked "training and discipline" and were bringing out too many breadsticks at a time, which also led to cold breadsticks. Starboard noted that it wasn't calling for Olive Garden to stop giving away unlimited breadsticks, but simply exercise more control in how they're distributed.
Starboard also said servers were overfilling salad bowls and using too much dressing, which it said drives up costs.
In its response Monday, Darden said that "Olive Garden's salad and breadsticks have been an icon of brand equity since 1982." The company didn't say whether it would change the way salad and breadsticks are brought out, however.
http://finance.yahoo.com/news/olive-garden-defends-breadstick-policy-153421358--finance.html
Selected comments:
Don't let the hedgefund bean counters get control!!! they will destroy the restaurant. They don't care how the food tastes or the employees . They only see the bottom line and don't care about the rest. Just look at Famous Daves, not only has the restaurant tanked , they have fired everyone from the "old guard" including any females they were in a position of power and are moving to Chicago. The Board of Directors are nothing but bean counters and hostile take over artists. Even Dave Anderson had resigned and is no longer part of the company and he started it!
On the last article I said this before, they DO NOT give you all the bread sticks you want. I was told numerous times that the "THE BREAD STICKS ARE IN THE OVEN". By the time if that was true, they never brought any. The portions have become smaller and the waitresses and waiters are some the laziest I have ever seen. Every Olive Garden I used to eat in at different locations would never refill your soda without asking or waving an arm to get their attention. Salad was never brought out after asking for more. I left no tips for these lousy servers. The food quality plummeted. I haven't eaten in an Olive Garden in over 6 years now, and certainly will not go back. I have found a great INDEPENDENT not CHAIN that has great service and fabulous food, unlike the garbage served at Olive Garden.
We went to Olive Garden in San Jose, Ca not long ago. The oil on the breadsticks was rancid, the salad looked like it had been out on the counter all day, and the food was still frozen in the middle. Not only that - but we sat in the bar for an hour without the hostess coming to get us when our table was ready, so someone else claimed to be us and took our table. Fortunately, they sat us in no time. Also fortunate - the other people were stuck with our bar tab! When we walked out they were arguing with the hostess, who said - Are you not John and Tammy or did you take their table? We walked out the door and said "BYE JOHN AND TAMMY AND THANKS FOR THE DRINKS!" LOL.
#breadsticksforall if old.