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Managing the Futured Arden Restaurants


Darden is always looking for new ways to improve. This is a standard approach for all great companies. Just as McDonalds launches a new product every few months, Darden examines the status quo and continuously launches new ideas and concepts. For instance, while the type of cuisine at Darden's restaurants remains constant, the actual menu options are altered to fit customers' tastes. Red Lobster continually runs marketing campaigns such as "Lobster Fest,"" or promotes a specific menu category like shrimp. By launching new items, Red Lobster is able to study how well the new items appeal to guests during the "special- period and determine if the item should become part of its regular menu. By doing this, Darden gets invaluable feedback with relatively little investment. Another example of Darden's willingness to adapt is the recent "endless pasta bowl- option at Olive Garden. Maggiano's, a direct competitor offering all-you-can-eat-options, was quickly becoming successful and challenging Olive Garden in the family Italian food market. Darden, realizing that a demand existed for "family style- dining, launched a similar option. While no data is available on whether Maggiano's is still closing the gap on Olive Garden, it is safe to assume that Darden was able to slow Maggiano's progress. Once Darden has built its product and refined it to fit the customer needs, the last step is to launch the product on a more permanent level. This can be seen through Darden's massive expansion plans. Olive Garden had one of the fastest restaurant expansion programs during the past two decades. Similarly, Darden is now getting ready to follow the same program with its two newer chains, Bahama Breeze and Smokey Bones BBQ. Darden's intended and emergent strategies are simple. Study the customer's needs, create a food delivery concept, and continuously refine that method to both satisfy the guest and achieve above average returns for the owners.


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