Consumer Behavior Shift: Darden Restaurants CEO Notes Trend Towards Casual-Dining Chains Over Fast-Food Options
Money | June 20, 2024, 12:04 p.m.
Casual-dining chains are seeing a shift in customers frustrated with rising fast-food prices, according to Darden Restaurants CEO Rick Cardenas. While Darden itself hasn't reaped the benefits, competitors like Brinker International and Dine Brands are luring in fast-food diners with aggressive pricing and marketing strategies. With full-service menu prices rising faster than limited-service eateries, consumer dissatisfaction with costly fast-food options is growing. Even McDonald's has faced criticism over its price hikes, prompting the company to introduce new value meals to attract budget-conscious diners.
Darden, on the other hand, has focused on TV advertising and competitive pricing to entice customers. Despite facing challenges like a weak consumer environment and increased competition, the company remains optimistic about its performance compared to the industry. While Darden's stock has declined this year, the company is striving to maintain its position in the casual-dining market through innovative strategies and customer-focused initiatives.