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Olive Garden, Red Lobster See Sharp Drop In Profits After Anti-Obamacare Campaig

By 121212   Follow   Fri, 21 Dec 2012, 5:42pm   1,719 views   36 comments
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http://americablog.com/2012/12/obamacare-critic-olive-garden-red-lobster-drop-in-profits.html

http://thinkprogress.org/health/2012/12/20/1365461/olive-garden-red-lobster-see-sharp-drop-in-profits-after-anti-obamacare-campaign-backfires/

Olive Garden, Red Lobster See Sharp Drop In Profits After Anti-Obamacare Campaign Backfires

Obamacare critic Olive Garden/Red Lobster reports 37% drop in profits

Whether there’s a connection between Olive Garden / Red Lobster parent company, Darden Restaurants, reporting bad numbers and their flip-flopping on Obamacare is hard to say.

Customers of those restaurants are certainly middle class people, most of whom know all too well how difficult and expensive healthcare can be, so it’s not unreasonable to think the earlier criticism of Obamacare had some negative impact.

Earlier this month, it was reported that Darden’s CEO was concerned about the bad publicity, but that he was making efforts to provide healthcare to at least some of their employees. Darden did eventually come around.

“Although our workforce historically has been heavily part-time, we have always had a significant number of full-time employees and they are integral to our success,” said Darden chairman and CEO Clarence Otis. “The data we have collected during our test around guest satisfaction and employee engagement has only reinforced this. As we think about healthcare reform, while many of the Patient Protection and Affordable Care Act’s rules and regulations have yet to be finalized, we are pleased we know enough at this point to make firm and hopefully reassuring commitments to our full-time employees.”

Was blaming Obamacare real, or just an excuse for missing the numbers? Again, it’s hard to say. Data shows that criticism of Obamacare by CEO’s has hurt the image of companies, though nobody can make a direct link to poor numbers, yet. The ongoing economic crisis could just as easily be responsible for bad performance. Many families still feel financially insecure, and going to restaurants is often an expense that gets cut.

Darden seemed to eventually be doing the right thing by exploring the process of adding healthcare for at least some employees. Was it too little, too late or was the damage already done? Whatever the answer, the public does seem to be in a bad mood lately with CEOs, former CEOs, rich people and companies who are bashing Obamacare, or at least, access to healthcare for employees.

The Huffington Post is suggesting the earlier Obamacare criticism is linked to the drop in sales, but I’m less convinced. The criticism may not have helped, but to blame the unfortunate public statements about Obamacare on such a huge revenue decrease, a 37% profit drop, sounds too easy.

It’s time for businesses to get on board with Obamacare, and quit causing self-inflicted wounds, or the image of self-inflicted wounds on their businesses. Maybe it means a few less dollars at the top, but is that really such a crisis to whine about?

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1. Peter P Follow Befriend (4) 117 threads 17,655 comments Premium

   1   5:51pm Fri 21 Dec 2012   Share   Quote   Permalink   Like (2)   Dislike   Protected   My only criticism of Obamacare is that it does not go far enough. Universal healthcare is essential to a free enterprising society because employees should not be chained to employer-provided group policies. They should be encouraged to innovate, start businesses, and compete freely. We should have something like the NHS. Of course, there should be a private system as well for the niche markets, because I also believe in choice.

2. 121212 Follow Befriend 83 threads 687 comments male

   2   5:55pm Fri 21 Dec 2012   Share   Quote   Permalink   Like (4)   Dislike   Peter P says My only criticism of Obamacare is that it does not go far enough. OMFG we agree again! Yup, Obamacare needs more oomph.. It was just a start, remember it took 100years to get that! NHS on steriods for the USA would be great.

3. Peter P Follow Befriend (4) 117 threads 17,655 comments Premium

   3   5:58pm Fri 21 Dec 2012   Share   Quote   Permalink   Like (2)   Dislike   Protected   And I somehow believe universal healthcare will cost taxpayers LESS than the current programs combined (e.g. medicare, medicaid, etc).

4. 121212 Follow Befriend 83 threads 687 comments male

   4   6:00pm Fri 21 Dec 2012   Share   Quote   Permalink   Like (4)   Dislike (1)   Peter P says And I somehow believe universal healthcare will cost taxpayers LESS than the current programs combined (e.g. medicare, medicaid, etc). $718 Billion less, as of now.

5. Peter P Follow Befriend (4) 117 threads 17,655 comments Premium

   5   6:10pm Fri 21 Dec 2012   Share   Quote   Permalink   Like (2)   Dislike   Protected   It is quite silly not to embrace universal healthcare. It is just all because of special interests. I consider myself a Thatcherite and I am to the right of Milton Friedman on many issues. But universal healthcare is as basic as national defense for a country.

6. elliemae Follow Befriend (25) 413 threads 6,976 comments Saint George, UT elliemae's website

   6   10:08pm Fri 21 Dec 2012   Share   Quote   Permalink   Like (1)   Dislike (2)   My niece and nephew live in a smaller town, and were once employed at an Olive Garden. They pay their employees shit wages and treat them like dirt. The managers are mean and staff members are judged by what they do on their own time. It's a horrible place to work, and I haven't eaten at either restaurant since.

7. Peter P Follow Befriend (4) 117 threads 17,655 comments Premium

   7   10:41pm Fri 21 Dec 2012   Share   Quote   Permalink   Like   Dislike   Protected   I don't eat at places where employees are mistreated. This is not a philosophical thing. But I get better service with happy employees.

8. Homeboy Follow Befriend 13 threads 1,476 comments

   8   12:05am Sat 22 Dec 2012   Share   Quote   Permalink   Like   Dislike   Peter P says My only criticism of Obamacare is that it does not go far enough. Universal healthcare is essential to a free enterprising society because employees should not be chained to employer-provided group policies. They should be encouraged to innovate, start businesses, and compete freely. We should have something like the NHS. Of course, there should be a private system as well for the niche markets, because I also believe in choice. Wow, I agree with Peter P on something. I think that's actually twice now.

9. Homeboy Follow Befriend 13 threads 1,476 comments

   9   12:08am Sat 22 Dec 2012   Share   Quote   Permalink   Like (2)   Dislike   What probably also isn't helping Olive Garden is that their food sucks.

10. elliemae Follow Befriend (25) 413 threads 6,976 comments Saint George, UT elliemae's website

    10   9:28am Sat 22 Dec 2012   Share   Quote   Permalink   Like (2)   Dislike (3)   Homeboy says What probably also isn't helping Olive Garden is that their food sucks. Let's not forget overpriced. But according to some poll by a LV newspaper, the best seafood restaurant was Red Lobster and the best italian restaurant was.... Olive Garden. OMG!

11. APOCALYPSEFUCK is Shostakovich Follow Befriend (28) 168 threads 4,146 comments Premium

    11   9:33am Sat 22 Dec 2012   Share   Quote   Permalink   Like (2)   Dislike (1)   Protected   elliemae says Homeboy says What probably also isn't helping Olive Garden is that their food sucks. Let's not forget overpriced. But according to some poll by a LV newspaper, the best seafood restaurant was Red Lobster and the best italian restaurant was.... Olive Garden. OMG! If I took out full page ads on Sunday, I could shit on toast and get a Best of designation from the newspaper.

12. elliemae Follow Befriend (25) 413 threads 6,976 comments Saint George, UT elliemae's website

    12   11:34am Sat 22 Dec 2012   Share   Quote   Permalink   Like (1)   Dislike (3)   APOCALYPSEFUCK is Shostakovich says If I took out full page ads on Sunday, I could shit on toast and get a Best of designation from the newspaper. Apoco-shitz. I can see it now.

13. Homeboy Follow Befriend 13 threads 1,476 comments

    13   12:36pm Sat 22 Dec 2012   Share   Quote   Permalink   Like   Dislike

14. zzyzzx Follow Befriend (9) 410 threads 4,107 comments Baltimore, MD

    14   11:54am Thu 27 Dec 2012   Share   Quote   Permalink   Like (2)   Dislike (3)   I'm sure that the pending fiscal cliff has nothing to do with restaurant profits dropping. Article fails to mention how other restaurant chains are doing.

15. CaptainShuddup Follow Befriend (1) 246 threads 4,655 comments

    15   12:09pm Thu 27 Dec 2012   Share   Quote   Permalink   Like (1)   Dislike (3)   I call it the Pink Shrimp. Shrimp is 95% of Red Lobsters menu. Their cheddar biscuits are the only reason to go.

16. 121212 Follow Befriend 83 threads 687 comments male

    16   12:32pm Thu 27 Dec 2012   Share   Quote   Permalink   Like (3)   Dislike (3)   zzyzzx says I'm sure that the pending fiscal cliff has nothing to do with restaurant profits dropping. Article fails to mention how other restaurant chains are doing. Can you read? Olive Garden, Red Lobster See Sharp Drop In Profits After Anti-Obamacare Campaign Backfires I can tell you that other restaurants are at about last years seasonly adjusted figures. You think 40% down is wide spread? Dumb ass.

17. beershrine Follow Befriend 33 comments

    17   1:30pm Thu 27 Dec 2012   Share   Quote   Permalink   Like (1)   Dislike (1)   Thinkprogess? really this story is all twisted. Sales are up at Darden so is profit...and the sheep go.....Baaaahhhhhh

18. Thedaytoday Follow Befriend 46 threads 530 comments

    18   1:32pm Thu 27 Dec 2012   Share   Quote   Permalink   Like (3)   Dislike (1)   beershrine says Thinkprogess? really this story is all twisted. Sales are up at Darden so is profit...and the sheep go.....Baaaahhhhhh Really!............. http://online.wsj.com/article/SB10001424127887324461604578191282730576340.html Darden Profit Drops 37% Darden Restaurants Inc.'s DRI +0.29% fiscal second-quarter profit fell 37% as same-restaurant sales at all three of its major chains sank, led by Olive Garden's decline. Darden, whose primary chains include Olive Garden, Red Lobster and LongHorn Steakhouse, earlier this month lowered its sales growth expectations for the year due to worse-than-expected second-quarter results. The company began stumbling coming out of the recession, when its rivals offered deep discounts to attract attention, while it refrained from similar promotions to avoid hurting profit margins. In late 2010, Darden said it would shift its strategy—focusing more on low prices rather than the quality of its food in advertisements. But two years later, Darden is still struggling to find the right balance. Meanwhile, Darden is turning to its specialty-restaurant group, which includes higher-end chains such as Capital Grille and Bahama Breeze, to help it expand. The company built up that business in August with its $585 million purchase of Yard House USA Inc., a pub-style chain with about 40 locations. For the period ended Nov. 25, Darden reported a profit of $33.6 million, or 26 cents a share, down from $53.7 million, or 40 cents a share, a year earlier. Acquisition-related costs for Yard House hurt the bottom-line by about five cents. The company earlier this month had forecast 25 cents to 26 cents a share. Sales rose 7% to $1.96 billion, just above predictions of $1.95 billion from analysts polled by Thomson Reuters. By chain, same-restaurant sales fell 3.2% at Olive Garden, the company's biggest chain by revenue. At Red Lobster, same-restaurant sales were down 2.7%. LongHorn posted 0.8% lower same-restaurant sales. Those three chains combined posted a same-restaurant sales decline of 2.7%. Same-restaurant sales at the specialty restaurant segment grew 0.7%. Darden affirmed its full-year guidance. http://www.bizjournals.com/tampabay/blog/morning-edition/2012/12/darden-profits-drop-37-percent-for-the.html Darden profits drop 37 percent for the quarter

19. thomaswong.1986 Follow Befriend 14 threads 2,809 comments

    19   2:03pm Thu 27 Dec 2012   Share   Quote   Permalink   Like (1)   Dislike (2)   121212 says Again, it’s hard to say. no its just the typical Obama mob hit Chicago style. how about going straight to the press release... seems there is no link to such a claim if you read the actual text to the official press release and look at the top line revenue sales..... http://finance.yahoo.com/news/darden-restaurants-reports-second-quarter-120000246.html OLIVE GARDEN'S second quarter sales of $849 million were 1.5% higher than the prior year, driven by revenue from 46 net new restaurants offset by a 3.2% decrease in U.S. same-restaurant sales. For the quarter, on a percentage of sales basis, lower food and beverage expenses offset an increase in restaurant expenses and depreciation expense, which resulted in an increase for the quarter in operating profit, but a decrease in operating profit as a percentage of sales. RED LOBSTER'S second quarter sales of $590 million were 2.1% lower than the prior year as a result of a U.S. same-restaurant sales decrease of 2.7% that was offset somewhat by revenue from five net new restaurants. For the quarter, on a percentage of sales basis, lower food and beverage expenses and restaurant labor expenses were more than offset by an increase in restaurant expenses, selling, general and administrative expenses and depreciation expense, which resulted in a decrease for the quarter in both operating profit and operating profit as a percentage of sales. LONGHORN STEAKHOUSE'S second quarter sales of $275 million were 7.8% higher than the prior year, driven by revenue from 32 net new restaurants offset by a U.S. same-restaurant sales decrease of 0.8%. For the quarter, on a percentage of sales basis, higher food and beverage expenses, restaurant labor expenses, restaurant expenses and depreciation expense resulted in a decline for the quarter in both operating profit and operating profit as a percentage of sales.

20. thomaswong.1986 Follow Befriend 14 threads 2,809 comments

    20   2:16pm Thu 27 Dec 2012   Share   Quote   Permalink   Like (1)   Dislike (3)   121212 says Can you read? Olive Garden, Red Lobster See Sharp Drop In Profits After Anti-Obamacare Campaign Backfires I can tell you that other restaurants are at about last years seasonly adjusted figures. You think 40% down is wide spread? Dumb ass. I guess this is also a backlash....Barnes & Noble closing 150 stores nationwide . or that Fresh Choice has also gone under... all in the past month. Popular salad buffet Fresh Choice goes dark - San Jose Mercury ... www.mercurynews.com/.../popular-salad-buffet-fresh-choice-... Dec 14, 2012 – Fresh Choice, known for its salad buffets and farm-to-fork ideals, has shuttered the last of its stores after failing to appease creditors and to ... The exterior dining area of the now closed Fresh Choice restaurant in Walnut Creek,

21. Thedaytoday Follow Befriend 46 threads 530 comments

    21   3:09pm Thu 27 Dec 2012   Share   Quote   Permalink   Like (4)   Dislike (2)   thomaswong.1986 says Fresh Choice has also gone under... all in the past month. Owned and shuttered by Tesco's Because it was a failure. That's the market speaking. Barnes & Noble closing 150 stores nationwide because we moved to e-books and tablets Capitalism speaks.

22. Econ101 Follow Befriend 9 comments San Diego, CA

    22   3:49pm Thu 27 Dec 2012   Share   Quote   Permalink   Like (1)   Dislike (3)   The real problem is that healthcare is too EXPENSIVE. Rather than address the underlying issue of cost, the government is going to try to force universal access of a limited supply of services to everyone in the country. Guess what is going to happen when 30 million more people are going to have access to healthcare but there are ZERO additional new doctors, nurses and hospitals. Hint: The same thing that has happened to housing and education costs...

23. thomaswong.1986 Follow Befriend 14 threads 2,809 comments

    23   3:53pm Thu 27 Dec 2012   Share   Quote   Permalink   Like (2)   Dislike (2)   Thedaytoday says Owned and shuttered by Tesco's Because it was a failure. That's the market speaking. Barnes & Noble closing 150 stores nationwide because we moved to e-books and tablets Capitalism speaks. as is the case with the other restaurants.. simply lower or higher demand... but no connection to any backlash over ObamaCare.

24. Thedaytoday Follow Befriend 46 threads 530 comments

    24   3:54pm Thu 27 Dec 2012   Share   Quote   Permalink   Like (3)   Dislike (2)   thomaswong.1986 says Thedaytoday says Owned and shuttered by Tesco's Because it was a failure. That's the market speaking. Barnes & Noble closing 150 stores nationwide because we moved to e-books and tablets Capitalism speaks. as is the case with the other restaurants.. simply lower or higher demand... but no connection to any backlash over ObamaCare. Provide me with some evidence!

25. APOCALYPSEFUCK is Shostakovich Follow Befriend (28) 168 threads 4,146 comments Premium

    25   4:33pm Thu 27 Dec 2012   Share   Quote   Permalink   Like (4)   Dislike   Protected   these slop houses and just fucking gross. you know that the people who work there take long sloppy shits into the pots in the kitchen.

26. beershrine Follow Befriend 33 comments

    26   4:45pm Thu 27 Dec 2012   Share   Quote   Permalink   Like (2)   Dislike   Thedaytoday says http://www.bizjournals.com/tampabay/blog/morning-edition/2012/12/darden-profits-drop-37-percent-for-the.html Darden profits drop 37 percent for the quarter What is wrong is the HATE in the story itself. Again sales are up but profit is lower from the prior year. sheesh

27. 121212 Follow Befriend 83 threads 687 comments male

    27   4:49pm Thu 27 Dec 2012   Share   Quote   Permalink   Like (2)   Dislike (2)   http://www.zdnet.com/good-bye-books-hello-e-books-7000009208/

28. noodlesphilly Follow Befriend 6 comments Windermere, FL

    28   5:05pm Thu 27 Dec 2012   Share   Quote   Permalink   Like   Dislike   I love red lobster and will still be going. Also we got a postcard in the mail the flexie account goes from 5,000 to 2,500 nice .glad my hubby retire this year .

29. APOCALYPSEFUCK is Shostakovich Follow Befriend (28) 168 threads 4,146 comments Premium

    29   6:38pm Thu 27 Dec 2012   Share   Quote   Permalink   Like (2)   Dislike   Protected   Any restaurant that pays as poorly as these slophouses only invite the employees to jack their noses in the soup.

30. zzyzzx Follow Befriend (9) 410 threads 4,107 comments Baltimore, MD

    30   7:52pm Thu 27 Dec 2012   Share   Quote   Permalink   Like   Dislike (2)   APOCALYPSEFUCK is Shostakovich says these slop houses and just fucking gross. you know that the people who work there take long sloppy shits into the pots in the kitchen. And they spit in the food too.

31. zzyzzx Follow Befriend (9) 410 threads 4,107 comments Baltimore, MD

    31   7:55pm Thu 27 Dec 2012   Share   Quote   Permalink   Like   Dislike (2)   I'd rather eat at Texas Roadhouse anyway. http://www.texasroadhouse.com/

32. APOCALYPSEFUCK is Shostakovich Follow Befriend (28) 168 threads 4,146 comments Premium

    32   8:22pm Thu 27 Dec 2012   Share   Quote   Permalink   Like (2)   Dislike   Protected   zzyzzx says APOCALYPSEFUCK is Shostakovich says these slop houses and just fucking gross. you know that the people who work there take long sloppy shits into the pots in the kitchen. And they spit in the food too. Right and when the chefs are really pissed off at the management at breakfastime they make scrambled eggs by feeding eggs and Alka Seltzer to the dog who lives in the dumpster behind the restaurant and then let it powerbarph all over the griddle.

33. Homeboy Follow Befriend 13 threads 1,476 comments

    33   11:55am Fri 28 Dec 2012   Share   Quote   Permalink   Like   Dislike   Econ101 says The real problem is that healthcare is too EXPENSIVE. Rather than address the underlying issue of cost, the government is going to try to force universal access of a limited supply of services to everyone in the country. Guess what is going to happen when 30 million more people are going to have access to healthcare but there are ZERO additional new doctors, nurses and hospitals. Hint: The same thing that has happened to housing and education costs... Um, getting more customers doesn't raise costs; it lowers them. Which would net more money - a restaurant that is full of customers, or a restaurant that is half full? Econ 101.

34. 121212 Follow Befriend 83 threads 687 comments male

    34   12:02pm Fri 28 Dec 2012   Share   Quote   Permalink   Like (2)   Dislike (1)   zzyzzx says I'd rather eat at Texas Roadhouse anyway. I wouldn't , even if you paid me!

35. zzyzzx Follow Befriend (9) 410 threads 4,107 comments Baltimore, MD

    35   7:39pm Thu 3 Jan 2013   Share   Quote   Permalink   Like   Dislike (2)   I take it that you have never eaten at Texas Roadhouse???

36. APOCALYPSEFUCK is Shostakovich Follow Befriend (28) 168 threads 4,146 comments Premium

    36   7:44pm Thu 3 Jan 2013   Share   Quote   Permalink   Like   Dislike   Protected   zzyzzx says I take it that you have never eaten at Texas Roadhouse??? Does the staff crap in the chili? I'd pay a buck to see that.