Des Moines, IA-based Darden Restaurants, Inc. blamed much of the recent sales slump at its Red Lobster chain on the brand’s marketing.
Promotional offerings at the restaurants were “not as compelling,” CEO Dick Rivera told analysts last week, according to Dow Jones Newswires.
Rivera said Darden will try to turn around sales by adding $10 to $15 entrée items to its menu, and will continue annual promotional events like Lobsterfest, per Dow Jones. But Red Lobster will deemphasize all-you-can-eat promotions; a fall effort offering all-you-can-eat crab legs backfired, costing restaurants much more than anticipated when consumer demand for multiple servings swelled. Ads breaking in January will target lower-income customers.
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