Managing the Futured Arden Restaurants

DARDEN RESTAURANTS, INC.’S STRATEGIC EVOLUTION

Darden’s strategic evolution has been centered on customer service and quality. This dedication to the customer has been evident since the company’s inception and is demonstrated in its strategic decisions. Darden knew superior service was critical to his success. At 19, Bill Darden opened his first restaurant in Waycross, GA. It was a 25-foot by 30-foot lunch counter called the Green Frog that featured "Service With a Hop." While Darden Restaurant Inc.’s tactics for attaining success have continued to evolve, its emphasis on customer service has remained constant. One example of this is the Olive Garden restaurant. Olive Garden is the dominant leader in the highly competitive full-service Italian segment, with a large market share. The restaurant’s sales, which have increased for many consecutive quarters, far outpaced the casual dining industry. The Olive Garden’s outstanding performance is due to the company’s emphasis on Hospitaliano!, which according to its management and marketing team is defined as “ Our Passion for 100% Guest Delight.” (www.olivegarden.com). Another example of Darden evolving while staying tru

ENVIRONMENTAL OPPORTUNITIES AND THREATS

Quality and customer service have continued to be two of Darden’s core competencies over time. These factors are evident when identifying Darden’s intended strategies. As previously stated, Darden builds all of its strategies around the customer. Its intended strategy appears to be a three-tiered approach to profitability through meeting the market’s demands. First, the company understands what the customer wants in a restaurant, then it defines and refines its concept, and finally it launches the idea. Darden relies upon market research and data analysis in order to understand what its customers want. Darden invests heavily in this area, and has seen the power of information. One example of this approach is that customer information is the basis of everything from the flavor of the food, to the layout of the restaurant, to the color of the candleholders. Once Darden understands the needs of its customers, it defines and refines its product accordingly. 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.

Darden’s Mission “Our strategy is to be brilliant with the basics. That means having strong leaders throughout the organization, providing the highest standards of hospitality and demonstrating culinary excellence that redefines casual dining.” (http://www.darden.com). Bill Darden has always wanted his name to be synonymous with a new standard of restaurant hospitality, and his company’s mission reflects that strategic intent. His complete and total dedication to customer service has enabled Darden Restaurants to become incredibly successful, and this dedication will continue to help Darden redefine hospitality in the future. Several key values are the driving forces behind the operations of Darden Restaurants: · Darden is focused on serving the needs of its employees and investors effectively so that it may in turn satisfy the relative needs of the customer. · The company focuses on diversity and maintaining integrity in its work environment. · Community involveme

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