When a big business owns something, often the little things get lost.
Chipotle closed down new brands on several occasions since it didn't appear conceivable for them to develop to the point where their earnings were significantly impacted. This is also one of the reasons McDonald's handed off its portion of Chipotle long before the Mexican restaurant company grew to its current size.
Since it made more sense to incorporate portions of that chain's beverage menu into the main brand rather than expanding another one, McDonald's recently shut down its CosMc's venture.
Being a tiny brand in a corporation with several larger brands makes it difficult since management doesn't think it's worth their time to concentrate on your expansion. A firm might not be the best choice to own a smaller, more specialized restaurant chain if it already owns many large chains with significant room for expansion.
McDonald's likely always enjoyed the Chipotle menu, so that's not a critique of the chain's food quality; rather, it's a choice about how best to allocate resources.
Regarding one of its brands, Darden Restaurants Inc. (DRI) has made a decision, and the relationship may not end well.
Regarding one of its brands, Darden Restaurants Inc. (DRI) has made a decision, and the relationship may not end well.
Plans for Bahama Breeze are shared by Darden.
Darden has made the decision to leave the Bahama Breeze brand. During his company's fourth-quarter earnings call, CEO Ricardo Cardenas discussed that.
"We made the decision to close 15 Bahama Breeze locations in May, leaving the 28 highest-performing Bahama Breeze restaurants in our portfolio. After further review, we have made the difficult decision that these remaining locations and the Bahama Breeze brand are not a strategic priority for us. We also believe that this brand and these restaurants have the potential to benefit from a new owner," he shared.
Darden has made the decision to leave the Bahama Breeze brand. During his company's fourth-quarter earnings call, CEO Ricardo Cardenas discussed that.
"We made the decision to close 15 Bahama Breeze locations in May, leaving the 28 highest-performing Bahama Breeze restaurants in our portfolio. After further review, we have made the difficult decision that these remaining locations and the Bahama Breeze brand are not a strategic priority for us. We also believe that this brand and these restaurants have the potential to benefit from a new owner," he shared.
Other options are being investigated, but a sale is still a possibility.
As a result, we will be thinking about strategic options for Bahama Breeze, such as selling the brand or switching to other Darden brands for the restaurants. We do not anticipate that any strategic options, including a possible sale, will materially affect our financial performance, he continued, excepting any one-time possible effects that are currently unknown.
As a result, we will be thinking about strategic options for Bahama Breeze, such as selling the brand or switching to other Darden brands for the restaurants. We do not anticipate that any strategic options, including a possible sale, will materially affect our financial performance, he continued, excepting any one-time possible effects that are currently unknown.
The CEO provided additional context for the choice to sell or close Bahama Breeze.
Finally, when we look at our portfolio and try to decide which brands to add, we have criteria that we use to make the decision about Bahama Breeze. And we should consider [those] criteria in order to maintain brands in our portfolio," he said.
Additional Food and Shops:
Finally, when we look at our portfolio and try to decide which brands to add, we have criteria that we use to make the decision about Bahama Breeze. And we should consider [those] criteria in order to maintain brands in our portfolio," he said.
Additional Food and Shops:
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He pointed out that Bahama Breeze no longer meets the requirements.
And we believe that with a new owner, they have a lot of room to expand. We had no intention of investing heavily in Bahama Breeze. Therefore, it's preferable for them to be under a different ownership in order to provide those managers and team members with growth chances," he continued.
The Olive Garden at Darden is expanding.
Although Bahama Breeze didn't fit Darden's requirements, Olive Garden, its brand of Italian restaurants, has been expanding globally. Additionally, a franchise partner purchased some Olive Gardens from the corporation.
And we believe that with a new owner, they have a lot of room to expand. We had no intention of investing heavily in Bahama Breeze. Therefore, it's preferable for them to be under a different ownership in order to provide those managers and team members with growth chances," he continued.
The Olive Garden at Darden is expanding.
Although Bahama Breeze didn't fit Darden's requirements, Olive Garden, its brand of Italian restaurants, has been expanding globally. Additionally, a franchise partner purchased some Olive Gardens from the corporation.
The eight Olive Garden restaurants in Canada will shortly be sold to Recipe Unlimited, the country's biggest full-service operator, according to a final agreement we signed. Following the closure of these eight eateries, Darden and Recipe Unlimited will sign an area development agreement to establish 30 more Olive Gardens over the following ten years, Cardenas stated.
Olive Garden and other Darden brands have other restaurant ambitions.
Olive Garden and other Darden brands have other restaurant ambitions.
"In addition to the agreement with Recipe Unlimited, we also have new agreements with partners in India and Spain, each of which calls for the development of 40 Olive Garden locations as well as an agreement with our existing Ruth's Chris franchise partner in Asia for the development of 6 Capital Grill locations," he stated.
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