Red Lobster 2002 Annual Report Download - page 17

Great Food and Beverage 14 Produce Great Results in 2002
With a clearly defined business strategy – “A family of local
restaurants focused on delighting every guest with a genuine Italian
dining experience” – Olive Garden had a highly successful fiscal
2002. Based on our own guest surveys, guest satisfaction levels
across the board – ranging from food taste to server attentiveness –
reached highest-ever levels and helped produce record financial
and operating results.
• Total sales reached a record $1.86 billion, an increase of
9.5% over fiscal 2001.
• Same-restaurant sales growth reached 31 consecutive quarters –
with a 6.3% increase for the year, driven by same-restaurant guest
count growth of 3.2%.
• Operating profit, operating profit return-on-sales and return-on-
capital also reached record levels.
• New restaurant growth accelerated, with the opening of 20 new
restaurants featuring the exciting Tuscan Farmhouse design.
• Olive Garden completed the RevItalia program to renovate exist-
ing restaurants, which – together with the introduction of the
Tuscan Farmhouse design for new restaurants – is a significant
platform for the continued repositioning of the restaurants,
making them even more attractive to the ever-changing and
demanding casual dining consumer.
Olive Garden’s culinary strategy to expand our already dominant
market leadership in the Italian casual dining segment is to provide
guests with a broad range of fresh, simple and delicious Italian food
at a great value. At the core of this menu are traditional favorites such
as Lasagna, Fettuccini Alfredo and Chicken Parmigiana. Olive Garden
is focused on continually improving these items and pairing them
with great wines that complement their familiar, comfortable flavors.
These classic recipes are balanced with a variety of approach-
ably authentic entrées that are expanding the already popular appeal
of the menu. These dishes include Pork Filettino, Lobster Spaghetti,
Chicken Marsala and others, and often originate in our Tuscany-
based Culinary Institute, where many Olive Garden chefs and
culinary managers train each year and are immersed in the culinary
and cultural passion of Italy.
Olive Garden’s continued emphasis on wine as an integral
part of the genuine Italian dining experience is also helping drive
guest satisfaction and sales growth. Our beverage strategy mirrors our
approach to the food section of the menu. There is a mix of popular,
widely recognizable offerings and attractive varietals. In addition to
appealing choices, a key to the success of the wine program is great
service. New service features that are helping guests feel more com-
fortable with wine include the “wine conversation,” which includes
wine sampling on Friday and Saturday nights.
As we mark our 20th year, we will maintain our focus on
helping more guests enjoy wine as part of a genuine Italian dining
experience, as well as implement ever-higher service standards.
These priorities, combined with a relentless commitment to freshness
and quality ingredients, will help ensure that guests not only
have a delightful Olive Garden experience, but also keep coming
back for more.
Operations Overview
>> Culinary & Beverage Excellence >> Strong Core Values >> Growth Strategies
OLIVE GARDEN SAME-RESTAURANT SALES GROWTH
vs. CASUAL DINING AVERAGE
(as a percentage)
’00 ’01 ’02
Olive Garden Knapp TrackTM Casual Dining Average
q1 q2 q3 q4 q1 q2 q3 q4 q1 q2 q3 q4
8.1
6.8
8.3
5.3
8.7
7.2
5.6
7.1
4.2
5.9
9.8
5.3