Red Lobster 2006 Annual Report Download - page 15
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Please find page 15 of the 2006 Red Lobster annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.delicious Italian food and the superior guest experience we
provide are key elements of a compelling brand promise
that has resulted in 47 quarters of U.S. same-restaurant
sales growth. No other casual dining restaurant company
of Olive Garden’s scale has achieved such impressive
results. As Olive Garden becomes a bigger part of our
revenue mix, it will contribute to stronger overall profit
margins for Darden.
Bahama Breeze has a well-defined brand promise,
which provides guests a Caribbean escape that enables an
island state of mind. Restaurant sales were growing again
in fiscal 2006, and we are pursuing a number of initiatives
to deliver better return on sales, initiatives that represent
significant changes in how we run the restaurants. During
the first half of fiscal 2007, we will test these improve-
ments in six restaurants and expect to expand them to all
Bahama Breeze restaurants in the second half of the year.
Smokey Bones offers a great guest experience with
a relaxed lodge atmosphere, friendly service and award-
winning barbeque ribs. We’ve learned, however, that a
barbeque focus limits visit frequency. So, we are working
to increase guest visits by incorporating many of Smokey
Bones’ defining strengths into a broader experience that
provides a variety of great American favorites. As we test
the new broader positioning in select restaurants in fiscal
2007, we will look for improvement in guest experience,
same-restaurant guest counts and restaurant level return
on sales. With positive results, the new positioning will be
expanded to more restaurants.
How will Darden continue to post strong
results in a challenging consumer and
economic environment?
In a difficult consumer environment, value is more impor-
tant than ever, and we will continue to offer a great value
to our guests. That means:
• Providing great guest and employee experiences;
• Offering exciting, price-accessible food news that
reminds people why they love our brands and gives
them new reasons to return; and
• Proactively managing our costs.
We will drive unnecessary costs that guests don’t
value out of the business in many ways. For example,
we will increase our focus on carefully controlling food
waste and applying innovative solutions to rising energy
costs. We will also offer menu items and promotions that
are balanced in terms of price points and variety. When
we offer Red Lobster’s Endless Shrimp and Olive Garden’s
Never-Ending Pasta Bowl, we are offering guests value-
oriented, brand appropriate choices that also provide us
with a good margin.
performance in fiscal 2006 demonstrated that its “simply
great” operating discipline, which has focused on execu-
tional excellence in the restaurants, is getting the job done.
Red Lobster is intent on achieving similar progress in
refreshing the brand. Our objective is to deepen guests’
emotional connection to Red Lobster with a sharper brand
promise that directs everything guests see, touch and
feel – from the items on the menu, to restaurant design
and ambiance, to our service style and advertising. With
continued guest count growth, Red Lobster will be well
positioned for a modest increase in new restaurant
growth in fiscal 2008.
At Olive Garden, we are accelerating new restaurant
growth, adding 30 to 35 new restaurants in fiscal 2007,
while working to sustain positive same-restaurant sales
growth. Olive Garden’s family atmosphere, its fresh, simple,
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Darden Restaurants 2006 Annual Report