Red Lobster 2016 Annual Report Download - page 8

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4
Delivering Value to Our Guests
Our strategy and positioning for each business
enabled us to build momentum and identify new ways
to exceed the expectations of our guests. In fiscal
2016, we successfully delivered against our mission
as we grew total sales to $6.9 billion with same-
restaurant sales growth at each of our businesses.
For the second consecutive year, Olive Garden
delivered positive same-restaurant sales growth — at
3.1 percent in fiscal 2016. The continued success of
Olive Garden is rooted in our laser focus on enhancing
the guest experience at every touchpoint. We boosted
culinary innovation by leveraging brand equities and
flavor profiles that loyal guests enjoy the most, and
we complemented this innovation with an expanded
menu that oers guests a variety of choices that
span a wide range of prices. To further improve the
guest experience, we simplified our operations and
ensured our restaurants were properly staed.
Additionally, we continued to meet our guests’ growing
demand for convenience through our successful OG To-Go
platform and the national launch of large-party catering
delivery. Finally, to tell our guests about what’s new in
our restaurants, we’ve evolved our marketing to be more
integrated, targeted and personally relevant. This focus on
enhancing every touchpoint has improved the perceived
value of Olive Garden and has resonated with guests
as we outperformed the industry by 390 basis points.1
The momentum at LongHorn Steakhouse continued with
its third straight year of same-restaurant sales growth — at
3.5 percent in fiscal 2016. This success comes from an
emphasis on building loyalty through culinary innovation
and our relentless pursuit of delivering flawless guest
experiences. Through culinary platforms like Peak Season
and Chef Showcase, LongHorn continually introduced new
menu oerings that were seasonally relevant and made
with fresh, quality ingredients. In addition, we reduced
the number of menu items, simplifying procedures to
allow our restaurant teams to execute at a higher level.
We also invested in team member training, which helped
us defend our industry-leading retention. Finally, we
continued to reach guests with impactful advertising,
which was recognized by Ace Metrix when it named
LongHorn the “Brand of the Year” for casual dining for
the second year in a row. All of this resulted in LongHorn
outperforming the industry by more than 400 basis points.1
COMMITTED TO
Leveraging Our
Competitive Advantages
We support our best-in-class restaurant businesses
by helping them reach their full potential. We do this
by leveraging four competitive advantages that are
keys to unlocking sales growth and expanding margins.
• Significant Scale
• Extensive Data & Insights
• Rigorous Strategic Planning
• Our Results-Oriented People Culture
1
Industry same-restaurant sales as reported by Knapp-Track (excluding Darden).