In this Weekly Wrap, we’re looking at delivery at Olive Garden, more value in 2026, Chick-fil-A’s ‘newstalgia’ campaign, and more.
No Third Party Delivery for Olive Garden
The Headline: “Delivery is working for Olive Garden, but don't expect it on any third-party apps soon”
The Source: Restaurant Business Online
What You Need to Know:
Darden Restaurants on Thursday reported a quarter full of positive sales, including strong results at its flagship Olive Garden, where same-store sales rose 4.7%.
At least part of the reason for that performance was the company’s decision more than a year ago to start offering first-party delivery through the Uber Direct service. Delivery now accounts for 4% of Olive Garden sales and “about half” of those sales are incremental.
“This channel attracts younger, more affluent guests who crave Olive Garden at home, value convenience and order more frequently,” CEO Rick Cardenas told analysts. “These guests have a higher check average than dine-in guests.”
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Olive Garden instead opted to use Uber drivers to deliver items like lasagna or Fettuccini Alfredo but is keeping ordering of those items on its own website and mobile app. That way, it controls the marketing and data and doesn't have to discount items to get customers' attention.
The company in theory could get more customers by using third-party apps, which have evolved into online restaurant marketplaces, which is why Domino’s uses them. But Darden has expressed concern about data sharing and other issues.
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The company has generated these sales almost through osmosis. “We didn’t do any marketing in Q2 and we’re at 4%,” Cardenas said. “I think that would increase if we do some more marketing and get more people into it.
“If we want to drive that up, we have some options on the marketing side.”
Our Take:
So many operators see third party delivery apps as a necessary albeit somewhat predatory evil. They wouldn’t be wrong. I recently spoke with an operator who is paying 29 percent in delivery app fees. Yes, they went with the full package, marketing included, but 29 percent? Does it even make sense at that point?
Olive Garden’s approach is ideal. The benefits of having delivery without giving up a ton of cash in fees, while also controlling customer data, which third party apps are notoriously secretive about.
Can everyone do this? Probably not. Part of what the third party apps offer is placement, the ability for someone to find you on the app depending on what they are looking for. For a new establishment with little to no brand recognition, it makes sense. People simply do not know your restaurant yet, and finding it on an app can help build early awareness.
But if you have an established business and can find a way to do what Olive Garden is doing, absolutely go for it. Customers know the brand and actively seek it out. This way the operator controls the data, controls the experience, and reins in the fees. It requires a little more legwork on the operator side, but it is well worth it.
2026 Will Continue 2025’s Year of Value
The Headline: “Restaurants’ hottest menu item in 2025 was ‘value.’ That won’t change next year”
The Source: MSNBC
What You Need to Know:
Over the last year and a half, diners, particularly those who make less than $40,000 a year, have been eating out less frequently and spending less money when they do. Higher costs, like rent and child care, have put pressure on consumers’ wallets. Plus, uncertainty about the economy, President Donald Trump’s higher tariffs, layoff fears and immigration crackdowns have all hurt their willingness to spend.
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It’s no surprise, then, that data from Black Box Intelligence shows that traffic to restaurants open at least a year fell every month this year through November, with one exception: July. That month, guest count ticked up 0.1%.
To win back a shrinking pool of diners, restaurants have responded by doubling down on efforts to offer diners more “value.” In the fast-food segment, that means combo meals and value menus.
For casual-dining chains, value has translated into appetizer deals, marketing that compares the narrowing price gap with fast food, and a focus on the in-restaurant experience. And fast-casual chains have responded by emphasizing their quality while trying to stay away from the so-called value wars.
“This is the most intense discount environment since the Great Recession,” Cava co-founder and CEO Brett Schulman said on the company’s earnings conference call in November.
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Broadly, operators have to balance discounts that will attract customers with the razor-thin margins common in the industry. Usually that means companies offer value items that get customers into the drive-thru lane, and then dangle tantalizing enough options as an add-on, whether it’s a McFlurry or a premium entree.
”It’s hard to sell things in the [quick-service restaurant] world for $5 and make your margins,” Bandy said. “Those chains are hoping that somebody in the car is also ordering a full price value meal at $9 so they can balance it out, so that’s part of the strategy there.”’
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Then there’s Darden Restaurants, the parent company of Olive Garden, LongHorn Steakhouse and other well-known full-service chains. The restaurant company has been raising its menu prices by levels less than the rate of inflation and leaning into promotions, like Olive Garden’s popular Never Ending Pasta Bowl and a $55 three-course meal at Ruth’s Chris. Darden has also been rolling out the option of smaller portions at a lower price for select menu items at Olive Garden; the company isn’t planning on promoting the lighter portions menu for fear of sales cannibalization, but it is improving the chain’s affordability scores.
Thanks to all of those efforts, Darden is seeing high-income consumers trade down into its casual-dining chains and a traffic bump from diners who are at least 55 years old, CEO Rick Cardenas said on the company’s conference call on Thursday. Darden’s same-store sales increased 4.3% in its latest fiscal quarter, and every restaurant division reported same-store sales growth. Still, investors haven’t rewarded their success; the stock has risen just 1% so far this year.
Our Take:
Restaurant traffic is down, prices are up, consumer confidence is down. None of this is new, and as the article states, it does not look like that is changing anytime soon.
People want value. There is not much more to say, we have been screaming it from the rafters. But value means something different to everyone. The fact that Darden has seen an increase in traffic from high income consumers is telling. We are in a K shaped economy. High earners are making more and spending more, while low and middle income earners are having a much harder time economically.
Lower income consumers are trading down from casual restaurants to QSR, fast casual, or dining at home. Higher income consumers are trading down to casual dining restaurants. Money is still being spent.
Depending on where your establishment sits in the market, you can offer value to attract those moving toward QSR or fast casual, similar to the Chili’s playbook of offering a few meals priced close to QSR. Or you can offer value to those moving down into casual dining by delivering better product quality and experience than most chain restaurants at a similar price point.
Either way, the economy is not changing in the foreseeable future, but that does not mean you cannot win.
Chick-fil-A 80th Birthday
The Headline: “Chick-fil-A celebrates 80 years with yearlong ‘newstalgia’-inspired campaign”
The Source: Nation’s Restaurant News
What You Need to Know:
Every brand has a beginning and Chick-fil-A traces its history back to founder S. Truett Cathy’s original Dwarf House in Hapeville, Ga., which opened 80 years ago. The concept laid the foundation of what is now one of the most recognizable brands in the world, with more than 3,000 locations, industry-leading average unit volumes, consistently high customer satisfaction scores, and a growing international presence.
In celebration of this remarkable story and milestone, Chick-fil-A is launching its first-ever yearlong campaign, inspired by “newstalgia,” or the blending of its past with modern twists. The comprehensive campaign leaves no touchpoint left out, with new menu items, packaging, digital extensions, advertising, and merchandise. It also includes interactive experiences; for example, in January, a limited-edition, retro-inspired Classic Cups & Golden Fan Cup Sweepstakes will feature a prize of free Chick-fil-A for a year for 3,000 customers.
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Chick-fil-A began ideating components for the campaign about a year ago, trying to conceptualize what an 80th anniversary would look like for both internal and external audiences. Cooper said it was important to make sure operators were excited about the campaign while putting guests at the center of the experiences, whether they’re dining in or at the drive-thru.
“That’s why it was important to bring all of the different touchpoints to life,” she said. “We figured out how to bring legacy and lore to the forefront for both new customers and those who have been with us a long time.”
Our Take:
What Chick-fil-A is offering here is not value, they already have that, but it is something that consumers are looking for: nostalgia and experience.
In times of economic pullback, consumers look for comfort, not just in the food itself but in the experience. Nostalgia is comfort. People love the idea of something from their childhood, their parents’ childhood, or in this case their grandparents’ childhood. It costs little in items and disposables that need to be purchased, but it can drive traffic from those looking for it.
Experience is also at the forefront for consumers. By adding to the experience, they differentiate themselves in the crowded chicken field.
Neither is exclusive to chain restaurants. Any mom and pop can offer nostalgia. It could be a dish from the original menu, it could be original branding popping up on to-go containers, there are numerous opportunities.
Same for experience. It could be service in general, a TikTok-able dish, or limited time only offerings — the opportunities are endless.
What Chick-fil-A shows us is that it is not just value that sells, it is the whole experience.