‘Red Lobster’ company sees steep sales drop after fighting ‘Obamacare’

[Playinghardball]

Darden Restaurants, the company that owns the Red Lobster and Olive Garden chains, saw its net income plunge by 37 percent in the wake of bad publicity about its policies regarding the Affordable Care Act, also known as “Obamacare.” According to the Associated Press, “revamped menus and new ad campaigns” fell flat as the corporate giant failed to attract more diners.

Darden issued a profit warning on Dec. 4, setting off an overall decline in stock value for casual dining restaurants.

According to the AP, “For the period ended Nov. 25, Darden Restaurants Inc. earned $33.6 million, or 26 cents per share. That’s down from $53.7 million, or 40 cents per share, a year ago.”

In its December 4 warning, Darden cited a backlash against its policies regarding the Affordable Care Act (ACA) as part of the reason for the sales slump. In October, the company rolled out a business plan that called for more part-time workers rather than face up to the ACA’s requirement that companies should provide health coverage for all full-time workers.

Raw Story (http://s.tt/1xu80)

[Rider3]

1. Good

Although we don't have any Red Lobsters in this area, we do have Olive Gardens. Recently when trying to pick a restaurant, my husband suggested the Olive Garden. I told him why we were NOT going there. He agreed.

[Atman]

2. Just like The Man Who Thought He Would Be King

Meaning, Mr. Romney. Darden execs just couldn't fathom that the rest of America wasn't as hateful and greedy as they were. Kind of makes you wonder what kind of marketing people they have. That is their entire job, to know their customers, and what appeals to them. Epic fail. Not that I care...Red Lobster sucks ass anyway. MMMM...all you can eat farm-raised Chinese tilapia and Vietnamese shrimp. And a basket of bread sticks and salad with a Crate O' Pasta at Olive Garden. I'll pass. Too many real restaurants to enjoy.

[BainsBane]

3. Serves them right

Hopefully businesses are learning that being assholes is not good for their bottom lie.

[renie408]

4. Good. Now if only Papa John's would go out of business...

[hogwyld]

17. Does anyone know what Papa Murphy's stance is?

We've got a couple here in Oregon, but I can't seem to find any information.

[Eric the Reddish]

35. People named Schnatter and Murphy have No Business Making Pizza!

Capeesh?

[Saturday]

5. You couldn't tell by my local RL and OG.

Their parking lots are always full. We havent been there but we have commented on how busy they are as we pass by.

[another_liberal]

36. What part Trailerparkinsaw . . .

What part of Trailerparkinsaw do you live in?

[tj_crackersnatch]

6. xclnt news

I'd like to get a Dennys salad but I refuse to spend money in their restaurants until they act responsibly towards their employees.

[lpbk2713]

7. Like I GAF

Red Lobster was OK the first few years they started but then they lost their appeal IMO.
I haven't been there in years.

[LittleGirl]

8. I used to work for Dead Lob

30 yrs ago. Yes, I was much younger then and I worked part-time and full time. I was a cook before I turned 21 and a waitress for 3.5 yrs in a couple of their restaurants. No matter if I worked part-time or full time, I always had a choice of buying their health insurance. They also offered sick pay, vacation pay and life insurance (free) to employees. It was a great way to work your way through college back then. You could actually live on the pay. I worked in the kitchen for 5 bucks an hour and averaged about 10 bucks an hour in tips. (I have no idea what they pay now). I used to think their business model was really good. Now, I'm very disappointed to hear them balk about covering employees' health care costs. It's sad.

[titanicdave]

9. I Used to be

a fairly regular customer of the Red Lobster and occasionally the Olive Garden, but those days are over.......I found a better locally owned and operated seafood restaurant and also an Italian restaurant........so 'bye 'bye Darden

[xfundy]

10. I sent a complaint to Darden

as soon as the news broke. They sent back a boilerplate message that said, blah, blah, blah, ska-rooo you.

A couple weeks ago they sent me another boilerplate message, this one at least trying to sound like they give a F about their employees. Too little, too late.

It's long past time that companies like this one, who are determined to screw you over, come to realize that the policies they promote are not only bad for the nation, but {{horrors!}} also for their bank accounts and those of their greedy-ass investors.

[dembotoz]

11. i think it is a great public service that they let me know i should not go there

thank you darden

[SoCalDem]

24. My thoughts, as well.. TELL us your philosophy and let us see you for what you really are

We have checked off:
Applebees, Dennys, Red Lobster & Olive Garden...and others just on general principles

We eat out often, but are pretty choosey about where we go, and always try to choose a "local' or small-ish chain over a mega-chain "prepped-food-store"

[progressoid]

12. 37%!

That's a pretty big hit.

Dumbass.

[FiveGoodMen]

37. That's what I was gonna say!

If that number is right, that's fantastic.

They'll FEEL that!

[Scurrilous]

13. Good!

[Phentex]

14. I would not be sad to see them fail...

but it probably has something to do with the economy as well.

I really wanted Chik-fil-a sales to fall fall FALL!

[BlueManFan]

15. Mediocre but consistent food Aside

I stopped patronizing both when they went wingnut on Obamacare. I'm a firm believer in voting with your wallet so I will NEVER EVER eat a Pap Jerk's or Domino's pizza. Also didn't renew my Sam's club memeber ship and drive an hour to Costco now. I have a list of Cock brothers products on my Iphone so when I shop I don't give these fuckers a nickel. I am glad to see that I am a part of something that is working. I AM THE 47%!!!!!!!!!!!!!!!!!!

[Jennicut]

16. Well, their food is nothing great. Wonder why the sales didn't drop before.

When you serve so-so food, why bring bad publicity to yourself by bad mouthing Obamacare? Not smart business sense.

[AllyCat]

18. Couldn't happen to a crappier bunch of restaurants.

[stubtoe]

19. Dead Lobster. nt

[mwooldri]

20. Olive Garden could'nt make a decent lasagne.

It has been the overriding memory - me being the naive Englishman asked my then girlfriend for a good Italian restaurant. She mentioned "Olive Garden". Proposal made and she did say yes... But that lasagne that place made was utter crap. I even tried it a few years later and it was still crap. When Golden Corral make a better lasagne than Olive Garden then they have a serious food problem. With Darden it isn't an issue of ObamaCare or part time vs full time... It is their business model, their menu, and the management not inspiring their employees.

[another_liberal]

32. Hear! Hear!

Olive Garden food is substandard. No doubt about that.

[hamsterjill]

21. Just good ole American capitalism at work here, boys!

I don't like your politics...I don't have to pay for your cheddar bay biscuits.

Your recipe is all over the internet anyway.

[TwilightGardener]

23. Ruby Tuesday's now also has cheddar biscuits.

[another_liberal]

29. And you know . . .

. . . where they can stick them.

[TwilightGardener]

22. Why support a business that seems to despise its own workers?

[DearAbby]

25. We don't need no steenkin healthcare - Shouted Typhoid Mary

and they wonder why there was a backlash? I don't patronize establishments who treat their employees poorly.

[Kurska]

26. Used to love Red Lobster, but you know what I hate?

Assholes who treat their employees like shit and think they will still get my money.

[Jackpine Radical]

27. Here's what their Customer Relations peeps sent me

in response to my Nastygram: (It took them 2 weeks to get this reply out.)

Dear Jackpine,

Thank you for your interest in Olive Garden.

We welcome the chance to share some facts with you. None of Darden’s current full-time employees, hourly or salaried, will have their full-time status changed as a result of healthcare reform.

In addition, when healthcare reform takes effect in 2014, all of Darden’s full-time employees, including hourly, salaried and executive employees, will have access to the same insurance plan coverage. It is very important that we are able to make these commitments to our full-time employees. We hope this helps clarify our position.

We appreciate the time you took to write to us. If Guest Relations can be of further assistance, please reply to this email or write us again through our website at www.olivegarden.com.

Sincerely,

Lidia
Olive Garden Guest Relations

[bl968]

41. PR Speak

Translation: We will have a list of other justifications as to why we are moving these employees from full time to part time status in order to work around the law.

Solution: Obama should enact a rules change switching the coverage mandate from total number of individual employee hours worked, to total number of employees at a company... Problem solved

[another_liberal]

28. Screw Red Lobster and Olive Garden . . .

Screw "Red Lobster" and screw "Olive Garden," and screw the tightwad moneybags who run "Darden Restaurants!"

Their kind of filthy rich scumsuckers are always going to lose when the people have access to the truth. They can hire all the third-rate, part-time, no benefits, soon-to-leave-for-better-jobs type of staff they want, but they will lose customers and money at an ever-increasing rate if they do. Serves them right, the stupid assholes!

[Arugula Latte]

30. One day these corporate poobah a-holes will realize social media has altered their playing field.

They are used to operating in a vacuum of greed. Times have changed. F@#$ them.

[Jackpine Radical]

42. The Social Media have changed EVERYTHING!

[ck4829]

31. Great way to CYA, don't blame failed executive ideas and policies, blame Obama. Good job!

If I worked at one of their places, I'd be putting out my resume because you know they'd turn on you just as fast as they blamed Obama.

[Coyotl]

33. "I will never eat there again."

I said that the last time, when they poisoned me and my family with something.

[WCGreen]

34. Who the fuck do they think eat at their crappy restaurants?

The people who are in need of Health Care.

[DainBramaged]

38. FUCK Darden, NEVER been to a Red Lobster, will NEVER set foot in a Olive Garbage again

fuck them

[soryang]

39. Restaurant sales are collapsing

wholesale suppliers are in freefall right now. full time drivers have been working part time for weeks now. I'm talking about restaurants not fast food.