Darden Restaurants, a prominent player in the casual dining sector known for brands such as Olive Garden and LongHorn Steakhouse, has revealed plans to discontinue Bahama Breeze, its Caribbean-style dining concept that has been part of its portfolio for three decades. This announcement comes after a series of strategic maneuvers concerning the brand, including a reduction in operations nearly one year prior.
Earlier in the timeline, Bahama Breeze ceased operations at approximately one-third of its establishments amidst an exploratory period during which Darden considered various strategic directions for the chain including the possibility of divestiture. This latest development takes that process further by deciding to shutter the remaining 28 restaurants over the forthcoming months.
The scheduled final closing date for Bahama Breeze outlets across multiple states has been set for April 5. Among these closures are locations situated in Delaware, Georgia, Michigan, New Jersey, North Carolina, Virginia, Washington state, as well as two in Pennsylvania and five in Florida. Darden Restaurants has divided the fate of the remaining locations, with half slated for permanent closure and the other half earmarked for conversion into different brands from Darden’s extensive portfolio, although the company has not disclosed which specific brands will replace Bahama Breeze at the conversion sites.
A substantial portion of these conversion efforts will focus on sites clustered around Orlando, Florida, which house ten of the fourteen restaurants designated for brand transition. The anticipated timeframe for these conversions spans the next 12 to 18 months. Until the transitions are finalized, these establishments will continue to operate under the Bahama Breeze name.
In an official release, Darden Restaurants expressed confidence in the viability of these properties for other concepts within its brand family, stating, "The company believes the conversion locations are great sites that will benefit several of the brands in its portfolio." They further emphasized their commitment to team members affected by this shift by reporting ongoing efforts to reassign as many employees as possible to other roles within the broader Darden group.
This restructuring of Bahama Breeze stems in part from broader industry trends impacting casual dining chains catering primarily to lower and middle-income consumers. Economic factors such as inflation have led to a reduction in disposable income, prompting a decline in patronage for some establishments within this category. Concurrently, consumer confidence has deteriorated, further influencing dining behaviors.
Despite these headwinds facing certain segments, other Darden brands like Olive Garden and LongHorn Steakhouse have reported robust performance. According to the company’s latest earnings report, these chains experienced positive growth in same-store sales figures, driven in part by consumers seeking value offerings during uncertain economic times.
The financial response to these developments has been reflected in Darden’s stock performance, with shares appreciating approximately 8% year-to-date. The closure and conversion decisions for Bahama Breeze are part of an ongoing strategic refinement of the parent company's brand portfolio to align with evolving market dynamics and consumer preferences.