Olive Garden’s pasta deal drives strong sales

Running for the fourth consecutive year, Olive Garden’s $13.99 “Never Ending Pasta Bowl” deal starts today. The promotion stands out amid restaurant food prices rising over 30% since 2020, according to the National Restaurant Association.

The deal runs until November 16, offering 96 pasta combinations.

While inflation has pushed many restaurants to raise menu prices, Olive Garden raised its prices by only 2% last year.

The chain, with nearly 1,000 locations, leverages bulk purchasing to keep costs low. It uses the deal to encourage customers to buy more profitable items such as appetizers, desserts, and drinks.

Olive Garden’s focus on affordability has helped boost sales. Its profits jumped 12.7% in the latest quarter. The success comes despite more US consumers choosing to order in or cook their own meals than dine out.

Not just Olive Garden, value deals are boosting sales for several restaurants and retailers.

Applebee’s recently reported a nearly 5% same-store sales gain, after eight consecutive quarters of declines, thanks to its “2 for $25” food deal.

Costco has kept its $1.50 hot dog and soda combo unchanged since 1985, while its stock price has climbed nearly 14,000%.

BJ’s Restaurants, Red Robin, and Chili’s have also posted positive results from promotions.