The COVID-19 pandemic has significantly impacted the dining habits of retirees, leading to a noticeable drop in patronage at popular restaurant chains such as Cracker Barrel and Olive Garden.
The top executives of these chains have expressed concerns over the uncertainty of when these older customers will return.
Rick Cardenas, CEO of Darden Restaurants, the parent company of Olive Garden, has noted that the usual allure of biscuits and gravy or unlimited pasta refills has not been sufficient to draw in the 65-and-older demographic.
This group appears to be exercising caution due to the ongoing pandemic and the current high inflation rates. "I do believe that they were a little bit more spooked on the COVID side," Cardenas shared during a recent conference call with analysts. "Wed love to see them come back more frequently.
Raj Vennam, the CFO of Darden Restaurants, echoed these sentiments, noting a "slight decline" in the frequency of visits from seniors compared to pre-pandemic times. Olive Garden is hoping to attract customers in the coming weeks with the return of its popular Never Ending Pasta Bowl promotion, running from September 25 to November 19, priced at $13.99.
Cracker Barrel has also experienced a similar decline in older customers. CEO Sandra Cochran expressed disappointment during an earnings call, stating, "We just have not yet recovered the visits with that group [over 65 years-old] to the extent we thought we would, really since the pandemic.
Both companies have reported customer traffic declines in their recent earnings reports, with Darden mentioning inflation 41 times during its call. Restaurant analyst Mark Kalinowski told The Post, About 10% of the overall restaurant customer base hasnt come back and the majority are older diners.
Cracker Barrel, based in Tennessee, may have also alienated some customers with a social media post during Pride Month featuring a rainbow-colored rocking chair. The caption read, Everyone is always welcome at our table (and our rainbow rocker). The post sparked immediate backlash, with some customers threatening to boycott the 54-year-old chain.
The chain also faced criticism last year when it introduced plant-based sausage, with customers accusing it of going woke. One post read, Does Cracker Barrel have any idea who its customers are? Its as easy to stop going to Cracker Barrel as it is to stop buying Bud Light."
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