Darden Restaurant Individual Internal Analysis

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Darden Restaurant- Internal Analysis Report

Alexandra Dolfi

Limestone University

BA452: Business Policy

Professor Gerald Turner

November 22, 2020

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Darden Restaurant – Internal Analysis Report

Table of Content

Introduction………………………………………………………………………………….3

I/ About the company………………………………………………………………………..3

History

Mission Statement

Vision Statement

Problem Statement

II/ Organization………………………………………………………………………………4

a) Culture

b) Leadership

III/ Porter’s Value Chain Analysis of Darden Restaurant………………………………..7

a) Primary Activities

b) Supporting Activities

IV/ VRIO……………………………………………………………………………………..9

Exhibits………………………………………………………………………………………12

1.1 Timeline of Darden Restaurants’ History

3.1 Porter Value Chain Analysis Template

4.1 VRIO of Darden Restaurant

Reference Page………………………………………………………………………………14

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Darden Restaurant is known as the largest casual dining restaurant organization in the

world. The company operates throughout North America, and its office is located in Orlando,

Florida. It owns more than 1,800 restaurants and encompasses Olive Garden, Red Lobster, The

Capital Grille, Longhorn Steakhouse, Bahama Breeze, the Capital Grille, Yard House, and

Eddie V’s. Darden employs around 184,500 people and has now become a Fortune 500

company due to its success. They own and operate all of their restaurants in Canada and in the

United States and served over 355 million diners in fiscal year 2020. In addition, They have a

licensing arrangement in Japan for the Red Lobster brand. The company’s main mission is to

satisfy and delight everyone it serves. The restaurant industry is competitive and the restaurant

business is often affected by any changes in consumer tastes and its competitors. The aim of

this report will be focused on a strategic internal analysis of the firm that will evaluate the

challenges and opportunities faced by the company as it moves forward in the Restaurant

industry.

I/ About the company

History

Exhibit 1.1

Timeline of Darden Restaurants’ History

1938

William (Bill) Darden opens the first restaurant The Green Frog in Waycross, GA.

1968

Foundation of the first Red Lobster restaurant in Lakeland, FL

1970

One of the company’s first ventures into the diversification of its portfolio being

the York Steak House chain of English-themed steak and chop restaurants.

1975

Darden promoted to position of Vice President at General Mills

1980

York Steak House closed

1982

Opening of the first Olive Garden concept store in Orlando, FL

1995

New company named Darden Restaurants Inc.

May 31

The company becomes a fully separate entity when its shares went on sales on NYSE

1996

Darden launched a test of Bahama Breeze Caribbean Grille concept

2003

Season 52 under development in Florida and Atlanta

2007

The company expands by purchasing existing 100 locations, and considering

franchisors

2011

Darden acquires Eddie V’s Prime Sea Food and Wildfish Seafood Grille.

2012

Darden acquires Yard House

Darden Restaurants’ history goes back to 1938 when William Darden opened his first

restaurant The Green Frog in Waycross, Ga. 30 years later, Darden founded the first Red

Lobster restaurant in Florida in 1968, which became one of the company’s leading brands. In

1970, Darden decided to expand further and sold its company to food giant General Mills that

year. In the following years, General Mills oriented the chain to a more casual dining format

and opened its headquarter in Orlando, Florida. Darden then opened its first Olive Garden in

1982 in Orlando. By 1989, the brand met a huge success with its client and became one of the

fastest-growing units of the restaurant chain when General Mills opened over 145 stores.

However, even though the company succeeded in most of its restaurant chains opening, they

also encountered losses with others. In 1990, the company launched China Coast, a restaurant

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that featured Chinese cuisine. By the end of 1995, the restaurants’ sales lost $20 million and

converted its location to Olive Garden or Red Lobsters, or closed definitely. In 1995, the

restaurant chain took a new turn after General Mills decided to switch its restaurant chain and

lean towards a consumer food products focus. This is when the company was named Darden

Restaurant and became a separate entity on May 31, 1995, when the shares went on sale on the

NYSE. In 1996, the Bahamas Breeze Caribbean Grille restaurant opened with the concept of

featuring a Caribbean theme. In the following years, Darden Restaurants significantly

expanded its brand portfolio. In 2007, they acquire Rare Hospitality, a restaurant based in

Atlanta for $1.4 billion. From that acquisition, they gain The Capital Grille and LongHorn

Steakhouse, which became one of their most famous restaurants. Today, the company controls

a broad network of restaurants in the U.S. and abroad. This includes popular franchised

restaurants like LongHorn SteakHouse and Olive Garden. Darden Restaurants’ current market

capitalization reached $9.10 billion and still trades a portion of its share on the NYSE.

Mission Statement

Darden Restaurants’ mission statement is “to nourish and delight everyone we serve.”(Darden

Concepts, Inc, 2009). The company wants to provide a quality dining experience to all of its

guests, linking good food, good service, and good time together.

Vision Statement

Darden Restaurant is looking to become a nationwide leader in the restaurant industry by