Any collective groan of disappointment heard around Oahu on Thursday may have been residents’ reaction to learning the opening of the isles’ first Olive Garden restaurant may have been suspended.
The restaurant chain’s national advertising has spurred locals’ desire for a Hawaii location for more than a decade. Olive Garden had planned to open a restaurant in Kapolei in 2015.
But Olive Garden’s parent company, Orlando, Fla.-based Darden Restaurants, said Thursday it was suspending the opening of new Olive Garden locations and taking other steps to boost value for its shareholders. Darden made the announcement as it reported that its second-quarter net income fell to $19.8 million, or 15 cents per share, from $33.6 million, or 26 cents per share, a year earlier.
It is possible Darden is simply "pushing the pause button" for 2014, "but they have not signaled to us any change in direction" for the planned Kapolei opening in 2015, said Todd Hedrick, director of leasing and property management at the MacNaugton Group. MacNaughton confirmed in June it was in lease negotiations for an Olive Garden location at its Kapolei Commons shopping center, which is being expanded.
Lease talks have been "active," Hedrick said.
Darden Director of Media Relations Rich Jeffers declined to definitively answer questions about the fate of the Kapolei Olive Garden opening.
"We haven’t provided an update on the impact to planned or potential new Olive Garden locations," he said.
Darden reported declines in sales at both its Olive Garden and Red Lobster chains, and separately announced plans to spin off or sell the 705-unit Red Lobster chain.
Hawaii’s lone Red Lobster restaurant, at 1765 Ala Moana Blvd., opened in 1994.
As of Nov. 24, Darden owned 834 Olive Garden restaurants in the U.S. and Canada, a 3 percent increase over the 809 restaurants operating a year earlier.
The number of Red Lobster restaurants in operation declined by one unit, to 705 from 706 a year ago.
A statement by Darden says that through the announced cost-saving measures, the company anticipates savings of $60 million annually beginning May 26, the start of its fiscal year 2015.
Olive Garden restaurants are well-known for their unlimited soup, salad and breadsticks and "build your own pasta" meal deals as well as their Italian-inspired fare.
The restaurant chain recently added to its menu an "Italiano Burger" that includes prosciutto, mozzarella cheese, arugula and tomatoes, and is marinated in basil, garlic and Italian spices. To its list of dishes with fewer than 575 calories, the restaurant added a dish unlikely to win over Hawaii diners, as it is a baked fish dish containing tilapia, which has a less-than-gourmet reputation in the islands.
——
The Associated Press contributed to this report.
