Popular Restaurant Chain with 30 New York Locations Raising Prices Again

While other restaurants are slashing menu prices to entice diners back through their doors, one well-known chain says their high prices are here to stay.

With inflation squeezing more money out of American wallets, less people are going out to eat because of the high menu prices. One example is the fast good industry, which increased prices by 20% since 2019.

Here in New York, prices went up even higher than that.

Read More: New York's Fast Food Most Expensive in the Entire Country

Restaurant chains are also struggling with this issue, with multiple establishments noting a freefall in their quarterly ratings. This is forcing them to reconsider how much they're charging customers.

Except for Olive Garden, which has a location on Commercial Drive in New Hartford. The CEO of their parent company said the chain won't bow to the pressure and will continue raising prices.

Darden Restaurants CEO Rick Cardenas said during an analyst call, "We are not doing that. Even at a time that our competitors have ramped up discounting."

Very rich from a guy whose net worth is $27.5 million.

Olive Garden Sees Quarterly Drop in Profits

It should be noted Olive Garden reported a 1.5% drop in quarterly sales, of which the company says it's due to the pullback from customers with a "below-median household income."

Darden CFO Raj Vennam said customers from all other demographics "are stable or growing." That is why they will continue raising prices, but will keep increases low.

Last year, Olive Garden raised its menu prices by 3.5% and just this last quarter, prices jumped by an additional 1 percent.

On one hand, at least this company is being honest. But on the other, it's probably not a very smart business plan since more people are choosing to cook their own meals to save money.

A recent article from CBS said that inflation is causing Americans to spend the biggest share of their money on food in 30 years. Add that with a majority of consumers saying tipping culture is "out of control," Olive Garden will either be singing a different tune very soon - or may be joining the likes of Applebee's and Red Lobster.

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