Darden drops
the leaders of Cheddar’s and Seasons 52 amid declining sales.
Darden Restaurants is parting ways with leaders at Cheddar’s Scratch Kitchen and Seasons 52 after struggling sales at the two chains during the past year.
Orlando-based Darden told employees Tuesday that Ian Baines will be “stepping away” from his role as president at Cheddar’s Scratch Kitchen and leaving Darden. Seasons 52 president Brian Foye also is leaving the company after more than a decade of leadership at Capital Grille, Bahama Breeze and Seasons 52.
Dave George, the architect of Olive Garden’s revival and Darden’s chief operating officer, will oversee Cheddar’s while it looks for a new leader.
Cheddar’s Scratch Kitchen and Seasons 52 have struggled while Darden has soared in the past three years. Darden reported that Cheddar’s samerestaurant sales were down 4.7 percent in the past quarter, and Seasons 52 same-restaurant sales declined 0.6 percent last year.
Darden CEO Gene Lee has blamed the stumbles at Cheddar’s Scratch Kitchen on distractions about integrating into a major corporate structure, with a newpoint-of-sale system, a new supply chain and new benefits for workers. Darden bought the chain in 2017 from a private equity ownership group.
“The Cheddar’s restaurants that we own and operate today were fragmented into three different businesses a year ago, each with different systems, policies and pricing structures,” he said in June.
The employee turnover rate also was too high at Cheddar’s, and the restaurants were understaffed, he said.
The two brands have been a drag on an otherwise financially strong Darden, where overall same-restaurant sales were up 2.2. percent in its past fiscal year, and profits were up 24 percent to $596 million. Olive Garden has been one of the strongest performing brands in the market as Lee and George have focused on a “back-to-basics” philosophy and added new menu items such as giant meatballs.
But Cheddar’s was pinned as a high-growth brand for Darden, with just 156 restaurants mostly in Texas and the Southeast.
Likewise, Seasons 52 was once a high-growth brand for Darden, but sales growth has flattened and even dipped into the negative in the past two years.
Darden executive and leader of Capital Grille and Eddie V’s John Martin will oversee Season 52 with Foye leaving.