e variable nature of these costs through increased productivity. This is consistent with the expansionary strategy pursued by the company. According to the 1999 10K report, the company believes it is providing working conditions and compensation that compare favorably with those of its competition. (http://www.darden.com)System-wide sales volume per employee is fairly low compared to Dardens competitors and the industry average. This is mainly due to a larger workforce compared to the competition relative to sales. SUMMARYIn conclusion, the restaurant market is very volatile and highly competitive. Darden will continue to see the rewards of its market share by providing its guests with exceptional food and service. Darden has pushed the limits of fast expansion, and now has a presence in nearly all the major markets in the United States and Canada. They have continued to scan and monitor their competition and the changing environment, which has resulted in periodic changes in menu format and marketing plans. However, our information illustrates the need for Darden to continue to expand Red Lobster, Olive Garden, and Bahama Breeze. A huge opportunity exists in following the geographic moves of the retiring Baby Boomer generation. While Darden has significant exposure in Florida, an equally strong presence is needed in Arizona and other Southwestern states. While following migrating retirees may appear risky, history shows that warmer southern climates tend to be the location of choice. Studies cited in this paper demonstrate the accuracy of this forecast.Dardens identification of a market demand for upscale dining is another critical factor in its future success. The market potential outweighs the risk involved in competing with restaurants such as the Cheesecake Factory and P.F. Changs. Studies have shown that North Americans, particularly dual income families, have a significant amount of disposable income. Bahama Breeze wil...
