Starbucks is undergoing significant changes, including mass layoffs and a major menu overhaul. The company announced that it will lay off 1,100 corporate employees globally as part of its efforts to streamline operations and improve efficiency. Additionally, Starbucks is slashing its menu by removing 13 drinks, both hot and cold, as well as a few blended Frappuccino varieties. This move aims to simplify the menu, reduce wait times, and improve quality and consistency.
Olive Garden is also facing challenges. Despite plans for expansion and new locations, the restaurant chain is struggling with lower-than-expected sales. The company reported a 2% increase in same-store sales as of December 2024, but this growth is not enough to offset the broader economic challenges. Olive Garden’s parent company, Darden Restaurants, is working to address these issues by focusing on delivery options and improving the overall dining experience.
Texas Roadhouse is experiencing difficulties as well. The restaurant chain has blamed its struggles on external factors such as weather and the rise of cold and flu season in smaller rural areas. Despite reporting better-than-expected revenue in the fourth quarter of 2024, Texas Roadhouse is facing challenges in maintaining its growth and profitability. The company is working to address these issues by improving service times and enhancing the dining experience for its customers.
Sources:
https://www.cbc.ca/news/business/starbucks-cutting-employees-menu-changes-1.7467035
https://www.eatthis.com/olive-garden-expansion-2025/
https://finance.yahoo.com/news/olive-garden-earnings-just-pulled-170329009.html
https://www.mashed.com/815424/olive-garden-might-be-struggling-heres-what-to-know/