FOOD NEWS
How Olive Garden's Ingredients Help Keep Prices Affordable
By C.A. Pinkham
Olive Garden can afford to offer deals as they do relative to its closest competitors because its products are cheaper to make, which lowers operating costs.
Olive Garden's primary ingredient is pasta, which is both cheap and filling. This allows the chain to serve generous servings without affecting back-end costs.
Their other ingredients are typically things like parmesan cheese, butter, eggs, and heavy cream, none of which are very expensive.
While Olive Garden is cheaper than most family restaurants for the amount of food you're getting, it still makes an absurd profit compared to most of its competitors.
Other ways that Olive Garden cuts down on costs include offering low pay rates, reducing breadstick servings, and infrequent carpet cleanings.
Despite critiques about authenticity, the chain's success is evident, as many Americans prioritize value and are happy to get a metric ton of pasta for less than $15.