OLYMPIA FIELDS, IL – November 19 – It was recently announced that Darden Restaurants is cutting somewhere in the neighborhood of 60 corporate jobs including a handful of executives as well as another 25 open positions.
The move will save the Orlando-based organization, which includes Olive Garden, LongHorn Steakhouse, Bahama Breeze, Seasons 52, The Capital Grille, Eddie V’s, and Yard House, an estimated $20 million per year, with $10 million directly in 2014.
Don Boroian; CEO and Founder of Francorp, a franchise consulting and development company; feels this might be a precursor of things to come in the food sector.
“This is the first shoe to drop in what I believe will be a major restructuring in the foodservice business,” Boroian said. “This will be the direct result of the combination of the soft economy, increase of minimum wage, Obama-care, anticipation of a major inflation ahead, and the highly competitive nature of this industry.”
For nearly 40 years Boroian has worked with hundreds of foodservice companies consulting and helping them expand through franchising including McDonald’s, Jimmy Johns, Buffalo Wild Wings, KFC, and Johnny Rocket’s. Prior to his work with Francorp he was an executive in a major restaurant chain.
“I have seen my share of up and down cycles in the foodservice industry,” Boroian said. “Companies have to be proactive in their approach to a negative turn in the economy in order to survive.”
For additional information on the Darden cutbacks read the following article: http://www.orlandosentinel.com/business/os-darden-layoffs-20141118-story.html.
To review a recent article by Don Boroian on the effects of proposed minimum wage increase to the foodservice industry visit: http://www.franchisingusamagazine.com/expert-advice/francorps-chairman-weighs-effect-minimum-wage-increase/.
Founded in 1976 by Don Bororian, Francorp is the world’s leading franchise consulting and development firm. With 27 offices around the globe, Francorp has worked with more than 2000 franchise systems and assisted on more than 10,000 consulting projects. Today Francorp continues to be the only firm in the Franchise Industry to offer clients coordinated strategic planning, legal services, operations, marketing, training, and support services all under one roof. Visit www.francorp.com or call 800 – FRANCHISE (800-372-6244).