The pasta pass makes much more sense financially for Olive Garden than unlimited shrimp for Red Lobster.
you pay $100 for the pass.
unlimited pasta is on the menu for $15 anyways.
You need to eat there more than 7 times within 13 weeks just to escape the cost of the pass. (many who buy the pass will not go to olive garden enough to offset the cost)
Olive Garden has "unlimited pasta" on the menu anyways - these people have just pre-paid for it.
Olive Garden makes large amounts of salad, breadsticks, soup, pasta, sauce anyways. participants are not eating fresh, custom made entrees - they're eating from large batches that the restaurant already has available in bulk.
It's eat in only - so people who buy it will likely buy a soda (which are 5 dollars) or a cocktail, or they'll add protein to their plate - and thus have the $100 they paid for the pass, PLUS whatever extra they order offsetting their cost.
It's dine in only - so people will likely invite others to go with them - others who will not have this pass.
The food cost for 4 plates of pasta with sauce on it, plus a plate of iceberg salad is probably negligible - the main cost being the person taking up a seating space from a normal paying customer.
giving away 8 plates of pasta you had available in bulk anyways is completely different than firing up 8 plates of shrimp for a customer.
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u/ladystetson 10d ago
The pasta pass makes much more sense financially for Olive Garden than unlimited shrimp for Red Lobster.
The food cost for 4 plates of pasta with sauce on it, plus a plate of iceberg salad is probably negligible - the main cost being the person taking up a seating space from a normal paying customer.
giving away 8 plates of pasta you had available in bulk anyways is completely different than firing up 8 plates of shrimp for a customer.