Bahama Breeze, the popular Caribbean-inspired restaurant chain, faces an uncertain future as its parent company explores significant strategic changes. This comes just over a month after 15 locations across the United States were abruptly closed.
Darden Restaurants, which also owns well-known brands like Olive Garden, LongHorn Steakhouse, Ruth’s Chris Steak House, and Yard House, recently signaled that Bahama Breeze is no longer considered a core focus for the company.
During a recent earnings call, Darden CEO Ricardo Cardenas announced that the company would be “considering strategic alternatives” for Bahama Breeze. These options include potentially selling the brand to a new owner or converting existing restaurant sites into locations for other concepts within Darden’s extensive portfolio.
Strategic Shift Amidst Challenging Market
The decision to review Bahama Breeze’s future comes as Darden navigates a dynamic and challenging restaurant landscape. The industry is facing pressure from reduced consumer spending and increased operating costs driven by inflation. While some national chains have turned to discounting to attract customers, Darden has notably chosen a different path, opting instead to implement price increases on its menus, particularly at Olive Garden.
Darden’s leadership appears focused on maximizing the performance and perceived value of its largest and most successful brands, like Olive Garden and LongHorn Steakhouse. In this strategic environment, Bahama Breeze has been deemed “not a strategic priority” for the company going forward.
Recent Closures and Remaining Locations
In mid-May, Darden closed 15 Bahama Breeze restaurants without prior public announcement. These locations were reportedly not among the chain’s top performers. States affected by these closures included multiple locations in Florida and New Jersey, as well as single locations in Illinois, Massachusetts, Michigan, Nevada, New York, and Tennessee. The closure included the chain’s only restaurant in Massachusetts, resulting in dozens of layoffs in that state alone.
Following these closures, 28 Bahama Breeze restaurants remain in operation. Darden describes these as the brand’s “highest performing” locations.
While the company is exploring a potential sale or conversion for these remaining sites, no projected timeline has been provided, nor has Darden disclosed if there are any interested buyers at this time. Despite the significant changes being considered for Bahama Breeze, Darden does not expect a potential sale to have a “material impact” on the company’s overall financial results.
Bahama Breeze first opened its doors in Florida in the 1990s. Today, half of the remaining 28 locations are still located in Florida. Other states with operational Bahama Breeze restaurants include Georgia, North Carolina, Pennsylvania, and Virginia (each with two locations), and Delaware, Michigan, New Jersey, South Carolina, and Washington (each with one location).
The company has stated it is making efforts to support employees impacted by the closures, including attempting to place some at other nearby Darden-owned restaurants and providing severance pay to eligible workers.
