The next big thing on menus: Smaller portions

"Olive Garden, which has traditionally seen success from its annual unlimited pasta promotion, recently noticed the opposite trend: Some customers actually wanted less food. Last quarter, the restaurant chain tested a new menu section at a little less than half of its locations: smaller portions, along with reduced prices, for seven of its dinner entrees. The trial was designed to appeal to cash-conscious customers, who've been cutting eating out from their budgets, hurting restaurants' profits."

"Maybe our consumers finally evolved that you don't need to have uneaten food on the plate to feel that you've gotten good value, Darden CEO Rick Cardenas said on an analyst call last month, while also noting affordability as a factor. You can just eat just the right amount of portion and be happy with it. That would certainly be a change versus the old America, but that obviously would be a good direction to go."

"Budgets are tight, but customers are also eating differently. The National Restaurant Association found in their annual survey that 64% of consumers tend to replace three traditional meals with snack items during the day, and 74% of restaurant customers say they crave smaller portions. Plus, reducing portion sizes cuts down on the excess waste that's become a major problem in the industry."

Olive Garden tested smaller, reduced-price portions for seven dinner entrees at slightly less than half its locations. The trial targeted cash-conscious customers who have cut back on dining out and aimed to boost affordability and profits. Customer feedback was positive and the chain's internal affordability metric rose 15%. Early results showed the menu encouraged diners to return and potentially become regulars. Executives noted changing consumer habits and willingness to accept smaller portions while valuing affordability. Industry data show many consumers replace meals with snacks and that 74% of restaurant customers crave smaller portions. Reduced portions also decrease excess food waste.

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