Darden Restaurants Considers Future of Bahama Breeze Chain

ORLANDO, Fla. (AP) – Darden Restaurants is contemplating the future of its Bahama Breeze chain, which is now down to 29 locations after the recent closure of 15 underperforming restaurants. CEO Rick Cardenas announced during an earnings call on Friday that the company is exploring ‘strategic alternatives’ for the Caribbean-themed brand, including a potential sale or conversion of its remaining restaurants to other Darden brands.

As of late May, the number of Bahama Breeze restaurants had dwindled to 28, following the closures throughout various states such as Florida, Illinois, Massachusetts, Michigan, Nevada, New Jersey, and New York. Cardenas stated that the difficult decision to cease further investment in Bahama Breeze reflects its diminishing status as a strategic priority for Darden.

According to Cardenas, the brand has ‘the potential to benefit from a new owner.’ The decision comes at a challenging time for the casual dining industry, where chains are confronted with rising competition, inflation, and changing consumer preferences. Darden holds a diverse portfolio that includes popular names such as Olive Garden and LongHorn Steakhouse, both of which continue to perform well.

Darden’s sales for the final quarter of fiscal year 2025 reached $3.27 billion, a 10.6% increase from the previous year. However, Bahama Breeze has experienced declining sales, prompting the review of its place in the company’s overall strategy.

‘We have made the difficult decision that these remaining locations are not a strategic priority for us,’ Cardenas explained. ‘We’re looking at all strategic options.’ The potential shift away from Bahama Breeze could lead to rebranding efforts at the remaining locations, as Darden aims to maximize its resource allocation and focus on its successful chains.

Both patrons and industry watchers are left wondering about the future of Bahama Breeze. With a legacy dating back to the mid-1990s, the chain, known for its tropical dishes and vibrant atmosphere, may soon undergo significant changes as Darden navigates the landscape of casual dining.