Is Olive Garden Going Out of Business? Latest Updates

Ethan Caldwell
10 Min Read
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You’ve probably seen someone claim “Olive Garden is closing all its locations!” on social media this year. It pops up every few months—sometimes from a viral tweet, other times in a sketchy sponsored ad or a forwarded Facebook post. But here’s the real story: Olive Garden is not going out of business.

Yeah, there have been some challenges for almost every restaurant, but this Italian-American chain isn’t packing up or leaving your town. In fact, when you check their latest business reports, the full picture is pretty much the opposite of those rumors.

Where Did These Olive Garden Closing Rumors Even Start?

You’d think after a decade of fake retail and restaurant panic, people would know better—yet the “Olive Garden shutting down” story keeps coming back. Sometimes, the same rumor-monger sites that claimed Walgreens or Subway was finished take a stab at the Garden.

It usually begins with a few memes, then gets picked up by folks who miss the finer details. Before you know it, you’re texting your friend about whether this weekend is your “last ever” unlimited soup, salad, and breadsticks. Funny how no one ever checks the company’s actual press releases.

This time, Olive Garden had to step in. Reps for Darden Restaurants, Olive Garden’s parent company, quickly dismissed the rumors. They flat-out called them “false” and “misinformation.” No plans to close stores nationwide. It was the usual story: stuff started on social media, then took on a life of its own.

How’s Olive Garden’s Business Actually Doing?

So, what’s behind the fuss? Olive Garden’s numbers dropped slightly in one quarter—about 1.5% down in same-store sales. If you only saw that stat, you might think they were teetering.

But a little context helps. Broader industry sales are spotty right now, especially for big, family-focused restaurants. Lots of places are seeing small dips. At the same time, Olive Garden stayed profitable. They didn’t report any losses—just a minor slowdown compared to the previous explosive years during and after the pandemic.

Darden Restaurants, which owns Olive Garden, told investors they remain “financially strong.” The Olive Garden brand keeps bringing in solid profits for the group. Some weeks are slower, sure, but we’re far away from the disaster scenarios those viral posts describe.

In its most recent quarterly report, Darden reported net earnings of over $300 million and said Olive Garden continues to generate positive returns. It’s not a best-ever performance, but hardly a crisis.

Are Olive Garden Locations Actually Closing?

Contrary to what you’ve read, Olive Garden has actually been opening more locations over the past year. They’re not shrinking—they’re growing.

Olive Garden operated 887 restaurants last year, and that count reached 906 by this spring. That means they added almost 20 new places, instead of losing them. If they were headed for bankruptcy or mass closures, this wouldn’t be happening.

That’s the sign of a chain looking ahead, not quietly preparing to leave the business. It’s pretty hard to square “we’re opening more restaurants” with “the company is dying.”

Sure, no big restaurant brand is completely immune from the need to prune underperforming locations once in a while. But there’s been no massive round of closures, and the brand’s total presence is still going up.

So, Why All the Hand-Wringing in the Restaurant Industry?

You might be wondering—if Olive Garden and the whole Darden team are financially okay, why is there so much doom-and-gloom out there?

Well, the family-dining scene is a little shaky across the country. Prices are up. People are watching their budgets more closely than before. For tons of Americans, eating out with the whole group feels a bit pricier.

Olive Garden, like many big chains, has seen some regulars scale back on visits. Friday and Saturday nights are still busy, but those spontaneous Tuesday dinners have slowed a bit.

That’s not just an Olive Garden problem. Red Lobster, Applebee’s, and Chili’s have all talked about similar issues. In Olive Garden’s case, executives have been really open about these trends when talking to investors. They’re not sugarcoating it.

But there’s a difference between “sales flattened” and “the company is about to collapse.” Olive Garden is making changes—updating its menu, running new promotions, even tweaking its famous “Never Ending Pasta Bowl” deals to drum up more excitement.

What’s Olive Garden Doing to Adapt Right Now?

Instead of sitting still, Olive Garden is rolling out a few new ideas. They’re experimenting with new entrees aimed at younger customers, including bolder flavors and even some lighter options.

Every now and then, they bring back promos like “Buy One, Take One,” or trial new loyalty perks. These offers help keep buzz high without gutting their profit margin.

Takeout and delivery are seeing more attention too. More folks are ordering from home, so Olive Garden has added options for easy pick-up and is even working on new packaging.

Their approach to deals has shifted too. Instead of endless blanket discounts, they’re trying targeted offers to lure people in on slow nights. It’s all about balancing that “big value” feel with running a healthy business.

Heard Anything Official from the Company?

No press releases about bankruptcy or a “major operational reset” have come from Olive Garden or Darden Restaurants. The company is actually pretty proactive about squashing rumors—flatly denying any talk of mass shutdowns.

They’re investing in updated interiors and new formats for some locations too. At the same time, Darden is keeping investors informed with regular updates and earnings calls. If the brand was really hurting, we’d see restructuring warnings or signals of distress. But none of those have popped up.

Most of the leadership’s messages these days focus on how to stay competitive as customer tastes change. They’re not talking about downsizing, but about growing and adjusting. That theme comes up every earnings call.

And if you want to follow what’s happening in casual dining, it’s good to stick to trusted business updates, not Facebook threads. For more behind-the-scenes industry breakdowns, sites like Blue Business Mag cover these kinds of trends on a regular basis.

The Real Story on Olive Garden’s Future

If you’re still on the fence about planning dinner there—is it worth buying a gift card? Should you organize a family meal? The answer is yes. Olive Garden is keeping its doors open, updating its playbook, and trying to retain its millions of regulars. The problems they’re facing are the same as every big restaurant franchise right now, and they’re adapting as best they can.

With more than 900 U.S. locations, Olive Garden is not facing a sudden closure wave. Their parent company continues to back them, and overall sales remain healthy enough for steady growth. The brand isn’t immune to bigger industry headwinds, like shifting budgets or labor costs, but these challenges are far from fatal.

If you do see those scary rumors resurging, take it with a grain of salt. Whenever you hear someone say, “I heard it’s all closing tomorrow!”—the real story is much less dramatic. There might be some menu tweaks coming up, and maybe your local restaurant will look a little different after a remodel, but the breadsticks will still be there.

The truth is, Olive Garden is making the same tough calls as every other big name in sit-down dining. Some nights are slower than before, and they’re working to keep your business. But there’s no sign of impending doom, no matter what the latest viral post claims.

As of this year, Olive Garden’s “going out of business” is just chatter—not reality. So, go ahead and grab that table. The house salad isn’t going anywhere.

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Ethan Caldwell is a small business enthusiast, writer, and the voice behind many of the stories at BlueBusinessMag. Based in Austin, Texas, Ethan has spent the last decade working with startups, solopreneurs, and local businesses - helping them turn ideas into income. With a background in digital marketing and a passion for honest, no-fluff advice, he breaks down complex business topics into easy-to-understand insights that actually work. When he’s not writing, you’ll find him hiking Texas trails or tinkering with new side hustle experiments.
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