Olive Garden maintains low prices amid rising inflation

In the United States, Olive Garden is reintroducing its popular 'Never Ending Pasta Bowl' promotion on August 25, 2025, at the unchanged price of $13.99. This comes as many restaurants have significantly raised their menu prices due to inflation, with the National Restaurant Association reporting a 30% increase in menu prices from February 2020 to April 2025. In contrast, Olive Garden raised its prices only about 2% in the previous year, which is below the inflation rate, and has seen a notable 12.7% increase in profits in the latest quarter compared to the same period last year. The chain's strategy likely involves enticing customers into purchasing additional items, such as drinks and appetizers, which are more profitable, while benefiting from cost savings through bulk purchases of pasta. Maeve Webster, president of Menu Matters, suggests Olive Garden has calculated the balance of how many patrons will exceed the $13 value of pasta, optimizing their overall profit margins. The 'Never Ending Pasta Bowl' offer allows customers to enjoy unlimited pasta options along with soup or salad and breadsticks, categorizing it as a valuable dining option during a time when consumers face various financial pressures, particularly with back-to-school expenses. The promotion has been a staple since 1995, showcasing Olive Garden's commitment to providing customers with budget-friendly dining experiences. The strategy to focus on value is reinforced by the positive results seen in Olive Garden's recent sales growth following the return of their buy-one, take-home meal deal, which increased sales by 6.9%. Other casual dining chains such as Applebee's are also highlighting value, evidenced by their 5% boost in same-store sales, emphasizing the competitive landscape in the casual dining sector.