Olive Garden Debuts Burger to Win Back Customers

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Dec. 4 (Bloomberg) -- Olive Garden will start serving a $9.99 six-ounce burger to better compete with fast-casual and other sit-down dining chains. Bloomberg's Duane Stanford reports on Bloomberg Television's "In The Loop." (Source: Bloomberg)

He has been following this story.

Are they actually going to be able to gain marketshare?

Everyone is fighting for customers right now.

People are not eating more these days.

They are holding back a bit.

How do we still is on the next i echo all of garden had been looking at some of the reasons why sales had been lagging.

One of the things that came up is because they do not have burgers.

Right.

So they came up with their own.

What about the idea of brand fidelity in the sense it is really supposed to be an italian chain?

They have actually spent a lot on marketing and advertising.

You see the intergenerational, mimicked italian dinner.

That is one of the issues.

How do you go and get market share but she -- states to your roots without muddying the process gekko it becomes tricky when it comes to managing your costs and any -- everything that comes with a wider menu.

That is another area they have to be careful of when they take these kinds of moves.

And they did it with consumer research.

I know it is a much smaller piece of the puzzle.

It is not comparable as far as size goes.

They are also competing in large cities with ergo palace, or the shake shack.

That is only in highly concentrated and urban areas.

Still, people get used to that kind of quality and service.

Are they really going to go to chili's and applebee's? a lot of consumers are looking to eat out that will not break the wallet.

A place like olive garden is somewhere where you can go get this new italian berger with the special sauce and not have to pay an arm and a leg.

Special sauce?

It sounds scary to me.

Special is not the word i want to hear with sauce.

What about, speaking of taste, coke and pepsi trying out a new ingredient?

They are trying to figure out ways to drink more soft drinks especially as people get older.

They drink more -- less sugary drink.

So they cut out the sugar.

A chemical?

They do hybrids with sugar and other things now.

They have figured out a way to possibly have a chemical that would allow the suite -- sweet taste.

They reengineer the salt to hit you better so they can use less.

Left of that mean for the business?

Is this sugar hybrid cheaper or more expensive?

How much testing?

How much of it is a hassle for the business side?

Quested diddly with the new ingredient, you go to the f e a and ask for it to be recognized as safe.

It is very proprietary, these ingredients.

A lot of science behind it.

They team up with other science companies to do it.

Is interesting they are both doing it very i still remember the coke versus pepsi and the blind taste test.

You are saying in this case, both coke and pepsi are essentially having the same idea at the same time.

I say key distinction is coca cola him to be more interested in the all natural and no calorie sweetener, whereas has to go seems to be going the route of how do we boost?

How do we boost it to make it sweeter without having to add the sugar?

And they would take sugar away.

When are they supposed to come out?

Class right now, it could be next year.

The ceo of pepsico has an saying, it is coming, it is coming, it is coming.

But we do not know.

Join me there, our consumer

This text has been automatically generated. It may not be 100% accurate.

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