Overview of Darden Restaurants

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Darden Company Analysis Part A. Operations/Supply Chain Strategy Darden Restaurants , founded in 1968, is the largest full-service dining restaurant company in the world. It is headquartered in Orlando, Florida, but serves the global market with the brands of Olive Garden, Red Lobster, Bahama Breeze, Seasons 52, Capital Grille, and the Long Horn Steakhouse Chain. The company boasted close to $8 billion in 2012 revenue, with a net income of $475 million. It has 180,000 employees and almost $6 billion in total assets (www.darden.com). Darden has four supply channels: smallware (restaurant supplies); frozen/dry canned products, fresh food, and seafood. The common features of the supply channel management are the qualification of the supplier, product tracking, global sourcing, independent audits of suppliers and the ability to manage just-in-time inventory. Part B. Supplier Relationship and Structure Darden takes its suppliers very seriously, prior to doing business, the supplier must be qualified and a Total Quality Management Team assigned to that vendor. Product tracking occurs with inspection teams that identify the lot ID, atmospheric packaging, and the ability to track the order from origin to receipt of goods. For their many restaurants, Darden structures its supplies from 5 continents and thousands of suppliers, but insists on independent and accurate assessments in order to maintain relationships. Everything must be JIT inventory except smallware. Part C.

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