Bye Bye, Bahama Breeze Restaurant Chain

After completing an exploration of strategic alternatives for its 28-unit Bahama Breeze chain, Darden Restaurants Inc. has decided to permanently close half of that brand’s locations and convert the rest to an another as-yet-undetermined Darden brand. (The company’s other holdings are Olive Garden, LongHorn Steakhouse, Yard House, Ruth’s Chris Steak House, Cheddar’s Scratch Kitchen, The Capital Grille, Chuy’s, Seasons 52, and Eddie V’s.)

The news about Bahama Breeze’s fate comes amidst challenging times for restaurants of all sizes, due to such factors rising food and labor prices combined with falling discretionary spending and foot traffic. Other major chains trimming their restaurants fleets are Denny’s, Noodles & Co. and Red Robin.

As for Bahama Breeze, Darden had previously said those restaurants were “no longer a strategic priority” and that it would consider strategic alternatives, including a potential sale of the brand. As no buyers emerged, the restaurateur said the 14 restaurants designated for permanent closure will do so on April 5, while the remaining 14 locations will be converted over the next 12-18 months. The latter locations are expected to continue to operate until any temporary closures are needed for the conversion.

Darden said it believes the conversion locations are sites that will benefit several of the brands in its portfolio. Given the relatively small size of the BB unit, its parent company does not expect these actions to have a material impact on its financial results. (Olive Garden, for instance, has 900-plus units, and LongHorn has about 630.)