Darden Restaurants, the parent company behind popular chains like Olive Garden and LongHorn Steakhouse, has announced it is exploring “strategic alternatives” for its Caribbean-inspired restaurant brand, Bahama Breeze. This comes just a month after the company abruptly closed 15 Bahama Breeze locations across the United States, representing more than a third of the chain’s total footprint.
The decision to consider selling the brand or converting its remaining restaurants to other Darden concepts signals a significant shift in the company’s portfolio strategy. Darden CEO Ricardo Cardenas stated during a recent earnings call that Bahama Breeze and its remaining locations are “not a strategic priority” for the company. However, he expressed belief that the brand “could thrive under new ownership,” suggesting a potential path forward for the tropical-themed eatery.
The initial wave of closures, which occurred in May 2025, impacted restaurants in several states, including five in Florida (two in Broward County), four in New Jersey, and one each in Illinois, Massachusetts, Michigan, Nevada, New York, and Tennessee. At the time, Darden spokesperson Kiara Buckner explained that the closures were a “difficult choice” but were deemed “the right decision” to allow Bahama Breeze to focus on its highest-performing restaurants and strengthen its overall brand performance. Following these closures, only 29 Bahama Breeze locations remain operational nationwide.
Bahama Breeze, founded in 1996 with its first location in Orlando, Florida, is known for its island escape ambiance and Caribbean-inspired menu featuring dishes like Jamaican jerk wings and tropical cocktails. Despite its unique concept, the chain has faced considerable challenges, with sales reportedly declining by 7.7% last year, according to data from Technomic, a restaurant analysis firm. This struggle underscores a broader trend impacting the casual dining segment, which has been particularly vulnerable to factors like inflation and a decrease in consumer disposable income.
Industry experts, such as Maeve Webster, president of consulting firm Menu Matters, note that casual dining restaurants, which typically cater to lower and middle-income families, are experiencing tough times as consumer sentiment plunges. Webster suggests that “closing poorly performing units can be better for the chain overall than trying to fix them,” as pouring resources into struggling locations can “undermine the entire chain.”
While Bahama Breeze faces an uncertain future, Darden’s other flagship brands, Olive Garden and LongHorn Steakhouse, continue to be powerhouses for the company. Olive Garden has been actively refreshing its menu, introducing new items like Spicy Three-Meat Sauce, and expanding its delivery options through partnerships with services like Uber. Despite these efforts, Olive Garden recently lost its title as the top U.S. restaurant after holding the spot for seven years. Even these leading brands experienced weak same-store sales growth in Darden’s recent quarter, falling below analysts’ expectations, indicating a challenging environment across the board.
Bahama Breeze is not alone in its struggles. Other restaurant chains have also been exploring strategic alternatives or undergoing significant restructuring. Jack in the Box, for instance, sought bidders for its Del Taco brand before announcing plans to close up to 200 restaurants. Hooters is in the process of selling off locations after filing for bankruptcy in March. Conversely, some chains like Bojangles are seeking buyers not due to financial distress but from a position of strength, aiming to capitalize on their thriving business. The recent acquisition of On The Border Mexican Grill & Cantina by Pappas Restaurants for $10 million after its bankruptcy filing highlights the dynamic nature of the restaurant industry’s current landscape.
Darden has assured that it is committed to supporting team members affected by the closures, offering to place as many as possible at nearby Darden brands and providing severance to others. The coming months will reveal whether Bahama Breeze finds a new owner or if its remaining locations are absorbed into Darden’s broader portfolio.
