Bahama Breeze Shutters Over One-Third of Its Restaurants Amid Sales Slump

Caribbean-themed restaurant chain Bahama Breeze has closed more than a third of its locations across the United States, as parent company Darden Restaurants moves to streamline operations and boost overall performance.

Fifteen outlets were shut down this week, including multiple locations in Florida and New Jersey, as well as single sites in Illinois, Massachusetts, Michigan, Nevada, New York, and Tennessee. The closures reduce Bahama Breeze’s footprint to just 29 restaurants nationwide.

Darden described the decision as a strategic move. “Closing these locations allows Bahama Breeze to focus on its top-performing restaurants and strengthen the brand moving forward,” the company said in a statement.

Employees impacted by the closures are being offered severance packages or opportunities to transfer to other restaurants within the Darden portfolio, which includes chains like Olive Garden and LongHorn Steakhouse.

The move follows a difficult year for Bahama Breeze. According to restaurant analytics firm Technomic, the brand saw sales fall by 7.7% in 2023. Industry experts say the closures reflect broader challenges plaguing the casual dining sector, which has been hit hard by inflation and waning consumer confidence.

“These are tough times for casual dining,” said Maeve Webster, president of consulting firm Menu Matters. “Chains catering to middle-income families are seeing fewer customers as people pull back on discretionary spending.”

Webster noted that closing underperforming locations can be a healthier long-term strategy than trying to revive them. “It’s often better to concentrate resources on what’s working rather than prop up what isn’t,” she said.

Darden itself has experienced a rough patch. In its most recent earnings report, both Olive Garden and LongHorn Steakhouse posted weaker-than-expected same-store sales, a rare stumble for the company’s usually reliable brands.

The Bahama Breeze closures highlight the ongoing shifts in consumer behavior and spending priorities, particularly as households contend with economic uncertainty and rising costs.