First, a quick thanks to my friend Serene for getting me started on this rant in Facebook comments. If you are at all interested in how feminist philosophers view the world, check out her blog, The Second Shift, and particularly the post about the reality TV show Married at First Sight, here.
And now, on to the rant!
A 294 page slideshow by hedge fund Starboard Value LP slamming Olive Garden has been getting massive play all over the Internet (and the Daily Show, and some of the afternoon news shows, I'm looking at you, MSNBC!) the last couple weeks. Most of the hedge fund’s criticism focused on restaurant management, unfocused advertising campaigns and poorly executed final food products that look nothing like the glossy menu photos. Right, like an actual Big Mac looks anything like this.
And now, on to the rant!
A 294 page slideshow by hedge fund Starboard Value LP slamming Olive Garden has been getting massive play all over the Internet (and the Daily Show, and some of the afternoon news shows, I'm looking at you, MSNBC!) the last couple weeks. Most of the hedge fund’s criticism focused on restaurant management, unfocused advertising campaigns and poorly executed final food products that look nothing like the glossy menu photos. Right, like an actual Big Mac looks anything like this.
I want to go after
Starboard’s criticism of Olive Garden for being off base on a number of points
that have nothing to do with market analysis and profit margins. But more importantly, I want to take some of
my favorite publications (Slate, HuffPost, The Daily Show) to task for jumping
on the Olive Garden bashing bandwagon without doing any critical thinking here. Largely because every few years it seems to
get popular again to slam Olive Garden as inauthentic, unsophisticated, and a cheap
knock off of the “real” Italian food one can find in hipper, spendier, urban
establishments. These repeated rounds of
criticism grate at my soul for a couple reasons, but mostly it boils down to what
Olive Garden represents in rural America and what it means when urban critics take
the time to crowingly mock that on grounds that mostly turn out to be unfair.
Olive Garden, across
much of the broad middle of the country, is a nice night out. An expensive night out to be sure, but one
where the value of deals like the “neverending pasta bowl” acts as a
counterweight to any lingering feelings of guilt or shame or panic that plague
low income Americans when they take their families out somewhere fancy. These feelings are real, they are constantly
in the background, and they suck. So don’t
anybody dare (Starboard, or Slate, or Jon Stewart) gleefully throw shade about
how it isn’t really that fancy after all.
No one has really
questioned Starboard’s motives here, which is weird, because they are a hedge
fund, so probably not pure as the driven snow.
There have even been some naïve (or poorly researched?) assertions that
Starboard made this slide show (and is publicizing its criticism) in order to “shame O.G. into improving.” This is absurd. Hedge funds make their money from betting on companies
failing, or from taking over failing companies, making them fail slightly less
(or selling off any non-failing parts), and then selling them. Why would a hedge fund give a crap if Olive
Garden improves for its own sake?
Obviously Starboard must have a stake here. And, sure enough, if you pry a little
further, the hedge fund is engaged in a fight with Darden, the parent company
of Olive Garden (and Red Lobster and Longhorn Steakhouses) over control of the
company leading up to a big share-holder vote, preceded, conveniently, by all
this bad press. The slide show is
Starboard’s takeover pitch, so we can’t really say they are neutral actors just
rooting for Olive Garden’s best interests here, they are trying to make Darden
look as bad as possible to justify their own investment strategy.
To bolster its
argument against Darden, Starboard (and their echoing media critics) go after Olive
Garden for being something it was never intended to be. Starboard’s complaints include:
“Buy one entrée, take one home” and other
recent promotions appear to be inconsistent with Italian culture – not to
mention the extreme portion size is inconsistent with authentic Italian values
and creates enormous waste.
Servers no longer encourage wine with lunch
or dinner, even though wine is an authentic part of the Italian family dining
experience.
Olive Garden Italian American food. As I mentioned
above, portion size and deals like the never ending pasta bowl are what draws
American diners, particularly those in rural areas who cannot afford to eat out
except on a few special occasions, to Olive Garden as a value experience. Starboard is acting like people sit and eat
all their endless salad, breadsticks, soup, and pasta in one sitting, ignoring
the reality that Americans, unlike Italians, love to take leftovers home. When you feel like you got two meals for the
price of one (even if the price of that one meal for the whole family sets you
back a full day’s wages), that value offsets your worries about taking the
family out to eat at a greater cost than you’re comfortable with every once in
awhile. Sure, Olive Garden does the
whole “our chefs learn their craft in Italy!” thing, but it is obvious they are
an Italian American chain restaurant.
Which is another
thing, they are a chain restaurant.
Comparing their franchises to some 120 year old privately owned,
handed-down-through-the-generations hole-in-the-wall on Mulberry Street misses
the point entirely. Many of the people who go to
Olive Garden will never in their lives get to go to Little Italy. They do not have regular access to prosciutto
and ricotta salata and limoncello in their grocery stores (or in their whole
towns, in their whole counties, maybe in the whole state!). They know that Olive Garden is not an “authentic
Italian” experience, but it is a really nice place, maybe the nicest around, to
go to celebrate birthdays and promotions and graduations with family. And even though the cost
means you can’t go there all the time, you know you’ll get tons of leftovers
when you do go so you don’t feel so bad about spending all that money once in
awhile because you get so much value for it.
In my town, one of the only two other Italian restaurants for the last
ten years pronounced it EYE-talian, so Olive Garden is pretty authentic for us.
Starboard also
dedicates several slides to how Olive Garden’s endless salad and breadsticks
are resulting in “waste” for the restaurant.
But if you read carefully, you can see what they are really concerned
about is not food waste as we diners would think about it (uneaten salad or
breadsticks), but wasted cost, that is, added cost to the restaurant that doesn’t
result in added profits. Yeah, okay, I
can see why “endless” anything costs the restaurant money, and I can see why a
company wanting to make the restaurant more profitable would recommend paring
this back. But this is also class
warfare, let me tell you why.
For example, Starboard
argues that only one breadstick per diner, plus one additional breadstick
should be placed on the table. Servers
should then ask customers if they want additional breadsticks. However, this ignores how customers eat at
Olive Garden, and how servers operate at most casual restaurants.
Most people come to
the restaurant hungry. If you are going
out for a dinner as expensive (and as I mentioned, in rural areas, this might
be the most expensive place around) as Olive Garden, you want to make sure you
are hungry enough to take full advantage of the experience. Hungry people will want to eat a breadstick
or two with their salad while they are waiting for their entrée. At casual dining restaurants, servers check
back on diners at natural, but relatively set, intervals. Shortly after your entrée is served, for
example, then again when plates are looking clearer to see if you are thinking
about dessert. Therefore, if you eat one
breadstick after you order, then putter at your salad, and there is one
breadstick left for the four or five of you at the table, that means most of
the people at the table are going to be annoyed. You then have to flag down your server
(because it is not a natural interval for them to have checked back on you
already, they just took your order, after all!) and ask for more
breadsticks.
You only want maybe
one more breadstick for each person at the table before your entrée comes but
because you have to hail someone to ask for it, you feel like a pig! And because you don’t go out to eat that
often, you also feel a little ashamed to be hoovering up the endless
breadsticks, which you now have to advertise by publicly waiving your arm
around to ask for more. So what
Starboard is really saying is they want Olive Garden to incorporate subtle
techniques of shame, intimidation, and manipulation of their diners’ class
insecurities to get them to eat fewer breadsticks.
This will work! People will eat fewer breadsticks! But they will also start to feel a little
more stressed and resentful and negative about their Olive Garden experience,
because nothing is worse than when something than used to be free is now a
little less free (just think of checked bags on airplanes!). But profitability due to decreased salad and
breadstick “waste” will probably tick up briefly in the interim just long
enough for Starboard to sell Olive Garden and make their own profit. Ahem, hedge funds.
The criticism that
has received the most attention, however, is Starboard’s accusation that Olive
Garden has stopped salting its pasta water in order to obtain a longer warranty
on its pots. In a headline typical of
the brouhaha this revelation has stirred up, Slate declared “Olive Garden Has Been Committing A Culinary Crime Against Humanity.”
I would love to be able to say that Slate is intentionally
using an absurdly hyperbolic title in order to mock Starboard, rather than
mocking Olive Garden, but the article makes it clear that this isn’t the
case. Prominently featured just under
the opening lines is the Starboard slide stating that Olive Garden has “lost
its Italian heritage and authenticity.” Pause for a minute: its “Italian heritage”?
Seriously? How can we think for a minute
that Starboard is doing anything but pursuing an agenda here. Slate goes on to inform readers of how
necessary salting the pasta water is. It
is so necessary in fact that the article originally misstated why it is necessary. The admonition “For the non-home cooks out there, salting water is essential
for correctly flavoring pasta,” is followed by an ominous asterisk. The Correction note states: “This
post originally misstated that salting water helps pasta cook correctly by
increasing the liquid's boiling point. Despite the dearly held
beliefs of many home cooks, adding a moderate amount of salt does not significantly change the temperature at which water boils.” Clearly,
salting the water is a vital step…for some reason.
The Huffington Post is
similarly confused about this supposedly indispensable step in one of the most
basic processes in American (ahem, Italian) cooking. Do you salt the water when it is cold or when
it is hot? Or after it is boiling? Do you need to salt the pasta when you are
salting the sauce? Do you use enough
salt to raise the boiling point of the water and make the brine taste like the
sea? Or is that too salty and you should
instead use measuring spoons to get the amount just right? The only consensus seems to be that we’re
probably doing it wrong. Also,
apparently you can’t use iodized salt, which I’d bet a lot of us had in our
pantries growing up, before sea salt was available in a grinder from Costco. Does this mean the pasta of our childhoods
always tasted “metallic” as the HuffPost claims?
Now, I’m not saying that
Olive Garden shouldn’t be salting its pasta water. It is the traditional way to do it and it
does season the pasta as it cooks. But I
wouldn’t really put it on the level of a culinary crime against humanity
either. I imagine like any restaurant,
their other ingredients, including their rich sauces, already contain high
sodium levels, so I doubt, flavor-wise, that it makes much of a difference
whether the pasta is salted or not. A
non-chef could probably only tell if you were eating the plain noodles (and who
would go out to Olive Garden to eat plain noodles?). The fact that the very critics who are
supposedly so aghast that Olive Garden has flubbed the first step in Cooking
Pasta 101 have such difficulty articulating what, exactly, that first step
entails (beyond putting some type of salt into the water at some point in the
process), suggests water salting, like many steps in authentic Italian cooking,
may have more to do with tradition (and superstition), like throwing a little
over your shoulder after you’ve tossed some in the pot (all home cooks do that too, right? Or is it just us Italians?).
So rather than taking such
delight in coming down on Olive Garden (and by extension all of us who still
hold it in high esteem), for not being authentic enough, or Italian enough, and
for being too generous (and isn’t generosity an authentically Italian – and Italian
American – trait?) with portions and breadsticks, I would ask these critics who
take their urban settings for granted to consider those of us who can’t pick up
a hand-tossed roasted fig, prosciutto and gorgonzola pizza with balsamic
reduction on the way home from work any day of the week. For many of us rural folks, the opportunity
to eat out and get anything approaching Italian food at a value point we can
afford is a rarity we are grateful for.
Don’t make fun.
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