Bahama Breeze to Close All Locations After 30 Years

Bahama Breeze, the Caribbean-themed dining chain, is ceasing operations after 30 years.

Darden Restaurants, which also owns Olive Garden and LongHorn Steakhouse, announced the closure of its remaining 28 Bahama Breeze locations. The final day of operations for all sites is set for April 5.

Closure and Conversion Plans

Half of these locations, specifically 14 sites, will shut down completely. The other half will be converted into other Darden-owned chains over the next 12 to 18 months.

Locations Affected

Locations scheduled for complete closure include those in Delaware, Georgia, Michigan, New Jersey, North Carolina, Virginia, Washington, two in Pennsylvania, and five in Florida.

The 14 locations being converted include ten situated around Orlando, Florida. Darden stated that these conversion sites are beneficial for other brands in its portfolio. The company also emphasized its commitment to supporting team members by placing them in other roles within the company.

Strategic Review Preceded Decision

This decision follows Darden's consideration of strategic alternatives for the Bahama Breeze brand, including a potential sale. This review process began nearly a year after one-third of Bahama Breeze's locations were initially closed.

Industry Context and Darden's Performance

The casual dining sector has seen some chains struggle due to reduced disposable income and slumping consumer confidence, particularly among lower- and middle-income families.

However, other Darden brands like Olive Garden and LongHorn Steakhouse have reported positive same-store sales increases, indicating consumer demand for value. Reflecting this resilience, Darden's stock has increased by 8% this year.