Big restaurant chains including Olive Garden, Applebee's, IHOP, and Cheesecake Factory are cutting back on delivery amid staff shortages

Business Insider
Business Insider
Olive Garden takeout.
  • IHOP, Applebee's, and Olive Garden are halting online ordering services at peak times.
  • Staffing shortages have made it harder to keep up with demand.
  • The foodservice industry is grappling with a labor shortage.

Some of America's favorite local dining spots including Olive Garden, Applebee's, and IHOP are being forced to dial back on online ordering and delivery options because of staffing shortages, The Wall Street Journal reported .

At the height of the pandemic, takeout and delivery services became a lifeline for these dine-in establishments. But as consumers return to restaurants and demand picks up, a scarcity of workers means they're having to scale back.

In an interview with The Journal, John Peyton, CEO of Dine Brands, which owns IHOP and Applebee's, said the company had to shut down delivery options in the evenings or on weekend mornings when it's most busy with eat-in customers.

"In that trade-off, we are always going to make sure that we're serving the guests that are physically in front of us because that experience has got to be right," he told the paper.

Darden Restaurants, which owns Olive Garden and LongHorn Steakhouse among other chains, is doing the same and cutting its online delivery business at certain points on weekends because of "excess demand," its CEO said in a recent earnings call .

Meanwhile, The Cheesecake Factory has given its managers the ability to halt its delivery service at any time when the kitchen becomes overwhelmed. The company confirmed in a recent earnings call that it was facing staffing shortages, but said that these had not had a meaningful impact on sales so far.

The retail and foodservice industries are among those that have been worst impacted by the labor crunch with record numbers of workers quitting each month. These workers – who have been put off by low pay , a lack of benefits, and pandemic health concerns, among other things – are often quitting to find better-paying jobs in more stable industries.

This has put many businesses in a challenging position, and meant they've had to reduce hours or close entirely because they can't find enough staff.

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Comments / 623

Joseph DeVito

BEFORE this Man Made Health Crisis, things were normal , your pay was the pay you got , and there were plenty of people who were WORKING and filling those spots regardless if you liked the restaurant or not , there was always enough staff to cover BOTH Walk-ins and Delivery !!!! GOVERNMENT HAS CAUSED THIS WHOLE PROBLEM !!! LOCKDOWNS , FORCED VACCINATIONS , AND ALL THE MANDATES !!!! Then our Governments solution is to print money out of thin air and give people more money than when they were working, well that started a whole new set of problems !!!! We will be feeling the effects of our government’s stupidity for years to come !!! GOVERNMENT SHOULD OF BUTTED OUT !! This Man Made Health Crisis should of been handle as to let it take its coarse as any other sickness and seasonal viruses have come our way !!!!! THIS IS PROOF that this whole thing has been a “Agenda” from the very start !!!! Geared to destroying the Middle class and having a two tiered system Rich & Poor , through submi

Saint Petersburg FL

Well here in Saint Petersburg FL, most people eat at local places, better food and all prices...... quality help, and real bartenders.....these so called Restaurants are on their way out, low quality food and bad service.....and cheap labor.

Lola Forest

Than they better step up security! People have began to act like wild animals these days and not only when the sun goes down. Chipotle runs out of steak on a regular basis and customers become irate. Restuarants now want people to sit in their cars for orders but they get angry waiting 2 long. Workers are quitting in droves. They don't need this abuse. It's not about money. It customer abuse! People have forgotten empathy, patience and how to just be kind to each other. Some of these businesses will just close. Experts r calling 4 supply chain issue & soaring inflation until 2023. At least another year! Buckle Up!!!


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