4. Competing with the phone bill
Otis spun at least one listener’s head with his assessment of what’s ailing casual dining, where he reigned as a god until resigning last year amid a dispute with a dissident shareholder and a long stretch of disappointing sales.
The one-time CFO suggested that restaurants like the ones he oversaw are losing dollars to telephone bills. The cost per month for smart phones averages about $150 for a household, a “significant” bite of an annual income of $50,000.
Otis also revealed during his interview that Darden had looked during his tenure at entering the Mexican segment of casual dining, but decided that consumers were unwilling to spend enough to make a venture worth while for a public company. They've been conditioned to expect Mexican food at quick-service prices, Otis said.