SANFORD, Fla. – The final day for the Bahama Breeze restaurant located on Rinehart Road in Sanford was Sunday, March 15, a representative with Darden Restaurants confirmed with News 6.
On Monday, when our News 6 team visited the restaurant, the Bahama Breeze name had already been removed from the sign, and workers were leaving after their last meeting.
One of them told our crew that they previously thought the last day would be April 5, but they learned this weekend that wasn’t the case.
‘I was in there crying because a lot of people have been here for years," she said. “It’s like their second home.”
Earlier this year, Darden Restaurants announced that all 28 locations were “no longer a strategic priority” and would be sold or converted into other existing Darden brands. Fourteen locations, including the one in Sanford, would close, and plans to convert the remaining 14 would be complete over the next 12 -18 months.
[WATCH: Bahama Breeze restaurants in Florida are closing permanently, company says]
A representative with Darden told News 6 on Monday that the Sanford location, as well as the Bahama Breeze on West Osceola Parkway, closed Sunday. One of the reasons why they closed earlier was that staff were already being given opportunities to work at other Darden locations, according to the rep.
Darden said placing as many of these employees in other roles is a priority. News 6 was told that both management teams at the Sanford and Kissimmee locations — 11 people in total — were moved to other roles within the company. A representative said the company was also making progress in placing 66% of the hourly staff in Sanford elsewhere, and 70% of the hourly staff in Kissimmee.
“We have options to go to other Darden concepts, and we’ll be OK,” one former employee told News 6 on Monday. “Darden is a great company to work for.”
‘2.8% profit margins’
Darden is not the only company that has been forced to make changes in a mixed economic landscape. The area around the Seminole Towne Center has seen concepts come and go, including a Red Lobster location that remains closed.
Dr. Chad Moutray, chief economist with the National Restaurant Association, spoke with our News 6 team about the rising costs many restaurants are facing.
“The reality is it’s very difficult to be a restaurant owner right now,” said Dr. Moutray. “Costs have gone up a lot over the last few years. We certainly have seen wage and food inflation of at least 35% since the pandemic.”
Dr. Moutray said at the same time, consumers are tightening their budgets too.
[WATCH: Orlando NYPD Pizza restaurant to shut down over rising costs]
“The end result of all of that is that we’ve seen profit margins narrow,” said Dr. Moutray. “Your typical full-service restaurant only makes 2.8% profit margins.”
According to the National Restaurant Association, more than 42% of restaurants reported they were not profitable last year due to factors including food, labor, insurance, and swipe fees.
“The math is very difficult,” said Dr. Moutray. “And, as a result, even though you might have restaurants that have a lot of traffic, those costs might be eating them up in terms of their overall profit margins.”
Dr. Moutray says for a company to be successful in this climate, it must focus on the overall experience along with the value it can provide.
“Are you a good value for the dollar, right?” asked Dr. Moutray. “And, that’s not just the price of food, it’s the overall experience.”
Dr. Moutray says more companies are also investing in new technologies that will make their business more efficient.
“That’s not just AI; it’s a lot of automation. It’s things that are really going to make your existing workforce more productive,” said Dr. Moutray.
Despite the challenges, Dr. Moutray believes the restaurant industry overall is “healthy.”
“Certainly, from an inflation standpoint, we’re a lot better today than we were a few years ago. Yet at the same time, you know, yes, a lot of economic uncertainties out there with tariffs and with activity in the Middle East, etc,” said Dr. Moutray. “But there’s hope that that cost will moderate this year, and that certainly will help the overall bottom line. From an overall sales point, we do expect to see a 4.8% growth in sales this year.”
You can see the full list of Bahama Breeze restaurants that will close or be converted into other concepts below:
Closing Locations:
- 500 Center Blvd., Newark, DE
- 3590 Breckenridge Blvd., Duluth, GA
- 12395 SW 88th St., Miami, FL
- 10205 Rivercoast Drive, Jacksonville, FL
- 1251 West Osceola Pkwy., Kissimmee, FL
- 11000 Pines Blvd., Pembroke Pines, FL
- 1540 Rinehart Road, Sanford, FL
- 19600 Haggerty Road, Livonia, MI
- 2000 Route 38, Cherry Hill, NJ
- 3309 Wake Forest Drive, Raleigh, NC
- 320 Goddard Blvd., King of Prussia, PA
- 6100 Robinson Center Drive, Pittsburgh, PA
- 2714 Potomac Mills Circle, Woodbridge, VA
- 15700 Southcenter Pkwy., Tukwila, WA
Conversion Locations:
- 499 E Altamonte Drive, Altamonte Springs, FL
- 805 Brandon Town Center Drive, Brandon, FL
- 14701 S Tamiami Trail, Ft. Myers, FL
- 8160 Irlo Bronson Memorial Hwy., Kissimmee, FL
- 25830 Sierra Center Blvd., Lutz, FL
- 5620 W. Oak Ridge Road, Orlando, FL
- 8849 International Drive, Orlando, FL
- 8735 Vineland Ave., Orlando, FL
- 1200 N Alafaya Drive, Orlando, FL
- 3045 N Rocky Point Drive East, Tampa, FL
- 755 Earnest W Barrett Pkwy NW, Kennesaw, GA
- 570 Cross Creek Mall, Fayetteville, NC
- 7811 Rivers Ave., Charleston, SC
- 4554 Virginia Beach, Blvd., Virginia Beach, VA