• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster

1

Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
LeadershipOlive Garden

Living wage advocates set their sights on Olive Garden

By
October 14, 2014, 11:57 AM ET
Photograph by Daniel Acker — Bloomberg/Getty Images
Add Fortune on Google for similar content.

Nobody can accuse Starboard Value of skimping on details. The hedge fund persuaded their fellow Darden Restaurants shareholders to kick out the Olive Garden parent’s entire 12-member board on Friday with a 294-page plan for fixing what ails the company.

Starboard’s plan slams current management on everything from failure to expand internationally down to “mushy, unappealing” pasta—a result of saving wear and tear on Olive Gardens’ pots by leaving the salt out of boiling water, a practice Starboard calls “shocking.”

ROC United, a national organization of restaurant workers, has a different notion of what’s shocking—namely, how little Darden (DRI) pays its 180,000 restaurant employees, about 20% of whom make the federal “tipped minimum wage” of $2.13 per hour. The public bickering over breadsticks that led up to Starboard’s boardroom coup “really struck a raw nerve with a lot of employees,” says Lauren Jacobs, ROC’s national organizing director. “There are much bigger issues at stake here.”

True. As the biggest U.S. restaurant chain, how the company deals with its labor costs could affect the entire industry and spill over into other businesses—retail, for example—with large numbers of hourly workers.

ROC has used the boardroom drama at Darden to step up the pressure on pay. About 7,000 people signed a ROC petition asking Starboard, and whoever ends up replacing outgoing Darden CEO Clarence Otis, to meet with employees to discuss ways to make the company more profitable while raising hourly wages. “We want shareholders to get a good return,” says Jacobs, “but also for people who work hard every day to be able to pay their bills.”

This year’s annual meeting wasn’t the first time ROC has petitioned Darden management—Jacobs says Otis “ran away” when an employee group approached him at last year’s meeting. But this time, ROC came armed with financial projections that seem aimed at matching the by-the-numbers approach in Starboard’s turnaround plan.

According to the ROC analysis, it would cost Darden 10 cents per $5 of sales, over a phase-in period of five years, to raise all restaurant employees’ pay to a living wage of $15 per hour, at an estimated total cost to the company of 2% of annual revenues. Even if Darden passed the entire cost increase on to consumers, the report says, the effect on menu prices would be “negligible.” Customers would pay 10 cents more for Olive Garden’s tortellini al forno, for instance. The average Olive Garden check would increase from its current $16.75 to $17.10.

It’s unclear how Starboard will respond. On the one hand, its no-stone-unturned analysis of Darden’s woes indicates that it wants to “empower” front-line workers in the company’s “people-centric” culture, and is willing to spend more to do it. The hedge fund’s plan calls for “energizing” restaurant managers, for example, with higher salaries and bigger bonuses.

On the other hand, ROC says Starboard wants to keep labor costs low with layoffs, more part-time scheduling, and pushing more work onto hourly workers who already earn less than the federal minimum wage.

So far, the only thing certain is that this isn’t over. Starboard didn’t respond to requests for comment from Fortune, but Jacobs says executives at the hedge fund have agreed to meet with ROC. “They just haven’t said when,” says Jacobs, adding that ROC, along with other living-wage advocates, won’t give up without a fight. “We’re very concerned about where Starboard wants to take the company. We’re in this for the long haul.”

Add Fortune on Google for similar content.

Latest in Leadership

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Leadership

Brown University Professor Roberto Serrano, a man in a suit holding onto a gold trophy--the King Of Spain Economy Award"-- before Spain's King Felipe and a painted wall.
AIEducation
‘Humanity has chosen to become idiots’: This Brown professor switched to take-home exams after a mass shooting and discovered mass cheating
By Catherina GioinoJune 29, 2026
5 hours ago
paralegal
AIdisruption
The most reassuring argument about AI and jobs quietly explains why Gen Z can’t get one
By Nick LichtenbergJune 29, 2026
9 hours ago
Photo of Jim Farley
AIAutos
Ford on why it hired 350 ‘gray beard’ engineers: you need their mentorship for younger workers — and to drive huge AI productivity gains
By Sasha RogelbergJune 29, 2026
10 hours ago
‘Cop on your wrist’: Wearables offer tons of data, but people are still going to sleep to Netflix and TikTok
HealthBrainstorm Tech
‘Cop on your wrist’: Wearables offer tons of data, but people are still going to sleep to Netflix and TikTok
By Amanda GerutJune 29, 2026
10 hours ago
Target worker stocks shelves
SuccessJobs
Target is starting to track employees’ unexcused lateness and absences with a points system—and if they rack up 12, they’re fired
By Emma BurleighJune 29, 2026
11 hours ago
MacKenzie Scott (left); Elon Musk (right)
SuccessMacKenzie Scott
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: ‘Sadly,’ it makes the world a worse place
By Sydney LakeJune 29, 2026
12 hours ago

Most Popular

Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
Success
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
By Sydney LakeJune 29, 2026
12 hours ago
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
5 days ago
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
Success
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
By Preston ForeJune 27, 2026
3 days ago
The retired college professor fighting a $313 trespassing ticket in Wisconsin thinks he's part of a national struggle
Environment
The retired college professor fighting a $313 trespassing ticket in Wisconsin thinks he's part of a national struggle
By Catherina GioinoJune 28, 2026
2 days ago
Ex-Google engineer says Larry Page, Sergey Brin and Sundar Pichai share the same trait—it's the lesson he swears by as a $7.2 billion AI CEO
Success
Ex-Google engineer says Larry Page, Sergey Brin and Sundar Pichai share the same trait—it's the lesson he swears by as a $7.2 billion AI CEO
By Orianna Rosa RoyleJune 28, 2026
2 days ago
Cristiano Ronaldo is soccer's first-ever billionaire: He went from begging for burgers outside McDonald's to landing a $400 million contract
Success
Cristiano Ronaldo is soccer's first-ever billionaire: He went from begging for burgers outside McDonald's to landing a $400 million contract
By Preston ForeJune 28, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.