Central Florida Says Goodbye to Several Bahama Breeze Locations

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SANFORD, Fla. – The Bahama Breeze restaurant on Rinehart Road in Sanford shut its doors for good on Sunday, March 15, as confirmed by a spokesperson for Darden Restaurants to News 6.

When the News 6 team visited the site on Monday, they found the restaurant’s sign had already been stripped of the Bahama Breeze name, and employees were seen departing following their final meeting.

One employee shared with the team that they had initially believed the restaurant would remain open until April 5, only to find out over the weekend that this was not the case.

“I was in there crying because a lot of people have been here for years,” she expressed, adding, “It’s like their second home.”

Earlier this year, Darden Restaurants revealed that the 28 Bahama Breeze locations were “no longer a strategic priority.” Consequently, they are to be either sold or rebranded under other Darden names. Out of these, 14, including the Sanford location, will close entirely, while the remaining 14 are slated for conversion over the next 12 to 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: