{
  "docId": "019dd923-622c-750b-8b9c-dad126beff94",
  "docSlug": "416ab93b6285",
  "documentTitle": "Darden Restaurants, Inc. (DRI)",
  "authorId": "03_Starboard_Value",
  "authorName": "Jeffrey C. Smith",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2014-09-11 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 108,
  "pageCount": 294,
  "prevPage": 107,
  "nextPage": 109,
  "slideType": "problem_statement",
  "function": "diagnose_problem",
  "density": "overcrowded",
  "nDataPoints": 3,
  "notes": "Includes a specific example of chicken weight tolerance and a photo of a branded Red Lobster bag as a 'Cadillac' example of over-specification.",
  "elementsJson": [
    "headline_text",
    "bullet_list",
    "callout_box",
    "photo"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b9c-dad126beff94/108",
  "deckHref": "/decks/019dd923-622c-750b-8b9c-dad126beff94",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b9c-dad126beff94.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b9c-dad126beff94#slide-108",
  "components": [
    {
      "bbox": {
        "h": 0.15,
        "w": 0.18,
        "x": 0.79,
        "y": 0.23
      },
      "kind": "callout",
      "text": "To-Go bags are made with high-end materials adding 25-30% cost above competitors’ To-Go bags",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "5687e55f-1c01-47bd-8e7f-a100a6307d2b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "We believe using nonstandard product specs heavily contributes to Darden's excess food costs without improving the guest experience",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd952-fb95-7708-ad47-a51555432ccb",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.32,
        "w": 0.18,
        "x": 0.79,
        "y": 0.41
      },
      "kind": "image",
      "text": "Photo of a Red Lobster branded paper bag",
      "attrs": null,
      "subkind": "photo",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b96f7237-8958-45c7-84a3-d953bde620df",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.71,
        "x": 0.08,
        "y": 0.33
      },
      "kind": "list",
      "text": "As just one of many examples, the industry standard for chicken specifications is +/- 0.5 ounce, but Darden requires their chicken to be +/- 0.25 ounce.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "5b235b62-d6a9-49ab-a5b9-7a52e2118fde",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.75,
        "x": 0.04,
        "y": 0.74
      },
      "kind": "list",
      "text": "Best practices like spec rationalization, leveraging of supplier partnerships, and use of aggregators, especially for non-core functions (e.g., office supplies, travel, IT supplies), can deliver potential savings opportunities.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "5e935289-e2ee-4bff-b1db-7f02d4b573c0",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.75,
        "x": 0.04,
        "y": 0.24
      },
      "kind": "list",
      "text": "We believe extreme product specs coupled with the use of non-standard products across several areas are key factors to Darden's relative high purchasing costs.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "5fccce73-8c81-4e29-bd9e-2d05adb40457",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.67,
        "x": 0.12,
        "y": 0.42
      },
      "kind": "list",
      "text": "Suppliers can charge a significant premium for tighter specs, but for most items the customer does not see or care about the difference.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "62189d4c-edda-407a-a1e9-d75c7f36a174",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.71,
        "x": 0.08,
        "y": 0.51
      },
      "kind": "list",
      "text": "Packaging: Non-standardized To-Go bags and microwavable to-go container is the “Cadillac” container of the industry. Darden’s straws are non-industry length, adding cost for a “custom run” from suppliers.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b14d8c99-2636-4a29-bbd8-fcbe7fdcbf5c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.75,
        "x": 0.04,
        "y": 0.15
      },
      "kind": "paragraph",
      "text": "Much of Darden's high and increasing food cost problem appears to be due to its unnecessary non-standard product specs requirements.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "6127f946-b74d-438a-a6ed-3b10c22231cd",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.92,
        "x": 0.04,
        "y": 0.86
      },
      "kind": "title",
      "text": "We believe using nonstandard product specs heavily contributes to Darden's excess food costs without improving the guest experience",
      "attrs": null,
      "subkind": "action-title",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ac474423-5be4-402c-91c0-e93d20b7eabc",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.92,
        "x": 0.04,
        "y": 0.04
      },
      "kind": "title",
      "text": "Specification (spec) rationalization is a significant opportunity for improvement",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "86058fab-9db0-44df-8c18-42592115eaf6",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [],
  "arcBeats": [
    {
      "to": 150,
      "from": 61,
      "beatId": "7f4dff44-8750-44a5-80e9-2077a7cdbc5c",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Victory",
      "beatSlug": "overcoming-monster-the-victory",
      "evidence": "The document presents Starboard's plan for victory, including operational improvements and leadership changes.",
      "position": 3,
      "confidence": 0.8,
      "parentBeatName": "Turn",
      "parentBeatSlug": "turn"
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}