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How does the Olive Garden "Never Ending Pasta Pass" make financial sense? That is possibly all-you-can-eat food for $2 a meal.
Exactly. And Olive Garden also limits the number of passes that can be sold, which creates some scarcity and exclusivity around the promotion. This makes people who do get the pass feel special and it could encourage them to spend more money in the restaurant.
It's also possible that Olive Garden makes operational decisions to reduce costs, such as limiting the variety of pasta sauces or using lower-cost ingredients for the pasta itself.