Olive Garden, a longtime holdout against third-party delivery apps, reversed course on Thursday by announcing a partnership between its parent company, Darden Restaurants, and the ride-hailing company Uber Technologies.
This exclusive, multiyear partnership enables the family restaurant chain to outsource food delivery to Uber’s national delivery network, Uber Direct. Olive Garden currently offers delivery through its website and app for catering orders with $100 minimum, delivered by the restaurant’s employees. While guests will continue to be able to order only on Olive Garden’s website and app, the delivery will now be outsourced to Uber Eats drivers.
“Guests have been asking us for home delivery options and they continue to show they are willing to pay for the convenience,” said Rick Cardenas, Darden president and CEO. “As we continued to evaluate delivery, it was important for us to find a way to address this guest need state without disrupting the team member or guest experience and without compromising our competitive advantages and simple operating model.”
Let’s make a deal
Darden has prioritized maintaining control over guest data and preserving its operational scale, key concerns addressed by Uber Direct. Olive Garden will continue to maintain sole access to its customer data through its own platforms. Rich Jeffers, Darden’s media relations director, said the goal is to “leverage the scale of Uber’s driver network to enhance our scale.”
The pilot program will launch later this year at fewer than 10 locations, with national expansion to its 900-plus locations expected by May 2025.
Darden announced disappointing quarterly earnings alongside this new partnership on Thursday, as CNBC reported, posting earnings below Wall Street expectations. Same-restaurant sales at Olive Garden had fallen 2.9% during the past three months ending on August 25.
Despite the soft July sales, Darden reiterated its full-year outlook for its fiscal 2025 earnings and sales. This partnership was Darden’s bet to increase sales, and investors clearly approved. Shares of the company rose as much as 9% on Thursday, its highest price in months.
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