On Thursday, Olive Garden said it’s teaming up with Uber to offer delivery for the first time. The partnership will enable restaurant guests to order on-demand delivery via Darden restaurant channels, with delivery handled by Uber Direct, through Uber’s national delivery network.
Darden Restaurants owns Olive Garden, LongHorn Steakhouse, and other chains, Olive Garden said it will be the first of its brands to offer third-party delivery starting later this year. Individual orders will be picked up and delivered by Uber Direct, a premium delivery service. Olive Garden won’t be listed on the broader Uber Eats platform.
Darden Restaurants said If the initial pilot is successful, the delivery option will expand nationwide by May 2025. As a result, Darden shares jump over 7%.
The move is a reversal for Darden which has long delivered large catering orders itself but has resisted third-party delivery for individual orders in the past. In 2018 Darden’s CEO Gene Lee and the president said the company was testing third-party delivery but was doubtful.
Lee said “There continue to be significant hurdles that we need to work through, such as how do we ensure that these delivery services will enhance our brands? Can it be flawlessly executed for our guests and our team members?” during a 2018 conference call with investors.
Lee, who retired as Darden’s chairman last year, said he was also concerned about sharing the company’s data with third parties. Darden said on Thursday that it would retain “guest data and insights” as part of the partnership.
“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. “
Rick Cardenas said “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. Uber is a partner we believe shares that vision and can meet our expectations. Their investment in custom integration, commitment to Olive Garden’s first-party delivery growth, and efficiency and speed at a national scale made this exclusive partnership a clear choice.”
“We’re excited to announce this partnership and look forward to bringing guests the excellent, convenient, and reliable experience that is foundational to both of our brands,” said Sarfraz Maredia, Vice President of Delivery, Head of Americas at Uber Eats.
Maredia said “On-demand delivery is increasingly a core expectation for consumers. People also expect a great experience, especially when it’s from a brand they love like Olive Garden, and that doesn’t change whether it’s at the restaurant or home. We’re confident our teams can deliver on that promise together and continue to grow first-party delivery as a channel.”
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