🍝 Olive Garden’s New Partnership
On Thursday, Olive Garden announced a significant shift in its delivery strategy by partnering with Uber Direct. This marks the first time the Italian restaurant chain, under its parent company Darden Restaurants, has collaborated with a third-party delivery service. While Olive Garden has always handled deliveries internally, this new partnership allows them to utilize Uber’s extensive driver network. The program is set to pilot at fewer than 10 locations, with plans for a full rollout to over 900 locations by May 2025.
🚗 How It Works
Unlike typical delivery partnerships, customers will still order directly through Olive Garden’s website and app. However, the delivery itself will be managed by Uber Eats drivers. This ensures that Olive Garden retains full control over customer data, a critical factor for Darden. Rick Cardenas, Darden’s president and CEO, highlighted that “Guests have been asking us for home delivery options, and they continue to show they are willing to pay for the convenience.”
📉 Addressing Falling Sales
This partnership comes at a crucial time for Olive Garden, following a 2.9% decline in same-restaurant sales for the quarter ending August 25. The disappointing sales figures were reported alongside the announcement of the Uber partnership. Despite the decline, Darden maintained its full-year outlook for fiscal 2025 earnings. Investors responded positively to the news, with Darden's shares rising as much as 9% on Thursday.
🔮 Looking Forward
Darden sees this partnership as a way to leverage Uber’s scale to enhance its own operations. Rich Jeffers, Darden’s media relations director, emphasized that “the goal is to leverage the scale of Uber’s driver network to enhance our scale.” As the pilot program launches and expands, Olive Garden aims to meet the growing demand for home delivery without compromising on customer experience or operational efficiency.
Will Olive Garden's partnership with Uber boost its sales?
