Darden Restaurants, the parent company of restaurant chain Olive Garden, will begin delivering food via the ride-sharing app Uber later this year under a new partnership announced on Sept. 19.
The multiyear delivery deal “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 said in a statement.
Customers will be able to order from the Italian restaurant chain and get their food delivered by Uber in late 2024 at a limited number of Olive Garden locations.
Once a successful pilot of the delivery program has been completed, Olive Garden will likely expand the program nationally to its more than 900 locations by May 2025.
Orlando, Florida-based Darden Restaurants also owns Bahama Breeze, Cheddar’s Scratch Kitchen, LongHorn Steakhouse, Seasons 52, The Capital Grille, and Yard House, among other chains.
Olive Garden will be the first of its brands to offer third-party delivery, starting later this year.
Under the partnership, individual orders will be collected and delivered to customers by Uber Direct, which is a premium delivery service.
Olive Garden, which already offers delivery for large catering orders via the restaurant’s employees, will not be listed on the Uber Eats platform, and customers will need to order through the restaurant’s website and app.
Cardenas added that the company will be transparent with customers regarding the added delivery costs.
In a statement announcing the deal, Cardenas said: “Guests have been asking us for home delivery options and they continue to show they are willing to pay for the convenience.
Darden Earnings Miss Wall Street Expectations
The CEO added that Uber shares Darden’s “vision” and can meet its “expectations.”“Their investment in a 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,” he said.
Darden Restaurants’ stock surged by 8.28 percent after the announcement.
The partnership announcement marks a reversal for Darden, which has up until now resisted third-party delivery for individual orders, amid concerns over data sharing, among other issues.
In its statement announcing the deal, Darden said guest data and insights will remain with Olive Garden.
On the same day the deal was announced, Darden reported weaker-than-expected quarterly earnings and revenue amid a decline in sales at Olive Garden and its other fine-dining restaurants.
The company reported adjusted earnings per share of $1.75, missing out on analysts’ expectations of $1.83 per share.
Meanwhile, Darden posted quarterly net sales of $2.76 billion, compared with estimates of $2.80 billion, and reported fiscal first-quarter net income of $207.2 million, or $1.74 per share, up from $194.5 million, or $1.59 per share, a year earlier.
The company’s same-store sales declined by 1.1 percent in the quarter, the company said.
“The significant step down in traffic during July, led to our first quarter earnings being lower than expected,” said Darden CFO Raj Vennam.
“Following the softness in July, our sales trend has continued to improve. Considering this recovery as well as the planned initiatives to support the remainder of the fiscal year, we are reiterating our guidance for fiscal 2025.”
