Darden Restaurants, The Parent Company Of Olive Garden, Announced A Multiyear Partnership With Uber.

In an exciting new partnership announced on September 19, Darden Restaurants, the parent company of Olive Garden, revealed its plans to offer food delivery through Uber. This multiyear deal will allow guests to order on-demand delivery from Darden’s restaurant channels, with Uber Direct handling the delivery via its national network.

Starting late in 2024, customers will be able to enjoy the convenience of ordering from Olive Garden and having their food delivered by Uber, initially at select locations. Assuming a successful pilot program, Olive Garden aims to expand the partnership to all of its 900+ locations by May 2025.

Darden Restaurants, based in Orlando, Florida, owns several other popular restaurant chains, including Bahama Breeze, Cheddars Scratch Kitchen, LongHorn Steakhouse, Seasons 52, The Capital Grille, and Yard House. Olive Garden is the first of these brands to offer third-party delivery, with plans to launch later this year.

Under this partnership, Uber Direct, a premium delivery service, will collect and deliver individual orders to customers. While Olive Garden already offers delivery for large catering orders through their own employees, the restaurant will not be listed on the Uber Eats platform. Customers will need to place orders directly through the Olive Garden website and app.

Cardenas, a representative of Darden Restaurants, expressed the company’s commitment to transparency by stating that customers will be informed about any additional delivery costs. The announcement also highlighted the strong demand for home delivery options and the convenience it provides. Darden believes that Olive Garden’s partnership with Uber, with its custom integration, delivery growth, and national efficiency, was the obvious choice.

Following the announcement, Darden Restaurants’ stock surged by 8.28 percent. The partnership marks a turnaround for Darden, which previously hesitated to offer third-party delivery for individual orders, citing concerns about data sharing.

Regarding guest data and insights, Darden assured that these will remain strictly with Olive Garden and not be shared with Uber. On the same day as the partnership announcement, Darden reported lower-than-expected quarterly earnings and revenue, attributed to a decrease in sales at Olive Garden and its other fine-dining establishments.

Quarterly adjusted earnings per share stood at $1.75, missing analysts’ expectations of $1.83 per share. Net sales for the quarter were $2.76 billion as opposed to the estimated $2.80 billion. First-quarter net income was reported at $207.2 million, or $1.74 per share, up from $194.5 million, or $1.59 per share, the previous year.

In the same period, Darden experienced a 1.1 percent decline in same-store sales. Chief Financial Officer Raj Vennam attributed the lower earnings to reduced traffic in July. Despite this setback, Darden anticipates a sales recovery and is confident in achieving their fiscal year 2025 guidance.