Olive Garden, a subsidiary of Darden Restaurants, is partnering with Uber to enhance its delivery services. While Olive Garden continues to offer its established large-order catering service, this new collaboration with Uber Direct focuses on expanding on-demand delivery options for individual orders.
Streamlining Delivery with Uber Direct
Darden Restaurants has signed an exclusive multi-year agreement with Uber to provide delivery services for Olive Garden. This partnership will leverage Uber Direct, a white-label delivery service allowing Olive Garden to maintain control over customer data and branding. The rollout will begin with a pilot program in late 2024, starting with a small group of Olive Garden locations and expanding to approximately 100 restaurants for further testing.
Phased Rollout and National Expansion
Initial testing will involve five to six Olive Garden restaurants to assess the technology integration and operational efficiency. Following the initial phase, the pilot program will expand to around 100 locations, representing about one-ninth of Olive Garden’s U.S. restaurants. If successful, the Uber Direct delivery service will be implemented across all 900 company-operated Olive Garden restaurants nationwide by May 2025.
Maintaining Control and Customer Experience
This strategic partnership allows Olive Garden to retain valuable customer information generated through delivery transactions, unlike traditional third-party delivery platforms. Orders will be placed through Olive Garden’s existing channels, including their website and mobile app, ensuring a seamless customer experience. Darden CEO Rick Cardenas emphasized that Uber’s customized integration, commitment to Olive Garden’s delivery growth, and nationwide efficiency made them the ideal partner. Furthermore, the integration of Uber Direct is expected to minimize disruption to existing restaurant operations.
Pricing and Future Expansion
Menu prices for delivery will remain consistent with other ordering methods. Instead of adjusting menu prices, a transparent delivery fee will be applied to orders. While the initial focus is on Olive Garden, Darden may extend this delivery service to other brands within its portfolio based on the success of the Olive Garden rollout. Capacity management tools will be utilized to prevent order volumes from overwhelming restaurant operations.
Addressing Sales Challenges
The partnership with Uber comes at a time when Olive Garden is experiencing a decline in same-restaurant sales. This strategic move aims to leverage the convenience of on-demand delivery to attract new customers and boost sales. The adoption of white-label delivery services is a growing trend among established restaurant brands, allowing them to enhance their delivery capabilities while maintaining control over the customer experience. This collaboration between Olive Garden and Uber Direct represents a significant step in adapting to evolving consumer preferences and enhancing accessibility to Olive Garden’s offerings.
