Olive Garden partners with Uber for food delivery service

Olive Garden, a well-known restaurant chain, has announced a new partnership with Uber to facilitate food delivery, marking a significant shift in its previous stance against third-party delivery services. This exclusive multi-year agreement will begin later this year at select locations, with plans for a national rollout by May if the pilot proves successful. Previously, Olive Garden managed its own delivery through its website and app, utilizing its employees for this service. The decision to collaborate with Uber comes in response to customer demand for home delivery options, as noted by Darden CEO Rick Cardenas. He emphasized that Uber's provision of guest data and insights would not compromise the restaurant's operational model. Historically, Darden Restaurants had resisted using third-party services due to concerns over revenue sharing and maintaining food quality during delivery. Despite the challenges faced during the pandemic, Olive Garden did not adopt third-party delivery services, which benefited its competitors. The recent partnership has positively impacted Darden's stock, which saw a notable increase following the announcement. This move is also seen as a strategy to address a decline in same-store sales, which dropped by 2.9% in the last quarter. In light of rising costs and changing consumer behavior, many restaurant chains have been adjusting their pricing strategies. While Olive Garden has refrained from offering significant discounts, it has reintroduced popular promotions to enhance its financial performance. The partnership with Uber is expected to further support Olive Garden's efforts to improve sales and customer satisfaction.