Olive Garden’s Bold Bet on Uber: A Recipe for Nationwide Delivery Domination?
Olive Garden’s parent company, Darden Restaurants, is making waves with a game-changing delivery initiative that could shake up the industry. Partnering with Uber Direct, Uber’s white-label delivery service, Darden is poised to offer seamless delivery at Olive Garden locations, starting with a pilot in late 2024. But why does this move matter? And what could it mean for the future of Olive Garden — and other restaurant brands?
The Announcement: Olive Garden and Uber Join Forces
In a highly anticipated earnings call, Darden Restaurants revealed its multi-year, exclusive agreement with Uber, signaling a major shift in how Olive Garden will handle delivery. This deal with Uber Direct, the white-label arm of Uber’s delivery empire, means that customers will soon be able to order their favorite breadsticks and pasta directly through Olive Garden’s own platforms, like its app and website — no need to go through Uber Eats or other third-party services.
Darden plans to test this service at five to six Olive Garden locations by the end of 2024, with an ambitious goal to roll it out to 100 locations during the pilot phase. If the numbers hold up and the service proves efficient, expect all 900 U.S. Olive Garden stores to jump on board by May 2025.
Why It’s a Big Deal
In the competitive world of restaurant delivery, every second and every customer interaction counts. Darden CEO Rick Cardenas has been clear: this partnership is about more than just convenience. It’s about control. With Uber Direct, Olive Garden will retain valuable customer data that would normally be handled by third-party platforms. That’s huge. In an age where personalized marketing is king, knowing who your customers are and what they’re ordering is a direct path to higher sales.
This move also addresses a key issue for many restaurants: managing the chaos that delivery services can sometimes cause for in-house operations. According to Darden’s team, Uber Direct will be seamlessly integrated into Olive Garden’s existing systems, and delivery won’t disrupt normal restaurant operations. Plus, large-order catering will continue to function without a hitch.
And here’s another major win: menu prices for delivery will match what customers would pay when ordering in-store or for takeout, with just a transparent delivery fee added. No hidden markups, which should keep loyal customers happy.
Timing is Everything: Why Now?
The timing of this delivery push couldn’t be more critical for Darden. Olive Garden saw its same-restaurant sales drop by 2.9% last quarter, with an overall decline of 1.1% across all of Darden’s brands. The company is clearly looking for ways to boost revenue, and adding a robust delivery program could be the answer.
Rick Cardenas pointed out that Uber’s custom integration and its nationwide reach made it an ideal partner to help Darden execute a nationwide delivery program without disrupting operations. The partnership with Uber Direct mirrors similar moves by other big brands, like White Castle’s Uber deal last year, which also highlighted the benefits of white-label delivery services.
What’s Next: A Nationwide Rollout
If the initial tests go well, this program will expand rapidly. The plan is to roll out Uber Direct delivery to all U.S. Olive Garden stores by May 2025. And Olive Garden isn’t the only Darden brand getting in on the action. Darden’s other heavy hitters, including LongHorn Steakhouse, could be added to the delivery program over time — but only as the company’s delivery infrastructure proves capable of handling the extra load.
That cautious, step-by-step approach could be key to avoiding the pitfalls that have tripped up other restaurants during delivery expansions. By using advanced management tools, Darden will ensure that no single location is overwhelmed by delivery demand.
The Bigger Picture: Will It Work?
Darden is betting big on delivery, and the stakes are high. White-label services like Uber Direct offer restaurants more control and flexibility compared to traditional third-party delivery platforms. If the trial is successful, it could revolutionize how large restaurant chains handle delivery, giving them control over their data, their operations, and their customer relationships.
For Olive Garden, a brand known for its in-restaurant experience, making delivery as seamless and enjoyable as dining in could be the key to winning over a new generation of customers who prioritize convenience.
Stay tuned — Olive Garden’s breadsticks may soon be at your door, faster and fresher than ever.
