Olive Garden teams up with Uber Direct to offer delivery

Olive Garden said Thursday it's teaming up with Uber to offer delivery for the first time.

Darden Restaurants, which owns Olive Garden, LongHorn Steakhouse and other chains, said Olive Garden will be the first of its brands to offer third-party delivery starting later this year. Individual orders will be picked up and delivered by Uber Direct, a premium delivery service. Olive Garden won't be listed on the broader Uber Eats platform.

If the initial pilot is successful, the delivery option will expand nationwide by May 2025, Darden said.

Darden shares jumped 7% in morning trading Thursday.

The move is a reversal for Orlando, Florida-based Darden, which has long delivered large catering orders itself but has resisted third-party delivery for individual orders in the past. In 2018, Darden's then-President and CEO Gene Lee said the company was testing third-party delivery but was skeptical.

"There continue to be significant hurdles that we need to work through, such as how do we ensure that these delivery services will enhance our brands? Can it be flawlessly executed for our guests and our team members?" Lee said during a 2018 conference call with investors.

Lee, who retired as Darden's chairman last year, said he was also concerned about sharing the company's data with third parties. On Thursday, Darden said it would retain "guest data and insights" as part of the partnership.

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"Guests have been asking us for home delivery options and they continue to show they are willing to pay for the convenience," Rick Cardenas, Darden's current president and CEO, said in a statement.

In a conference call Thursday with investors, Cardenas said it was important to find a way to offer delivery without disrupting staff or restaurant patrons. Delivery orders will be treated like take-out orders are now and brought out to drivers waiting curbside. And Cardenas said Olive Garden has technology in place to help employees manage order volumes.