Olive Garden teams up with Uber Eats amidst sales slump

Jack Aylmer

OLIVE GARDEN IS TEAMING UP WITH UBER FOR DELIVERY.

THE MULTI-YEAR DELIVERY PARTNERSHIP ANNOUNCED THURSDAY MARKS A MAJOR SHIFT FOR THE CHAIN WHICH HAS LONG-RESISTED USING THIRD-PARTY SERVICES LIKE DOORDASH AND UBER EATS.

DARDEN RESTAURANTS, THE PARENT COMPANY OF OLIVE GARDEN, REPORTED LOWER-THAN-EXPECTED EARNINGS FOR THEIR LATEST QUARTER. 

SO IT COULD BE SEEN AS A STRATEGIC MOVE TO BRINGS SALES BACK UP. 

OLIVE GARDEN CEO RICK CARDENAS ACKNOWLEDGED THE DISAPPOINTING RESULTS BUT REMAINS CONFIDENT. SAYING THE COMPANY IS TAKING THE RIGHT STEPS TO MEET CUSTOMER NEEDS WITHOUT SACRIFICING LONG-TERM STABILITY. 

STARTING LATER THIS YEAR, A SELECT NUMBER OF OLIVE GARDEN LOCATIONS WILL BEGIN OFFERING DELIVERY THROUGH UBER, WITH PLANS TO EXPAND NATIONALLY TO ALL 900 LOCATIONS.

THE DECISION WAS DRIVEN BY CUSTOMER DEMAND FOR MORE CONVENIENT DELIVERY OPTIONS. 

DESPITE THE EARNING MISS, DARDEN’S STOCK ACTUALLY SAW A BOOST, RISING ABOUT TEN-PERCENT IN EARLY TRADING. 

MEANWHILE, THE FINE DINING SEGMENT, WHICH INCLUDES THE CAPITAL GRILLE AND EDDIE V’S, SAW A SIX-PERCENT DECLINE IN SALES.

CARDENAS SUGGESTING THAT CONSUMERS ARE TIGHTENING THEIR BELTS, EVEN THOSE WITH HIGHER INCOMES. 

AND UNLIKE SOME OF ITS RIVALS, OLIVE GARDEN DOESN’T RELY HEAVILY ON DISCOUNTS. 

BUT DID ANNOUNCE THEY’RE PLANNING A COMEBACK BY REVIVING THEIR POPULAR “NEVER ENDING PASTA BOWL” PROMOTION TO BOOST SALES.

OLIVE GARDEN PLANS TO OFFER UBER DELIVERY THROUGH ITS WEBSITE ONLY – NOT THROUGH THE UBEREATS APP. 

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