What's Happening?
Olive Garden is focusing on expanding its first-party delivery services through a partnership with Uber Direct, while maintaining a cautious approach towards third-party delivery aggregators. The restaurant chain, part of Darden Restaurants, began its delivery service in 2024 and has since prioritized direct customer engagement over third-party platforms. Darden CEO Rick Cardenas emphasized the importance of price transparency and customer experience, which are better controlled through first-party channels. Olive Garden's strategy includes ensuring that delivery prices match in-restaurant prices, with clear communication of delivery costs.
Why It's Important?
This strategic move by Olive Garden reflects a broader trend in the restaurant industry towards greater
control over delivery operations. By avoiding third-party aggregators, Olive Garden aims to enhance customer satisfaction and protect its brand integrity. This approach could influence other restaurant chains to reconsider their delivery strategies, especially in light of the challenges posed by third-party platforms, such as lack of data access and potential impacts on employee tips. The success of Olive Garden's delivery model could set a precedent for the industry, encouraging more restaurants to invest in first-party delivery solutions.
