USA – Multi-brand restaurant operator Darden Restaurants has announced a multi-year agreement with Uber to offer on-demand deliveries for its largest and most successful brand, casual dining restaurant chain Olive Garden.
Uber revealed it intends to launch the service across its national delivery network by the end of 2024, initially from select locations before spreading to the entire United States.
If the rollout proves successful, the national rollout should commence in May 2025.
Darden’s 900 Olive gardens locations across the US will offer the delivery service once the rollout is fully implemented.
Customers will be able to place orders on the Olive Garden’s mobile app and website.
Olive Garden restaurants accounted for US$4.5 billion of Darden’s US$9.63 billion revenue in the past year, which makes the agreement Darden’s most significant to date.
Uber Eats is the second largest food delivery platform in the US, with a 23% market share. The agreement is also a significant agreement for the delivery service.
Darden revealed the decision to enter the food delivery space was inspired by calls from its customers seeking the convenience that comes with on-demand delivery.
Rick Cardenas, Darden’s CEO and President, said, “Guests have been asking us for home delivery options, and they continue to show they are willing to pay for the convenience.”
“As we continued to evaluate delivery, it was important for us to find a way to address this guest need state without disrupting the team member or guest experience and without compromising our competitive advantages and simple operating model.”
According to market analytics firm IMARC Group, revenue from online delivery market in the US is projected to reach US$353.3 billion by the end of 2024 and is expected to grow at a combined annual growth rate (CAGR) of 9.76% to US$562.7 billion by 2029.
Sarfraz Maredia, Uber Eats Delivery Vice President, said, “On-demand delivery is increasingly a core expectation for consumers. People also expect a great experience, especially when it’s from a brand they love like Olive Garden, and that doesn’t change whether it’s at the restaurant or at home.”
“We’re confident our teams can deliver on that promise together and continue to grow first-party delivery as a channel.”
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