Olive Garden’s parent company strikes deal with Uber to revive pasta empire

The restaurant operator plans to offer nationwide delivery to Olive Garden through a two-year partnership with Uber by May of next year, according to a statement Thursday. A pilot at a limited number of stores is planned for later this year.

The deal signals that Darden, which has previously opposed allowing its groceries to be widely delivered via third-party apps, is trying to appeal to cash-strapped consumers after seeing a “significant” drop in customers in July.

Darden shares rose as much as 9% in New York, the highest intraday level since September 2021.

Business has picked up at Olive Garden after it extended its Never Ending Pasta Bowl promotion by four weeks, Darden Chief Executive Rick Cardenas said on the company’s earnings call, starting in late August rather than late September . Cardenas said all of Darden’s brands began to recover in August.

The recovery led Darden to maintain its guidance for the full year, according to a statement Thursday. Revenue for the first quarter was $2.76 billion, less than analysts expected.

The deal and expanded all-you-can-eat offering show the restaurant chain is trying to expand its reach as it battles a spending pullback, particularly among lower-income consumers worried about inflation and job security.

However, Cardenas said Darden will not join the “deep discount game.” Rival Applebee’s, owned by Dine Brands Global Inc., ran a $1 margarita promotion alongside its all-you-can-eat offering this summer.

In the troubled July period, Darden’s comparable sales fell 1.1 percent in the first quarter compared to the same period last year, with Olive Garden down 2.9 percent.

(Updates with Uber promotion and partnership details)