Darden and Uber's Delivery Gambit: A New Era for Cheddar's?

In the ever-evolving landscape of the restaurant industry, Darden Restaurants and Uber Technologies have embarked on a bold new venture. The two giants have launched an on-demand delivery pilot at Cheddar's Scratch Kitchen, following the successful rollout at Olive Garden. This move is not just a strategic business decision but a reflection of the changing consumer preferences and the need for convenience in the post-pandemic world.

The pilot program at Cheddar's, currently underway in 10 restaurants, allows guests to order delivery directly through the Cheddar's website and app, with Uber Direct handling the logistics. This seamless integration of technology and logistics is a testament to the strong partnership between Darden and Uber, built on the success of the Olive Garden pilot.



The Olive Garden pilot, which began in late 2024, was a resounding success. It allowed guests to order delivery through Olive Garden's channels, with Uber Direct powering the deliveries. The success of this pilot gave Darden the confidence to quickly move to piloting delivery at Cheddar's. Chris Chang, Chief Information Officer at Darden, highlighted the strong partnership with Uber Direct, stating, "We have developed a strong partnership with the Uber Direct team. We learned a lot from the initial pilot at Olive Garden, and that, combined with the success of the full rollout, gave us confidence to quickly move to piloting delivery at Cheddar's."

The potential financial implications for Darden and Uber are significant. The expansion of on-demand delivery services can lead to increased revenue, improved operational efficiency, and enhanced customer satisfaction. However, it will also require significant investment and careful management to ensure financial success.



The on-demand delivery market has seen significant growth, driven by the convenience of ordering meals online and the availability of a wide range of cuisines. The COVID-19 pandemic has accelerated the adoption of online food delivery services, as consumers look for contactless options to order food. In the United States, the online food delivery market has seen significant growth, with the rise of third-party delivery services such as Uber Eats, DoorDash, and Grubhub.

The success of the on-demand delivery pilot at Cheddar's will depend on several factors, including the ease of integrating Uber Direct into operations, the benefits it brings to operators, team members, and guests, and the ability to maintain the integrity of the Cheddar's brand. The lessons learned from the Olive Garden pilot, such as the ease of integrating Uber Direct into operations and the benefits it brought to operators, team members, and guests, will be crucial in enhancing the current pilot at Cheddar's.

In conclusion, the on-demand delivery pilot at Cheddar's Scratch Kitchen is a bold move by Darden and Uber, reflecting the changing consumer preferences and the need for convenience in the post-pandemic world. The success of this pilot will depend on the ability to integrate technology and logistics seamlessly, maintain the integrity of the Cheddar's brand, and enhance customer satisfaction. The potential financial implications for Darden and Uber are significant, and the success of this pilot will be closely watched by the industry.