​Growth without delivery

​​Growth without delivery

As the demand for off-premise dining grows and restaurants scramble to make third-party delivery work for them logistically and financially, it can be easy to forget something: Third-party delivery may not be the right fit for your restaurant and you can find a formula for growth without it. Consider Darden, one large player in the industry that has held off on it. FSR Magazine reports that Darden CEO Gene Lee is taking a wait-and-see approach to third-party delivery, particularly for its Olive Garden brand, for a few reasons: He’s not sure it will be executed well. He is skeptical about its potential for creating growth at scale. The financials of third-party delivery aren’t appealing. It would mean losing control of valuable consumer data. And it could threaten the profitability of Olive Garden’s growing off-premise business. Factors like this have not prevented other restaurants from jumping into the third-party delivery space. But Olive Garden, for one, is proof that big growth is possible without third-party delivery. The brand reported a 5.3 percent surge in same-store sales in the first quarter, along with double-digit increases in its off-premise business (it currently delivers $100 catering orders placed 24 hours in advance but not individual entrees). It is instead focusing on replicating and improving upon its popular promotions and high-value menu items like “create your own lasagne” and “buy one, get one” deals on entrees — as well as staying true to their core customer and improving engagement with that person. They’re proof that taking the contrarian view can work.