Darden Restaurants, Inc. (NYSE: DRI) announced in an earnings call Tuesday that the company will use Amazon.com, Inc. (NASDAQ: AMZN) Prime delivery services with some of their restaurants.
The family dining company has been experimenting with various third- party delivery in order to see the most profitable and efficient delivery service that appeals customers.
Despite the announcement, the company did not clarify which brands the Company would test out deliveries with Amazon Prime’s services. Darden owns and operates family restaurants such as Olive Garden, LongHorn Steakhouses, and Cheddar’s Scratch Kitchens, which it recently acquired for $780 million last march.
Commenting shortly about the Amazon-Whole Foods Market acquisition CEO Eugene Lee stated “The only way Amazon is in our world right now is through Amazon Prime delivery” and “We have a test going on with them.”
Although Amazon’s acquisition will arguably appeal to most millennials, Lee is not worried by acquisition and reassured investors “Believe it or not, millennials still want to come to our restaurants.” He continued “I know you don’t think millennials want to go to restaurants, but 30% of our guests are millennials versus 24% of the population. So, we over indexed.”
Olive Garden, Darden’s largest chain with 846 restaurants, currently offers Olive Garden To Go which offers delivery for customers. This was the probable cause that drove a 4.4% sales growth for the fourth fiscal quarter and 2.6% increase for the year.
“We’ll continue to partner with them and see if we can make that work. We constantly sit around here thinking about ‘how does Amazon have an impact on our business?’ Our research tells us that guests still want to come to restaurants,” Lee added.