Darden outsources seafood harvesting and preparation offshore because (a) it may not legally own/control the catch in foreign waters; (b) labour intensity of food preparation means it is cheaper for that work to be done offshore; (c) bulk food purchases are capital intensive and not part of Darden’s core competence. Darden has recently spun off its Red Lobster restaurants in part because of the special challenges and costs connected with this part of its business.