Olive Garden’s parent raising pay and giving bonuses

The company that runs the Olive Garden chain is raising pay for its workers and handing out one-time bonuses, a sign of optimism from the kind of casual sit-down restaurant that has been devastated by the pandemic.

Darden Restaurants said Thursday that every hourly restaurant worker will earn at least $10 per hour including tips as of Monday. That will rise to $11 per hour in 2022 and $12 per hour in 2023.

Darden, which also runs LongHorn Steakhouse, Cheddar’s Scratch Kitchen and other chains, said it will spend an adapp ditional $17 million on bonuses for its nearly 90,000 hourly employees. Workers will receive between $100 and $300 depending on how many hours they work each week.

The company Thursday reported a surprisingly strong quarter and the pay increases signal both confidence about an economic recovery and potentially increased competition for workers as the U.S. emerges from the pandemic.

A year ago this month, Darden closed all its dining rooms.

About 99% of Darden’s dining rooms have since reopened with at least partial capacity.

For the week ending March 21, same-store sales for the Orlando, Fla., company rose 5% compared with the same period in 2019.

About a third of Darden’s sales still come from carryout orders, but the company expects that to shift back to the dining room as more people are vaccinated and the economy recovers.

“It’s getting to a point where, you know, I think we’re cautiously optimistic and excited about what’s going to transpire here over the next few months, maybe few years,” said Chief Executive Officer Eugene Lee in a call with industry analysts Thursday.