Darden reopens half of eateries

Orlando-based company welcomes workers back to headquarters.

The Orlando-based owner of Olive Garden, LongHorn Steakhouse and other chain restaurants has opened back up nearly half of its more than 1,800 dining rooms as coronavirus restrictions across the country have been eased.

Darden Restaurants said 49% of its dining rooms had reopened as of Sunday, and it expected more than 65% of them to open with limited capacity by the end of the month. As of Feb. 23, Darden had 1,812 restaurants, meaning about 890 have reopened.

The company — which has 190,000 employees and also owns Cheddar’s Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze and Eddie V’s — closed its dining rooms in March and transitioned to takeout business.

It started bringing its restaurants back online on April 27, with seating limited to 25% to 50% based on local government restrictions.

“I am pleased that we are able to return some team members from furlough to support these phased openings, and we look forward to safely serving more guests as more communities begin to reopen,” CEO Gene Lee said in a news release.

Darden spokesman Rich Jeffers did not have specific figures on how many employees had returned to work but said as business needs dictate the company is bringing people back at restaurants and its Orlando Restaurant Support Center, where 20% of the about 1,000 employees who work there were furloughed in April.

Lee said in a May 12 update the company was prepared to bring back employees who had been working remotely to the Restaurant Support Center.

Jeffers said the headquarters will gradually reopen and is expected to be fully operational on June 1.

Employees there will wear masks in common areas, be socially distanced throughout the headquarters, and encouraged to take their temperatures at home, Jeffers said.

Visitors will not be allowed inside and Darden also has an on-site wellness center that will be available for staffers.

The company’s same-restaurant sales were down 49% last week, an improvement from earlier in the pandemic when sales had plummeted more than 70% during some weeks.

Based on the week ending May 17, the company’s ongoing weekly cash loss rate was less than $10 million. This number has improved from an April 7 update when it was at about $25 million.

Darden repaid its $750 million credit facility on May 5, but still had about $700 million in cash as of May 17.

Restaurant analyst John Gordon said paying off its credit facility is a vote of confidence in the company’s current business trends.

“They haven’t really lost anything because they still have access to it,” Gordon said.

As its restaurants reopen, Darden has rolled out safety measures that include masks and daily temperature checks for employees.

Workers with a fever would be sent home and can use their sick time, Jeffers previously said.

The company started offering paid sick leave in March for all of its hourly employees, accruing at one hour for every 30 hours worked.