Due to losses from the coronavirus outbreak, the cheesecake factory will not pay rent for nearly 300 restaurants nationwide next month. This has closed several states to non-essential businesses and sent millions of Americans to the unemployment role. The company is one of the leading restaurant chains seeking to defer rentals of properties whose business has dramatically slowed or stagnated in an effort to slow the spread of COVID-19.
Chain founder and CEO David Overton called for “patience” and “help” in a letter addressed to the company’s landlord last week, according to copies obtained by Eater and confirmed by the Cheesecake Factory.
“There are many factors that are changing every day, given government regulations and landowners’ decision to close properties,” said Matthew Clark, CFO of the company, in an e-mail statement to CBS MoneyWatch.
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“We need to consider both the nature of the rent and the management of our financial position,” Clark continued. “We have a very strong and long-standing relationship with landlords. We are convinced that with their partnership we can work together to get through this storm in the right way.”
Similar words come from Wendy’s, stating that Thursday’s fast food chain will postpone rent and make it easier to pay franchise loyalty and marketing fees. “This is an unprecedented period, and we are focusing on actions that can make a positive change,” Wendy’s CEO Todd Penegor said in a statement.
Ohio-based hamburger chain extends the payment period for loyalty and marketing funds by 45 days in the next three months, and reduces base rent payments on properties owned by Wendy’s and leased to franchisees by three Announced a 50% delay in the month.
McDonald’s has closed seating areas and playgrounds in nearly 14,000 U.S. restaurants and finances franchise stores in the form of rent deferrals. “During this uncertainty, we are working with franchisees around the world to assess the feasibility of operations and support financial liquidity [such as rent deferral].”
According to a published report, the subway has cut down on fees charged to operators at 23,500 locations in the chain after receiving a request for relief. The company sought comment, but did not respond.
The move occurs when US lawmakers approve and are ready to send a $ 2 trillion relief package to President Donald Trump.
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