Cheesecake Factory has reportedly determined to not pay rent for April at any of the chain’s areas due to enterprise misplaced to the coronavirus pandemic.
“The extreme lower in restaurant site visitors has severely decreased our money circulation and inflicted an amazing monetary blow to our enterprise,” CEO David Overton wrote to landlords in a letter obtained by the Eater web site.
Eating places and restaurant employees have struggled with closures and takeout/delivery-only fashions in lots of areas impacted by the outbreaks. Yum! Manufacturers, which owns chains corresponding to KFC, Pizza Hut and Taco Bell, mentioned it’s closing some 7,00zero eating places due to the pandemic. Waffle Home, well-known for having a logistics community that retains its areas working throughout disasters, mentioned it was closing greater than 400 of its 2,00zero areas.
Cheesecake Factory mentioned this similar local weather would make it unattainable for the firm to pay rent.
“Due to these extraordinary occasions, I’m asking for your persistence and, frankly, your assist,” Overton wrote, including that he hoped to start making rent funds “as quickly as fairly doable.”
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CFO Matthew Clark informed Folks journal that the firm hopes to lean on its “robust, longstanding relationships” with landlords.
“We’re sure that with their partnership, we shall be ready to work collectively to climate this storm in the applicable method,” Clark mentioned.
In accordance to Statista, Cheesecake Factory operates shut to 300 areas in the United States and Canada and employs some 45,00zero employees.
Some on Twitter hailed the restaurant chain for unexpectedly championing a trigger favored by many who’re struggling to make ends meet after shedding work due to the pandemic:
- This text initially appeared on HuffPost.
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