HuffPo: Cheesecake Factory Hailed For 'Starting The Revolution' By Refusing To Pay Rent

[TheBlackAdder]

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Cheesecake Factory has reportedly decided to not pay rent for April at any of the chain’s locations because of business lost to the coronavirus pandemic.

“The severe decrease in restaurant traffic has severely decreased our cash flow and inflicted a tremendous financial blow to our business,” CEO David Overton wrote to landlords in a letter obtained by the Eater website.

Restaurants and restaurant workers have struggled with closures and takeout/delivery-only models in many areas impacted by the outbreaks. Yum! Brands, which owns chains such as KFC, Pizza Hut and Taco Bell, said it is closing some 7,000 restaurants due to the pandemic. Waffle House, famous for having a logistics network that keeps its locations operating during disasters, said it was closing more than 400 of its 2,000 locations.

Cheesecake Factory said this same climate would make it impossible for the company to pay rent.

“Due to these extraordinary events, I am asking for your patience and, frankly, your help,” Overton wrote, adding that he hoped to begin making rent payments “as soon as reasonably possible.”

CFO Matthew Clark told People magazine that the company hopes to lean on its “strong, longstanding relationships” with landlords.

“We are certain that with their partnership, we will be able to work together to weather this storm in the appropriate manner,” Clark said.


https://www.huffpost.com/entry/cheesecake-factory-rent_n_5e7c2b1bc5b6256a7a24a0e1

Hmm. Partnership. More like leveraging their strength in a stressed commercial market. Nearly 300 locations.

Follow the link for more.

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[idziak4ever1234]

1. At $7 for a piece of cheesecake, they have plenty of money in reserve

[Sherman A1]

2. Yup

And they should have a 3-6 month emergency fund, just like is preached to us peons. I have no loveless for the landlords or developers but Cheesecake Factory signed on the dotted line for those leases and they should be honored.

[jimfields33]

3. Everybody signs a dotted line

when they promise to pay a monthly rate. I’m not thrilled with this but restaurants are not flush with cash.