Certainly sounds like they’re trying to leverage the current situation to renegotiate their leases – they obviously have the ability to pay with $90 million in their credit line. restaurants need to learn from this: now is the time to bend over that greedy landlord! If they’re halfway rational they’ll realize that with all the likely restaurant vacancies after this is all over they’re much better off lowering the rent and keeping a tenant than sitting on an empty space for months and months. Remember: the flip side of greed is fear!
Landlords have no other option. There is no other tenant to lease the space to but Cheesecake needs to be careful. They may get away with it in the short term but many leases have provisions that can be enforced in the landlords favor. This crisis is not going to last forever. Landlords own that space and have clear rights. If the tenant makes demands on a landlord that they have willingly signed a lease with and knowing full well what the payments were going to be they had better have good reason other than not liking the high rent. Lawyers will get rich.
Try that with McDonalds as your landlord... watch your license disappear
With the nation focused on the service thru the Corona Virus crisis - why can we drop $1 DRINK and $2 McCafe. If we cant do it now, when?
Above poster said: With the nation focused on the service thru the Corona Virus crisis - why can we drop $1 DRINK and $2 McCafe. If we cant do it now, when?"This is exactly correct!!! We are often the only game in town. Even where we aren't our competitors that manage to stay open are charging full price. Keeping the discount is the stupidest marketing strategy in the history of marketing. Don't bleed your host to death, MCD. Operators may just close to stop the bleeding.
Is everyone aware of the SBA program that is available to all operators? If not get on it.
SBA program? Ha. That $349 billion is already gone. There are almost 800,000 franchised businesses in the USA-and that's just franchises. Add in the millions of other small;l businesses and you get less than few thousand dollars each. That won't keep the lights on in a typical McDonalds for more than a few weeks.
If you cant pay the bills now, hows adding another loan payment on top gonna help?The entire corporate staff has ZERO value add to the system right now, and it can be furloughed in its entirety -cutting Rent / Service fees to save the brand. Unfortunately, you dont have ownership at the CORP level - it ISNT Ray Kroc's McDonald's any longer.Its all about stock valuation - and they are selling it fast.
Have you read the program? Your loan at 4% (way higher than current floating rates), where you may get up to 8 weeks of the loan forgiven. Did I stress MAY, not WILL, MAY if you invest the payments in employee wages. Whats the conditions? We dont know, they havent been set - so later when you apply - how do you separate the dollars received went to pay roll, and not to loans? We are looking at the packaging of the RED TAPE and saying AWWWWWWWW! When we open the government package, I feel we will all be screaming EEEEEEEEEWWWWW!
To the above poster, I don't think the logistics will be that difficult... Setup a separate bank account with the money and use it for the designed purposes... between payroll and rent, I think I can use all of the money. Also, i can pay some utilities with it. just document what you do. Sweep money with a purpose for one of those items and you'll be okay... also, don't fire anyone and try to keep hiring.
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