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March 27, 2020

What Can Government Do For You?

The coronavirus relief bill: What’s in it for restaurants?
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6 comments:

Anonymous said...

Nothing - a bunch of loans with very strict limitations on the grants and forgiveness. Something to make it seem they are doing something - and allowing CORP to point and say, "we dont need to help" because the government already stepped in.

Once again, it will take the owner organizations to figure out and mandate the change. Seems they all avoid that confrontation - but its happening everywhere else. Question isn't IF, it will be WHEN. As the loan payments come due in APRIL, MAY - and operators realize that Base Rent deferment didnt add up to much. Operators have to pay employees staying at home, in hopes of a federal reimbursement. The voices will grow louder, much louder. It will be too late for many. For some, it has already happened - they just dont realize it yet.

Same with $1 drink. If operators arent allowed to abandon those pricing strategies to stay afloat financially; when will it ever be the right time? Seriously, asking for a friend here? When, if ever, will that stupid strategy go away? NOA?

Restaurants are going to LIMITED MENU - restaurants will abandon staples like Grill Chicken, Salads, Parfaits, the ENTIRE MCCAFE LINE - but not $1 Drink. With the losses on McCafe will Operator Leadership allow it to return as $2? Starbucks are rolling up, like a cheap doobie at a Nevada pot shop - and McDonald's shutdowns McCafe. Yet, $1 drink stays afloat.

Anonymous said...

Regarding the federal paid leave reimbursements, what happens when your employee payouts exceed you payroll taxes?( PR taxes are a small percentage on the P&L) Very likely

Anonymous said...

Lol... just listened to OPNAD talk about keeping price on dollar drink, as it might be a trigger for gouging to come off it. Where do they find those idiots?

Customers are paying upwards of 20% delivery charges to get McDonald's - and OPNAD is pushing this is the wrong time to come off $1 DRINK. And they went UNOPPOSED on a NOA call... so brothers and sisters, there your have the offical NOA stance when it comes to $1 Drink.

It will take a operator revolt and arbitrary change to get rid of it! I say when you do LIMITED MENU - drop the $1 DRINK.

Anonymous said...

Bloomberg writes that the new $2 trillion coronavirus aid package recently passed by the US House of Representatives is expected to fall short in helping the ailing restaurant industry. While the stimulus deal includes $350 billion in small business loans, which will be forgiven if used to make payroll or pay rents and other necessities, the bill offers little assistance for the restaurant owners who have already laid off thousands of workers. “The initial inaction has left gaping holes for the restaurant industry that need to be plugged. The stimulus bill is a good start,” Helbraun & Levey partner Lee Jacobs said. “But it does nothing for those restaurants that were forced to close or terminate their staff before the government acted.”

Anonymous said...

Corporate fobades local franchises from donations and programs during the crisis to be abme to speak with one voice...

Turns around and donates 400,000 mask, made in China, to the Illinois medical community, during a crisis of fighting a virus ... originating in China.

Can someone send me a pair of the bullcrap optics used at corporate, cause Im failing to see how donating to the ILLINOIS medical community is any different than the 1000's of individual operators supporting their own local community.

Why is it this 'one voice', always seem to leave the majority of operators out of the decision?

Hkw is it we keep getting morons on these leadership boards? How are they unchallenged on a NOA call. Theres a point where politcal correctness defangs a process to being ineffective.

If.we cant show the cohesiveness of the operators now, during this crisis.. I seriously wonder when woukd be the time? Some say when the crisis is over, then I ask - why didnt they act the years leading up to the crisis?

Anonymous said...

Ending a DISCOUNT drink program is no way gouging.