Given the uncertainty and intense drop sought after in the restaurant industry, the national chain The Cheesecake Factory has uncovered a few battles it is pushing through during the coronavirus crisis.
In a letter on March 18, Cheesecake Factory CEO David Overton informed its landlords it would not have the option to make its rent installments for the long stretch of April, citing a serious decrease in eatery traffic that has “inflicted a tremendous financial blow” to business. The café network has been compelled to close 27 stores the nation over and others have been confined to just take-out and conveyance orders, which it said just days prior was empowering the organization to “work economically at present.”
Overton expresses, “Due to these extraordinary events, I am asking for your patience, and frankly, your help.”
He continued, “Please understand that we do not take this action or make this decision lightly, and while we hope to resume our rent payments as soon as reasonably possible, we simply cannot predict the extent or the duration of the current crisis…We appreciate our landlords’ understanding given the exigency of the current situation.” (Eater obtained the letter)
Requested remark in regards to its lease installment for April, Cheesecake Factory CFO Matthew Clark said.
“In these unprecedented times, there are many factors that are changing on a daily basis given governmental regulations and landlord decisions to close properties.
“We have to take both into consideration in terms of understanding the nature of our rent obligations and with respect to managing our financial position. We have very strong, longstanding relationships with our landlords. We are certain that with their partnership, we will be able to work together to weather this storm in the appropriate manner.”
The Cheesecake Factory’s partnering restaurants, for example, Rock Sugar and North Italia, are likewise affected and will not make their April lease installments.
That day the letter was given to landowners, the café revealed an advancement on its social media stating clients can get free conveyance on orders over $15 requested through its banding together delivery app, DoorDash.
As many of our neighborhoods transition from dine-in service to only allowing takeout and delivery, we’re here to serve however we can. Spend $15 or more, and get a $0 delivery fee on DoorDash. Offer can be used however many times you want. pic.twitter.com/Nq8jApqm08
— The Cheesecake Factory 🍰 (@Cheesecake) March 18, 2020
In an announcement to speculators on March 23, The Cheesecake Factory reported that it would siphon the brakes on the improvement of unopened eateries and reach for a $90 million credit line to expand its money available. Its stock has fallen by 50 percent in the most recent month.
As per the booking app OpenTable, reservations in Seattle were down 31 percent from Feb. 24 to March 3 contrasted with that equivalent time a year ago. San Francisco saw a 24 percent decrease during that timespan, and in the next week, reservations proceeded to plummet in Seattle and the Bay Area by 49 percent and 43 percent, respectively.