The Cheesecake Factory can't pay its rent and people are here for it
Guess The Cheesecake Factory is leading the revolution?
The Cheesecake Factory has said it won’t be paying rent next month because its income has taken a serious hit due to the coronavirus pandemic.
The Cheesecake Factory is one of the most popular sit-down restaurant chains in the US - and it’s also one of the largest restaurant employers in the country, with 38,000 employees.
But the social distancing and restaurant shutdown that came about as a result of covid-19 has taken a serious toll on the company.
In a letter obtained by Eater, the chain informed all of its landlords that it will not be able to make upcoming rent payments for any of its storefronts on April 1.
The letter explained that as a result of many restaurants only allowed to offer delivery and to-go, with others closing entirely, “the severe decrease in restaurant traffic has severely decreased our cash flow and inflicted a tremendous financial blow to our business”.
Chairman, Founder and CEO David Overton, wrote: “Due to these extraordinary events, I am asking for your patience and, frankly, your help. Unfortunately, I must let you know that The Cheesecake Factory and its affiliated restaurant concepts will not make any of their rent payments for the month of April 2020. 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.”
As you can imagine, The Cheesecake Factory’s decision drummed up some pretty strong reactions on Twitter, with plenty of messages of solidarity...
Representatives of The Cheesecake Factory told Eater LA: “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 chain has 294 restaurants in 39 states; it was founded in Beverly Hills in 1972.
✊Is... The Cheesecake Factory the leader of the revolution?✊