Expect the rising fear of a second wave, social distancing protocols and continuing economic panic to undermine consumer confidence at least until 2021, and likely longer. A presidential election this fall doesn’t help matters.
Shake Shack, Ruth’s Chris and Potbelly set off a media firestorm last week when the three public restaurant companies announced they had received Paycheck Protection Loans (PPP) under the CAREs Act stimulus program for small businesses.
Chick-fil-A reported record sales and earnings in 2019. The Atlanta-based quick serve operator, ranked last year by Franchise Times Magazine as the 12th largest franchise company in the U.S., was poised to for another strong year in 2020. However, dining room closures and restrictions to operate drive-thru lanes only because of the coronavirus, will set back the chain in 2020.
Concerns from participating banks about the amount of interest they can charge for Payroll Protection Loans, and continued questions about eligibility and use of proceeds, forced the Small Business Administration (SBA) to issue revised loan guidelines late Thursday night.
Options for beleaguered restaurants owners are quickly mobilizing and here is what you need to know. The Coronavirus Aid, Relief, and Economic Security (CARES) Act, recently passed by Congress and signed by President Trump on March 27, allows the Small Business Administration (SBA) to guaranty $349 billion in loans to small businesses that have been impacted economically by the virus.
Obviously, these are tough times for the restaurant industry. It behooves restaurant owners to effectively use their advisors, particularly their accountants and your lawyers. Your goal is twofold: Communicate most effectively with all the constituencies you have to deal with and be in the best position possible coming out of this crisis.
Along with you, we are closely watching the impact COVID-19 is having on our communities and businesses. We understand the tremendous impact that the restaurant and franchise industries have on the economy.
The mergers & acquisition market for restaurant franchisees and multi-unit restaurant brands has changed dramatically over the past three decades, and Brookwood Associates’ Amy Forrestal has had a front row seat to that evolution.
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