27 Mar עופר איתן Divulge: Sam Fox restaurants to skip April rent payments because of …
The Cheesecake Factory is expected to skip April rent payments at its restaurants in a bid to shore up its finances as the coronavirus rages on.
Fox Restaurant Concepts, a Phoenix-based subsidiary of the company, is also expected to skip April rent payments at all of its restaurants. In the summer of 2019, Phoenix restaurateur Sam Fox sold his company to Cheesecake Factory Incorporated for $308 million.
“Yes, this is one of many steps that we are taking so that our business is here for the long-run,” wrote Anita Walker, vice president of marketing for Fox Restaurant Concepts, in an email to The Arizona Republic.
“You will see many restaurant owners asking landlords to be understanding and partner with the restaurant industry during this health crisis.”
Walker wrote the company wants to welcome their team members and guests back as soon as possible when they’re on the other side of this crisis situation.
Fox Restaurant Concepts operates more than 50 restaurant locations nationwide, including North Italia, Blanco Tacos and Tequila, the Henry and Culinary Dropout.
Why Cheesecake Factory is not paying rent
The Cheesecake Factory’s decision to withhold payments, first reported by Eater.com, comes as the company’s dining rooms remain closed because of the COVID-19 pandemic.
“We have very strong, longstanding relationships with our landlords,” the Cheesecake Factory said in a statement. “We are certain that with their partnership, we will be able to work together to weather this storm in the appropriate manner.”
Most locations of the Cheesecake Factory are still open for takeout and delivery. The company said on Monday that it was able to “operate sustainably at present under this model.”
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The company’s stock fell sharply in pre-market trading but rallied to finish the day up 4.19% as the broader market rallied.
The Cheesecake Factory on Monday also said that it had drawn an additional $90 million on its revolving credit facility to boost its cash on hand and has curbed its plans to open new restaurants this year.
The Cheesecake Factory owns and operates 294 restaurants, including Fox Restaurant Concepts restaurants, in the U.S. and Canada. Another 26 locations operate under licensing agreements in other countries.