https://la.eater.com/2020/3/25/21194144/cheesecake-factory-rent-strike-chain-restaurantIt will be interesting to see how this plays out, not just with Cheesecake Factory, but many business who will be in the same boat. There may be enough BK's that it will behoove landlords to work and be flexible with tenants, since there may not be as many other business in line to rent.
I'd also think that fellow Americans will rise to the occasion to help their fellow man.
I guess much of it comes down to actually holds the note on the property.
wonder what happens when the landlord tells the mortgage holder he ain't paying his mortage? and then the bank who owns the note tells their customers they can't get their money? and the customer tells his creditors he can't pay his bills? sounds like 1929 to me.
not business but I bet they can catch a break too
Homeowners who have lost income or their jobs because of the coronavirus outbreak are getting some relief. Depending on their situation, they should be eligible to have their mortgage payments reduced or suspended for up to 12 months.
Federal regulators, through the mortgage giants Fannie Mae and Freddie Mac, are ordering lenders to offer homeowners flexibility. The move covers about half of all home loans in the U.S. — those guaranteed by Fannie and Freddie. But regulators expect that the entire mortgage industry will quickly adopt a similar policy.
Under the plan, people who have suffered a loss of income can qualify to make reduced payments or be granted a complete pause in payments.
not business but I bet they can catch a break too
Homeowners who have lost income or their jobs because of the coronavirus outbreak are getting some relief. Depending on their situation, they should be eligible to have their mortgage payments reduced or suspended for up to 12 months.
Federal regulators, through the mortgage giants Fannie Mae and Freddie Mac, are ordering lenders to offer homeowners flexibility. The move covers about half of all home loans in the U.S. — those guaranteed by Fannie and Freddie. But regulators expect that the entire mortgage industry will quickly adopt a similar policy.
Under the plan, people who have suffered a loss of income can qualify to make reduced payments or be granted a complete pause in payments.
We called our lender yesterday as the Governor closed all our businesses on 3/17. House is in wife’s name, loan in her name. She has 824 credit score, never late, in fact several payments ahead. We owe far less than the home is worth. Loan is through US Bank. Told them her businesses had been shut down and that we had no idea when they would open again. We want to be ahead of any future potential problems and wanted to make them aware and find out what programs are available. The man said that the only thing that US Bank is offering is a 6 month forbearance. At the end of the 6 months, a lump sum payment is due for all payments and interest. I asked what will be reported on her credit, and he said her credit will show that the loan is under forbearance. Basically, they won’t repo the home or start collections. But they also won’t offer any assistance with spreading out the payments either.
that is interesting, the busiest restaurant in our entire area is the cheesecake factory. if you attempt to go there on a weekend, plan on a 2 hour or longer wait. They have 2 stores in our area and both of them are utterly slammed. In fact the mall they are in they single handily revived the entire mall. The mall was about to be scrapped. instead cheesecake factory moved in and the entire end of the mall was able to build brand new stores and basically completely remake itself.
another mall in our area is a ghost town and if I was running the property I would actually offer the cheesecake factory free rent because the entire area of the mall would be revitislised. however for them to just say dudes are aren't paying and if I already had a lease with them. I would say well I guess we will see about that.
all the landlord needs to do is wait till they get back rip roaring with business again and say well ok, actually they don't even need to say anything, here is your notice pay in 3 days or vacate. The busiest restuarant in town should be able to pay its rent after being closed for 2 weeks or its the most mickey mouse operation financially I have ever seen.
There will be a lot of that & prolly not much will happen for 3-4 months...................maybe.
Then the foreclosures & defaults will begin.
LOTS of bars & restaurants, & likely many other small businesses, that are now closed will never open again.
They simply cannot survive w/o cash flow, today, everyday.
MM
The city here is my son’s business landlord. They have offered rent forgiveness for March and April. It was the city that shut his business down.
At the end of the 6 months, a lump sum payment is due for all payments and interest. I asked what will be reported on her credit, and he said her credit will show that the loan is under forbearance. Basically, they won’t repo the home or start collections. But they also won’t offer any assistance with spreading out the payments either.
So, at the end of 6 months, there was no relief, and the customer is required to come up with the P&I to bring the loan current, while in the meantime, your credit rating also takes a hit, forbearance.
Why can't the owner of the paper, put the 6 months on the backend of the note, and the customer just simply start making scheduled payments again?
Answer: To pinch the customer, so the paper holder can have the opportunity to force foreclosure when the opportunity presents itself.
Wow...just wow, but not surprised.
A Jew once told me that the world is in debt but it doesn't matter as long as it can be serviced.
I don't think it will come to it, but it would be good to see what happens to (((them))) when it can't.
There will be a lot of that & prolly not much will happen for 3-4 months...................maybe.
Then the foreclosures & defaults will begin.
LOTS of bars & restaurants, & likely many other small businesses, that are now closed will never open again.
They simply cannot survive w/o cash flow, today, everyday.
MM
You are 100% correct.
The American public has no clue to the level of damage that has been inflicted to the economy, and if they think this vapor locked economic engine can just be restarted, like walking out to the car every morning, they are in for a rude awakening.
Honor your obligations and commitments. It's what separates men from bitches. We're barely 3 weeks into it and already here? Wait two months.
Talking to a buddy today about our historic downtown district full of little bohemian shops, local restaurants, etc...
We both agreed after this winds down, we won't recognize the landscape. Local banker told me they are forecasting 15% unemployment locally for 6 mos minimum. We are a college town and most businesses realized 35-40% of their revenue off college students. Instead of 3 mos without students, it'll be 7 most this year. Many will not be able to ride this out.
Honor your obligations and commitments. It's what separates men from bitches. We're barely 3 weeks into it and already here? Wait two months.
It's not that easy when the consumer has no money to purchase goods, and businesses stop their plans for expansion dead in their tracks, both of which kill contracting businesses, wholesalers, and manufacturers. A business just can not keep the doors open forever with ZERO foot traffic, and that fact alone is what brings an economy to its knees.
We are looking at a repeat of the 1980's, but this time it will be in multiples I'm afraid. The question is, how many "X's".
Those who lived and worked through it, know exactly what I'm talking about.
Cheesecake dicks are trying to set themselves up for gubberment dollars! They could give a chitt about the building owner. The entire chain of Cheesecake stores, are overpriced, under quality, blubber creating, yuppie palaces! Not worth going too!
Bad times to be in the restaurant business, and our family has a couple restaurants that we've leased out. Our leases are based off a percentage of the gross income, and around 2% of the gross goes to taxes and insurance. The worst thing for us is the tourist season in Florida is over and our best quarter will be our worst this year. Every dollar that you didn't make you'll never see it again. We need things to get back to normal ASAP.
Most of the jobs lost in the service industry are minimum/low wage jobs. They weren't buying houses or new cars, they weren't going out and spending $50 on dinner or expensive vacations. They aren't putting money Into 401k's etc... Unless your locale's economy is based solely on service/tourism it's going to bounce back.
Those jobs have little real effect on the economy, wealth doesn't trickle upwards no matter what Bernie says.
The bulk of the high paying jobs have simply transitioned to working from home. I got the go ahead to start a chain restaurant build in two weeks, and two custom homes. One in the $350,000 range one just under $700,000 all in the last week and a half. Got the go ahead to keep moving on three different large projects we're doing now. One is around 1.5 mil, one is $250,000 and one is $440,000. All investment property, commercial leases.
I do think we're going to see the escalation of the inevitable, the death of the brick and mortar retail stores and an even faster migration to online sales for every facet of your needs. I also think you'll see cultural changes as far as hygeine, eating out, more awareness of social gatherings etc. This event will leave it's Mark on our culture, but I don't think we're going into a Japan style stagnation. The entire globe is in the same boat and we're still the safe Haven bet in troubled times and still the strongest nation on Earth. China, will take the biggest step backwards.
I am that business owner (with partners) that is helping rebuild our downtown area one block from the local university. We have won awards and praise for the community because of the revitalization we’ve brought back to our small town. We’re in the process of renovating another building. My partners and I currently own five restaurants, a couple of bars and a boutique hotel. We employ around 100 plus employees. This is devastating on us! Our restaurants have dropped 75% in business and we’ve laid almost all of our employees off. Down to only salaries managers and they have taken cuts. The hotel has only one room rented every few days. The governor made us close the bars and dining rooms. We still owe the banks.
Yes, hopefully we’ll make it through and have a vibrant rebound. But when you have a incredibly large bank note and employ many people that rely on you for their livelihood it’s tough. I look to my employees as friends or my family and to have to lay them off in order for the company to survive is tough.
We have spoken to the banks and we’ll pay them off but if we have to pay all of the notes with no help or assistance we would go bankrupt and our city would loose a tremendous amount of tax revenue.
It’s more to this than just helping a couple of families.
God bless us all!
I am that business owner (with partners) that is helping rebuild our downtown area one block from the local university. We have won awards and praise for the community because of the revitalization we’ve brought back to our small town. We’re in the process of renovating another building. My partners and I currently own five restaurants, a couple of bars and a boutique hotel. We employ around 100 plus employees. This is devastating on us! Our restaurants have dropped 75% in business and we’ve laid almost all of our employees off. Down to only salaries managers and they have taken cuts. The hotel has only one room rented every few days. The governor made us close the bars and dining rooms. We still owe the banks.
Yes, hopefully we’ll make it through and have a vibrant rebound. But when you have a incredibly large bank note and employ many people that rely on you for their livelihood it’s tough. I look to my employees as friends or my family and to have to lay them off in order for the company to survive is tough.
We have spoken to the banks and we’ll pay them off but if we have to pay all of the notes with no help or assistance we would go bankrupt and our city would loose a tremendous amount of tax revenue.
It’s more to this than just helping a couple of families.
God bless us all!
Sir I wish you all the luck in the world.. hang in there.....
Bad times to be in the restaurant business, and our family has a couple restaurants that we've leased out. Our leases are based off a percentage of the gross income, and around 2% of the gross goes to taxes and insurance. The worst thing for us is the tourist season in Florida is over and our best quarter will be our worst this year. Every dollar that you didn't make you'll never see it again. We need things to get back to normal ASAP.
Hasn't the bulk of the tourist season already passed?
Seems by April first things normally slow down rather rapidly.
Not insinuating that you will not occur related losses but the bulk of the 1st quarter should already be in the bank.
The balance of the year going forward is another thing.....Best of luck...
I am that business owner (with partners) that is helping rebuild our downtown area one block from the local university. We have won awards and praise for the community because of the revitalization we’ve brought back to our small town. We’re in the process of renovating another building. My partners and I currently own five restaurants, a couple of bars and a boutique hotel. We employ around 100 plus employees. This is devastating on us! Our restaurants have dropped 75% in business and we’ve laid almost all of our employees off. Down to only salaries managers and they have taken cuts. The hotel has only one room rented every few days. The governor made us close the bars and dining rooms. We still owe the banks.
Yes, hopefully we’ll make it through and have a vibrant rebound. But when you have a incredibly large bank note and employ many people that rely on you for their livelihood it’s tough. I look to my employees as friends or my family and to have to lay them off in order for the company to survive is tough.
We have spoken to the banks and we’ll pay them off but if we have to pay all of the notes with no help or assistance we would go bankrupt and our city would loose a tremendous amount of tax revenue.
It’s more to this than just helping a couple of families.
God bless us all!
I'm truly sorry for you and definitely hope for the best for you and your employees. Entrepreneurship is what makes this nation. I truly hope the bailout addresses in a meaningful way the issues faced by you and all the others in every little town across the country.
I am that business owner (with partners) that is helping rebuild our downtown area one block from the local university. We have won awards and praise for the community because of the revitalization we’ve brought back to our small town. We’re in the process of renovating another building. My partners and I currently own five restaurants, a couple of bars and a boutique hotel. We employ around 100 plus employees. This is devastating on us! Our restaurants have dropped 75% in business and we’ve laid almost all of our employees off. Down to only salaries managers and they have taken cuts. The hotel has only one room rented every few days. The governor made us close the bars and dining rooms. We still owe the banks.
Yes, hopefully we’ll make it through and have a vibrant rebound. But when you have a incredibly large bank note and employ many people that rely on you for their livelihood it’s tough. I look to my employees as friends or my family and to have to lay them off in order for the company to survive is tough.
We have spoken to the banks and we’ll pay them off but if we have to pay all of the notes with no help or assistance we would go bankrupt and our city would loose a tremendous amount of tax revenue.
It’s more to this than just helping a couple of families.
God bless us all!
I think your banks should consider placing the next 6 months of payments at the back of your loans.
Basically just extend the loans 6 months while waiving the next 6 months of payments.
If they don't find a way to get creative with this un-necessary foreclosures will abound.
There isn't any need for this, we will pull out of this in grand order but lack of flexibility is going to have grave consequences.
Time for a heart to heart group huddle with your investment team and your bankers.
They have damn good cheesecake!
I am that business owner (with partners) that is helping rebuild our downtown area one block from the local university. We have won awards and praise for the community because of the revitalization we’ve brought back to our small town. We’re in the process of renovating another building. My partners and I currently own five restaurants, a couple of bars and a boutique hotel. We employ around 100 plus employees. This is devastating on us! Our restaurants have dropped 75% in business and we’ve laid almost all of our employees off. Down to only salaries managers and they have taken cuts. The hotel has only one room rented every few days. The governor made us close the bars and dining rooms. We still owe the banks.
Yes, hopefully we’ll make it through and have a vibrant rebound. But when you have a incredibly large bank note and employ many people that rely on you for their livelihood it’s tough. I look to my employees as friends or my family and to have to lay them off in order for the company to survive is tough.
We have spoken to the banks and we’ll pay them off but if we have to pay all of the notes with no help or assistance we would go bankrupt and our city would loose a tremendous amount of tax revenue.
It’s more to this than just helping a couple of families.
God bless us all!
I think your banks should consider placing the next 6 months of payments at the back of your loans.
Basically just extend the loans 6 months while waiving the next 6 months of payments.
If they don't find a way to get creative with this un-necessary foreclosures will abound.
There isn't any need for this, we will pull out of this in grand order but lack of flexibility is going to have grave consequences.
Time for a heart to heart group huddle with your investment team and your bankers.
We are working with the banks and they have been very generous! We’ll work through this.
As one of my partners always says. “ Borrow $2 million and your just a customer. Borrow $20 million and you become a partner!” Banks seem to make it work when it could close them also.
Thanks for your concern.
This is directed at the Cheesecake Factory. They opened a new one in the area about 6 months ago in a old, but popular mall. My wife loved the one in Vegas so I relented and took her and the boys. 2 hour wait. Place was overbooked. Took forever to get waited on. Food was average, chain type stuff. The cheese cake was good however. Bill came to $150 for 4 people. Wouldn't bitch about it if it was a good dining experience. It was average at best. I'll not be going back.
As for restaurants and other small businesses, when I was in college, the average failure rate of restaurants was 80%. I'm sure with this thing, those that are on the edge won't make it. Those who have a solid foundations are going to feel pain, but come out breathing. I like the idea that was mentioned previously of a 6 month grace and add it on the back end. Maybe interest only payments. They do deserve some sort of relief from a gov't mandated shutdown. You can bet GM, Ford, and Fiat are going to ask for something.
Is that chain still in business? Last time I was there they had a bunch of way over priced [bleep] chicken dishes! I suppose all the poodles eating cheesecake is the only reason they survive.
If I’m the landlord, gtho.
The cake factory is a publicly traded company with a current market cap of $850 million. I would say you are giving me company stock or a note. If you aren’t paying. In leiu of that I wait till they open up again and say 3 day notice to pay or vacate. Blanketly saying no pay is bs
Bad times to be in the restaurant business, and our family has a couple restaurants that we've leased out. Our leases are based off a percentage of the gross income, and around 2% of the gross goes to taxes and insurance. The worst thing for us is the tourist season in Florida is over and our best quarter will be our worst this year. Every dollar that you didn't make you'll never see it again. We need things to get back to normal ASAP.
Hasn't the bulk of the tourist season already passed?
Seems by April first things normally slow down rather rapidly.
Not insinuating that you will not occur related losses but the bulk of the 1st quarter should already be in the bank.
The balance of the year going forward is another thing.....Best of luck...
Historically the tourist leave after Easter, the Coronavirus talked and warm weather up north slowed things down towards the end of February. Hopefully the kitchen help, food servers and bar tenders will get a little bit of the stimulus money. Times are tough in the restaurant business and the only thing that is helping us, is a great waterfront location and our family has no mortgage payments on the building or land. We'll be fine if we can get back to work. Thanks for the well wishes.
I haven't heard the states complaining about the lack of sales tax revenues.
Yep the chick from Shark Tank (Barbara) was advising business to do that...
No worries though - the tax payers will pick up the tab ?
Just who’s 2 Trillion dollars was that anyway ?
Some of the businesses doing this are going to claim force majeure:
"chance occurrence, unavoidable accident",[1] is a common clause in contracts that essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, plague, or an event described by the legal term act of God (hurricane, flood, earthquake, volcanic eruption, etc.), prevents one or both parties from fulfilling their obligations under the contract.
I’m not a lawyer, or deal in the legality of things like this, but I have no doubt that this is a direction many will head. I don’t believe the precedent has been set in regard to this, at least in the US. It makes me wonder that if you were upside down on a house if there could be something like this in a contract. No idea, but it is in many contracts I’ve reviewed over the last several years.
I am sure the contract between the two will dictate.
Most of these problems surface, and get bad, when the flow of money is slowed. Everyone has bills to be paid, if only utilities, taxes, etc.
Not every lender can be completely forgiving, as much as I wish they could.
Gonna hurt everybody.
Many businesses are on the edge, cutting off cash flow may be fatal. Hopefully the landlords are in it for the long run, if they aren’t, they will probably just be hurting themselves.
Schit...we are all in this together aint we?
With this barely a month in and so much talk of not being able to pay bills, I have to ask, doesn’t anybody put money in the bank for a rainy day ? You got people talking about not being able to make house payment already.
When the money dries up, there is no such thing as good debt.
With this barely a month in and so much talk of not being able to pay bills, I have to ask, doesn’t anybody put money in the bank for a rainy day ? You got people talking about not being able to make house payment already.
When the money dries up, there is no such thing as good debt.
Personal finances and business finances are two different things. Especially if you operate your business on a cash basis.
With this barely a month in and so much talk of not being able to pay bills, I have to ask, doesn’t anybody put money in the bank for a rainy day ? You got people talking about not being able to make house payment already.
When the money dries up, there is no such thing as good debt.
Personal finances and business finances are two different things. Especially if you operate your business on a cash basis.
So a business doesn’t have a savings account for a just in case scenario like a household does ?
So a business doesn’t have a savings account for a just in case scenario like a household does ?
Those that embrace the modern MBA continuous growth thinking usually don’t have much.
Their idea is that holding cash is a sin as it should always be reinvested in things that expand the business, used for acquisition, etc. They also believe that excess cash encourages businesses to ignore excessive expenses and agency costs.
This is plainly stupid but business schools keep cranking out people who think this way.
So a business doesn’t have a savings account for a just in case scenario like a household does ?
Those that embrace the modern MBA continuous growth thinking usually don’t have much.
Their idea is that holding cash is a sin as it should always be reinvested in things that expand the business, used for acquisition, etc. They also believe that excess cash encourages businesses to ignore excessive expenses and agency costs.
This is plainly stupid but business schools keep cranking out people who think this way.
I suppose these are the same experts that would invest extra cash instead of paying something off early ? It sure is nice to know if push comes to shove I could work at Walmart if needed and still make it since we have no debt.
We’re ok with cash. I drove around town taking out $5,000 from each drive thru window for half a day. They think I’m stupid but I got the drop on them . 😆😜
Our family business is wholly owned - paid for as we built it.
"The Warden" and I have a small mortgage on the ranch (that is about to get a LOT smaller).
No major problems here, thank God!
I will work with our renters for quite a while - I just advise them to keep in touch. When I can't contact a tenant - my hands are tied.