CHICAGO (CBS)– Rent is due in less than a week and since dining in is no longer an option, some restaurants will struggle to pay.
The Cheesecake Factory is among those business, and the restaurant chain sent a letter to its landlords on March 18 saying they will not be paying rent for their nearly 300 locations. The letter said the virus has inflicted a “financial blow.”
If a major chain can’t stay afloat, what about those smaller restaurants.
CBS 2 spoke with a commercial real estate expert about how this may set a precident
“This situation is definitely a ripple effect,” senior broker at Compass, Amy Duong Kim, said. “Everybody is in new territory. I don’t think anyone expected it to impact our economy as fast as it has already.
The Cheesecake Factory’s chief financial officer told CBS 2 the company has a strong relationship with its landlords and is certain they’ll work something out.