It Begins – Cheesecake Factory Tells Landlords Nationwide They Will Not Pay Rent April 1st…

Think about this… How weak and tenuous does a corporate financial position need to be such that being closed for one week means informing all nationwide landlords of your inability to pay the rent next week?   Consider this example:

CALIFORNIA – The Cheesecake Factory, one of the most popular sit-down restaurant chains in the country, says it will not be able to make upcoming rent payments for any of its storefronts on April 1 because of significant loss of income due to the coronavirus crisis.

[…]  Company chairman and CEO David Overton writes, “Due to these extraordinary events, I am asking for your patience, and frankly, your help.” He continues, “we appreciate our landlords’ understanding given the exigency of the current situation.” The letter says that the company hopes to resume paying rent as soon as possible.

[…]  The Cheesecake Factory was founded in Beverly Hills in 1972 and maintains its original location on Beverly Drive, with 39 locations in California. In total, it operates 294 restaurants in 39 states, plus the District of Columbia, Puerto Rico, and Toronto, Canada. In 2019, the company also acquired Phoenix-based Fox Restaurants, including North Italia, Flower Child, and The Henry. Most of the company’s landlords are malls, including Simon and Westfield.  (read more)

This is one small example; however, it is an opportunity to imagine the beginning of a process were Blue team corporations start to tell Red team financiers they are refusing to pay their debts.

.

Expand the mindset to individuals… dependent democrats (blue team), and social justice activists, assemble to tell landlords (red team) they will not pay the rent.  It’s going to take off like wildfire.

Can you imagine the size of the smile on Bernie Sanders face if this level of social turmoil were to begin on a national scale?

Think about it…. Very carefully.

The blue team tells auto-lenders we won’t make the car payment etc.  It is a social upheaval that starts small, most dismiss it, but it spreads through the “social justice” and “resistance” community just like the coronavirus itself.

Bernie/AOC cheer the new shift and empowerment “of the people”…

See where this has the potential to go?  The Democrat Socialists align perfectly with Antifa, Occupy Wall Street and the various “dream defender” groups.  You think the yellow vest uprisings were significant….

Perhaps we are about to find out what COVID-19 is all about.

We keep watching.

This entry was posted in Antifa, Bernie Sanders, Big Government, Big Stupid Government, Coronavirus, Cultural Marxism, Dem Hypocrisy, Economy, Election 2020, Fabian Socialists - Modern Progressives, Legislation, media bias, President Trump, Professional Idiots, propaganda, Socialist, Taxes, Typical Prog Behavior, Uncategorized, US Treasury, USA. Bookmark the permalink.

367 Responses to It Begins – Cheesecake Factory Tells Landlords Nationwide They Will Not Pay Rent April 1st…

  1. Bendix says:

    I think Sundance needs the freedom to float ideas without getting kicked for it. He may be wrong, he may be right, but he will never be of any use if he gets subjected to “don’t even go there” criticism.

    I have been places I thought I would never go, in pursuit of the truth, and I was knocked for it and called names. We can’t have sacred cows.

    Both things can be true at the same time. There can be restaurant owners who need help because of what the government did to them, and there could also be big businesses with political clout taking advantage of a situation.

    Liked by 1 person

    • Tulips Moran (@TulipsMoran) says:

      I agree with Sundance and have long believed this was all about the blue team and the red team and who can best the other – meanwhile the collateral damage this time has been horrific.

      Liked by 2 people

  2. Many commercial leases have “force majure” provisions that provide for excuse of performance if prevented by an act of God. It would appear that Covid-19 would be an act of God. Lots of legal articles on this issue already. Clearly the landlords of tenants like this and commercial property lenders need to work together to avoid what happened in 2008 when It would have been better for the banks to simply forgive payments until the economy recovered.

    You are correct, the more dangerous domino to fall will be auto loans.

    Like

  3. Asciimom says:

    In the back of my mind – I keep thinking that this is all really about the 2020 election. Destroy the economy , keep the people in fear and panic – perhaps the next election will be online so that the cheaters can rain and elect a socialist candidate.
    Just a thought

    Liked by 4 people

  4. All you have to note is the way the Democrats and the media are trying to get everyone to believe that it will be months, not a week or weeks, until the “lockdowns” can be lifted — and how they are all “personally disgusted” (with eye rolls, etc., as they have projected UNPROFESSIONALLY all along) that President Trump is against that drawn-out torture of the American economic system. They think the widespread fear and panic — heck, even just the serious consideration — on the part of the public, over this “existential health crisis”, gives them all the legitimacy they so desperately need, going into the final months before the election(s). Add to that the smarmy political abuse of the “bailout”, and you don’t even have to go back as far as the fact that this began, RIGHT AFTER THE fake “IMPEACHMENT” (the Schiff 24/7 crime spree) ground to a sordid halt (with threats of doing it again and again), to see Sundance is obviously right — heck, if anything he is not hitting it hard enough — which reminds me, DECLASSIFY NOW D___it.

    It is all fake, on the Democrat leaders’ part, and like the climate scare, rides on the back of a general scientific incompetence (which tell anyone just how bad — and infinitely beyond mere politics — this time in history is: Any “health expert” should be emphasizing that the key to fighting this bug — any bug — is immune system support, in every individual, not a tyrannous, “national lockdown” on all activities. Our federal and local governments have no business forcing their ignorant “hammer and nails” approach onto what is really a situation requiring INDIVIDUAL protection and support of each body’s immune system (with INDIVIDUAL RESPONSIBILITY needed, not sociological propaganda).

    Liked by 3 people

    • suejeanne1 says:

      I feel very strongly that the news media and “Democratic leadership” are continually seeking the destruction of our calm, cool President – they want chaos, panic, looting, disorder all over the place – they do not want “domestic tranquility” –

      they are like the Fifth Column that was in place at the advent of World War II, there to get us all fighting each other instead of the enemy, the Axis Powers – they thought that surely our diverse, heterogenous society would tribalize and fracture, rendering the defense of our nation impossible.

      It’s really sick how the news media and Democratic politicians tout “diversity” but they don’t know the first thing about the beauty of a diverse population pulling together – they probably still think it will be a great way to tear us apart, using the “race card” to polarize us.

      God bless America and Americans! And most especially, dear God, constant prayers for our President, his family and the team of people working with him –

      the news media is getting really antsy about the daily press conferences with the President and how these press conferences are like the rallies, for all the Americans out there watching – imagine, how many MORE people can fit into THIS venue, this “stadium” every day! All in a safe manner, with social distancing in place. All these people home from work, watching the President’s press conferences!

      I like to think of the President’s press conferences as a sort of daily prayer vigil out here, as my Mom and I pray for him (well, of course, like many others, all through the day and night, actually)

      it’s quieter than a rally, you can’t hear us in that White House press briefing room, they aren’t picking up all of the Hallelujahs and thank You, Lord proclamations being spoken in homes across the country at that very moment.

      Liked by 1 person

  5. anthony dincecco says:

    if their financials are that dire , maybe they should close the doors….

    Liked by 1 person

  6. platoriusnepos says:

    So…Cheesecake Factory restaurants are all company owned. Having been in a couple of their restaurants this year, the lack of business told me then that a re-org was in the making. This letter makes me cringe. Mr. David Overton CEO and founder sounds like a self-serving fool. Not paying rent for one month, or two or three won’t save you and this approach feels like blackmail to me; forcing the people who own the real estate to become Cheesecake Factory partners. Many of their restaurants are in malls which are suffering already from anchor stores that are closed or leaving. Restaurant overhead by percentage is relatively small to gross sales; this letter tells me they were on the ropes, due to, dare I say, mismanagement. A lot of companies that were already failing will use the virus as an excuse to file for re-org. Survival of the fittest Mr. David Overton CEO and founder. And notice, not one word about their employees who have already lost or are losing their jobs.

    Liked by 3 people

  7. Bob Lynch says:

    What kind of business cannot exist beyond one month of paying rent? A mismanaged one. Before money is doled out willy nilly to any business claiming government relief, said business should be required to show it is a viable business.

    Liked by 2 people

  8. Laramie Evan says:

    I run a business. My partner and I own it, 50-50. At any given time, we have between 3,000 – 5,000 employees. I understand perfectly why Cheesecake Factory is doing this. It is not that they can’t make lease payments for April. It is that they are looking at this lasting into May, June, July, etc.

    We have seen just the tip of this iceberg. It is going to get much worse. Anyone who runs a business knows what overhead is. If you can’t make widgets, it’s only so long before you can’t pay your overhead. That’s what Cheesecake Factory is looking at.

    Like

    • Ray Caruso says:

      The country can’t stay shut down until July and beyond. The prediction published by the Washington Post is that one million will die unless the shutdown is extended for 12 to 18 months. Three million people die in the US every year under normal circumstances. If an extra one million die, which is a 33 percent increase in the normal death rate, it’s not the end of the world. The destruction of our economy pretty much would be, and it would kill a lot more than one million in the end. Poverty kills.

      Liked by 2 people

  9. Doppler says:

    Every business serving retail trade through storefronts is facing the fact that, except for a select few deemed “essential,” or those restaurants that can pivot instantly into a profitable curbside or home delivery mode, is facing the sudden turning off incoming cash flow, of uncertain duration. This is an existential cash management crisis for all of them. Whether they’ve got cash reserves for two, three or four or six months doesn’t mean they want to expend any more of it than they have to, until the situation clarifies. Mass lay-offs, halting of rent, halting of long-term debt payments are all preferable to going bust, with no way to come back. The pending $2T bill, as President Trump said, is intended to provide a bridge over the sudden, unplanned, and (hopefully) short-term halt in economic activity, so that, when it is safe to lift the isolate-in- place rules, all those businesses can reopen, rehire their workforce, renew serving their customers. A V-curve. Those that used their last cash to pay rent for three or four months wouldn’t be able to.

    Liquidity crises can ruin the economy for years, for a business, bank or supply chain, a neighborhood, a community, a country or the entire globe.

    The Fed is opening lines of credit to buy corporate bonds and other securities to help avoid the damaging effects of a large-scale liquidation of global businesses as bankrupt. The $2T will be a temporary bridge. The battle is whether that bridge reaches the other side, or becomes a “pier,” ending in deep water.

    President Trump wisely sees the need to flatten the curve of the pandemic, while also wisely watching the opportunity to put the economy back to work. The Left does appear to want to move this crisis into an excuse for widespread ceding of sovereignty to a global government that can coordinate it all centrally – as if that wouldn’t be its own catastrophe. Gordon Brown, ex-Labour PM of UK just made that announcement.

    So President Trump is doing battle with the Left on grounds he didn’t choose, but which is a crisis of both public health and economic proportions. Lucky for the world, President Trump is a world-class crisis manager. The Left continues to expose itself, and the Media as their propaganda organ, as more concerned with defeating Trump and advancing socialism than they are with the hard choices of finding the right balance between minimizing health risk and minimizing long-term harm to the economy. President Trump’s call to envision a prompt re-opening, a prompt declaration of winning, is inspiring, while his ongoing public conversation with experts Birx and Fauci open up both sides of the balance to public view. It is the Left that embraces the negative, the doom and gloom, the enemies of hope, the hatred-driven agenda, the crisis as opportunity to force global government message.
    He brings out the worst in his enemies, and allows them to destroy themselves.

    Like

  10. sunnydaze says:

    FNC (Dana Perrino) interviewing a guy in NYC, small pizza shop owner, who is doing the same as my friend mentioned on the first page: Giving away free pizza to 1st Responders in NYC so he can keep some of his staff employed.

    >>> Hopefully, his payback will be tenfold when the crisis is over.

    And interestingly enough, both this man and my friend are recent Immigrants (as evidenced by his strong foreign accent).

    I’ve seen this over and over again in my life: the Entrepreneurial Spirit of recent Immigrants.

    Liked by 2 people

  11. willthesuevi says:

    One good thing to come from this may be a re-think on how business is taught, in Colleges and Universities, going forward.

    There will be several case studies on how innovative and aggressive businesses were able to think and act their way through this debacle. There will be just as many case studies on how several businesses just lied down and died without a fight.

    In skydiving there is a saying; You never quit fighting to save yourself, until your goggles fill with blood. Just as applicable to the rest of life.

    This event will separate the wheat from the chaff.

    Liked by 1 person

  12. Rob says:

    The chances of a civil war before the 2020 elections are increasing by the day. And the more businesses that shut down, the more normally working people are available to counter antifa and the likes, and demonstrate in the streets.

    Like

  13. kinthenorthwest says:

    Now this is a company I have and will keep supporting

    Like

  14. most of those cheesecake factory restaurants are in upscale malls, most commercial leases have a foot-traffic clause that allows the leasee to notify the leasor, that they are below the foot-traffic number and if does not increase within 30 days the lease is terminated. now that would put the pickle in some of the large reits

    Like

  15. jacksprat says:

    I will say this; IF I had stock in this company, I would dump it. I checked, I don’t have any. POOR management

    Like

  16. SueR says:

    Yep! It’s looking more and more like that’s the case, I fear.

    Like

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