A statue of a horse stands on the entrance to a P.F. Chang’s restaurant in Schaumburg, Illinois.
Scott Olson | Getty Pictures
Massive restaurant chains as soon as once more acquired thousands and thousands in loans from the Paycheck Safety Program, in response to knowledge launched Monday by the Small Enterprise Administration.
Companies within the lodging and meals companies sector acquired greater than $42 billion in funding from this system, accounting for 8.07% of the spherical’s complete loans. Roughly $130 billion of this system’s $660 billion stays up for grabs.
The federal program was meant to assist struggling companies that had fewer than 500 staff, however huge resort and restaurant chains gained exemptions after the coronavirus pandemic upended their industries. In April, Shake Shack, Ruth’s Chris and a number of other different publicly traded firms returned their loans after drawing backlash for taking cash from the shortly depleted fund.
Well-known Dave’s of America and Granite Metropolis Meals & Brewery, each owned by BBQ Holdings, acquired loans of between $5 million to $10 million every. Their dad or mum firm, which was one of many few public firms to obtain funds this spherical, has a market worth of $30 million.
Different well-known restaurant recipients embody full-service eating chains like Ruby Tuesday, Ted’s Montana Grill, P.F. Chang’s and T.G.I. Friday’s.
The complete-service trade has been sluggish to get well, at the same time as many states reopen indoor and outside eating. Full-service restaurant transactions fell 25% within the week ended June 28 in comparison with the year-ago interval, in response to the NPD Group.
Most of the massive full-service chains that acquired PPP loans are backed by personal fairness corporations. TriArtisan Capital Advisors owns the bulk stake of T.G.I. Friday’s, for instance. The chain was imagined to go public this yr via a merger with a particular goal acquisition firm, however the deal fell aside in April.
Quick-casual chains, together with Dig Inn, 5 Guys, Mod Pizza and Chopt, acquired PPP loans of at the very least $5 million. Bluestone Lane, a enterprise capital-backed espresso chain, additionally obtained a mortgage of at the very least $5 million.
Whereas massive fast-food chains didn’t apply for PPP funding, their franchisees did. Operators of some McDonald’s, Wendy’s and Yum Manufacturers places acquired loans in a spread of $5 million to $10 million. The fast-food trade has been faster to get well than the broader restaurant trade, with transactions declining simply 13% within the week ended June 28, in response to the NPD Group.