A statue of a horse stands on the entrance to a P.F. Chang's restaurant in Schaumburg, Illinois.Scott Olson | Getty PhotographsGiant restaurant cha
A statue of a horse stands on the entrance to a P.F. Chang’s restaurant in Schaumburg, Illinois.
Scott Olson | Getty Photographs
Giant restaurant chains obtained hundreds of thousands in loans from the Paycheck Safety Program, based on information launched Monday by the Small Enterprise Administration and the Treasury Division.
Companies within the lodging and meals providers sector obtained greater than $42 billion in funding from this system, accounting for 8.07% of the overall 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 lodge and restaurant chains received exemptions after the coronavirus pandemic upended their industries. In April, Shake Shack, Ruth’s Chris and a number of other different publicly traded corporations returned their loans after drawing backlash for taking cash from the rapidly depleted fund.
Well-known Dave’s of America and Granite Metropolis Meals & Brewery, each owned by BBQ Holdings, obtained loans of between $5 million and $10 million every. Their mother or father firm, which was one of many few public corporations to obtain funds, has a market worth of $30 million.
Different well-known restaurant recipients embody full-service eating chains Ruby Tuesday, Ted’s Montana Grill, P.F. Chang’s and T.G.I. Friday’s.
The complete-service business has been gradual to get well, whilst 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, based on the NPD Group.
Lots of the massive full-service chains that obtained PPP loans are backed by non-public fairness corporations. TriArtisan Capital Advisors owns the bulk stake of T.G.I. Friday’s, for instance. The chain was purported to go public this 12 months by means of a merger with a particular objective acquisition firm, however the deal fell aside in April.
Quick-casual chains, together with Dig Inn, 5 Guys, Mod Pizza and Chopt, obtained PPP loans of at the least $5 million. Bluestone Lane, a enterprise capital-backed espresso chain, additionally obtained a mortgage of at the 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 obtained loans within the vary of $5 million to $10 million. The fast-food business has been faster to get well than the broader restaurant business, with transactions declining simply 13% within the week ended June 28, based on the NPD Group.
Entry the complete listing of companies that obtained PPP loans of greater than $150,000 right here.
Correction: This story has been up to date to mirror that the info was launched from each the Small Enterprise Administration and the Treasury Division and it included all Paycheck Safety Program loans up to now, not a particular spherical.