The Cheesecake Factory Tells Landlords Across the Country It Won’t Be Able to Pay Rent on April 1
I'm assuming there will be lots of smaller restaurants in similar situations. How are landlords going to deal with things like this?

[https://la.eater.com/2020/3/25/21194144/cheesecake-factory-rent-strike-chain-restaurant](https://la.eater.com/2020/3/25/21194144/cheesecake-factory-rent-strike-chain-restaurant)
[{"id": "fliwi2n", "text": "Fuckkkkkkkkkkkk", "replies": [], "depth": 1}, {"id": "fliwnxe", "text": "Some will be idiots and default them. Others will negotiate it to a deferrment.\n\nAt this point tenants who stay alive will have all the power to literally squat on space and not pay.", "replies": [], "depth": 1}, {"id": "flix05i", "text": "Sell the landlord some advertising on their menus... hahhahahah in exchange for rent", "replies": [], "depth": 1}, {"id": "fliyoa1", "text": "Their food is terrible, but smart landlords will work with them.", "replies": [], "depth": 1}, {"id": "flizmpv", "text": "If you cant pay rent 3 months after the holiday binge, there's bigger issues. We are really only a month into this stateside. As a LL, I would completely expect you to be more solvent than this. As a person, you expect me to have what, six months savings? \n\nIt's a play on a crisis, and they are just trying to get a jump on what I see will be 2 Qs impacted. And likely no rebound until fall, but with diminished numbers there too...", "replies": [{"id": "fljc9ua", "text": "Force Majeure. There are going to be plenty of well capitalized tenants doing this.", "replies": [{"id": "fljltx5", "text": "Our insurance carriers for our portfolio have indicated pandemics are not covered under force majeure.", "replies": [], "depth": 3}], "depth": 2}, {"id": "fljlsta", "text": "I disagree. No business is prepared for a multi month government mandated shutdown. \n\nNaturally disasters can be covered for lost revenues, and are obviously quicker to get under control and back to business.\n\nOur insurance carriers have indicated that pandemics are not claimable for lost revenue.", "replies": [{"id": "flkskyz", "text": "You\u2019re saying it\u2019s not covered by business interruption insurance?", "replies": [], "depth": 3}], "depth": 2}, {"id": "flkqsju", "text": "Managing a business is NOT the same a managing your personal finances. To expect all businesses to have a 6 months of expenses like a household would, is a bit unrealistic.", "replies": [], "depth": 2}], "depth": 1}, {"id": "flj2xbz", "text": "They need to do better than this. This is a corporation that definitely has access to short term credit facilities. It's one thing for Jose's Taco Shop to do this, and frankly the Mexican restaurants have been great so far, but for a big credit like this to punk out on their leases is very ominous. They are going to be sued into the stone age for this.", "replies": [{"id": "fllgw8t", "text": "Have you seen their balance sheet?", "replies": [{"id": "flluhcu", "text": "No. I doubt their landlords have gotten much detail either.", "replies": [{"id": "flse3zm", "text": "Just because it's a big name doesn't mean they are cash rich or credit worthy (or that they are not, I haven't researched them either).", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "flm466x", "text": "Sued? Maybe, but they are fairly cash strapped due to an acquisition is my understanding.\n\nWho else is going to lease those giant spaces? And the TIs would be killer as the only Cheesecake Factory I have been to had some horrid, gaudy interior design. Faux pillars and all kinds of weird stuff", "replies": [], "depth": 2}], "depth": 1}, {"id": "flj32hv", "text": "That was fast... couldn't even survive for one month?", "replies": [{"id": "fljlvr6", "text": "One month of shutting every location down and getting $0 revenue? I don\u2019t think any business is prepared for that.", "replies": [{"id": "fljthse", "text": "They still do takeout right?", "replies": [{"id": "fljxim8", "text": "Yeah. I shouldn\u2019t have used the term revenue, but rather income.\n\nI doubt their takeout revenue covers their expenses. Meaning they probably have negative income.", "replies": [], "depth": 4}, {"id": "flmdqbl", "text": "Our small restaurant went from $2,500 a day to $350 a day...literally losing money by staying open for takeout :/", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "flj3y5z", "text": "Subway has done something similar. I wrote a letter to my LL this morning about closing my store and possible non-payment of rent for the next two months. I'm expecting negotiations to boil down to deferment for a month or two.", "replies": [], "depth": 1}, {"id": "flkdr6n", "text": "Probably doesn't help to have a menu thicker than the Bible", "replies": [], "depth": 1}, {"id": "flkv68d", "text": "Wouldn't be the worst thing for cheesecake factory to disappear.", "replies": [], "depth": 1}, {"id": "fll3p1g", "text": "I have been on the phone with retail tenants all day. We're treating it on a case-by-case basis. Restaurants I have been taking a \"let's wait and see\" approach but I know we will eventually give them 1-2 months free rent. Some other tenants we have negotiated 50% rent for April/May to be paid back over the rest of 2020. That's a more fair way to do it for tenants that can expect some pent up demand when the restrictions lift (like Realtors).", "replies": [], "depth": 1}, {"id": "fllxcrd", "text": "This is #1 bullshit", "replies": [], "depth": 1}, {"id": "flmdv22", "text": "This is only going to get worse. I had a call today with a few guys, who all collectively own about 60 restaurants. They are all asking for 3 months deferment and then a reduction in rent after for an extended time (these restaurants are in LA and LV, both areas HIT HARD by this). It will take at minimum a year for the economy to rare back up, IMO.", "replies": [], "depth": 1}]