WHAT ARE YOU DOING FOR YOUR CUSTOMERS? Take-out is available at 5 of our 16 closed units. We give each guest a thank-you card good for a 25% off coupon with each take-out order. They can also use this when we reopen. HOW ARE YOU WORKING WITH YOUR SUPPLIERS? Our suppliers have been great by working out payment plans... no discounts offered. WHAT ARE YOU DOING ABOUT CASH FLOW, PPP? It seems I am working more with our restaurants closed than I did before Covid-19 struck. We are doing everything we can to work with employees, landlords, suppliers, banks, the insurance company, and the SBA. WHAT ELSE WOULD YOU LIKE TO SEE FROM YOUR FRANCHISOR OR GOVERNMENT? While the government options are appreciated and helpful, they are not covering all the issues, ongoing expenses, and lost revenue we will never recover. Much of the government assistance will just bring on more debt. The rates and terms are attractive and will enable us to not have to close restaurants permanently. With the added debt on the nonforgivable portion it will take us a year or two to recover to our former financially stable position. HOW ARE YOU PLANNING TO REOPEN AND REBUILD YOUR BUSINESS POST–COVID-19? I do not believe business will return to pre-virus numbers until maybe the fourth quarter – that is if we are open by June. I believe we will be limited to 50% capacity when we do start back up and feel many guests will not return to dine in until a vaccine is available.
DUSTIN KING Dustin King is a 32-year-old, third-generation operator steering his family’s snack empire through the Covid-19 crisis. He grew up in the business, which now includes Auntie Anne’s, Häagen-Dazs, Cinnabon, Planet Smoothie, Jamba, Nestle Toll House Cookies, and Carvel. All told, the company operates just shy of 60 locations and is still intent on growth – soon as the malls reopen! HOW HAS COVID-19 AFFECTED YOUR BUSINESS? In the two to three weeks leading up to the governors' shelter in place we were down about 50% to 60%. It began at about a 20% decrease and continued to drop from there. WHAT ARE YOU DOING RIGHT NOW TO GET THROUGH THIS? We are applying for all the government assistance we can and working with our vendors to negotiate extended terms and other payment options. ARE YOUR FRANCHISORS HELPING KEEP YOU AFLOAT? Our franchisors have worked to try to reduce monthly fees with partners like our POS provider, digital menu boards, and other vendors who have recurring monthly fees. We have seven different franchisors, and they all are working hard to do everything they can to help. We also have reduced royalties and/or marketing fees. WHAT ARE YOU DOING TO HELP YOUR EMPLOYEES THROUGH THIS? We are doing weekly group employee filings for three of the four states we’re in. We are doing the legwork to ensure they
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FRANCHISEUpdate
ISSUE 2, 2020
