have sent them home with food and have made donations to family members outside their household. WHAT ARE YOU DOING FOR YOUR CUSTOMERS? We have had 50% off Thursday to Sunday one weekend, a 25% off Thursday to Sunday for another, and made a 20% donation to Feeding America food banks. We also offered free delivery for 3 weeks. HOW ARE YOU WORKING WITH YOUR SUPPLIERS? We only have one major supplier and they have not offered any relief. WHAT ARE YOU DOING ABOUT CASH FLOW, PPP? We have applied for PPP and are still waiting. We have worked with our landlords for some relief. WHAT ELSE WOULD YOU LIKE TO SEE FROM YOUR FRANCHISOR OR GOVERNMENT? I would like the PPP program to be more clear so we can understand it. I would like to see funding happen more easily, and for states to reduce the extra unemployment money so people will want to come back to work. HOW ARE YOU PLANNING TO REOPEN AND REBUILD YOUR BUSINESS POST–COVID-19? We are preparing our locations with the proper PPE and cleaning supplies, and training our staff once the dining rooms open back up. We have bounce-back coupons we add to every offer good for the month of May and will give out one for June.
GREG CUTCHALL Greg Cutchall, founder, president, and CEO of Omaha-based Cutchall Management Co, is a multi-brand operator with decades of restaurant experience. Today his brands include Sonic Drive-In, Domino’s Pizza, Paradise Bakery & Café, First Watch, Jams American Grill, and Lo-Lo’s Chicken & Waffles (plus a few more). The fallout from Covid-19 has his casual dining restaurants now doing only take-out orders, while his QSR restaurants are carrying the load. HOW HAS COVID-19 AFFECTED YOUR BUSINESS? We’ve experienced a 90% drop in our casual dining restaurants and are offering only take-out now. We’ve furloughed 350 employees. But our QSR restaurants have seen a minimal to flat drop in sales. No employees were let go there. WHAT ARE YOU DOING RIGHT NOW TO GET THROUGH THIS? We have received PPP funds, but restrictions on use are difficult for forgiveness of that loan. To stay in business we will have to use some of those funds for expenses other than payroll and rent, which will ultimately add debt to the company with little or no revenue until we reopen. ARE YOUR FRANCHISORS HELPING KEEP YOU AFLOAT? Our franchisors have not offered help at this time. WHAT ARE YOU DOING TO HELP YOUR EMPLOYEES THROUGH THIS? We have assisted the employees we’ve let go with filing for unemployment, and we are continuing to provide and pay for their health insurance.
FRANCHISEUpdate
ISSUE 2, 2020
97
