National restaurant chain Cheesecake Factory revealed in a filing with the SEC that it has furloughed 41,000 restaurant employees nationwide which includes waiters, waitresses, bartenders and kitchen cooks. The company employs 46,000 people overall.
The furloughed staff members will retain their benefits eligibility and insurance until June 1, 2020 and will be provided a free daily
meal from their restaurant.
Cheesecake Factory also confirmed it won’t pay rents to landlords starting on April 1 due to mandated shutdowns of dining rooms in most states. Cheesecake Factory has 206 locations in the U.S. and Canada. The company says it is in negotiation with landlords about deferring, abatement and possible restructuring of rent agreements.
Many restaurants remain open for takeout and delivery via Doordash but with a much smaller staff. Cheesecake Factory is currently offering a free slice of cheesecake with takeout or delivery orders of $30 or more.
The company also announced its executive officers have elected to reduce their 2020 base salaries by 20% effective April 1, 2020. In addition, the company’s Board of Directors has elected to take a 20%
reduction in annual cash retainer fees.
