Burger King is Among Several Chains Refusing to Pay Rent
We are living in extraordinary times. A period where Burger King and other restaurants are not willing to pay their rent. That’s a huge problem because as the saying goes, if you owe the bank a million dollars, that’s your problem. If you owe the bank 500 million, that’s the bank’s problem.
Burger King is just one restaurant that will not pay its rent for the month. There’s several other chains that will not pay rent according to a recent report by Property Week. The publication notes that Burger King, Carluccio’s and Yo! Sushi are just a small portion of several brand names that refuse to send money to landlords in these COVID-19 times. These restaurants are planning on sending the money to those who work for them. These restaurants may use it for other purposes as well.
Why Would Burger King Hold Back?
Remember that you feel safer holding back your rent when you’ve got the government behind you (in some form or fashion). Reports indicate that businesses who find themselves in distress due to this worldwide pandemic will not suffer immediate consequences from lack of payment. Furthermore, companies such as Burger King and similar brands have more clout because of their worldwide presence.
Tough Times for Landlords
Landlords, especially those that are leveraged to a certain extent will find themselves in a bit of a squeeze. Public real estate companies find themselves in the dumps from a stock perspective and private landlords must find ways to stay solvent in the immediate future.
Property owners of all stripes are going to strap in for tough times in the near future while holding various obligations of their own.
Everyone is struggling to a certain extent. Wash your hands and stay safe indoors.