Cheesecake Factory Refuses To Pay Rent Amid Coronavirus Crisis

It's no secret the American economy is going through difficult times during the Coronavirus outbreak. Due to social distancing measures enacted by multiple state governments, all "non-essential" businesses have been forced to close temporarily until it is safe for people to go outside again. While social distancing is the most effective way to stem the wave of the virus, it has the unfortunate side effect of bringing many businesses to the brink of permanent closure and a soaring unemployment rate.

This has led some to call for a rent freeze or, barring legislation, an outright rent strike. Without income, multiple businesses and people will be unable to pay their landlords. No such legislation has passed yet, and with the first of the month approaching, the first shot fired in the rent strike movement came from an unlikely source: The Cheesecake Factory.

Cheesecake Factory CEO David Overton sent a letter to over to landlords informing them that none of Cheesecake Factory's 294 locations will be paying rent this month due to the extraordinary circumstances presented by the Coronavirus quarantines. An excerpt from the letter reads:

Due to these extraordinary events, I am asking for your patience and, frankly, your help. Unfortunately, I must let you know that The Cheesecake Factory and its affiliated restaurant concepts will not make any of their rent payments for the month of April 2020. Please understand that we do not take this action or make this decision lightly, and while we hope to resume our rent payments as soon as reasonably possible, we simply cannot predict the extent or the duration of the current crisis. We are continuing to evaluate the implications of this situation on our business and we realize the impact this action will have on our landlords. We appreciate our landlord's understanding given the exigency of the current situation

The stance galvanized supporters of a rent strike, who found themselves in unlikely solidarity with the Cheese Factory.

While Cheesecake Factory's refusal to pay rent is inspiring for those demanding a rent strike, others noted the unfortunate reality that the brand is likely large enough to pull off such a move, but the same luxury likely will not extend to smaller restaurants and mom and pop shops.

Here's hoping people stay safe and small businesses can remain financially afloat during this tough period.