Tuesday, 29 September, 2020

Coronavirus: McDonald’s seeks rent cut from UK landlords



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Reuters

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McDonald’s has closed all its retailers in the British isles

McDonald’s is in talks with some of its landlords in the United kingdom about reducing hire payments as the quick food items chain prepares to reopen some of its web sites.

Enterprises experience their next quarterly rent bill on 24 June when they are because of to pay for the subsequent a few months.

McDonald’s explained it has paid in total for the present-day quarter.

On the other hand, it claimed that “offered the unprecedented circumstance”, it was in talks with landlords about how they could “present support” on lease.

McDonald’s has shut all its outlets in the United kingdom because of the coronavirus pandemic.

A spokesman for the firm said: “We have opened dialogue with some of our landlords to focus on how they could offer you aid on hire and provider fees for a small interval because of to our restaurants not trading.”

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McDonald’s designs to reopen 15 outlets in the Uk for delivery only expert services on 13 Could.

Other food stuff chains these as Burger King and Yo! Sushi did not pay rent to landlords in the British isles when it fell because of in March.

The govt has implemented some steps to assist enterprises who are battling to shell out their rent.

But purchasing centre-owner Intu said not long ago that it was looking at legal action towards some large brand names who have revenue but are “not partaking” in hire negotiations.

Intu, which owns Manchester’s Trafford Centre and the Lakeside in Essex, declined to name the brand names.

In April, the British Retail Consortium and the British Property Federation each wrote to Chancellor Rishi Sunak searching for much more guidance for outlets and landlords.

Impression copyright
Reuters

Impression caption

McDonald’s ideas to reopen some Uk web pages in May well for shipping-only orders

They want the government to assistance a “furloughed space grant plan” exactly where firms would shell out some rent, landlords would concur to a reduction and the point out would make-up the shortfall.

A spokesman for the Treasury explained: “We recognise the recent difficulties dealing with business landlords and the important influence modern improvements are owning on their small business styles. We also recognise that numerous landlords are doing work closely with tenants to discover remedies that operate for both of those functions.”

“Our deal of assist for businesses currently includes our new bounce back again loans, which present quick and effortless assistance for qualified providers that is fascination-cost-free for the first 12 months, our career retention plan and other steps such as protecting professional tenants from eviction.”

Previous 7 days, McDonald’s revealed that the coronavirus outbreak had despatched 1st quarter like-for-like sales down 3.4%.

It reported about three quarters of its outlets across the planet remained opened and were being serving folks by means of push-throughs, shipping or takeaway expert services.

But the British isles is amid a number of of its markets exactly where it has temporarily shut all of its web pages. Other individuals consist of France, Italy and Spain.



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