Operations

Racial turmoil shuts 87 Cheesecake Factory restaurants

The operations were fully or partially closed as reopened units saw sales climb back to 75% of pre-COVID levels.
Photograph: Shutterstock

The Cheesecake Factory said it closed or cut back the operations of 87 restaurants last weekend because of the demonstrations and riots that followed the death of George Floyd.

The full or partial closings of nearly half the chain came as the brand continued to reopen dining rooms that were forced to close by the COVID-19 crisis. The 34 Cheesecakes offering limited dine-in service are generating 75% of their pre-pandemic levels, the company said in a business update released Tuesday afternoon. The volume reflects “continued strength in off-premise sales and building dine-in business,” Cheesecake said.

Most of the chain’s other branches are offering takeout and delivery as they await a go-ahead from their host states to resume table service. Their sales are averaging about $77,000 per week, or the equivalent of $4 million per year.

The protest-related closings on Saturday and Sunday contributed to a 63% drop in same-store sales for the fiscal second quarter ended May 31.

Cheesecake also owns and operates the North Italia casual chain and the various brands within the fold of Fox Restaurant Concepts, an independent-restaurant group that Cheesecake purchased last year. In total, Cheesecake’s portfolio includes 294 restaurants. About 25% of that group is currently offering limited dine-in service, according to the company.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

For Starbucks, 2 years of change hasn't yielded promised results

The Bottom Line: The coffee shop giant’s sales struggles worsened earlier this year, despite a flurry of efforts to improve operations and employee satisfaction.

Food

Nando's Americanizes its menu a bit as U.S. expansion continues

Behind the Menu: Favorites like mac and cheese, bowls and salads join the fast casual’s Afro-Portuguese-rooted dishes, including the signature peri-peri chicken.

Financing

The consumer is cutting back, but not everywhere

The Bottom Line: Early earnings from major restaurant chains suggest the consumer has taken a distinct turn for the worse so far in 2024.

Trending

More from our partners