Economy Ruth's Chris received bailout then furloughed employees while paying mgnt and execs

[skysolo]

Ruth's Chris had $42.2 million in profits last year, spent $5.2M buying its own stock, and pays its CEO $6.1M. It also has $86M in cash reserves It just received $20M in taxpayer money from a fund meant to keep "small businesses" afloat.

The purpose of the Paycheck Protection Program is to keep people employed But a Popular Information investigation reveals that Ruth's Chris has furloughed nearly all of its restaurant workers and appears the $20M will be spent paying managers & executives.

Many small businesses on the brink of collapse were shut out of the program because it ran out of money. However, companies like Ruth's Chris with preexisting banking relationships, were put at the front of the line.

https://www.cnn.com/2020/04/19/business/small-businesses-ppp-loans-chain-restaurants/index.html

https://www.gq.com/story/ruths-chris-small-business-steakhouse



A mod was arguing that the stimulus should be means tested because people who don't need the money would receive it. All the while we give infinite money to corporations who don't need it.

 

[reveler]

let them eat steak

 

[TheFirstEMP]

And on the other side, Shake Shack returned the bailout money they received. Be like Shake Shack.

 

[weed]

Legum? steakhouse?

 

[Stop Being Greedy]

The Paycheck Protection Program is meant for businesses with fewer than 500 employees and is supposed to have a $10 million max. How would Ruth's Chris qualify for that loan and get 20?

Pretty frustrating to read this shit, as someone who has applied for the PPP loan.

 

[Rematch]

In regards to the CEO, the company pays her $650,000. She apparently makes the rest through investment. It's just a pet peeve of mine when people argue investment returns as salary.

 

[Richmma80]

Their food is barely better than Applebee's. Overrated restaurant.

 

[genecop]

Did anyone actually think the people who needed the bailout would get it? Come on, that’s not the AMERICAN Governments way...

 

[HomeCheese]

Crappy food there so now I have another reason to not go.

 

[genecop]

Their food is barely better than Applebee's. Overrated restaurant.

Yea but they have a better photographer...ever see that promo pick?

 

[skysolo]

let them eat steak

They're outta bread. Let's sell them some bread.

 

[reveler]

ruth's chris is extremely overrated. no wonder they need loans.

 

[Nate banged my mom]

Never heard of em are they even in NY?

 

[panamaican]

The Paycheck Protection Program is meant for businesses with fewer than 500 employees and is supposed to have a $10 million max. How would Ruth's Chris qualify for that loan and get 20?

Pretty frustrating to read this shit, as someone who has applied for the PPP loan.

Because many of the actual restaurants are franchised. So the franchisees are furloughing staff but the franchisor is nabbing government money to keep it's staff (corporate management) on payroll. And the franchisees can't get money to keep staff because the fund is out of money but is the franchisor sharing it's money with them? Nope.

It's pretty funny so long as you ignore the complete abuse of government intent.

 

[cincymma79]

Because many of the actual restaurants are franchised. So the franchisees are furloughing staff but the franchisor is nabbing government money to keep it's staff (corporate management) on payroll. And the franchisees can't get money to keep staff because the fund is out of money but is the franchisor sharing it's money with them? Nope.

It's pretty funny so long as you ignore the complete abuse of government intent.

Good luck explaining franchise to these folks

 

[Sir Burton]

How does the saying go? Something like “People currently in their second or third home want you to get back to your second or third job.”

 

[Sir Burton]

Did anyone actually think the people who needed the bailout would get it? Come on, that’s not the AMERICAN Governments way...

House Small Business Committee Chairman Nydia Velázquez called the White House to release information about loan recipients to root out any signs of favoritism and mishandling.

something tells me she’s not going to get this request fulfilled.

 

[Big Nasty Edison]

All I see here is a bunch of libz mad at Ruth Chris' execs successful strategy in these trying times.

 

[brackis1]

And on the other side, Shake Shack returned the bailout money they received. Be like Shake Shack.

oh please are you really falling for this? They wasted the bailout and the governments time, when it could have gone to people who need it, so they could hog some attention.
Fuck them too.

Imagine if some fucking asshole wasted time at a social service office, bogged down the line, then tore up their welfare check on video as a viral stunt. Would that be cool too?
(this is regarding Shake Shack asking for a loan then bragging they didn't take it)

 

[OverCoronavirus Pressure]

You didn't build that