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

Despite their complaints, customers keep flocking to Chipotle

The Bottom Line: The chain continued to be a juggernaut last quarter, with strong sales and traffic growth, despite frequent social media complaints about shrinkflation or other challenges.

Operations

Hitting resistance elsewhere, ghost kitchens and virtual concepts find a happy home in family dining

Reality Check: Old-guard chains are finding the alternative operations to be persistently effective side hustles.

Financing

The Tijuana Flats bankruptcy highlights the dangers of menu miscues

The Bottom Line: The fast-casual chain’s problems following new menu debuts in 2021 and 2022 show that adding new items isn’t always the right idea.

Trending

More from our partners