These Larger Restaurant Chains Received Paycheck Protection Program Loans

As the restaurant industry struggles amid dining room closures from the coronavirus, several large restaurant chains have received loans under the Paycheck Protection Program (PPP).

According to information released by the Small Business Administration (SBA) and the Treasury Department, as much as $42 billion was doled out to the lodging and food services industry, making up about 8% of the total PPP loans funded.

The PPP loans under the CARES Act were designated for businesses that were impacted by the coronavirus and had less than 500 employees under their umbrella.

As the PPP loans were starting to trickle in, a handful of restaurants gave the monies back after they drew criticism for receiving loans that were meant for small businesses hurt by the pandemic.

Shake Shack gave back $10 million while Ruth’s Chris, Kura Sushi, and sandwich chain Potbelly gave back $20 million, $6 million, and $10 million, respectively.

In the data released by the SBA and Treasury Department, it was revealed that several larger restaurant chains received PPP loans.

BBQ Holdings owned Famous Dave’s of America and Granite City Food & Beverage each received loans between $5 million and $10 million while Ruby Tuesday also received between $5 and $10 million.

P.F. Chang’s and T.G.I. Friday’s also took in between $5 and $10 million, respectively, while Five Guys, Mod Pizza and Chopt each received $5 million each.

Several franchise operators also applied for the PPP. Franchisees from McDonald’s, Wendy’s, and Yum! Brands, which owns Taco Bell, KFC, and Pizza Hut, were funded with loans that ranged from $5 million to $10 million.

The situation for some restaurants has been grim with hundreds already reportedly filing for bankruptcy protection and more expected to come.

Garden Fresh Restaurants, the owner of Souplantation and Sweet Tomatoes, filed for Chapter 11 and closed all of its restaurants, while Pain Quotidien filed bankruptcy and is looking to sell to Aurify. Chuck E. Cheese also filed for bankruptcy protection.

Stay-at-home orders forced many restaurants to rethink their approach to food service as dining rooms remained closed across the country. Golden Corral, a buffet-style restaurant, now offers cafeteria-style service or family-style dining, while others like Panera have expanded their food options to include groceries.

As much as $130 billion of the PPP’s funding is still available for business loans, CNBC reported.