There aren’t any real close to me but I’ve seen them and ate at one. The food wasn’t very good, didn’t like the place at all, but next time I see one that’s open I’m going to buy some food from them anyway.
They were not forced into applying for the PPP loan/grant.
Investigative reporting is naming and shaming larger corporations for taking the money. Those that see this as an opportunity for turning a negative news story into “good PR” are returning the money.
One notable company who I expect will do the same before too long, if they haven’t already, is Quickbooks. There are others.
Now, having said that, is Shake Shack going to retain their employees having given back the $10M? Because if so, then that is commendable. Otherwise, it’s PR spin.
It’s the natural course of any business to take a deal like that. It is still commendable to think better of it and return the money. PR or not, they returned $10 million they didn’t need as much as others do.
They did it because they were shamed into doing so, not because they felt it was the right thing to do. At best it’s a pass.
In the article, Shake Shack has already laid off 1000 employees. Also, they are sitting on over $100 million in cash reserves and investors have signaled they are willing to cough up more if needed. The $10M was meant for smaller companies and meant for companies to try to hold onto employees. Neither applies to Shake Shack as far as I can tell.
They were getting antsy on the negative press and this is them trying to jump ahead. Time will tell if they got in early enough, but from the peanut gallery it definitely appears to be PR spin more than anything else.
You guys are right in so many ways, but no matter the real motivation, they did the right thing in the end. We don’t see businesses admitting their mistakes and doing the right thing very often. They deserve some credit for that. I have to admit it wouldn’t be a lot of credit because they didn’t have to take the loan in the first place, but if there are other businesses that do this then Shake Shack can be given a little credit for paving the way also.
But even if it’s just a wash, they did return the money when so many more won’t.
And many more never took the money.
They definitely deserve the most credit.
Ok, I suppose that’s fair. They get some credit for doing so, even if it was instigated by public shaming.
That does put them ahead of other companies that won’t, even with public outcry.
Still, that’s an awfully low bar to clear - “Not as Terrible as Other Companies” isn’t a ringing endorsement. Not enough to induce me to get food from one, anyway.
I guess I’ve reached the level of cynicism where “Not as Terrible as Other Companies” sounds better than average.
They were gonna take the $10M and then get forgiven on the loan so they’d get a free $10M bonus that they could then distribute to their execs. AND it meant that other, smaller companies that actually needed the money couldn’t get it.
Fuck Shake Shack; don’t give them any more of your money. They didn’t do anything good here.
One of the stipulations of the PPP is that the company that has applied for the program MUST retain it’s employees for a subsequent 8 week period. So this may be another reason why SS decided to hand back the money. Failing to comply requires them to pay back the loan within 2 years and prevents them from having the loan converted to a grant (in full or part).
So yeah… it’s not a great look if you peel back the thin veneer or corporate responsibility.
Turns out many large chains have also taken the money . Ruth's Chris and other chain restaurants got big PPP loans when small business' couldn't | CNN Business
Then you have Ruth’s Chris who structured their application between corporate divisions to get the $10M maximum twice.
That returned check is in Orange Anus’ pocket as we all type.
Moderator Warning
Keep the political potshots out of this forum. This is an official warning.
Colibri
Quarantine Zone Moderator
Moderator Note
Let’s save invective like that for the Pit. No warning issued.
Colibri
Quarantine Zone Moderator
With approx. 1/2 billion in revenue, Shake Shack wasn’t the targeted recipient of the Paycheck Protection Program. It is administered through the Small Business Association. ShakeShack is no longer a small business. But they met the loophole of qualifying for the program, based upon their industry. My guess…some overzealous CFO saw 1% interest money and applied without regard to the public relations aspect.
Who are the idiots who decided that the number of employees to qualify as a small business would be 500? That is straight up bullshit and should never have gotten through. I suspect there are probably bad actors on both sides of the aisle responsible.
It was big business lobbyists that got this loophole in the final bill so that big business could apply for and receive these loans. I mean, come on. Shake Shack has done nothing commendable IMO. This was money that was supposed to “trickle down” to the little people but was impeded by big corporations right out of the gate. I mean come ON. It’s not the “natural course” of any business to take money that wasn’t meant for them. Or it shouldn’t be.