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> The hardest thing about opening a restaurant is staying open long enough for people to find out about them, so it's in the landlord's best interest not to evi

> The hardest thing about opening a restaurant is staying open long enough for people to find out about them, so it's in the landlord's best interest not to evict restaurants that will likely do ok once the restrictions are lifted. Have you ever started a restaurant business? You seem to have an overly simplistic view of how things actually work. Restaurants are really hard to run, 90%+ of them fail in the first year and profits are very slim. What you are saying is technically true, but is so simplistic that it's absurd. How does this sound? "the hardest part of starting a saas company is staying open long enough for people to find out about them". Also, rent is usually by far the biggest expense of a restaurant. Current government aid programs don't cover rent (sure 25% of PPP may be used towards rent, but that's a pittance that won't make a difference). Restaurants are going out of business in droves because they can't pay rent.

credit_guy 7y ago
Can't restaurants file for Chapter 11, restructure their debt (i.e. late rent) and continue operating? Airlines do it all the time. Is the legal expense too high? Will their landlords evict them? Some will, but then they need to find new tenants. Many landlords will probably be willing to work out a deal.
- ta1234567890 7y ago
  Most landlords are not being open to working out deals as they are holding on to the same optimistic sentiments expressed in so many comments here. They think their properties are very valuable and that they'll find new tenants without too much trouble. Technically any business can file for chapter 11, but it costs about $100k+ minimum in legal fees (at least in California). Most small businesses cannot afford that.
  - Exmoor 7y ago
    It will certainly be interesting to see how long it takes landlords to realize that there's about to be a ton of retail space on the market and that trying to absorb a couple months of not collecting rent from their businesses may make them more money in the long run than forcing a business to close and enduring 8/12/24 months of having an empty storefront.
    - ta1234567890 7y ago
      Well, that's exactly what a recession looks like. Almost everyone will be worse off, it's going to be really hard for millions of people and businesses. Even for the large companies that are getting bailed out now.
learc83 7y ago
>What you are saying is technically true, but is so simplistic that it's absurd. Of course it's simplistic, but it's the primary factor if your choice as a landlord is between forgiving rent for a few months for a proven restaurant, or evicting them and looking for a new unproven tenant. >Restaurants are going out of business in droves because they can't pay rent. Again, landlords can forgive rent, and in this situation, it's in their best interest to do so. Sure not all of them, but the smart ones will.
- JoeAltmaier 7y ago
  I'm wondering how long landlords can hang on, with no income. They can 'go belly up' too.
  - learc83 7y ago
    Very true. But in that case it moves up the chain to the bank to forgive mortgage payments, or for the government to hold off on collecting property tax. The same logic holds for them as it does for the landlords. Better to deal with people who are proven to pay in all but the most extreme circumstances.

credit_guy 7y ago

Can't restaurants file for Chapter 11, restructure their debt (i.e. late rent) and continue operating? Airlines do it all the time. Is the legal expense too high? Will their landlords evict them? Some will, but then they need to find new tenants. Many landlords will probably be willing to work out a deal.

ta1234567890 7y ago
Most landlords are not being open to working out deals as they are holding on to the same optimistic sentiments expressed in so many comments here. They think their properties are very valuable and that they'll find new tenants without too much trouble. Technically any business can file for chapter 11, but it costs about $100k+ minimum in legal fees (at least in California). Most small businesses cannot afford that.
- Exmoor 7y ago
  It will certainly be interesting to see how long it takes landlords to realize that there's about to be a ton of retail space on the market and that trying to absorb a couple months of not collecting rent from their businesses may make them more money in the long run than forcing a business to close and enduring 8/12/24 months of having an empty storefront.
  - ta1234567890 7y ago
    Well, that's exactly what a recession looks like. Almost everyone will be worse off, it's going to be really hard for millions of people and businesses. Even for the large companies that are getting bailed out now.

learc83 7y ago

>What you are saying is technically true, but is so simplistic that it's absurd. Of course it's simplistic, but it's the primary factor if your choice as a landlord is between forgiving rent for a few months for a proven restaurant, or evicting them and looking for a new unproven tenant. >Restaurants are going out of business in droves because they can't pay rent. Again, landlords can forgive rent, and in this situation, it's in their best interest to do so. Sure not all of them, but the smart ones will.

JoeAltmaier 7y ago
I'm wondering how long landlords can hang on, with no income. They can 'go belly up' too.
- learc83 7y ago
  Very true. But in that case it moves up the chain to the bank to forgive mortgage payments, or for the government to hold off on collecting property tax. The same logic holds for them as it does for the landlords. Better to deal with people who are proven to pay in all but the most extreme circumstances.