Re:McDonald's is considering rent deferrals for franchisees
by linsomniac on Tuesday March 17, 2020 @05:19PM
(#22610571)
What do you think the alternative is?
What kind of margins do you think most businesses run on? I think it's a very real possibility that many or even most businesses will simply cease to exist if they have to pay 3-6 months of rent on a space they are making 0 revenue on.
My statement was not based on margins, but on these alternatives: eating 3 months of rent and getting 9 months of rent after that, or asking for (and possibly not getting) 3 months of rent, then getting 9 months of NO rent because the business is closed. 9 months of rent being better for margins than 0 months of rent.
But, I'm not of the opinion that landlords get screwed here. There's probably going to have to be this sort of deferment on a massive scale to really jump-start coming out of this. I'd imagine the landlord would also be getting breaks from their upstream.
What kind of margins do you think most businesses run on? I think it's a very real possibility that many or even most businesses will simply cease to exist if they have to pay 3-6 months of rent on a space they are making 0 revenue on.
My statement was not based on margins, but on these alternatives: eating 3 months of rent and getting 9 months of rent after that, or asking for (and possibly not getting) 3 months of rent, then getting 9 months of NO rent because the business is closed. 9 months of rent being better for margins than 0 months of rent.
But, I'm not of the opinion that landlords get screwed here. There's probably going to have to be this sort of deferment on a massive scale to really jump-start coming out of this. I'd imagine the landlord would also be getting breaks from their upstream.