Will These Rochester Businesses Make It?
New York (KROC AM News) - Will several familiar and local eateries survive the economic hardships caused by COVID-19-related restrictions?
At least one financial ratings firm is raising questions - and even providing their odds of survival.
USA Today has published an article based on a report from Standard and Poors that includes a list of the most vulnerable restaurant chains.
Three names familiar to Minnesotans are on the list - Applebee’s, Denny’s and Outback Steakhouse.
Here is a quick summary of the S&P report in the USA Today story:
“The odds that the largest publicly traded U.S. restaurants will default fell in recent months as states allowed businesses closed by the coronavirus pandemic to reopen. But the ongoing financial hits from the virus and uncertainty over whether laid-off consumers will receive expanded unemployment benefits continue to pressure the industry as more companies enter bankruptcy.”
S&P gives these odds on possible defaults of the three companies:
- Applebee’s - 11.3%
- Denny’s - 11.9%
- Outback Steakhouse - 13.2%
The USA story says even as restaurants are reporting financial improvement since the easing of restrictions in Minnesota and other states, dark clouds are on the horizon. One major concern is the winter season that will affect outdoor seating in Minnesota and other states.