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Ruth’s Chris, Fogo de Chao and other restaurant groups that received Paycheck Protection Program loans

Funding runs dry for small business, but chain borrowers argue their restaurants count too

Holly Petre, Assistant Digital Editor

April 23, 2020

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April 23, 2020 at 5 p.m. EST: Ruth's Chris Hospitality Group has just announced plans to return the $20 million loans from the Paycheck Protection Program. The Change.org petition recieved over 250,000 signatures.

April 23, 2020: This story has been updated with additional chains that have since announced they recieved loans and/or returned them including Sweetgreen, Kura Sushi, Rave Restaurant Group and Meritage Hospitality Group.

When the Paycheck Protection Program, or PPP, launched on April 3, the race was on to secure a piece of the $349 billion in economic relief set aside for small businesses as part of the $2 trillion Coronavirus Aid, Relief and Economic Security, or CARES Act.

Though the forgivable loan program was designed for businesses with 500 or fewer workers, restaurant and hotel operators could apply if they have 500 or fewer at any one location. The goal was to allow franchisees and small chains to apply with the argument that preserving those jobs are also vital to local economies.

Within less than two weeks, the PPP ran out of money, leaving many small businesses out of luck.

Those who were able to secure loans, however, included several large restaurant chains, which caused an uproar. Earlier this week Shake Shack made headlines when CEO Randy Garutti announced the company would be returning the loan. On April 23, Sweetgreen founders announced they would return their own $10 million loan from the PPP in a Medium post to their comminuty.

Ruth’s Chris Hospitality Group received $20 million in PPP loan money, one for each of two subsidiaries. The news prompted a Change.org petition calling on the steakhouse chain to also return the funding.

The privately-owned Brazilian steakhouse chain Fogo de Chao also won $20 million in PPP loans.

“The scale of our business doesn’t matter,” Barry McGowan, CEO of Fogo de Chao, told the Wall Street Journal “All of our restaurants count.”

Lawmakers, meanwhile, appear to have reach an agreement on adding more funding to the program. Early reports indicate specific funding will be set aside for small, minority owned and rural businesses.

See the ten major restaurant groups that received PPP loans and their most recent financial statements.

About the Author

Holly Petre

Assistant Digital Editor

Holly Petre is a digital editor for Nation’s Restaurant News as well as the host of NRN’s podcast, Extra Serving, and producer for Informa Restaurant and Food Group’s other three podcasts, One On One by Food Management, Off the Shelf with SN and In the Kitchen with Bret Thorn. Holly holds a Bachelor of Fine Arts with a concentration in Sculpture, fibers and Material Studies and Ceramics from the School of the Art Institute of Chicago. A native New Yorker, Holly enjoys her place on staff as the resident pop-culture expert and millennial with a sassy attitude and great sense of style.

Holly Petre’s work on Nation’s Restaurant News and Restaurant Hospitality often covers marketing and trends, either aimed-at or examined-through the millennial mindset. Holly is responsible for introducing TikTok and Twitch to NRN and RH readers as well as explaining terms like “Karen” to staff and readers alike. She also spends her time on staff trying not to make every headline a pun.

Holly Petre hasn’t spoken at any events or on panels, but she is readily available with a killer shoe wardrobe and several witty quips.

 

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