A statue of a horse stands at the entrance to a PF Chang restaurant in Schaumburg, Illinois.
Scott Olson | fake pictures
Large restaurant chains received millions in loans from the Paycheck Protection Program, according to data released Monday by the Small Business Administration and the Treasury Department.
Companies in the food and lodging services sector received more than $ 42 billion in program funds, representing 8.07% of total loans. Approximately $ 130 billion of the program’s $ 660 billion remains at stake.
The federal program was intended to help struggling companies with fewer than 500 workers, but large hotel and restaurant chains obtained exemptions after the coronavirus pandemic overturned their industries. In April, Shake Shack, Ruth’s Chris, and several other publicly traded companies repaid their loans after receiving a backlash for taking money from the rapidly depleted fund.
The famous Dave’s of America and Granite City Food & Brewery, both owned by BBQ Holdings, received loans of between $ 5 and $ 10 million each. Its parent company, which was one of the few public companies to receive funds, has a market value of $ 30 million.
Other well-known restaurant receivers include full-service restaurant chains Ruby Tuesday, Ted’s Montana Grill, PF Chang’s, and TGI Friday’s.
The full-service industry has been slow to recover, even as many states reopen indoor and outdoor dining. Full-service restaurant transactions fell 25% in the week ending June 28 compared to the prior year period, according to the NPD Group.
Many of the large full-service chains that received PPP loans are backed by private equity firms. TriArtisan Capital Advisors owns the majority stake in TGI Friday’s, for example. The chain was supposed to go public this year through a merger with a special-purpose acquisition company, but the deal fell apart in April.
Fast-casual chains, including Dig Inn, Five Guys, Mod Pizza, and Chopt, received PPP loans of at least $ 5 million. Bluestone Lane, a venture capital-backed coffee chain, also took out a loan of at least $ 5 million.
While large fast-food chains did not request APP funds, their franchisees did. Operators of some McDonald’s, Wendy’s and Yum Brands locations received loans in the range of $ 5 million to $ 10 million. The fast food industry has recovered faster than the restaurant industry overall, with transactions declining just 13% in the week ending June 28, according to the NPD Group.
Access the full list of companies that received PPP loans of more than $ 150,000 here.
Correction: This story was updated to reflect that the data was released by both the Small Business Administration and the Treasury Department and included all Pay Check Protection Program loans to date, not a specific round.
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