Recipe Unlimited Corporation, Canada’s largest full-service restaurant group, announced a $35 million rent subsidy program to assist their franchise network with direct rent support through the end of 2020.
The rent subsidy program provides franchisees additional economic support and allows more time for franchisees to recover financially. This is in addition to a new royalty subsidy program the company previously announced.
In response to the COVID-19 pandemic, Recipe implemented the following actions:
- The company’s board of directors and CEO voluntarily suspended their compensation;
- Recipe’s senior leadership and all support centre teams agreed to paycuts;
- All dividend payments to shareholders and stock buybacks were cancelled;
- Recipe suspended the collection of royalty fees and advertising payments from their franchisee network;
- Wage premiums to employees continuing to work in corporate restaurants;
- Recipe and its franchisees donated more than $1.5 million to charities, front line workers, and food banks across Canada; and
- Supporting the launch of the #onetable industry campaign, in support of independent Canadian restaurants.
Recipe continues to negotiate with landlords for assistance with ongoing rent support until sustainable sales levels return.
“It is my hope our commercial real estate landlords will recognize everyone has a responsibility to do the right thing,” said Recipe CEO Frank Hennessey. “We need them to do their part to assist restaurant owners and other retailers who have been, and will continue to be, severely impacted by this crisis.”
Recipe is committed to Canada’s economic recovery and bringing its 60,000 employees fully back to work.
“I want to thank all of our franchisees for their continued support through this event, and our board of directors for their enthusiastic support of our rent subsidy program,” Hennessey added. “All of our restaurants have prepared their plans for reopening which include modified floor plans for social distancing, heightened sanitation practices, wellness checks for all teammates, and other practices to ensure our guests feel confident in our dining rooms.”