The former CEO of CKE Restaurants, the parent company of Hardee's and Carl's Jr., says some restaurants simply won't survive the coronavirus outbreak.
"I think you'll probably see some of the weaker companies not around when this is over," Andy Puzder told Cheddar on Tuesday.
Puzder, who is a vocal supporter of President Donald Trump and the author of "The Capitalist Comeback: The Trump Boom and the Left's Plot to Stop It," believes the current stimulus package is likely to help restaurants, but it's long-term trends that will keep them alive.
"I will say that restaurants are a lot better set up to respond to this today than they would have been five or six years ago because now you've got third-party delivery all across the industry," he said. "Almost every company, almost every brand has third party delivery. That's a big deal in this crisis. I think a lot of people are ordering food online. It's very important."
He also said he's seeing an uptick in drive-through and curb-service options at chains formerly invested in the sit-down experience, such as Outback Steakhouse offering delivery.
"I think you're seeing restaurants striving to do everything that they can to survive," he said.
One upside, according to the former CEO who had touted the strength of the economy despite the coronavirus earlier this month, is that the stimulus package accounts for restaurants' business model.
The $2.2 trillion bill makes an exception for restaurants and hospitality companies, in which they can access small business assistance for individual locations, even if their whole company cumulatively has more than 500 employees.
While Trump had a bit of a "slow start," Puzder said, he's doing well in addressing the crisis. "I think his response has been great," he concluded.
Disney content has gone dark on YouTube TV, leaving subscribers of the Google-owned live streaming platform without access to major networks like ESPN and ABC. That’s because the companies have failed to reach a new licensing deal to keep Disney channels on YouTube TV. Depending on how long it lasts, the dispute could particularly impact coverage of U.S. college football matchups over the weekend — on top of other news and entertainment disruptions that have already arrived. In the meantime, YouTube TV subscribers who want to watch Disney channels could have little choice other than turning to the company’s own platforms, which come with their own price tags.
President Donald Trump said he has decided to lower his combined tariff rates on imports of Chinese goods to 47% after talks with Chinese leader Xi Jinping on curbing fentanyl trafficking.
Universal Music Group and AI platform Udio have settled a copyright lawsuit and will collaborate on a new music creation and streaming platform. The companies announced on Wednesday that they reached a compensatory legal settlement and new licensing agreements. These agreements aim to provide more revenue opportunities for Universal's artists and songwriters. The rise of AI song generation tools like Udio has disrupted the music streaming industry, leading to accusations from record labels. This deal marks the first since Universal and others sued Udio and Suno last year. Financial terms of the settlement weren't disclosed.
