Ruths Chris Steak House Gets $20M in Covid Aid

The owner of the high-end Ruth’s Chris Steak House chain is among the first public companies to disclose it has received a government-backed loan to keep people on its payroll.

Ruth’s Hospitality Group Inc., a company with more than 5,000 workers, received $20 million in forgivable loans on April 7, according to a securities filing. That is four days after the Small Business Administration opened the application window on its $350 billion Payroll Protection Program.

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https://www.wsj.com/articles/ruths-chris-steak-house-gets-20-million-from-coronavirus-aid-program-11586895864?mod=rsswn

Not familiar with the program 

but that’s what the program was for right? 

business like restaurants that are forced to close. And the loan is only forgivable if it’s used to pay workers salaries correct? The rest needs to be paid back 

And they can use that money to retain thousands of workers and keep the business running.

Good on them using the program as intended.

4 Likes

I don't see the problem?

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androb -

Not familiar with the program 


but that’s what the program was for right? 

business like restaurants that are forced to close. And the loan is only forgivable if it’s used to pay workers salaries correct? The rest needs to be paid back 

If they pay 5000 workers $10/h at 30 hours a week on average... that’s $12m in salary... then they also have to pay rents.. and all the food loss they’re incurring... plus all the bank notes on whatever else they’ve put on credit


any new stores they’ve recently opened or renovated will have had zero revenue coming in 


 


 

You mean businesses are getting loans from the business loan program?

 

Holy shit.

 

I never expected it to go this far....

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CavemanDave -

You mean businesses are getting loans from the business loan program?


 


Holy shit.


 


I never expected it to go this far....

I don't think most people have an issue with this. The problem is with public companies getting bailout money/loans and using those funds for share repurchases, which artificially inflate eps and earn executives tens if not millions of dollars in bonuses/incentives. It is a gross structure that needs to be abolished. 

Favorite steakhouse 

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Excellent restaurant for a chain place. 

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these aren't loans, they are grants. basically european style socialist make work programs

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Fuck me i could go for a filet on a piping hot plate covered in butter with a side of lobster Mac and cheese. 

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AnthonyWeiner - I don't see the problem?

the optics arent' the greatest - high end steak house that probably needed a lot more $ per employee of the same wage to stay afloat, or at least it may seem that way.


this is what the program was for though.

WikiTheWalrus -

Excellent restaurant for a chain place. 

aren't all the high end chain steakhouses great?  mortons, palm, del friscos, etc.  it's prime steak and fine wine.  hard to fuck that up.

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I've only been once but wasn't too crazy about it.  It also pisses me off to pay for sides.

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Based on OP's recent threads, I have thusly deduced that his screen name is most fittith. 

EFM -
WikiTheWalrus -

Excellent restaurant for a chain place. 

aren't all the high end chain steakhouses great?  mortons, palm, del friscos, etc.  it's prime steak and fine wine.  hard to fuck that up.

When comparing with chain places, yes, but not when comparing with signature restaurants and other high end dining. None of them come close to a Hell's Kitchen or Carnevino (when it was open). I would also put the Golden Steer ahead of any of them.


The only thing that I would say is truy memorable is Del Frisco's butter cake. But even then Ramsey's Sticky Toffee Pudding murders all other desserts on the planet.

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Forgivable?

Douche - 

The owner of the high-end Ruth’s Chris Steak House chain is among the first public companies to disclose it has received a government-backed loan to keep people on its payroll.


Ruth’s Hospitality Group Inc., a company with more than 5,000 workers, received $20 million in forgivable loans on April 7, according to a securities filing. That is four days after the Small Business Administration opened the application window on its $350 billion Payroll Protection Program.


...


TO READ THE FULL STORY


 


 


https://www.wsj.com/articles/ruths-chris-steak-house-gets-20-million-from-coronavirus-aid-program-11586895864?mod=rsswn


And? Do you know the first thing about these loans? Yes, they are forgivable. However, 75% of the amount given must go to payroll. $15 million of that money is going directly to the employees of Ruth Chris, not the owners. They have 8 weeks to give the money of to the employees or they have to pay the loan back. 5 million will be for everything else they lost which probably doesn't even make them whole. 


I don't think most people understand how businesses work. Despite the lockdown, we still have to pay for all the things we paid for minus payroll and supply. That means gas, electric, phone, internet, insurance, rent, ect all still need to be paid, with ZERO money coming in. Despite what leftists think, us business owners don't have millions in the bank. Generally when we have a surplus of money one of two things happens. You buy a larger amount of supply to get a larger discount for buying in bulk or you increase employee pay to keep good employees. Rarely do companies have money on hand to run bad years and in those bad years there is at least some money still coming in. Now there is no money coming in yet these things still need to be paid for. 


Upkeep for a chain like Ruth Chris, would easily run a few million a month.

ttt

This guy's not happy about it. Louis Rossman, computer repair guy that has a shop in NY.

Apparently the loan/grant program was hyped to help small businesses like his, but they're getting left out because banks would rather give the money to larger businesses that make more money and also carry large amounts of debt with them. Can't have a business struggle or go bankrupt when they owe you money. Gotta keep that interest coming in.

Ruth's has 5000 employees, makes 40 million a year, yet somehow they qualify as a small business. Louis said he and all of about 500 businesses that his accountant handles got no response on their loan requests from Chase bank. I can see where he'd be pissed.