U.S. markets closed

'Dose Of Reality': Shake Shack, GrubHub Execs Offer Business Updates

Jayson Derrick

Benzinga is covering every angle of how the coronavirus affects the financial world. For daily updates, sign up for our coronavirus newsletter.

Unlike the 9/11 terror attacks, there is no "green light" that signals to the world it's time to go back out and resume life as best as possible, Shake Shack Inc (NYSE: SHAK) founder Danny Meyer said on CNBC Friday morning.

Shake Shack: 'Dose Of Reality'

There are an estimated 600,000 restaurants across America and one of the overlooked tragedies of the coronavirus crisis is the industry can't fulfill its basic role of helping people get together with others, Meyer said. But more important in the current environment is keeping people healthy now and through the epidemic until the industry can resume operation.

Even when the industry can resume as usual from a health standpoint, it could take at least a month for restaurants to either welcome back old workers or train new ones.

"I'm not complaining about that, I'm just trying to share a dose of reality," he said.

Grubhub CEO: 'Very Concerned' About Independents

Third-party restaurant delivery company GrubHub Inc (NYSE: GRUB) is "very, very concerned" about independent restaurants across the country, CEO Matt Maloney said on CNBC. A lot of municipalities placed restrictions on how restaurants can operate and Maloney and his team have been lobbying cities to allow restaurants to keep kitchens open for delivery and take-out orders.

Independent restaurants forced to shut down for a few months are unlikely to ever re-open, the CEO said.

On Grubhub's end, the company is finding it "easier" to recruit drivers to its platform. There are a lot of people willing to earn extra income by delivering food, even in the current environment.

In cities where 30% of all restaurants are completely closed, Maloney said Grubhub sees five times more inbound overall orders.

Related Links:

Domino's CEO Says Pizza Chain Is Mostly Open For Business In US

Surveys, Stats Paint Difficult Environment For Restaurant Industry

See more from Benzinga

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.