Small and independent restaurants are "really hurting" amid the coronavirus pandemic and don't have the benefit of holding enough cash to cover months of expenses, GrubHub Inc (NYSE: GRUB) CEO Matt Maloney said Thursday on Fox Business.
GrubHub recognizes the coronavirus poses a "cash crunch" scenario for independent restaurants, which Maloney said prompted the company to defer certain fees as part of a $100 million relief effort. Behind the scenes, management is active with multiple governments to explain how they can best support restaurants through the coronavirus crisis.
The problem for independent restaurants is that for the most part, once they close doors for a short period of time it's unlikely to re-open, he said. So far, up to 30% of restaurants on the GrubHub platform closed their doors and GrubHub wants to do all it can to prevent others from following suit.
Why It's Important
The U.S. Senate approved a $2 trillion stimulus deal to help support businesses but Maloney said he hasn't "received any guidelines" on when the cash will be infused. Nevertheless, the Trump administration made the "right move" to infuse cash because GrubHub's own stimulus package to independent restaurants can't be sustained forever.
It remains to be seen if customers taking advantage of food delivery options today will remain loyal GrubHub users once the coronavirus passes, Maloney said. It goes without saying GrubHub wants to retain new users but it is unfortunate it had to come at the expense of a "crisis situation."
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