Cameron Mitchell, IBM, Robert Smith discussed on Squawk Pod
In this sheltering at home is done to the communities economic base. Do you think the program needs to be extended and more money needs to get into the Senate tried to pass a bill that would have extended the deadline from June thirtieth. As you know to the end of this year I think Two things one. I think we need to think about this holistically. And how do we not only just repaired but really restore the economic opportunity that we were on the path of of capturing and I think part of that is is a more capital is be driven frankly into the small businesses hands in. Probably give them a little more flexibility in terms of how they spend. It shouldn't necessarily just be seventy five percent for for payroll and twenty five percent for rent utilities. I think should be more flexibility. In the vast majority small businesses their loans typically need to be in the fifty thousand and seventy five thousand dollar range not two million so I think it needs to be extended speak carve out For it specifically for banks under a billion dollars in assets under management that's where the capillary banks where they have more time to process alone because it takes them some time to actually process the loans of the small businesses. Robert maybe a sensitive question. But how do we incentivise workers to go back to work into do it safely and the reason I asked we've had a number of guests on the show over the past week or two from Washington often on the Republican side who say especially among low wage workers that some of the unemployment insurance programs in this country effectively are paying them? More to stay at home. I understand to some degree during Cova but now I think it's important into that that two things we need to make sure it's safe for workers to return to work and I know there's a lot of You know scientists in working number of commissions at the state and federal level to to help think about pathways to get back to work safely but from that side I think most Americans do want to work they. WanNa get back. Engaged in commerce business and trade during days with an important part of that is make sure that we have a very robust set of business businesses for them to go in and and and we don't provide their their duties in their in their their effort. So I think it's important that we really frankly re stimulate the economy And actually frankly invest in technology that will make our businesses more efficient. I don't WanNA waste this crisis by not investing in technology in our banking system and insurance that every American in every American businesses access to robust thanking frankly every business as the ability to leverage technology. So they can grow more effectively And continue to increase. The wage is an opportunity for the employees as the best way for US. Frankly to to get entice folks back to work wherever them asking a question at as a business question as an investor in this world right now Clearly the market is anticipating v-shaped recovery. Are you anticipating the same? Kind of recovery. Though the world I live in as you know address is software. I think what has happened is the digital world has been cooled forward in. Everyone's life At this point in certain segments of the economy I think we will see you know eight more rapid recovery in areas that I'm an in particular and others. I think it's going to take some time. I think we're GONNA have to relearn how he engaged in certain environments and certain environments was revived. So-so for some period of time some social social dynamics of space that we had contemplated before so I think our regional markets are actually going to change quite dramatically trump's We buy goods and services. And I think that we're all going to embrace more effective ways of engaging utilizing and mikey software and technology to to boot business along and probably going to be a reshaping of the supply chain across multiple industries. That's GonNa take some retooling and some effort in a suspend. Be a question how long that takes for that to actually manifest but when you look at valuations today and of course. They're they're pegged off. You're buying private companies but they're pegged off of public market. You say these prices make sense to me. These prices are too high to low what we see as in you chatted about this a few months ago. You mean that the prior to Kovac we had just a massive amounts of liquidity in our markets. Generally and I think as people started to realize that certain industries are getting harder than others in in in this context that there's going GONNA be a rotation to areas. I think are less less less affected. So we've seen segments in sectors in our space for instance where valuations. They took a short term Dropping in our reaccelerating back to the normal or to the rates they were before. There's an argument that again as digital Consumption increases that Argument that despite the Over by too quickly We are about a year who has been about a year so you're year anniversary when you surprise the two thousand. Nineteen morehouse college class. That you'RE GONNA pay off their entire student. Daddy was quite a remarkable moment that I think everybody in the country saw. We applaud you for doing it. I'm curious what you think. Now though about higher education the cost of higher education a lot of parents by the way and students thinking about whether they should be paying for virtual education Some of which may be happening in the fall when you think of all of that. Yeah I think again brought to the forefront we're going to have to rethink education. We've been talking about this for years. You know the what is the value of a a four year degree Versus maybe going in different forms of work studying apprenticeship programs etc as you know we've expanded our ramming for our Internet's programs etcetera really focused on stem education. And I think the dynamic is we will see that since most of our students are now actually learning from home or learning at a distance leveraging technology to do that effectively is going to be one of the critical. And I think there's GonNa be a reshaping inner in Frankie readjustment of our educational dynamic in on. And I think some of that's warranted And I think we should think about what are the most effective ways rest educate our population To dry forward into into the future of opportunity and a lot of it is digital and stem oriented and Russians around you. Know How much value do you get? Being in a university. There is a lot I will tell you. I benefited from myself. That there's certain types of occasions where you can frankly just learn in coating camps Cetera and move forward from that direction. Okay Robert Smith is always good to see you. We appreciate it. We appreciate all the work. You're doing thank you. Thank you for inviting me and continue to get the word out to get the all the best you back next on squad pod. Midwestern restaurant owner Cameron Mitchell on taking the cautious steps of reopening for business. We're expect to reopen and hopefully back to full employment by the end of June or into or July somewhere in that neighborhood. We'll be right back for businesses around the world today isn't a restart it's a rethink. That's why they're partnering with. Ibm retailers are keeping their systems up as millions of orders move online call centers are using IBM Watson to manage an influx of customer questions with AI and solutions built on the IBM cloud are helping doctors care for patients remote. Today we're rethinking. How business moves forward. Let's put smart to work visit. Ibm DOT com slash thing to learn more. Welcome back to squawk pot entrepreneurs all across the country spent years building their businesses. Only to have the coronavirus shut them down. Pretty much overnight. That's what happened to ohio-based restaurant tour Cameron Mitchell and he described dark days when I spoke to him back in March two weeks ago on March third. I was in Washington. Dc by bankers and I expressed them. What a great start to the year we had were up seven percent same store sales record profitability for the first two months of the year. This was March third tomorrow. I believe March nineteenth. We will be completely shut down I laid off forty two hundred people. Mitchell is the founder and CEO of Cameron Mitchell restaurants. Thirty seven of his restaurants nationwide close in March but now select locations across twelve states and DC or beginning to reopen that includes cities like Tampa Orlando Denver. Phoenix Dallas Seymour has also reopened sixteen of its specialty restaurants all located in Columbus Ohio and with pretty significant requirements to ensure safety and social distancing and. It doesn't come cheap. Here's Becky quick. How have things been going for your camera? And what? Where do things stand with your restaurants at this point? Well I think I was using analogy that. It's we were in a major traffic accident in. The company was in trauma and in a coma for the past few months. And we're just now are beginning to come out of that coma. We opened up about two thirds of our restaurants here last night and over the next week here across America. And it's a were we. I think we're going to survive but it's going to be a while before we get to the hospital. Let's talk about how you did that because I know it's very difficult for a restaurant to reopen. Once a shutdown once the employees are gone once. There's no food there you have to go back and re clean things. How did you get the money for that? And how many people are actually working now? I'll tell you the PGA money which we received in our case worked exactly as it was supposed to help give us the safety nets and the ability to help get US reopen And so we've hired back. Currently about fifty percent of our workforce those will get up to full employment levels as we continue to open restaurants. Were still waiting guidance. In the major metropolitan areas L. A. Chicago New York Boston DC Etcetera. But we're getting there and we expect those restaurants to be open and hopefully back to full employment by the end of June or into Or End of July somewhere in that neighborhood. But I we're working.