Cnbc, Becky Quick, Cameron Mitchell Restaurants discussed on Squawk Pod
You're listening to Squawk Fahd. Good morning and welcome back to Squawk box right here on CNBC I'm Andrew Ross Sorkin along with becky quick and Scott Wapner who's hanging out with us today Joe is off welcome to you Scott all right thanks update now on stimulus talks in Congress trump administration officials and house speaker Nancy Pelosi are set to resume negotiations today on their competing visions of bill a sticking point continues to be the federal boost to unemployment assistance which was set at six hundred dollars per week in March but lapsed on Friday Treasury Secretary Steven Mnuchin said yesterday that he and Speaker Pelosi are on the same page about the need for direct cash payments of twelve hundred dollars to most Americans. We have the perfect guest to talk about just that joining us right now on the topic of small business and what he's seeing is Cameron Mitchell. He's the founder and CEO of Cameron Mitchell Restaurants, which owns nearly sixty establishments across the United States and Cameron. It's great to see you. It's been a while since we've spoken good morning break plagiary back with you today. So. The first time we talked to you was in the midst of the shutdown when all of your restaurants had been closed down and you laid out a plan for what you were hoping to see. Two weeks ago on March third, I was in Washington DC to meet with my bankers and I expressed them what a great start 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 Eighteenth we will be completely shut down I laid off forty, two hundred people on Monday. The last time we talked to you things we're looking pretty good business was was back and was booming. I think we're going to survive, but it's going to be a while before we get to the hospital we expect to be open in hopefully back to full employment by the end of June or into or end of July somewhere in that neighborhood. So what's happening right now? The best way equate it to is we're in a hurricane in the first. Landfall, the hurricane was back in March fifteenth and. It was is detrimental as it was terrible. It's was We end up getting the money and we're able to get out and get open and it was a lifeline. We would not be here today if it wasn't for the original P P P loan and June came and sales, we're doing pretty good. We're about seventy five percent of last year sales were feeling very optimistic and and when I came to realize is we are really just in the eye of the storm and then July the beginning July head and and the case counts rising. Across the country and met, metropolitan. Areas Rolling back opening guidelines and in further restrictions on our business and sales fell down to now fifty percent of last year and that is just not sustainable. So here we are today you know August second and I feel just as nervous about the future as I did back in the beginning of March when Corona virus was coming over the horizon. So we're looking for a second round of P P P to help us get through the other side and and help us sustain for the future so. And the thing that we're hearing mostly Congress is about the stimulus checks, the unemployment but there are thousands and thousands of businesses like ours out there in the country they're hurting terribly at fifty percent decline a forty percent decline sales we cannot survive. We're losing between five, hundred thousand and a million dollars a month, and we need the additional P P P dolorous in a in a terrible way and you know the the curb puzzle is for a two million dollar cap on that which. last time was ten million dollars and so for a company like ours and many others that reduction of eight million dollars just when we need it, the most is is very difficult for us. Camera now is the decline in your business coming mostly because states or local municipalities have have forced you to not open as much into close things down or much of the decline is coming from people who Are, afraid to go out what and how would you measure that a difference while it's both clearly when you have a reduction in capacity from use spell. Example Beverly Hills we were closed all restaurants California closed for indoor. New York City we were not allowed to open our whole restaurant that was just for the Patio Philadelphia. We're not allowed to open that was got rolled back from August I now to September first. So some of our businesses are not even open yet So but the main driver of that reduction of sales is the increase case cow corona virus around the country and people becoming more and more nervous about going to restaurants even though there's no science dates that that says inherently restaurants, Kobe case outbreaks, her Dr Been Driven by restaurants seating. Indoor and outdoor see. Cameron. What? What are you doing in terms of your relationship with your landlords? particularly in some of those places, the restaurants haven't even reopened yet. Are you getting any forgiveness or any easing of things from them? Well, that's the thing becky you know we had almost all of our landlords help out in some way or another not all but some or most they should say, but that money is just a simple deferral that's So we have an additional three, million dollars we got deferred in. April May and June but that money has to be paid back over various schedules over the next two years. That's just additional debt on the balance sheet, and we come out of this without P P p. one of the things cameras restaurants we built three or four restaurants a year, and if we're saddled with millions of dollars debt if and when we get out of this I don't see a building an aiding the economic rebound in the country in Twenty One and twenty two point further were saddled with all this debt. What have you heard from the the senators you've spoken with on this? I've spoken. Personally to both are centers in the state of Ohio and. They understand our plate and and but I, think they're. All. The negotiation right now over the six hundred, a week stimulus for unemployment benefits. So I don't think it's getting much attention that it needs right now and I hope by the time we get this bill and some sort of agreement between both parties on this bill that we can get this P P P round two stimulus, which has one hundred and ninety billion dollars earmarked for it, which should be more than enough for these companies passed the stress test that show they actually needed. To keep with the original PCP levels P P one camera I want to thank you for the update We we have to check in with you again soon, but we appreciate your time and wish you good luck. Very your becky. Thank you very much. That's the show today. Thank you for listening. squawk box is hosted by Joe Kernan, becky quick and injured. Ross sorkin weekday mornings on CNBC at six am eastern to get the smartest heats an analysis from our TV show right into your ears subscribe to swap hot wherever you get your podcast and let us don't. 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