Rental-Car Company Hertz Files for Bankruptcy
According to the Wall Street Journal, Hertz has filed for bankruptcy protection, is almost $19 billion in debt, and 700,000 vehicles just sitting around with the current pandemic.
According to the Wall Street Journal, “The bankruptcy is expected to be complex given the company’s vast debt and corporate structure, which includes $14.4 billion of vehicle-backed bonds at subsidiaries that aren’t part of the chapter 11 filing.”
The brand doesn’t own any of its vehicles, it leases them, and these payments are earmarked for investors that own bonds backed by the vehicles.
“Any ripple effect will be less than it was six weeks ago,” said Zo Rahim, an analyst for Cox Automotive, which owns vehicle-auction operator Manheim Inc in the above Wall Street Journal article.
American Diners Have More Takeout in Their Future
While states have started reopening, that doesn’t mean all customers and businesses will immediately be going back to normal. The number of dine-in customers dropped 71 percent year-over-year in Georgia, according to a linked article from OpenTable in the above article.
However, according to the above Wall Street Journal article, those numbers should improve in the months ahead as customers become more comfortable dining out. Many restaurants have announced new safety protocols to ensure customer safety. For example, Cheesecake Factory said the chain will have dedicated staff “solely responsible” for sanitizing high-contact areas and McDonald’s is asking franchisees to wipe down touch-screen kiosks are each use.
Krispy Kreme Announces First-Ever National Doughnut Week with 5 Free Doughnut Days to Choose From
Krispy Kreme has announced it has turned National Doughnut Day into National Doughnut Week, offering fans of the brand a week to get a free doughnut of their choice, no purchase necessary, from June 1 to June 5. Guests can not only pick the doughnut of their choice but the day they want to get said doughnut too. It is available at any participating U.S. Krispy Kreme and drive-thru.
“National Doughnut Day is one of our favorite holidays to celebrate, but with days starting to blur together, we want to make sure it’s easier than ever for fans to participate,” said Dave Skena, Chief Marketing Officer for Krispy Kreme. “That’s why, this year, we’re extending our beloved free doughnut tradition from one day to five days with the very first National Doughnut Week.”
Target Resumes Grocery Pickup Pilot
Target has announced it has resumed its grocery pickup program that allows customers to use its Drive Up curbside pickup program to get groceries, frozen food, and even alcohol. This program is available in the Twin Cities and recently expanded to Kansas City. Target Executive Vice President and Chief Operating Officer John Mulligan said in the above Grocery Dive article.
“Operational results have been positive so far,” he said. “And while we will continue to govern the pace of the rollout based on the circumstances facing our team, we are committed to rolling out this capability to as many stores as possible this year.”
Corporate Social Responsibility
Raising Cane’s Avoids Layoffs as Sales Return to Pre-COVID-19
Restaurant chain Raising Cane’s and its CEO Todd Graves refused to lay off or furlough any of its 23,000 employees, according to a QSR Magazine article. The brand has even announced it has gotten back to pre-COVID-19 numbers after saying it had previously been down 30 percent.
“I keep sending messages out to the crew saying little things like thank you for keeping the lights on,” Graves said in the above QSR Magazine article. “… I always tell them I’m proud of you and I’m privileged to work with you. … We’re known as a friendly crew, but now I’m getting more compliments than I’ve ever had because our crew members have that empathy because they know that maybe every third person that comes through lost their job. So, it’s incredible pride.”