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Trump to restaurant CEOs: 'You’re really going to like what we’re doing'

Leaders of some of the biggest names in the QSR and fast casual industries spoke with President Donald Trump Tuesday about their struggles to keep their businesses alive during social distancing brought on by COVID-19.

The president held a phone meeting with major U.S. restaurant QSR and pizza brand chief executives Tuesday (photo: iStock).

March 18, 2020

Leaders of some of the biggest names in the QSR and fast casual industries spoke with President Donald Trump Tuesday about their struggles to keep their businesses alive during social distancing brought on by COVID-19. CNBC estimated that at least 19 U.S. states have halted dine-in services, and more are joining that list daily. 

The chief executives of Chick-fil-A, Domino's, McDonald's U.S., Papa John's, Raising Cane's, Restaurant Brands International (Burger King, Tim Hortons, Popeyes), Subway, Wendy's and Yum Brands (KFC, Taco Bell, Pizza Hut) were among the restaurant brands represented in the discussion, as well as CEOs from the International Franchise Association, National Retail Federation, Treasury Secretary Steve Mnunchin and the president's primary economic advisor, Larry Kudlow.

In statements after the call, the White House indicated that all the industry leaders said they were working to direct sales to low- or no-touch portals like drive-thru, delivery and carryout. A Domino's representative described the call as "very brief," saying that the president was supportive of the industry's role in feeding and employing Americans during the pandemic. 

An unidentified industry executive on the call said that the group voiced the need for a small-business owner fund to help operators remain in business over the coming months and retain employees, according to CNBC. The executive added that the president relayed that he thought the restaurant leaders would "like what we're doing."

The president told CNBC that the executives "have been fantastic," adding, "They're keeping it open, smaller staffs. Very capable people, very capable companies."

Predicting that COVID-19 — along with the social distancing measures put in place to contain the outbreak — would result in a loss of $225 billion in restaurant sales over the next three months and cost 5 million to 7 million people their jobs, the National Restaurant Association asked the Trump Administration Wednesday to create a $145 billion Restaurant and Foodservice Industry Recovery Fund.

"The restaurant industry is one of low margins, tight cash flow, and a workforce that depends on us for their livelihood," Sean Kennedy, EVP of Public Affairs, wrote in a letter addressed to President Donald Trump, U.S. House Speaker Nancy Pelosi and U.S. Senate Majority Leader Mitch McConnell. "Without aggressive action from the federal government, many restaurants that are a staple of local communities will simply never resume service."

Although the International Foodservice Distributors Association wasn't represented on the call, it agreed that restaurants and other members of the service industry needed help from the White House. In a Tuesday letter to Trump, IFDA CEO Mark Allen said COVID-19's economic impact on the foodservice distribution industry was dire and required immediate attention from the Trump Administration.

"Foodservice distributors deliver to professional kitchens across America by supplying food and related products to restaurants, colleges and universities, hospitals and care facilities, hotels and resorts, and other foodservice operations," he wrote. "With many institutions closed and restaurant sales limited to carry-out and drive-throughs, distributor sales have declined rapidly and substantially. Yet distributors and their restaurant customers still incur significant day-to-day expenses such as rent payments, and they must continue to make payments on any loans they may have incurred."

Allen's letter pointed out that the $280 billion foodservice distribution industry and the 350,000 Americans it employed should be included in President Trump’s economic stimulus package.

"These are the people who, under normal conditions, keep the supply chain flowing, they help feed America — and now we are asking that the federal government help them feed their families," he wrote.

Read all coronavirus coverage on FastCasual.