VAUGHAN, Ont. — Recipe Unlimited Corporation announced a $35-million rent-subsidy program to assist its franchise network with direct rent support through the end of 2020. The program provides franchisees additional economic support and allows more time for franchisees to recover financially. This is in addition to a new royalty-subsidy program the company also announced. Both subsidy programs will continue through the balance of 2020.
At the onset of the COVID-19 crisis, Recipe swiftly implemented the following actions:
- Board of Directors and Recipe’s CEO voluntarily suspended their compensation
- Recipe’s senior-leadership team and all support-centre teams agreed to pay cuts
- All dividend payments to shareholders were cancelled
- All stock buybacks were cancelled
- Recipe suspended the collection of royalty fees and advertising payments from its franchisee network
- Recipe provided wage premiums to employees continuing to work in corporate restaurants
- Recipe and its franchisees have donated more than $1.5 million to charities, frontline workers and food banks across Canada
- Recipe supported the launch of the #onetable industry campaign in support of independent Canadian restaurants
The company continues to negotiate with landlords for assistance with ongoing rent support until sustainable sales levels return.
“We believe our franchisees need assistance now versus waiting for negotiations with landlords to effectively respond to the problem,” says Frank Hennessey, CEO of Recipe. “It’s my hope that our commercial real-estate landlords will recognize everyone has a responsibility to do the right thing. We need them to do their part to assist restaurant owners and other retailers who have been, and will continue to be, severely impacted by this crisis.”