US-based Tex-Mex restaurant chain Chuy’s Holdings has furloughed approximately 40% of its corporate and administrative staff due to the coronavirus (Covid-19) crisis.
The company has also temporarily suspended all board fees and cut the salary of its senior management and other employees by 25% as part of its measures to mitigate the impact of Covid-19.
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Currently, 92 of its 101 restaurants have switched to an off-premise operating model, providing take-out and delivery services, while the remaining nine locations have temporarily closed.
The company has also drawn the remaining $25m under its revolving credit facility to support its cash flow. Following the drawdown, Chuy’s has more than $28m of cash and cash equivalent on hand.
Chuy’s CEO Steve J Hislop said: “We are fortunate to be facing the current challenges with a strong balance sheet. However, we are taking every precaution to maintain our financial flexibility.
“During the last week, we have drawn down the available balance of our credit facility, deferred non-essential capital expenditures, including delaying or cancelling our new restaurant openings for 2020, significantly reduced staffing and our operating expenses to reflect reduced sales volumes and suspended our share repurchase activity.
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By GlobalData“In addition, we are eliminating all non-essential general and administrative spending for the year.”
Founded in 1982, Chuy’s operates full-service restaurants across 19 US states. The company’s national delivery partner is DoorDash.
It is also available on other food delivery platforms, including Grubhub, BiteSquad, Waitr and other local delivery services.
