GrubHub CEO: Deferring revenue during coronavirus to save restaurants
'We're working very closely with local authorities to understand how best to support the restaurants'
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Food delivery service GrubHub is deferring $100 million worth of commissions during the coronavirus crisis to help support independent restaurants in jeopardy after states ordered to close bars and restaurants to dine-in customers.
“We took the leadership position right away because we knew it was going to be a cash crunch for independent restaurants,” GrubHub CEO Matt Maloney told FOX Business’ Maria Bartiromo on Thursday. “We're working very closely with local authorities to understand how best to support the restaurants.”
RESTAURANTS CLOSED BY CORONAVIRUS COULD RECOVER QUICKER BY FOLLOWING 15-DAY GUIDELINES: PAT LAFRIEDA
Maloney said he pushed authorities to keep restaurant kitchens open while dining rooms were shut down. He explained that leaving kitchens cooking would be essential for business and the community.
“You've seen that, across the country, many restaurants are allowed to be open as essential services for delivery,” he said. “And that's because we were able to convince the authorities that by leaving the kitchen open, you can have people still be employed as well as feed the communities.”
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Maloney said he hopes more help is on the way once federal support is available for small businesses. In his opinion, it is “exactly the right move” for the government to step in.
Maloney said GrubHub has seen up to 30 percent of restaurant closures in individual markets.
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