Shake Shack Returns their Government Loan – Hopes to start a trend
A surprising turn of events was displayed by the corporate food chain, Shake Shack.
As the nearly 350 Billion emergency fund was intended for assisting small businesses and propping the economy. It has led to some rather heated debates over whether or not the priorities were well understood.
When it came time for Shake Shack to have access to their emergency funds, they made a rather startling choice. Choosing instead to focus on selling stocks and receiving funds through that means, ensuring that they are aware of their choices.
Randy Garutti, the CEO of Shake Shack, elaborated in his choice to CNN about this choice. Particularly how small businesses would have extremely limited access.
“That doesn’t seem right to us. As we watched this opportunity play out over the weeks, it was very clear that the program was underfunded and wasn’t set up for everyone to win.
Downside to all of this is that it may not inspire other companies to take a similar stance. The bill as it stands is more beneficial and immediate to corporations, and most of them are taking it without a second thought. Some companies like AMC have secondary plans that have put them in an alright place until we have some reopenings.
Whatever may come of this, it’s heartening to see a major food chain like this take a stance that benefits the little guys. We need more of that right now, and hopefully this inspires other companies to follow suit!