Franchisees of iconic American chains are 'hemorrhaging' sales, as operators of IHOP, Pizza Hut, and more file for bankruptcy
franchisees that while it had earmarked $40 million in aid for franchisees, some may need to downsize or sell off locations. In an email obtained by Business Insider, McDonald's National Franchisee Leadership Alliance pushed back on downsizing demands, telling franchisees "if you weren't considering downsizing pre-COVID-19, it shouldn't be a consideration as a result of COVID-19 today."Denny's is closing 15 restaurants in New York due to the impact of the pandemic.
At chains where the bulk of business comes from sit-down customers, including casual dining chains like Applebee's and TGI Fridays and family-style chains like Denny's and IHOP,in late March. While take-out and delivery provided limited business, some franchisees decided to temporarily close instead of attempting to eke out to-go sales.
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