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McDonald's commences negotiations with landlords over rent and service charges

04 May 2020 by
McDonald's commences negotiations with landlords over rent and service charges

McDonald's has commenced negotiations with landlords to reduce rent and service charge payments while restaurants are not trading.

The fast food giant, which has more than 1,200 UK restaurants, confirmed it had paid its last quarter's rent in full with the next payment due at the end of June.

A McDonald's spokesperson said: "Despite restaurants being closed, we have continued to pay rent in full and have been very clear that we will continue to meet our obligations to landlords across the McDonald's estate.

"Given the unprecedented situation and impact it has had on the business, we have opened dialogue with some of our landlords to discuss how they might offer support on rent and service charges for a short period due to our restaurants not trading."

The chancellor is facing pressure to announce a rent holiday, with bosses of some of the UK's biggest hospitality brands adding their names to a letter sent to Rishi Sunak.

The signatories behind the campaign, spearheaded by London Union chief executive Jonathan Downey, include the directors of high street brands Burger King, Pret, Caffè Nero, Nando's, Subway and Wahaca.

In the letter, Downey laid out a rescue plan that he said would save two million jobs in hospitality and won't cost the taxpayer anything: "This is a proposal for a nine-month #NationalTimeOut – a #NationalRentFree period for hospitality businesses, combined with a matching loan and interest payment postponement for landlords, as well as protection for them from covenant breach and debt security enforcement.

"This is a big idea that requires new legislation to enable businesses (commercial landlords and hospitality tenants), working together, to shape and create a national solution to the imminent threat of thousands of empty premises."

Photo: Shutterstock

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