Landlords 'understand'

Burger King joins fast food chains refusing to pay rent

Burger King

Whopping rent bill: chain says it won’t pay

Fast food restaurants say they will withhold their rent due this this week as they grapple with closures that have ripped through their cash flow.

Alasdair Murdoch, chief executive of Burger King, and Richard Hodgson, chief executive of Yo! Sushi, are among those who have stated they will not be making quarterly payments.

Mr Hodgson said non-payment of rent was “not really a choice. It’s just a basic piece of economics”.

Mr Murdoch said: “Most landlords have been reasonable about this. I do think there are a number of creative solutions as well.

“We could add three months on to the end of the lease for those people who are unable to pay in the short-term at the end of these three months.”

The government has said shops will not forfeit leases if they do not pay, but will have to pay arrears in the future.

Restaurants are still allowed to offer a takeaway or delivery service, but many, including McDonald’s have decided to close altogether.

Landlords have said they will not be evicting businesses amid talk of rent holidays, others wanting to pay monthly and lease extensions.

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