Fry the Coop (Elmhurst)

Silicon Valley Bank’s Failure Hits Chicago Restaurant Chain Fry The Coop | Eater Chicago

"At Fry the Coop, a fried chicken sandwich shop with seven locations, I learned the chain could not pay its 227 workers as scheduled on Friday, March 10 because the $125,000 it sent to its payroll company was frozen; although the restaurant does not bank with Silicon Valley Bank, its payroll processor, Patriot Software, does. I explain that Fry the Coop transmits payroll to Patriot, which had not distributed money to about 8,100 clients as of March 12, leaving cooks, managers, and cashiers—who are normally paid every two weeks—waiting for wages. The company opened its first location in suburban Elmhurst in 2017 and debuted in Chicago in 2019 in West Town. Beyond covering a few rideshares for workers who lacked money for gas, the owner says they haven’t had to cover other worker expenses yet but are considering asking their bank for a bridge loan (he guessed roughly 8 percent interest) to ensure payroll; he calls the situation “gut-wrenching,” is angered by news that Silicon Valley Bank’s CEO sold $3.6 million of company stock before the bank failed, and says his workers have mostly been understanding." - Ashok Selvam