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The Cheesecake Factory is set to close its restaurant at Wolfchase Galleria in Memphis next month. The decision to shut down this major Tennessee location has surprised the restaurant's employees.
Cheesecake Factory Closes Memphis Location
The Cheesecake Factory has announced that July 14 will be the last day of business for its Wolfchase Galleria location in Memphis. The restaurant, which has been a key fixture in the mall since its opening in September 2015, is permanently closing.
Commercial Appeal reports that Alethea Rowe, the senior director of Public Relations and Global Branding at The Cheesecake Factory Incorporated, stated that after a thorough review, the company decided to close the Memphis location.
The Cheesecake Factory Incorporated currently operates 338 locations, including other brands like North Italia and Flower Child. Among these, over 200 are Cheesecake Factory restaurants, with six located in Tennessee.
The Wolfchase Galleria restaurant is notably the only one in West Tennessee.
Simon Property Group, the manager of Wolfchase Galleria, has not commented on the closure.
According to WREG-TV, the company actively assists its staff in finding new employment opportunities, including possible transfers to other locations within its network. Rowe thanked the Memphis community for their support over the past nine years and thanked customers for their loyalty.
The manager of The Cheesecake Factory has confirmed that the restaurant will be closing, but the reasons for the shutdown remain unclear. Employees, too, are unsure why the location is closing.
This week, staff members were informed about the imminent closure and the loss of their jobs, catching many by surprise.
The location manager, Jennifer Madrigal, hoped that long-serving staff members would find new employment opportunities. She noted that while management positions at The Cheesecake Factory often involve relocation, it's not always a feasible option for veteran staff members.
This closure is a deviation from the recent expansion trends the restaurant sees.
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Local Concerns Amid Cheesecake Factory Expansion
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As The U.S. Sun stated, some community members are expressing their concerns about local economic development and are considering approaching city hall to demand more action in attracting and retaining businesses.
Lele Hughes, a resident, shared on Facebook her intention to contact city hall to inquire about what measures the economic planning team is implementing to maintain and attract businesses to the area.
Despite the broader trend of closures in some locations, The Cheesecake Factory is currently experiencing growth. In the last quarter of 2023, the company launched nine new restaurants in response to strong consumer demand.
The Cheesecake Factory Incorporated is faring well financially, as evidenced by its latest earnings report on May 8. The report revealed that the restaurant chain's revenue increased to $891.2 million, up from $866.1 million the previous year.
Additionally, the company plans to expand further by opening 22 new restaurants in 2024, three to four being Cheesecake Factory locations.
David Overton, Chairman and Chief Executive Officer of the company, stated in a press release that these openings align with the company's goals to build momentum and accelerate growth. He expressed confidence in achieving long-term development objectives based on this expansion.
In a recent quarterly report, Overton highlighted that The Cheesecake Factory's comparable sales and traffic significantly outperformed industry averages, indicating a strong market presence despite economic challenges.
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