Logan’s Roadhouse made a dramatic decision during the economic crisis by firing all of its employees and preparing to close all 261 locations. While many restaurant chains shifted to takeout and delivery to survive, Logan’s chose to eliminate its payroll, leaving thousands of workers without jobs during a difficult period.
The restaurant is owned by the same parent company as Old Chicago. Company leaders decided to furlough employees and end their healthcare benefits at a time when many workers needed them most. The move sparked criticism as thousands suddenly found themselves without income or insurance.
The company was also dealing with leadership problems. According to reports, “Hazem Ouf was fired as CEO of the company, CraftWorks Holdings, for passing along $7 million in sales taxes to states where the company’s various brands were in operation.” The financial decision reportedly happened without approval from court-appointed supervisors overseeing the company.
Only days after Ouf’s dismissal, CraftWorks Holdings continued its cost-cutting efforts by shutting down operations across the country. The company said it lacked the funds needed to keep restaurants open and maintain daily operations.
As a result, CraftWorks decided to close, or “mothball,” all 261 Logan’s Roadhouse locations, ending operations and leaving employees uncertain about their future during one of the toughest economic downturns in recent history.