In a desperate attempt to remain operational, Logan’s Roadhouse terminated all employees and plans to shut down 261 locations.
While numerous restaurants have adapted by offering take-out and delivery services, Logan’s opted to eliminate its payroll and leave individuals unemployed rather than attempt to survive during the most severe economic downturn in American history.
Logan’s Roadhouse is a subsidiary of the same parent company that owns Old Chicago, which led to the decision by this larger corporation to furlough all employees and their healthcare benefits at a time when they were most needed.
Furthermore, the restaurant chain not only abandoned its workforce during this health and economic crisis, but its CEO, Hazem Ouf, was also dismissed for embezzlement. He manipulated funds for his personal benefit without obtaining the necessary approvals.
Reports indicate that ‘Hazem Ouf was terminated as CEO of CraftWorks Holdings for improperly transferring $7 million in sales taxes to states where the company’s various brands operated.’
Shortly after his dismissal for failing to execute this financial maneuver with the consent of the court-appointed supervisory parties, CraftWorks Holdings proceeded to continue laying off employees.
The company justified this action by ‘mothballing’ all 261 of its locations, claiming a lack of funds to maintain operations.
The organization neglected to inform its employees that their positions were permanently eliminated, leading some to cling to the hope of a swift return to work following the initial wave of the COVID-19 pandemic in the United States.
Prior to the pandemic, the organization was already facing difficulties, having filed for Chapter 11 bankruptcy, a situation exacerbated by the economic downturn during the final year of Trump’s presidency. Following the dismissal of Hazem Ouf, the company appointed Marc Buehler as the new CEO, who promptly proceeded to terminate employees and revoke their healthcare benefits.
This left many individuals in a precarious situation, particularly during a global health crisis, prompting them to seek enrollment in Obamacare, which remains a vital option for those requiring affordable health insurance.
Logan’s Roadhouse, which employed approximately 18,000 individuals, abruptly laid off its workforce due to poor management and a lack of contingency plans for adverse circumstances.
The leadership appeared primarily concerned with their own financial interests rather than the welfare of their employees.
Despite abandoning their staff during a critical time, the restaurant did manage to instill a glimmer of hope among its workers.
The organization announced on Facebook, “Logan’s team members — The HOPE Program and Logan’s Love are overseen by the CraftWorks Foundation, a 501(c)(3) entity.
The objective of HOPE is to assist current or former team members facing a crisis. Team members are identified as individuals who are presently or were previously employed by Craft Works Holdings within the last four months.”
