Logan’s Roadhouse has controversially decided to close 261 of its restaurant sites and dismiss all of its staff in a startling and desperate attempt to stave financial catastrophe. This choice rocked the business and beyond as many people questioned the morality of the company’s strategy during such a trying period.
Critics contend Logan’s Roadhouse neglected to change with the fast shifting economic terrain the epidemic brought forth. Logan’s decided a different route while many rivals opted to creative ideas like growing take-out and delivery services to keep their companies viable. Rather of trying to pivot and adapt, the corporation decided to cut wages and reduce employee benefits, leaving thousands of people stranded without employment, healthcare, or a safety net during one of the most trying times in recent history.
Even before the epidemic started, the chain of restaurants under CraftWorks Holdings was already struggling greatly financially. The company’s unstable financial situation was highlighted by its continuous navigation of Chapter 11 bankruptcy processes. The epidemic’s presence just hastened its demise, requiring tough decisions that would eventually affect the lives of thousands of workers.
To further complicate matters was a controversy involving former CEO of Logan’s Roadhouse, Hazem Ouf. Allegations revealed that Ouf had been dismissed after allegedly pilfering $7 million in sales taxes. This disclosure not only aggravated the financial problems of the business but also generated public indignation. Already reeling from the uncertainty of the epidemic, staff members were now struggling with the realization that their leadership had failed them at several levels.
