While numerous restaurants have adapted by offering take-out and delivery services, Logan’s opted to eliminate its payroll and leave workers unemployed rather than attempt to survive during the most severe economic downturn in American history. Logan’s Roadhouse is under the same parent company as Old Chicago, which led to the decision to furlough all employees and suspend their healthcare benefits at a time when they were most needed.
Not only did the restaurant chain abandon its staff during this health and economic crisis, but the company’s 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 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 staff and revoke their healthcare benefits.
As a result, these individuals found themselves in a precarious situation, particularly during a global health crisis, prompting many to seek enrollment in Obamacare, which remains a vital option for those requiring affordable health insurance.
Logan’s Roadhouse employed approximately 18,000 individuals, all of whom were abruptly terminated due to poor management and a lack of contingency plans for unfavorable circumstances. The leadership prioritized their own interests and financial gain over the well-being of their employees.
Despite the restaurant’s failure to support its employees during a critical time, it did provide a glimmer of hope.
The company announced on Facebook, ‘Logan’s team members — The HOPE Program and Logan’s Love are overseen by the CraftWorks Foundation, a 501(c)(3) organization.
The objective of HOPE is to assist current and former team members who are facing a crisis. Team members are defined as individuals who are currently or were previously employed by CraftWorks Holdings within the last four months.’
