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Should Lone Star Have Notified Its Employees Before Closing Abruptly?
Posted On:Jul 16, 2008
Monday, Lone Star Steakhouse and Saloon in Johnson City’s Roane Centre closed abruptly, without notifying its employees. The move caught most employees completely off guard. Some of the employees we spoke with told us Sunday night, they stayed late to clean up after management told them the owners were visiting Monday. When one employee showed up for work Monday, he says there was a sign on the door indicating the business was closed for good. He also says a month earlier, he asked the general manager about rumors he had heard that the restaurant was going to close. Former cook Joel Tester says when he asked that question, the general manager told him there was no truth to it, it was just a rumor.
A Lone Star spokesperson told us restaurants don’t ever give notice when they close. Rick Van Warner says it’s impractical to give two weeks notice. He says that leaves the restaurant wondering if employees will show up to work during that time. He also says all 50 employees were provided separation pay and all managers were offered transfer opportunities.
What do you think? Should restaurants give their employees a warning before they close up shop?
Posted by Nate Morabito Back to the blog »
Reader Reactions
Posted by ( etsugradstudent ) on July 31, 2008 at 4:37 pm
Lone Star believes providing “separation pay” and “transfer opportunities” that they had no fiduciary or other responsibility to its employees. This is far too common in the restaurant industry. Legally, Lone Star is a corporation. In America, corporations have powers like individuals. They did not break any laws, but it is a rotten practice. But that criticism is a moral or ethical one, and Lone Star is a business.
My brother worked at a Blimpie’s to pay for college, but one day found himself locked-out with the store bankrupt. He never received his last paycheck, so in effect his two weeks of work amounted to nothing.
In this case, Lone Star provided the last paychecks and perhaps a little more. Kudos to that. But not even telling employees the night before? That’s lousy. For some who commute to work that is just lousy policy.
Two weeks notice might be impractical here, but employees have a right to know. if managers can’t keep a busy restaurant afloat, why is that the fault of the hired staff that follows their direction? Telling them that they were on their last shift, or at least being honest with them would be a better method. No communication at all is just hollow and bad public relations.
Wondering if employees will show up to work after giving them notice strikes me as odd. In this economy, who can afford NOT to work? Providing incentives to those who traded loyalty for economic sensibility only seems right. Lone Star gave no such option here, and forced far too many of its employees to work without the luxury of this information.
Far too often though, what is reasonable and fair is discarded for what is business-efficient and hollow. Shame on Lone Star for treating employees as slaves in this regard, but at least they received their last paycheck. I imagine the “separation” pay for a waiter or cook really doesn’t amount to much, but it is better than nothing.