Amid financial strain, a popular restaurant chain has decided to close 261 locations, resulting in widespread layoffs to cut costs. Instead of shifting to take-out and delivery services, the company opted to reduce payroll and benefits due to economic pressures.
Owned by CraftWorks Holdings, the chain also faced internal issues, with former CEO Hazem Ouf dismissed over allegations related to $7 million in mismanaged sales tax funds.
Already navigating Chapter 11 bankruptcy, the sudden layoffs left around 18,000 employees without jobs or healthcare during a global crisis. New CEO Marc Buehler quickly enacted these measures, prompting former staff to search for alternative health insurance.
CraftWorks Foundation has offered limited support through its HOPE Program, sparking discussions on whether businesses should focus on financial survival or employee welfare in challenging times.