Your pink slip is showing
Today brought news that Lone Star Steakhouse had laid off 1,500 full and part-time workers as a result of closing 26 restaurants. About two weeks ago, Brinker International eliminated 125 corporate jobs. CEO Wally Doolin was among the 13 percent of Buca Inc.’s employees who lost their jobs through cutbacks that took full effect Feb. 1 (though Wally continues to serve as board chairman of the Buca di Beppo parent). In early December, Rock Bottom Breweries cut its support staff by 19 percent. Clearly manufacturing, media and financial services aren’t the only sectors of the economy to hack their payrolls in recent days. Their axes just whistled louder because of the scale.
The few foodservice economizers to snag headlines were the ones that made a public confession. No doubt plenty of other restaurant home-office staffers were quietly put out of work after their companies were acquired in the ongoing swap-a-rama. The euphemism for that scenario is “rationalization,” were the buyer eliminates redundancies in finance, marketing, administration, HR, even payroll management itself. Why bother to buy a company if you can’t wring some economies and redundancies out of the combined operations?
Others were likely let go with a dash of stealth because of the general economic malaise that’s hanging on like a mooching relative.
I wish I were starting a restaurant company, because the pool of available talent is richer than a Britney Spears blooper tape. It’ll almost certainly deepen as more deals are done, more expansion plans are scrapped, and tougher times keep bean counters scrambling to find new ways of making their numbers.
It’s a shame to see such brainpower squandered. It’s especially galling when you consider that the industry will likely whine about the dearth of middle and senior-level executive candidates when the trade pulls out of its malaise in a year or two. Instead of fire-hardening their skills and judgement, the would-be leaders will lose precious time—if the industry doesn’t lose them altogether.
The few foodservice economizers to snag headlines were the ones that made a public confession. No doubt plenty of other restaurant home-office staffers were quietly put out of work after their companies were acquired in the ongoing swap-a-rama. The euphemism for that scenario is “rationalization,” were the buyer eliminates redundancies in finance, marketing, administration, HR, even payroll management itself. Why bother to buy a company if you can’t wring some economies and redundancies out of the combined operations?
Others were likely let go with a dash of stealth because of the general economic malaise that’s hanging on like a mooching relative.
I wish I were starting a restaurant company, because the pool of available talent is richer than a Britney Spears blooper tape. It’ll almost certainly deepen as more deals are done, more expansion plans are scrapped, and tougher times keep bean counters scrambling to find new ways of making their numbers.
It’s a shame to see such brainpower squandered. It’s especially galling when you consider that the industry will likely whine about the dearth of middle and senior-level executive candidates when the trade pulls out of its malaise in a year or two. Instead of fire-hardening their skills and judgement, the would-be leaders will lose precious time—if the industry doesn’t lose them altogether.
Labels: Brinker International, Buca, cutbacks, layoffs, leadership development, Lone Star, Rock Bottom
posted by JPeche at
8:56 PM
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