NEW ALBANY, Ohio – Officials with Bob Evans Farms Inc. announced April 25, plans to close 27 underperforming restaurants, including 21 company-owned locations and six leased properties. The company closed the 21 owned restaurants this past weekend and plans are to close the remaining two locations in its 2017 fiscal year. The decision was the result of “a comprehensive unit-level performance review of the company’s restaurant portfolio,” according to a press release.
“Decisions to close restaurant locations are always difficult,” said Saed Mohseni, president and CEO. “Performance at each of these locations, despite the loyalty of valued guests and the efforts of our dedicated employees, was not meeting expectations.”
Approximately $20 million is expected to be generated by the sale of the owned properties, the company reported. And while revenues of the locations to be closed represented approximately $30 million each year, the closures are expected to improve its operating income by an estimated $1 million per year. According to its statement, Bob Evans will incur $7.5 million to $8.0 million in closure-related expenses. Of the expenses, $6.5 million to $7.0 million is expected to be non-cash charges.
“Employees impacted by closures have been offered positions in nearby restaurants where possible,” Mohseni said. “In cases where relocation is not possible, severance benefits will be offered to full-time and part-time employees.”
