Shoney’s closes after 26 years

By JAMES CLARK / Editor for the Southern Standard

The message on the Shoney’s sign couldn’t be more concise. After 26 years in business, the local restaurant closed its doors Sunday afternoon. Shoney’s officials haven’t said what they plan to do with the property. (James Clark photo)

Betty Vandagriff spent 22 years of her life working at the local Shoney’s restaurant. All those years of dedicated service came to an abrupt end Sunday afternoon when Shoney’s informed its employees the restaurant was closing — immediately.

“I’m just devastated,” said Vandagriff. “It was our lives. But I thought something like this might happen. They told us if we didn’t pick up our sales, the store would close. Then when our truck didn’t come in on Saturday I thought that was a sign.”

Shoney’s was open for business as usual Sunday morning. When the after-church rush began to settle down, employees were called together and told they no longer had jobs. The restaurant closed at 3 p.m.

“None of us knew about this and Shoney’s didn’t even care,” said employee Jeraldine Bailey. “The least they could have done was give us a little notice so we could look for another job, but they didn’t even do that. We have bills to pay and food to put on the table just like everyone else.”

Shoney’s maintains the store wasn’t profitable enough to keep operating.

“We weren’t making enough money to keep the doors open,” said general manager David Smotherman, who said the local restaurant employed 45 to 50 people. “So we’ve locked the doors and that’s it.”

To compensate its employees, Shoney’s provided a store-closing bonus of $100 to all employees who had been with the company more than a year and worked more than 20 hours a week. The bonus was $50 for all employees who had been with the company more than a year and worked less than 20 hours a week.

Employees say the meager bonus does little to help their situation.

“You have a lady like Kathy Milburn and she has worked at that store since the day it opened,” said Bailey. “She’s given over a quarter of a century of her life to Shoney’s and all she gets is $100 and a kick out the door. That’s not the way to treat people.”

Shoney’s first opened in Warren County in 1979. Once the premier place to eat in town, Shoney’s lost some of its business to Ryan’s and Applebee’s, which both opened around five years ago.

Shoney’s operates 318 restaurants in 21 states. Based on information given to employees, the local Shoney’s won’t be the only restaurant that’s closed by the company.

“As a result of a recent realignment of restaurant operations, Shoney’s has decided to close some of its restaurants,” said senior vice president of human resources Rick Smith in a letter to employees. “While we realize that nothing shy of providing you with other employment can make up for the inconvenience, we do want to recognize your hard work, dedication and loyalty to Shoney’s.”

Shoney’s chief operating officer and president Rodger Head also wrote a letter which was distributed to employees.

“We are in the process of refocusing our resources on those restaurants that meet growth criteria,” said Head. “When we implement an initiative such as this, we are forced to make some very difficult decisions.

“That brings us to our current decision to close your restaurant today. Please be assured the closing is in no way a reflection on your performance or that of your co-workers, but an unfortunate business decision. We regret the inconvenience this closing will cause you personally. Our intent is to treat you fairly with the respect and dignity you deserve.”