When the craving for a perfectly cooked and juicy slab of beef comes knocking, there’s nothing quite like a trip to your local steakhouse to scratch the itch. As the name suggests, the restaurant specializes in steaks, prime rib, and sometimes poultry, and has become a popular dining preference for meat lovers everywhere. Naturally, chain restaurants have popped up in response, and choices about where to get your next grilled steak or seared sirloin abound. However, running a popular steakhouse, let alone a steakhouse chain, comes with a certain amount of risk and a few downsides. Cooking and serving meat to large amounts of people daily and maintaining an employee base of hundreds (or even thousands) of workers means that if one little thing goes wrong, you can expect increased publicity surrounding the event.
From food poisoning to legal battles to harassment and more, here are some of the biggest scandals that completely shook popular steakhouse chains.
Kirby’s Steakhouse: Tipping Troubles
In the United States, tipping is customary and considered recognition for a job well done. Unfortunately, at Kirby’s Steakhouse in Texas, servers claimed that they were forced to share their hard-earned tips with managers. This practice, they argued, violated the Fair Labor Standards Act, and they took the matter to federal court. The case seeks to restore the money that was confiscated from the employees by company management. Whether the plaintiffs succeed remains to be seen, but this controversy has certainly left a bad taste in the mouths of both the staff and patrons.
Ryan’s Family Steakhouse: Racist and Sexist Treatment
In 2009, the U.S. Equal Employment Opportunity Commission took Ryan’s Family Steakhouse to task, alleging racist and sexist treatment of employees. Black employees were reportedly fired because of their race, and white employees who associated with them were subjected to derogatory terms. Female employees faced physical intimidation, offensive language, and sexual harassment. Ultimately, Ryan’s was ordered to pay a total of $500,000, which was divided among the affected employees. While this scandal may not be the sole reason for Ryan’s subsequent struggles, it’s a stain on their reputation that’s hard to forget.
Sizzler: A Bankruptcy Battle for PPP Funds
The Paycheck Protection Program (PPP), designed to provide financial assistance to small businesses during the COVID-19 pandemic, had certain eligibility criteria. In April 2021, a stipulation was introduced that businesses which had filed for bankruptcy were no longer eligible to receive financial assistance. This situation put the steakhouse chain Sizzler in a difficult spot, as it had previously received funds but was blocked from securing a second round of assistance due to its bankruptcy status. Sizzler took the Small Business Administration to court in an attempt to access these funds. The outcome of this legal battle remains uncertain, but the chain has seen a reduction in the number of its locations.
Outback Steakhouse: Salmonella Accusations
Outback Steakhouse, with over a thousand locations worldwide, offers a diverse menu with Australian-themed dishes. However, the more people dine at a restaurant, the higher the chances that something could go wrong. In 2012, a woman accused Outback Steakhouse of being responsible for her salmonella infection, which resulted in hospitalization. She claimed that her symptoms began shortly after dining at the restaurant. The court ultimately dismissed the case due to a lack of conclusive evidence. While it may not have been proven that Outback was responsible, this accusation caused concern among patrons and cast a shadow over the restaurant’s reputation.
Lawry’s Restaurants, Inc.: Gender Discrimination Lawsuit
In 2006, Lawry’s Restaurants, Inc., the company behind Lawry’s The Prime Rib and other high-end steakhouses, faced a lawsuit from the U.S. Equal Employment Opportunity Commission. The suit was brought by a busboy who was denied promotion to the position of waiter because he was male. The claim was that the restaurant had been practicing gender discrimination for decades, which was a violation of the Civil Rights Act of 1964. Unlike other restaurants with similar practices, Lawry’s was ordered to pay over $1 million in settlement money. In 2009, the company also committed to changing its policies and including men in its wait staff, setting a precedent for other establishments.
Fleming’s Prime Steakhouse and Wine Bar: Tip Controversy
Restaurant servers work tirelessly to provide great service and rely on tips as a significant part of their income. However, Fleming’s Prime Steakhouse & Wine Bar faced a lawsuit in 2022 when a former server claimed that bartenders and servers were required to perform non-tipping tasks such as kitchen prep and dishwashing. These tasks were in addition to their regular responsibilities, and since their hourly wage was just $2.13, tips were crucial to earning a livable wage. Regardless of the lawsuit’s outcome, this controversy raises concerns about fair compensation for restaurant staff.
Hoss’s Steak and Sea House: A Disturbing Incident
In 1995, two female employees of Hoss’s Steak and Sea House filed a lawsuit against the chain. They alleged sexual harassment, claiming that they were fondled by managers and other staff members. The case took a bizarre turn when they stated that a Barbie doll was maimed and deep-fried in front of them. Despite the court’s rejection of the accusations related to schedule changes, the lawsuit validated the claims of sexual mistreatment and emotional distress. The disturbing incident involving the Barbie doll likely left a lasting impression on patrons.
Ponderosa Steakhouse: A Case of Embezzlement
Ponderosa Steakhouse was once a dominant player in the beef-and-burger restaurant industry with hundreds of locations. However, in the early 2000s, the chain faced a significant setback due to an incident involving a manager named Fred Boukzam. Boukzam, who managed multiple Ponderosa Steakhouse locations, was found to have illegally embezzled $824 million in less than two years. The financial loss resulted in the closure of multiple locations and job losses for employees. This embezzlement case severely affected the reputation and operations of the once-thriving chain.
Nusr-Et (Salt Bae): Controversy Surrounding the Celebrity Chef
Nusr-Et, popularly known as Salt Bae, is an international steakhouse sensation with locations in the U.S., Istanbul, Dubai, England, and Abu Dhabi. The charismatic chef, Nusret Gokce, gained fame for his unique meat preparation videos on social media. However, behind the scenes, allegations of his tyrannical behavior emerged. Former employees filed multiple lawsuits against him and his restaurants, citing issues such as aggression, sexual harassment, discrimination, tip laundering, and unpaid overtime. This string of scandals has tarnished the restaurant’s reputation, with some patrons questioning the treatment of workers and the high prices charged for meals.
Ruth’s Chris: Paycheck Protection Program Controversy
In 2020, the popular steakhouse chain Ruth’s Chris faced backlash for taking advantage of the Paycheck Protection Program (PPP) designed to assist small businesses during the COVID-19 pandemic. Despite being a chain with over $505 million in total profits, Ruth’s Chris secured $20 million in PPP funds using a loophole based on the number of employees at each location. This action drew criticism and sparked a change.org petition. Ultimately, the chain returned the $20 million, but the controversy left many consumers with a negative perception.