Old Country Buffet Abruptly Shutters 74 Restaurants

by Tim Harlow and Mike Hughlett, Star Tribune:

The Twin Cities has just three Old Country Buffet restaurants left after its parent company abruptly shut down seven locations Thursday as part of a national restructuring that closed a total of 74 restaurants.

The shuttered restaurants in the metro area include Richfield, Fridley, Crystal, Roseville, Maplewood, West St. Paul and Woodbury, according to a spokeswoman for Ovation Brands. Restaurants in Maple Grove, Coon Rapids and Burnsville will remain open.

The closures come amid a long-term decline in the buffet segment of the restaurant industry. Old Country Buffet, which was once based in Minnesota, has shuttered more than 400 stores over the past seven years — even before this week’s shutdowns.

In a statement, Ovation Brands, which owns Old Country Buffets, said the closures of underperforming stores are needed for the “continued viability” of its brands. Those brands also include Hometown Buffet, Ryan’s and Fire Mountain restaurants, though Old Country Buffet is privately held Ovation’s biggest chain.

“While we cannot predict future market conditions, the plan is to continue operating the remaining Ovation Brands’ restaurants as they are financially viable,” said Peter Donbavand, Ovation’s vice president of business development. “We know that these decisions are not easy. However, we strongly believe that this direction is best for the long-term health of all brands.”

It was not immediately known how many employees would be affected by the mass closures. Employees of closed restaurants will be able to apply for jobs at restaurants that remain open, he said.

Ovation Brands, based in South Carolina, has a back office in Eagan, which employed 125 workers in 2014. The company did not respond to an inquiry on how many employees currently work in Eagan, and if any of them have been laid off, too.

Many employees were blindsided by Thursday’s news and took to social media to decry the closure that came without notice.

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