Ryan's Steakhouse and Buffet in Florida (A.K.A. Family Steakhouses of Florida, INC) is not only fast gaining the reputation for not taking care of customers, they now seem to have a problem taking care of their employees. Since the "change in control" They have been rapidly going down the road of bankruptcy. The annual reports and stock price strongly support this theory.
Below is a copy from a recent publication I read that shows they are now left without operational leadership. I'm sure the next step will be to raise prices, stop discounts, and use lesser quaity food. Wise up Ryan's, haven't you already lost enough customers???
Mr. Glen Ceiley:
I am sending this letter in response to my termination of employment on 4/15/02 as the Vice President of Operations. As an employee of Family Steakhouses of Florida, Inc. For 13 years and 6 months, with a track record of only integrity, hard work, and positive results, I would like to make several statements and inquiries.
I do not understand why my termination was treated differently than all other previous terminations of directors and/or officers of this company. After verifying that the Neptune Beach Police Department was called and asked to be on stand by for a possible incident at the time of my termination and having this procedure greatly talked about among corporate staff and to field operations, I have been forced to deal with humility and ridicule.
When I asked to have my medical insurance extended through the time of my earned vacation, I was told that it would not be a problem. The following week I was informed by mail that this request was denied even though it has been allowed and granted to previous employees of the company.
Our leased vehicle contract that is provided by the company allows 7 days for the individual to return the vehicle.in my case however, a representative from the company was sent to my home on the fourth day to remove the vehicle from the premises, leaving me once again to deal with humility and ridicule from my peers and former associates. At no time during my entire tenure have I given any indications to deserve the above treatment presented to me by Family Steakhouses of Florida, Inc.
In taking these actions, the company has created a false impression of myself that could hinder personal and professional gain and livelihood as well as the damage already inflicted on my self-esteem and reputation. As an intelligent and successful business person I understand the need for companies to cut cost when necessary. However, I do not understand the decision to eliminate my employment. A salary decrease or other position was not offered to me as it has been with other employees of the company. As it was stated upon my termination, Performance, hard work, and dedication are not the issue, only cutting cost. Then why would a company not try to retain such an individual?
As far as cost savings, I have offered ideas and suggestions on numerous occasions over the past several years. The corporate office staff (excluding the former real estate department) is larger now and uses more man hours than when the company operated 30 units. Part time positions have evolved into full time and include the allowance of occasional over time wages. Positions have been created that are no longer cost effective to maintain but continue to remain on the payroll. The positions of controller and construction have drastically increased in annual salaries over the past few years, but the productivity, efficiency, and results from these departments have not shown improvement. Also, why would the company grant car allowances to corporate office management personnel who very seldom travel except to and from work if cost savings is such an important issue?
Why were the above issues not addressed before eliminating such an important position of supervising the entire operational functions of this company? By eliminating the leadership in the field, decreasing the amount of operational input and most importantly not having a voice to speak on behalf of the unit managers, you have sent a message of instability and low importance of field operations to all managers at every unit. The company is now left with a lack of knowledge and incompetence at the corporate level concerning restaurant operations.
Operational employees, such as managers and supervisors, are in a sense discriminated against compared to non-operational employees of the company. Operations personnel were told that a salary increase cap of 4% for the year 2001 and 3% for the year 2002 would be the maximum given to supervisors and corporate staff. However, it is documented that higher increases were granted to selected corporate office personnel each year. Why is the deception and double standard allowed?
Unit managers are hired as managers but they are required to work hourly positions at times to achieve the Stringent Payroll Guidelines provided by the company. They are not offered additional pay or overtime pay when this occurs. If they do not achieve the provided payroll allowed however, it results in pay deductions for the entire management team. These Company Payroll Guidelines do not allow for any training of hourly staff or give enough man hours for off peak times.
My track record with this company demonstrates many sales records, positive same store sales growth, and improved cost control from the operations level each year since my promotion to Director Of Operations and then Vice President Of Operations. Same store sales remained positive until April of year 2001. At that time the control of the advertising budget was taken from operations and given to Pat Fekula and Ed Alexander. At this time the philosophy used for marketing and advertising was drastically altered and the results are easily shown. Also, during this time, management turnover decreased each year resulting in a reduction of training costs.
In my professional opinion, as you monitor your monthly reports in the areas of some store sales, operational cost control and management turnover, you will witness that the decisions and messages you are sending to the operational personnel of the company are those with negative effects on the profitability and existence of Family Steakhouse of Florida, Inc.
Johnny
Jacksonville, Florida
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