- Omaha Steaks eliminates restaurant distribution service as part of restructuring
- Local restaurants have to find new meat distributors, face higher costs
- Dozens of employees laid off
BROADCAST TRANSCRIPT:
OMAHA, Neb. (KMTV) — Omaha Steaks is restructuring its business model, eliminating its restaurant service division while adding more than a dozen retail locations across the country. The decision has left local restaurant owners scrambling to find new meat suppliers and facing higher costs.
Richie Goll, co-owner of First Round in Blackstone, said he chose Omaha Steaks for both the hometown connection and competitive pricing.
"It's the name," Goll said. "Omaha Steaks is a big name."
The restructuring resulted in layoffs Wednesday, affecting about 2% of the company's workforce.
Seth Alfrey, who was among those laid off, said he thought the company's expansion plans were positive signs.
"I thought we were growing as a business. Not going to be people losing their jobs," Alfrey said. "I could have made a career out of it. I really liked what I was doing. I loved my supervisor — what he was doing — and everyone I worked with. It was truly a family. I enjoyed going to work. A lot of people can't say that."
Alfrey said that he plans to apply for other positions within Omaha Steaks, joining many of his former coworkers in seeking internal transfers.
CEO Nate Rempe said the company is focusing on expanding retail sites across the country that will serve as distribution centers as well.
"We're focused on addressing the need for high-quality beef across the country," Rempe said.
Rempe said the company had not raised prices for restaurant customers in some time, but said current economic conditions forced the difficult decision.
Goll is now talking with other distributors to find out if they can sell him the beef he needs as he makes this change.
"I know I'm going to have to start paying more," Goll said.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
