Logan’s Roadhouse, Inc., announced its emergence from chapter 11 under its Plan of Reorganization.
As part of the confirmed plan, overwhelmingly supported by Logan’s creditors and owners and termed “excellent” by the presiding judge, the company has:
• Restructured its balance to reduce its debt from approximately $400 million to just over $100 million, while significantly lowering its interest expenses.
• Exited 34 underperforming restaurants, resulting in aggregate incremental EBITDA of $3.6 million leaving the Company with a portfolio of strong performing restaurants.
• Renegotiated leases and contracts resulting in over $4 million in annual savings.
Through the operational turnaround Logan’s has instituted a number of changes to strengthen the brand to better serve its 30 million annual guests. Some of the broad changes implemented, driving the turnaround include:
• A revised menu with a return to the restaurants’ most popular items from year’s past, and a focus on streamlining operations to improve quality and execution.
• The launch of a major integrated marketing effort highlighting core favorites such as steaks, ribs and yeast rolls as well as the value Logan’s delivers to its guests.
• An investment in the teams through training, development and attractive compensation packages, to recruit and retain strong performers.
• Revised training programs with an emphasis on the quality and hospitality.
Logan’s has 195 company-operated and 26 franchised restaurants in 20 states.