Long John Silver's layoffs hit Louisville workers weeks before busiest season

Grace Schneider
Courier Journal

Long John Silver's, the Louisville-based fast-food fried fish chain, cut about 20 employees at its east Louisville offices Tuesday in a cost-cutting move.

It comes just weeks before the start of Lent, the chain's busiest season.  

The company confirmed in a statement Thursday that fewer than 1 percent of its total workforce of 2,700 is being let go.

"As our company has grown and changed structurally so have our employee needs in terms of types of employees, locations and skills. We are making changes in our headquarters staffing to fuel our growth and reflect the changes in our organization," according to a company statement. 

"For our affected employees, we’re working hard to transition them smoothly into their next role with a range of benefits including pay continuation, job search benefits and more."  

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A relative of an employee told the Courier Journal that those laid off were informed of their termination and were escorted from the building Tuesday at the Ormsby Park Place headquarters. They included people working in human resources, accounting, marketing, customer service, training and the culinary department.  

The privately owned chain with nearly 1,000 stores nationwide has struggled in recent years, despite attempts to refresh its image with new leaders, store redesigns and snappy new uniforms.

Once a part of Yum Brands, the parent company of KFC, Taco Bell, and Pizza Hut, the chain was bought by a local group of investors, including Jim Patterson Sr., the brand's original founder who assembled LJS Partners.

The fish and seafood retailer — along with another brand A&W — lagged behind other restaurant labels after nine years under Yum ownership.

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In 2015, the partners hired chief executive James O'Reilly to lead a revival effort. He pledged then to "fix what we've got."

One strategy has been to buy back restaurants from franchisees. Some 76 stores in Kentucky, Indiana and surrounding states were purchased from longtime franchisee Bob Ruckriegel last May, according to a QRS report.

"We have embarked on a long-range plan to rebuild our restaurants, roll out an expanded menu featuring grilled fish and build new restaurants," the company said in its statement Thursday afternoon. "Over the past several years, our system has changed from being completely franchised to a mix of company-owned and franchised restaurants."

Nation's Restaurant News reported a year ago that the chain would remake exteriors and interiors with a fresher nautical them, install digital drive-thru menu boards and add grilled seafood items for the first time in a bid to reverse declining sales and a shrinking number of stores.

Grace Schneider: 502-582-4082; gschneider@courierjournal.com; Twitter: @gesinfk. Support strong local journalism by subscribing today: www.courier-journal.com/graces.