NEW ALBANY, OHIO — Bob Evans Farms, Inc. said it will close 27 of its restaurants, including 21 company-owned and 6 leased locations. The announcement follows a comprehensive unit-level performance review of the company’s restaurant portfolio.
|Saed Mohseni, president and c.e.o. of Bob Evans|
“Decisions to close restaurant locations are always difficult,” said Saed Mohseni, president and chief executive officer. “Performance at each of these locations, despite the loyalty of valued guests and the efforts of our dedicated employees, was not meeting expectations.”
The company said it expects proceeds of approximately $20 million from the sale of the owned properties. Although restaurants subject to closure generated $30 million of annual revenue, the restaurant action is expected to improve annual operating income by approximately $1 million, Bob Evans said.
The company estimates it will incur $7.5 million to $8 million of expenses related to the restaurant closings, with $6.5 million to $7 million of the total expected to be non-cash charges. Bob Evans also estimates it will incur $1.5 million to $2.5 million of pre-tax charges in fiscal 2017 related to lease termination, holding and other costs.At the end of the third fiscal quarter ended Jan. 22, Bob Evans Restaurants owned and operated 548 family restaurants in 18 states, primarily in the Midwest, mid-Atlantic and Southeast regions of the United States.