Golden Corral restaurant in Lawrenceburg.
(Lawrenceburg, Ind.) - Many hungry Hoosiers have gone to Golden Corral buffet restaurant in Lawrenceburg this week, only to find the restaurant closed.
An answer was given Thursday by Golden Corral parent company Frisch’s Restaurants, Inc. In a news release, Frisch’s announced it closed six of its 35 Golden Corrals at the end of the day Tuesday.
On that list of closing restaurants were four in the Cincinnati area: Lawrenceburg, Western Hills, Ridge Road, and Hamilton.
The company said it “will record an asset impairment charge (with related closing costs) against its pretax earnings in the first quarter (ending September 20, 2011) of fiscal year 2012, currently estimated between $3.9 million and $4.1 million. The closures are expected to result in a reduction in net earnings per diluted share for the first quarter of fiscal year 2012 between $0.57 and $0.60. All of the six locations are owned in fee simple and will soon be offered for sale through commercial real estate brokers.”
“Looking ahead, we believe this decision will eliminate store level pretax losses of approximately $750,000 to $800,000 per year, positioning us for continued success with improved bottom line performance,” said Craig F. Maier, President and Chief Executive Officer of Frisch’s Restaurants.
The six closing restaurants generated $12.1 million in revenue during fiscal year 2011.
Employees at the closed restaurants are being offered similar positions at other Golden Corral or Frisch’s Big Boy restaurants, said Maier.