PITTSBURG, Kan. — For the second time this month, Beef-a-Roo employees, companywide, are not getting a regularly scheduled paycheck. 

Two weeks ago, the Beef-a-Roo employees were told they would not receive their paychecks, which were supposed to be automatically deposited into their accounts on Friday every two weeks. One employee said he continued to work there because he really didn’t have a choice.

“I thought it was only going to be just this one time,” he said. “And I needed a job. At the time, I just couldn't walk away. I can't walk away now, but I did. I had to. It's just, it's not getting any better.”

On Friday, a Beef-a-Roo employee, who wishes to remain anonymous, brought an email they had received from the company to The Morning Sun.

The email was sent to Beef-a-Roo stores, dated June 25, which stated that the company was notified at 3 p.m. that “DML Funding, the company responsible for funding our payroll, did not fulfill their commitment to provide the funds needed for this payroll cycle.” The email stated DML said they would not fund payroll “despite repeated assurances that they would.” 

The email stated employees should express their concerns to DML Funding. The Morning Sun called a DML employee and left a message, but the call was not returned.

New daily processes were laid out in the email, as well. Starting on June 26, according to the email, each employee will be paid for hours worked the following day. Until the payroll issues are resolved, the email said, all general managers are to hold cash deposits, and every morning someone is expected to send a spreadsheet that outlines the cash amount the store needs to keep for employee wages. 

The anonymous employee told The Morning Sun that yesterday’s cash deposit was less than $100. 

“How are they supposed to pay employees with that?” he asked. 

The following instructions were lined out for General Managers:

• Hold all cash deposits as instructed.
• Print the daily payroll sheet.
• Verify each employee’s payment amount.
• Distribute cash payments to employees.
• Obtain each employee’s signature acknowledging receipt of their payment.
• Sign the payroll sheet as the manager distributing the funds.
• Retain all completed documentation as instructed.

“Any misuse, misappropriation, or failure to follow these procedures will be treated as a serious violation of company policy and will result in immediate corrective action,” the email said.

The anonymous employee said that he, the general manager and one other employee quit today, which is half of the staff. The Pittsburg restaurant, located at 1015 S. Broadway Street, was closed on Friday, June 26. Joplin and Springfield staff members did not open their stores on Friday either, the anonymous employee said.

One of the employees, the anonymous employee said, was homeless and he is letting the person stay in a camper since he is not getting paid. He also gave the example of a woman in 50s who worked at both Beef-a-Roo and another fast-food restaurant who would have to find another job as well. He pointed out that it was not easy for someone in their 50s to find employment.

“Everybody there is working because they need the money,” he said. “And we can't even get that, working for that company. It's sad to watch these people go through all these hard times, because you know they can't get paid, and especially me, too. I'm going through a hard time, too, because I can't get paid.

“It's sad that they can't, that they cannot keep up with their own business and be able to pay their employees,” he said.

In the email, the company also shared that effective June 26, Beef-a-Roo has been sold to Hungry Investments, Inc. The email stated Hungry Investments, Inc., was formed by a group of employee owners. Previously, Beef-a-Roo was owned by Beef-a-Roo, Inc., and Elysian Capital, Inc., a company that purchased it from the founders’ children in 2019.

In 2021, NEXT Brands and Development acquired the franchising rights and over a few years, the company opened more than two dozen stores.

Beef-a-Roo has locations in Kansas, Missouri, Indiana, Illinois, Tennessee, Arkansas and Texas. Beef-a-Roo was founded in Rockford, Illinois, in 1967.

Click the link below to read original Beef-a-Roo story.

Beef-a-Roo delays payment to employees

This reporting is made possible, in part, by the Support Local Journalism Project Fund. Learn more at: southeastkansas.org/Localnews.