‘A bombshell I really didn’t need’: Worries spread about beef quality after Omaha Steaks announcement

Bill Baburek was on the phone with beef suppliers all morning Wednesday after Omaha Steaks announced the end of its food service distribution.He only has enough meat to make it through the next two weeks with no more orders on the way.”The driver said he had a couple more deliveries today and couple more deliveries tomorrow, and I think he said that was it,” Baburek said.Omaha Steaks said the company is looking to consolidate.”Supporting the food service business was no longer sustainable for the company,” Omaha Steaks CEO Nate Rempe said.The company is moving toward a direct-to-consumer model. Rempe said this started last year when the company shut down a distribution center and broke ground on a new food safety facility.Previous coverage: Omaha Steaks breaks ground on new food facility”We’re calling it SEAR-iously fast delivery, like searing a steak,” Rempe said. “That will include same-day delivery from our retail stores.”Customers will be able to walk into retail stores and purchase beef, but that store will also deliver meat to customers within a 50-mile radius. Rempe said the company currently has 41 stores nationwide and plans to open at least 14 more within the next year.Rempe said they will close the 96th St. facility and are laying off about 30 people. The company is now moving all operations to the F Street location, which will work 24 hours a day in multiple shifts. “Our delivery driver, they informed him last night, late yesterday afternoon, that he would no longer have a job after 28 years with the company,” Baburek said.”Giving them a fair severance and, you know, helping them get back up on their feet is part of who we are,” Rempe said.According to Rempe, around 100 employees were moved from 96th St. to the F St. facility.Omaha Steaks said it will maintain its dedication to charity in the Omaha community.”The philanthropy that is our DNA and our support of the Omaha community is not connected to any of the business decisions we’ve made,” Rempe said.Previous coverage: Omaha Steaks ends foodservice operations, impacting local restaurantsRempe said his company is here to support restaurants through this change. Owners can call or email the company at any time.”If there is something we can do to help bridge this transition, you know, they were up for it,” Rempe said.Owners, like Baburek, have been left scrambling to find replacements for their menu items. 10 minutes before the interview on Wednesday, Baburek received his final delivery from Omaha Steaks.”Close to 30,000 pounds of meat that we have to now figure out a way to resource,” Baburek said.Leaving him without supplies a month before St. Patrick’s Day — his busiest day of the year.”Between reubens, corned beef sandwiches, corned beef and cabbage, all that factors into, you know, hundreds and hundreds of pounds of corned beef,” Baburek said.He’s worried about maintaining his customers’ expectations and upholding his restaurant’s reputation. He says finding the meat isn’t necessarily the problem, but finding the same quality is.”You get what you pay for, and I don’t think the customer wants or certainly doesn’t expect that, especially when they’re coming to a place that’s known for their reuben sandwich,” Baburek said. “Omaha Steaks stood for quality, and we wanted our customers to know that that’s what we stood for, as well.”He asked that customers be patient and understanding with restaurants during this transition.Make sure you can always see the latest news, weather, sports and more from KETV NewsWatch 7 on Google Search.NAVIGATE: Home | Weather | Local News | National | Sports | Newscasts on demand |