Austin Restaurants Face Wage Theft Allegations as Owner Steps Down
Employees from three Austin restaurants operated by Flavor Hospitality Group are seeking financial assistance after alleging unpaid wages, raising concerns about the stability of the local dining scene.
Employees of Gusto Italian Kitchen, Gina’s on Congress, and Gràcia Mediterranean claim that multiple payroll checks were returned unpaid in the days leading up to Christmas Eve and Christmas Day. A GoFundMe campaign launched Saturday morning aims to recoup the lost wages for affected staff and contractors.
According to the fundraiser’s organizer, a beverage and operations manager, “This fundraiser exists for one reason: to help make workers whole. Every dollar raised will go directly toward paying the wages owed to the staff and contractors who were affected … who relied on this income and were blindsided at the worst possible time of year.”
The situation is further complicated by news of the Flavor Hospitality Group owner, Cameron Lockley, stepping down following a reported medical emergency. An internal message shared with the American-Statesman by a Gina’s employee, Deven Mollinedo, indicated that all three restaurants would undergo a “restructuring plan” and remain closed from December 25 through January 2.
Efforts to secure financial assistance from investors have so far proven unsuccessful. A Flavor operations director, Amy Sherman, reported that passive investors in Gina’s on Congress stated they were unable to contribute, having already lost their initial investment.
The abrupt closure and lack of communication have also frustrated patrons. One commenter on Gusto Italian Kitchen’s social media expressed dismay, stating, “We had a reservation for Saturday night 27. We never got a cancellation email or call. We arrived and no cars but the lights were on. We walked in and not one person in sight. No one there but the door was unlocked. We then saw the closed sign. I was about to call the police to make sure everything was ok.”
Lockley has reportedly since contacted Sherman, apologizing and admitting he “found himself in a hole.” Employees from all three restaurants have collectively filed approximately $20,000 in lost-wage claims with the Texas Workforce Commission.
A senior official stated that Lockley allegedly misled staff regarding the financial health of the company, repeatedly assuring them there were no issues. The official further noted that Lockley maintained sole control over bookkeeping and payroll processes. Legal counsel for Sherman and Lockley are scheduled to meet Monday to discuss the matter.
As of Monday morning, the GoFundMe campaign had raised $160 toward its $25,000 goal. The Statesman has reached out to Flavor Hospitality Group for comment but has not yet received a response.
