Omaha Steaks ends restaurant distribution, lays off dozens

The company is shifting to a direct-to-consumer model, leaving local restaurants scrambling to find new suppliers.

Published on Feb. 11, 2026

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Omaha Steaks is ending its food service distribution, forcing dozens of Omaha restaurants to find new beef suppliers. The company is laying off about 30 employees and closing its 96th Street facility as it consolidates operations and shifts to a direct-to-consumer model. This change has left some restaurant owners, like the owner of Crescent Moon Brewery, in a difficult position just a month before their busiest day of the year, St. Patrick's Day.

Why it matters

Omaha Steaks has long been a reliable supplier for many local restaurants, and this sudden change in strategy is disrupting those relationships and forcing restaurants to quickly find new sources of high-quality beef. This transition could impact the menus and customer experience at these establishments, especially for signature dishes that rely on Omaha Steaks' products.

The details

Omaha Steaks CEO Nate Rempe says the company is moving to a direct-to-consumer model and that "food service really doesn't fit into that strategy." The company plans to close its 96th Street facility and lay off about 30 employees, though Rempe says they will receive "a very generous severance package." Omaha Steaks is consolidating all operations to its F Street location, which will operate 24 hours a day in multiple shifts to support the new direct-to-consumer focus, including "SEAR-iously fast delivery" from its retail stores.

  • Omaha Steaks announced the end of its food service distribution on Wednesday, February 12, 2026.
  • The company plans to close its 96th Street facility in the coming weeks.

The players

Omaha Steaks

A major meat processing and distribution company based in Omaha, Nebraska.

Nate Rempe

The CEO of Omaha Steaks who is overseeing the company's shift to a direct-to-consumer model.

Bill Baburek

The owner of Crescent Moon Brewery, a local Omaha restaurant that has relied on Omaha Steaks for its meat supply.

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What they’re saying

“Close to 30,000 pounds of meat that we have to now figure out a way to resource.”

— Bill Baburek, Owner, Crescent Moon Brewery (KETV)

“Giving them a fair severance and, you know, helping them get back up on their feet is part of who we are.”

— Nate Rempe, CEO, Omaha Steaks (KETV)

What’s next

Omaha Steaks says it will maintain its commitment to charity and community support in Omaha despite the business changes. The company also says it is available to help restaurants find new suppliers during this transition period.

The takeaway

This shift by Omaha Steaks highlights the challenges facing local restaurants as they navigate changes in their supply chains. While the company is prioritizing its direct-to-consumer strategy, the impact on longtime restaurant partners underscores the importance of diversified and resilient food systems, especially for establishments relying on signature dishes and high-quality ingredients.