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4/21/2025 - Behind the Smoke: Allegations of Mismanagement, Gambling, and Financial Collapse at Rudy's Steakhouse

An anonymous former employee speaks out, revealing deep dysfunction, unpaid wages, and a trail of financial missteps leading up to the sudden closure of one of Salem’s most recognizable restaurants.Rudy’s Steakhouse — once a beloved institution in downtown Salem — now sits dark, its doors locked and its staff left scrambling. On April 15, employees arrived at the longtime location at 350 Chemeketa St. NE to find a notice of lease termination posted to the doors of the restaurant, its adjacent banquet hall, and Rudy’s Butcher Shop.For those who worked there, the closure may have been abrupt, but it wasn’t entirely unexpected.According to the source, who began working in at Rudy's in 2021, the workplace culture was immediately described as “the most toxic environment I have ever witnessed.” While work hours initially provided some distance from day-to-day drama, things reportedly began to deteriorate by 2024.The city of Salem confirmed Rudy’s had defaulted on three separate leases tied to its operations. “All three leases have been subject to a repayment agreement since November 2024,” city officials said. “This agreement has been breached and the agreement is now terminated.” As of April 15, the city had officially retaken possession of the properties.The abrupt shutdown left employees unpaid for their final month of work. Former general manager Thomas Nacrelli launched a GoFundMe on behalf of staff who were suddenly left jobless. Many of them now face not only lost income, but W-2 discrepancies that are complicating their ability to claim unemployment benefits.Customers, too, have been left out in the cold. Just weeks before the closure, Rudy’s promoted a gift card sale offering 10% off purchases over $100. Now, those cards are worthless — or nearly so. Another local restaurant, Willamette Valley Smokehouse, has stepped up to honor Rudy’s gift cards at 50% value, attempting to soften the blow for disappointed patrons.But behind the locked doors and shuttered dining rooms lies a deeper story of instability, alleged mismanagement, and questionable behavior from Rudy’s owner, “Robbie” Kunke.Perhaps most troubling are the unresolved allegations of misconduct within the restaurant. While the source could not personally corroborate reports of sexual harassment, they expressed confidence in the credibility of the claims: “I would not be surprised in the slightest if they are true, and I believe women in such matters.”The anonymous whistleblower recounts years of dysfunction, which they say worsened significantly in 2024. That year, two staff members — a married couple — were inexplicably promoted to “Executive Directors.” Policies changed, supplies dried up, and morale plummeted. In mid-2024, the couple relocated out of state, but one of them reportedly continued to exert remote influence over the business.That’s when things, the employee says, “really started to turn dark.”Vendors stopped getting paid. Some employees received bounced checks. Rudy’s owner became increasingly reclusive and difficult to reach. “Sundays were his ‘day off,’ but he was just gambling,” the source claims. “I saw him with multiple online poker games open at once. He bragged about playing as different people in the same tournament — said that if he won then all his financial worries would be over."As the restaurant’s financial health worsened, so did working conditions. By early 2025, vendors had shifted to cash-on-delivery only. Paychecks bounced so frequently that staff were often paid via Zelle or cash to compensate. Then came a visit from IRS agents, who reportedly held a multi-hour discussion with Kunke. The subject of that visit remains unclear.This isn’t the first time Kunke has faced legal scrutiny. In 2017, Rudy’s was sued by the Salem Golf Club for $9,464 in unpaid rent. Kunke responded with a $100,000 counterclaim, alleging fraud and damage to the Rudy’s brand. The case was quietly dismissed in 2020.The most recent shutdown, however, appears to be the most severe. In a lengthy internal memo obtained by sources, Kunke took “full responsibility” for the lease termination and outlined plans to revive the steakhouse “under different ownership” backed by unnamed investors.“I have been trying my best to navigate truly impossible circumstances,” he wrote. “I will do everything in my power to revive Rudy’s Steakhouse as fast as possible and make it right.”He also blamed QuickBooks for W-2 errors and said employee paychecks had finally been mailed from a “makeshift office at home.” The statement attempted to rally employees to rejoin a potential re-imagining of Rudy’s — but many former staff see the memo as too little, too late.As for the restaurant’s future, city officials remain silent, citing an ongoing legal matter. And for the once-loyal staff who helped build Rudy’s into a regional favorite, there’s little left but frustration, legal limbo — and a lot of unanswered questions.

4/19/2025 - Anonymous Source Leaks Internal Rudy's Steakhouse Memo

"First and foremost- I want to thank everybody for what you have done for Rudy's Steakhouse and I'm sorry that there was nothing that could be communicated until now due to the sensitive nature of our negotiations.I need to start off by taking accountability for putting us in a position like this... I take full responsibility for allowing us to be put in a position where the city could exercise their right to terminate our existing lease.We are currently working on a pathway for Rudy's Steakhouse to reopen under different ownership with a handful of previously successful restauranteurs as investors in the very near future. I can't say more right now, but I would love to see Rudy's Steakhouse carry on, even if it is without me. I am and will continue working very hard to make this happen.We anticipated on being able to get back into our space immediately and my sole focus was dedicated to this earlier this week. This clearly didn't happen and we have been forced into a short term waiting game. I was just granted access to our space for the first time and have been working on getting paychecks printed all day and resolving other immediate admin issues from my new makeshift office at home.I know that everybody is frustrated and I have been and will continue working to resolve things as fast as possible and make everything right.It was just brought to my attention in the last few hours that some people had filed for unemployment and were given incorrect data. I immediately tried to contact the unemployment department, but they were "temporarily closed" today.On January 28th, we discovered an error with the W-2's that Quickbooks generated and had to have them amended. They informed me that the request would be completed within 20 days.I just got off the phone with Quickbooks to figure out why the state would have incorrect wages for employees if the W-2's were amended. They informed me that "this feature was only available to Elite Quickbooks subscribers" and NEVER INFORMED ME OF THIS PRIOR TO TODAY. I immediately upgraded our plan and they confirmed that this would get the correct information over to the state. I will follow up with the unemployment department first thing Monday
morning to make sure that they in fact did receive the correct data in order for employees to receive their proper unemployment compensation.Paychecks that were due on the day that we were locked out have been processed and mailed. If you contacted me about receiving your pay through another form, I will follow up with you right away. If you want to give formal notice that you voluntarily quit, we will obviously respect your decision. If you would like to remain a part of the new Rudy's Steakhouse team, keep Callie and myself in the loop and we will keep you posted on the next steps.I appreciate all of you and I am incredibly grateful to have such a phenomenal team.
I can't even find the right words to express how much it pains me for you all to have to go through this and I understand the anger and frustration that many of you feel towards me.All I can say is that I have been trying my best to navigate truly impossible circumstances and I will do everything in my power to revive Rudy's Steakhouse as fast as possible and make it right to everybody that has been with me on this journey that has been affected by all of this.I want to conclude by saying thank you to each and every one of you from the bottom of my heart and I look forward to the next chapter on the near horizon!"First and foremost- I want to thank everybody for what you have done for Rudy's Steakhouse and I'm sorry that there was nothing that could be communicated until now due to the sensitive nature of our negotiations.I need to start off by taking accountability for putting us in a position like this... I take full responsibility for allowing us to be put in a position where the city could exercise their right to terminate our existing lease.We are currently working on a pathway for Rudy's Steakhouse to reopen under different ownership with a handful of previously successful restauranteurs as investors in the very near future. I can't say more right now, but I would love to see Rudy's Steakhouse carry on, even if it is without me. I am and will continue working very hard to make this happen.We anticipated on being able to get back into our space immediately and my sole focus was dedicated to this earlier this week. This clearly didn't happen and we have been forced into a short term waiting game. I was just granted access to our space for the first time and have been working on getting paychecks printed all day and resolving other immediate admin issues from my new makeshift office at home.I know that everybody is frustrated and I have been and will continue working to resolve things as fast as possible and make everything right.It was just brought to my attention in the last few hours that some people had filed for unemployment and were given incorrect data. I immediately tried to contact the unemployment department, but they were "temporarily closed" today.On January 28th, we discovered an error with the W-2's that Quickbooks generated and had to have them amended. They informed me that the request would be completed within 20 days.I just got off the phone with Quickbooks to figure out why the state would have incorrect wages for employees if the W-2's were amended. They informed me that "this feature was only available to Elite Quickbooks subscribers" and NEVER INFORMED ME OF THIS PRIOR TO TODAY. I immediately upgraded our plan and they confirmed that this would get the correct information over to the state. I will follow up with the unemployment department first thing Monday
morning to make sure that they in fact did receive the correct data in order for employees to receive their proper unemployment compensation.Paychecks that were due on the day that we were locked out have been processed and mailed. If you contacted me about receiving your pay through another form, I will follow up with you right away. If you want to give formal notice that you voluntarily quit, we will obviously respect your decision. If you would like to remain a part of the new Rudy's Steakhouse team, keep Callie and myself in the loop and we will keep you posted on the next steps.I appreciate all of you and I am incredibly grateful to have such a phenomenal team.
I can't even find the right words to express how much it pains me for you all to have to go through this and I understand the anger and frustration that many of you feel towards me.All I can say is that I have been trying my best to navigate truly impossible circumstances and I will do everything in my power to revive Rudy's Steakhouse as fast as possible and make it right to everybody that has been with me on this journey that has been affected by all of this.I want to conclude by saying thank you to each and every one of you from the bottom of my heart and I look forward to the next chapter on the near horizon!Robbie Kunke - Owner of Rudy's Steakhouse

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