-
A Swadley's Foggy Bottom sign was covered up Monday at the Roman Nose Lodge after the after the Oklahoma Tourism and Recreation Department announced it was canceling the restaurant's lease at six parks across the state.
WATONGA – The Oklahoma Tourism and Recreation Department has canceled its lease agreement with Swadley’s restaurants, it announced Monday, shuttering the Foggy Bottom Kitchen at Roman Nose State Park and the five other parks where it had opened.
The news comes after weeks of public scrutiny over Swadley’s contract with the state, which featured lucrative management fees and a guarantee to cover the company’s losses. On Monday, the Tourism and Recreation Department said it was ending the leases “due to suspected fraudulent activity and questionable business practices.”
“After extensive review, it has become clear the continuation of the agreement with Foggy Bottom Kitchen is not in the best interest of Oklahoma taxpayers,” the department said.
In the statement, the Tourism and Recreation Department says it began an internal investigation into Swadley’s in early fall 2021 “after reports of financial irregularities.” But that internal investigation turned into public consternation after news reports detailed the Swadley’s contract and a legislative oversight committee questioned the millions poured into facility upgrades.
In an unusual arrangement, Swadley’s was able to serve as its own general contractor while making extensive – and expensive – renovations to several state parks, including the Roman Nose Lodge.
The original contract between Swadley’s and the tourism department called for nearly $200,000 in upgrades at Roman Nose, including $99,650 for the remodel; $26,100 for furniture, fixtures and equipment; and another $71,700 for branding.
However, those numbers are dwarfed by the projects at the other four state parks where Swadley’s opened in 2020, including more than $618,000 spent at Beavers Bend and over $1 million at Robbers Cave.
News organizations that have reviewed Swadley’s invoices reported the company regularly tacked on management and consulting fees to its purchases that averaged about 30%.
In total, Swadley’s opened five Foggy Bottom Kitchens in 2020 at the Roman Nose, Lake Murray, Sequoyah, Beavers Bend and Robbers Cave state parks. A Quartz Mountain location opened in 2021, while a planned Little Sahara location was eventually scuttled amid cost overruns.
Now, the locations will all transition to new vendors, the state said.
“Oklahoma State Parks staff are reaching out to all existing reservations to ensure any catering needs are fulfilled,” the Tourism and Recreation Department said. “Department staff are also working with local small businesses to find creative solutions to meet park guest demands until new restaurant operations can begin in the newly remodeled facilities.”
On April 1, the Oklahoma State Bureau of Investigation accepted a request to investigate possible criminal conduct between Swadley’s and the tourism department. The department said it will “continue to cooperate with investigators and auditors to determine the extent to which unlawful behavior has been perpetuated against the state.”
It is also “exploring options to recover any taxpayer dollars” used for “services or items … ultimately not provided,” it said.
On Saturday, before its contract was terminated, Foggy Bottom parent Swadley’s Bar-B-Q took to Facebook and said the Swadley’s family is “dedicated to integrity.”
“From the beginning, every aspect of the Foggy Bottom Kitchen project has been directed and approved by state officials,” it said. “We stand by our team and all that we have done to benefit the people of our beautiful state.
“Our objective has always been to offer an exceptional dining experience that is noteworthy and enjoyable for the visitors of our state parks,” it said.
State parks employees across the state worked fast to remove references to Swadley’s after its lease was canceled on Monday. At Roman Nose, prominent road signs directing visitors to Swadley’s had been removed by Monday afternoon, while the Swadley’s logo on the outside of the Lodge had been covered up.
A letter from the tourism department to Swadley’s, which was published in The Oklahoman, gave the company further instructions on how to transition out of its facilities by Wednesday of this week, including giving keys back to park managers and turning over equipment passwords.
Swadley’s will have to lay off “close to 300” employees, it told The Oklahoman.
State officials reacted to the news Monday by saying the termination was a necessary, if unfortunate, move.
“I agree with the Department of Tourism’s decision to end the contract,” said Oklahoma Lt. Gov. Matt Pinnell, the state Secretary of Tourism. “I fully support the continued audits of this contract and decision-making processes that proceeded it. Taxpayers deserve transparency, and I join them in demanding it.”
Oklahoma Attorney General John O’Connor said his office “stands ready to assist (Oklahoma County) District Attorney David Prater, the Oklahoma State Bureau of Investigation, and State Auditor Cindy Byrd as they investigate and audit the Foggy Bottom contract with the State of Oklahoma.”
Reached by phone Tuesday afternoon, tourism department spokesman David White said the department doesn’t yet have sitespecific details on how the Swadley’s transition will take place, but directed us to the statement issued on Monday. He confirmed that Swadley’s will not be reopening for any length of time and that the cancellation is effective immediately.
The closure forced some last-minute changes in the community this week, as the Bikes & BBQ rally had to change up a stop on its poker run, and the Watonga wrestling squad had to relocate its banquet.