The fast-casual burger franchise Burger Detour, founded by local entrepreneur Chad McMahon, closed both of its Omaha locations on Aug. 4, 2025. The first restaurant launched on Feb 5, 2024, at 180th and West Maple, followed by a second on Aug. 5, 2024, at 203rd and Pacific. The chain announced the closures on July 29, 2025.
The company cited rising costs and a challenging environment for small businesses.
“We found ourselves unable to keep up with the rising costs and the challenges facing small businesses today,” Burger Detour’s final Facebook post said.
Promotional strategies also contributed. Burger Detour frequently gave away free T-shirts and hoodies, which were popular with customers but reportedly cost the company thousands of dollars, tightening already slim margins.
“From a small business point, the owner came in guns blazing. I mean, super smart marketing strategy,” foods teacher Laura Feller said. “There was all this merch that’s really, really cool, and they had the strobe light on the outside. It had very much this fun appeal.”
Employees said the closures came without warning.
“I worked the day before, and they did not even give us a heads up,” former employee of the 180th and West Maple location, Nyasha Gunzvenzbe said. “We just woke up early in the morning to a huge message telling us that there won’t be any more work. Burger Detour was closed.”
The closing failed to provide any explanation to the employees.
“I woke up and my shifts were cancelled, so I checked the app,” former employee Esther Shedreck said. “They just texted ‘It’s closed. We’re done.’ I thought it was a joke at first.”
McMahon, who previously owned The Good Life bar, entered the restaurant business with no prior food service experience. His background is marked by legal trouble.
In August 2022, McMahon pleaded no contest to third-degree assault and guilty to tampering with a witness after tackling a man at the Caddy Shack Bar, resulting in broken ribs. Earlier that year, he pleaded guilty to misdemeanor obstruction for erasing footage during an investigation at The Good Life Sports Bar.
In April 2025, McMahon was named in a multi-million dollar lawsuit against Club 180, facing allegations of sex trafficking, drug trafficking, and labor law violations. This includes a wrongful death claim from a widow whose husband was allegedly over-served and drugged. Additionally, in July 2025, he was involved in a federal securities fraud lawsuit accusing him of misappropriating investor funds.
These cases sparked boycotts of the Burger Detour chain, contributing to the loss of business.
“I’ve had students who worked at Burger Detour, and I know from them that some of the kitchen and food safety practices were not being followed,” Feller said. “My understanding is that the business owner was not a good human, and he had some legal problems already. From the sounds of it, there were some drug issues in the back, and personally.”
Anonymous • Sep 9, 2025 at 2:01 PM
My father had seen an ad for land up for sale before the Burger Detour closing had been announced. He looked into the ad and saw that the land up for sale was the area that Burger Detour was located in. Me and him speculated that it was closing. The next month my mom had told me that Burger Detour was closing.