Federal Raids Close 14 Phoenix-Area Zipps Sites, More Than 35 Arrested

Federal agents with Homeland Security Investigations and other federal partners executed court-authorized search warrants at multiple Zipps Sports Grill locations across metro Phoenix on Jan. 26, temporarily closing roughly 14–15 restaurants and triggering a wide law-enforcement presence that drew protesters and elected officials to several sites.

Agents served warrants at Zipps locations in Phoenix, Scottsdale, Tempe, Glendale and Gilbert, removing boxes of documents and escorting employees from premises. Local reporting and later statements from federal authorities indicated more than 35 arrests in connection with the operation, with suspects held on suspicion of identity theft, document fraud and unlawful employment. Zipps management said the company was cooperating with investigators.

The raids produced immediate workplace disruption as front-of-house staff, bartenders, cooks and managers were led off shifts and some people were detained while agents worked through premises. Several restaurants were closed for parts of the day, leaving customers without service and neighboring businesses coping with unexpected foot-traffic changes. Witnesses described a heavy police presence at mall and strip-mall locations where franchisees operate high-volume sports-bar concepts.

For employees, the raid exposed both practical and legal consequences. Shift workers faced canceled shifts and uncertainty about pay and tip distribution. Managers and payroll staff could be subject to further interviews or subpoenas as investigators reviewed hiring and personnel records. The allegations of identity theft, document fraud and unlawful employment raise potential immigration and criminal-law implications for individuals whose records are under scrutiny, and they underscore exposure risks for employers who do not maintain compliant verification and recordkeeping systems.

Industry analysts say the operation highlights ongoing federal attention to hiring practices in restaurant chains that rely on large hourly workforces and multiple franchise sites. Proper I-9 completion, routine audits and secure personnel-document storage are common compliance measures chains and franchisees use to limit legal exposure. The raids also underscored how criminal investigations can ripple through local labor markets, disrupting schedules, shrinking take-home pay and creating staffing gaps that hurt customer service during peak sports and dinner hours.

Community reaction was visible outside several Zipps locations, where protesters and local elected officials gathered as agents conducted searches. The visible presence of community members and public officials points to broader concerns about worker protections, local enforcement and accountability at multiunit restaurant operations.

Investigations remain ongoing, and affected workers will likely need information about final pay, personnel records and legal options. For now, the raids are a reminder to restaurant operators and hourly workers alike that hiring and documentation practices can have immediate operational and human costs when federal authorities turn their attention to a chain.