Can someone open a new restaurant in the same location with the same name without paying the previous owners for that name?

This is a good and somewhat difficult question. As a general matter, even assuming that the former restaurant name was capable of being protected under laws generally applicable to trademark, those rights do not endure after the name has been abandoned by, for example, permanently closing the business. An attorney who practices trademark litigation can assist you in determining whether abandonment is at issue and also whether the former name is capable of enjoying common-law trademark protection. The facts you posit do not suggest that the landlord has engaged in any misconduct either by opening the restaurant there (anyone had the perfect right to do so), by hiring former employees (they were employed at will and were privileged to find new employment). There is another problem with the "goodwill." Goodwill is an intangible asset that a business owner uses to make a profit, and the value of that goodwill will usually depend on the profitability of the business. It doesn't sound as if the closed business was profitable, so the value of stealing the goodwill may be low. See an attorney to discuss the situation. The lease and other documents need to be reviewed.