Luby's Closing 8 DFW Cafeterias
By FRANK HEINZ and KIM FISCHER
Updated 10:49 PM CDT, Mon, Oct 19, 2009
Just days after posting a $23 million loss, Houston-based Luby's said it is closing eight of its 21 cafeteria locations in North Texas.
The chain will shutter four locations in Tarrant County (South Arlington, Bedford, Grapevine and Fort Worth), three in Dallas and one in Denton.
Customers were turned away Monday from the location off Central Expressway and Royal Lane.
"It's really sad," Susan Rothrock said. "Now we're going to have to find a new place."
Customers were encouraged to visit one of the 13 other Luby's locations in the Metroplex, but Rothrock said they are all too out of her way.
But Highland Park Cafeteria, which has been in the Dallas area for 30 years, is bucking the trend. Owner Jeff Snoyer said sales in 2009 have been better than in years past.
Pat Adams, the restaurant’s assistant manager, Pat Adams, said she doesn't foresee Highland Park Cafeteria meeting the same fate as the shuttered Luby's restaurants.
"No, not if you tend to business, quality, service, hospitality, no," she said.
CEO Chris Pappas told the Star-Telegram that Luby's locations were being closed after their near- and long-term potential were evaluated.
Representative said the sales were down this year compared to last. The company lost $13.8 million this quarter compared to last year's. The company said the money it will save from the closings will go to improving the Luby's locations that remain open.
But not all of the news at Luby's is bad. Its food-service contract business is reported to have increased 58 percent in 2009.
Luby's is closing a total of 25 stores nationwide. The company still has 95 restaurants open across the United States and is considering closing another five to 10 stores in the next two years.
First Published: Oct 19, 2009 11:51 AM CDT
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