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Luby's on March 17 suspended operations at some cafeterias and Fuddruckers in Illinois and Texas.

Luby’s suspends more cafeteria, Fuddruckers operations

Company furloughs more than half of corporate staff, cuts salaries 50%

Luby’s Inc. is temporarily suspending operations at 35 more restaurants, furloughing more than half of its administrative staff and reducing pay 50% for senior management and salaried employees in the wake of the coronavirus pandemic, the company said Tuesday.

The Houston-based company said it the evolving COVIC-19 crisis led it to temporarily suspended all operations at 29 additional Luby’s Cafeterias, five additional Fuddruckers and the company’s sole Cheeseburger in Paradise location. The company on March 17 suspended on-premise dining at a number of cafeterias and Fuddruckers in Texas and Illinois.

“We currently continue to operate 34 Luby’s Cafeterias and three Fuddruckers restaurants to serve our guests during these times,” the company said in a statement. “We eagerly await the opportunity to reopen our temporarily suspended locations as soon as conditions improve.”

The company said it was also furloughing more than half of its corporate office general and administrative staff. It temporarily cut by 50% the pay of senior management and other salaried employees and “dramatically” reduced its planned advertising.

“The pay cuts are to last until further notice and will be periodically reassessed as the situation regarding COVID-19 develops,” the company said. “The company will continuously adjust its response to the pandemic until its threat to the company’s operations fades and its restaurants reopen.”

Luby’s said it will continue to operate 34 cafeteria’s and three Fuddruckers with off-premise orders.

For the first quarter ended Dec. 18, Luby’s loss widened to $8.3 million, or 28 cents a share, from $7.5 million, or 25 cents a share, in the prior-year period. Sales slipped 7.5% to $95.1 million from $102.9 million in the same quarter last year.

Luby’s operated 118 restaurants nationally as of Jan. 21. Luby's also franchised 97 Fuddruckers locations across the United States (including Puerto Rico), Canada, Mexico, and Panama. Luby's Culinary Contract Services division provides foodservice management to 33 healthcare, corporate dining and sports stadium sites.

Contact Ron Ruggless at [email protected]

Follow him on Twitter: @RonRuggless

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