There is an official response on why Luby’s closing locations. There is a ton of rumors about the reasons for closing. The truth is probably in the middle. Chris (Pappas, the CEO) noted last year that guest traffic is dropping and that both labor and food costs are going up. When you calculate this, it’s a bad situation for Luby’s. The plan, announced last summer was to sell 14 low-performing restaurants and to focus on paying off the debt. As of last year over 40 million dollars of debt was outstanding – so Luby’s will have hard time paying it off. 15 or so restaurants were slated to close, I hear that some are closing in 2019 as well – I have no clue what locations are being closed.
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So sad and sorry that our favorite place to eat,all Lucy’s are closing down. Please try to merge with another corporate business so won’t have to close. Please try your hardest not to close.