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This Cafeteria-Style Chain Will Close All of Its Locations By August

The chain has been serving southern-style comfort food for more than 70 years.
FACT CHECKED BY Faye Brennan

Texas-based restaurant operator Luby's Inc., which announced it was going out of business last year due to the devastating effects of the pandemic, is winding down operations and is set to complete the dissolution of the business in June of 2022. The company is shutting down and selling off company-owned locations of its two chains, Luby's Cafeteria and Fuddruckers, in droves.

According to Nation's Restaurant News, Luby's is selling off some of the locations of its burger chain Fuddruckers to franchisees, and reported owning only 11 locations as of April 26. Meanwhile, some 83 franchised Fuddruckers units are still operational and can be found across 25 states mostly in the South and the Midwest.

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Its Cafeteria locations, on the other hand, are wholly owned by the company, which spells the end of the road for the brand famous for its LuAnn platters and other southern-style comfort food served for over seven decades. According to ABC13, the company plans to cease most operations of its restaurant locations by the end of its fiscal year in August.

The company once owned and operated the Cheeseburger in Paradise chain, the last of which closed in September, while the rights to its fast-casual Koo Koo Roo brand, which specialized in charbroiled chicken, were sold to an independent third party.

When Luby's Inc. announced in June of 2020 that it was looking for buyers for all or portions of its businesses, the company didn't receive any acceptable offers. But CEO Chris Pappas said at the time that the dissolution path still leaves enough flexibility "should a compelling offer that delivers superior value be made," which left open the possibility that Luby's Cafeteria and Fuddruckers could still be saved by a buyer.

A month later, it was revealed that Pappas himself may be the savior for the chains. The executive entered into a confidential agreement with Luby's for the purposes of reviewing the company's financials, and rumors swirled of him potentially buying the business in partnership with his brother Harris Pappas. However, the deal never ended up materializing, and Chris Pappas stepped down as CEO in February. He remains the company's largest shareholder.

For more on struggling restaurant brands, check out This Once Fast-Growing Burger Chain Is Close to Disappearing, and don't forget to sign up for our newsletter to get the latest restaurant news delivered straight to your inbox.

Mura Dominko
Mura is a senior news editor leading ETNT's coverage of America's favorite fast foods and restaurant chains. Read more