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Operations

Luby’s closes 35 more restaurants, cuts majority of HQ staff

The salaries of the remaining home-office employees have been cut 50%.
Luby's storefront
Photograph: Shutterstock

Luby’s has closed 35 of its remaining 72 restaurants, furloughed a majority of its headquarters staff and temporarily cut the pay of the remaining home office staff by 50% in response to the COVID-19 crisis.

An ad campaign was also “dramatically” reduced as part of the cost-cutting effort, the company said.

The company stressed that it anticipates the restaurant closings to be temporary. They follow an announcement on March 20 that the company was shutting 25 Fuddruckers fast-casual burger restaurants and 14 Luby's locations. 

“These cost savings are intended to partially mitigate the financial impact to the company at this time,” Luby’s said of the new moves announced Tuesday morning. “The company will continuously adjust its response to the pandemic until its threat to the company’s operations fade and its restaurants re-open.”  

The Luby’s-operated restaurants that remain open—34 Luby’s and three Fuddruckers fast-casual burger restaurants—will offer takeout and delivery.

Shuttered in the most recent round of closings were 29 Luby’s units, five Fuddruckers and the company’s lone remaining Cheeseburger in Paradise casual restaurant.

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