Luby's Sees Contract Sector Expansion

Luby’s is closing 20 of its 95 commercial cafeterias while seeing its contract business grow more than 50 percent in the past year, reports the Dallas Morning News. The closings come on the heels of a $23.3 million fourth-quarter loss posted by the Houston-based company and may not be the end of the downsizing, as the company says it may close five to 10 more units in the next two years. Meanwhile, the contract side of the business has been growing, up 58 percent between 2008 and 2009, to $13 million. The division’s clients include Baylor College of Medicine, St. Joseph Medical Ctr. In Houston and Baylor Medical Ctr. In Carrolton, TX. For more on the company, see the FM Top 50 entry.