Harold Stafford noticed the lines had gotten shorter and shorter at Luby’s Cafeteria since Hurricane Ike.
Empty tables, once rare, had become common.
Still, the optician who orders take out from Luby’s at least three times a week wasn’t prepared Friday to find the restaurant, 6125 Central City Blvd., closed for good.
“Are you kidding me?” Stafford asked as Luby’s staff greeted him at the entrance with the bad news and coupons for Houston-area stores that weren’t closing.
After 23 years on the island, the restaurant was among 25 underperformers Houston-based Luby’s Inc. will close as it works to improve cash flow.
Luby’s disclosed plans Thursday to close restaurants as it announced a fourth-quarter net loss of $23 million, or 83 cents a share, compared with a net loss of $3.7 million, or 13 cents a share, in the same period last year.
Luby’s President and CEO Chris Pappas attributed the closures to a tough economy and unemployment at its highest level in more than 20 years.
Luby’s had attempted to counter hard times with lower prices, he said.
But in Galveston, Luby’s reopened after Hurricane Ike with changes that didn’t sit well with longtime customers, some who are retirees or families closely guarding their pocketbooks.
The restaurant stopped its $8.99 all-you-can eat buffet, a feature it already had done away with at other restaurants.
Some island residents complained that doing away with the buffet left them paying more for less food.
Luby’s attempted to make amends by offering such promotions as the five-selection “LuAnn Rewind,” which included half an entree, two vegetables and a roll for $5.99 on weekdays.
Although changes at the Luby’s can be blamed for some customer losses, the storm also hurt the restaurant.
Since the September 2008 storm, the island’s 57,000 population is down by 20 percent, according to some estimates.
About 130 island businesses did not reopen after the storm, Galveston Chamber of Commerce officials have estimated.
Those that did return have seen a drop in their customer base after residents either moved away for good or until their homes are repaired.
The Luby’s closure was another blow from the storm, Frances Fields said.
“We’re losing everything,” she said.
Fields, who works at the nearby Randalls grocery store, eats at Luby’s at least three times a week. Other eateries walking distance from Randalls serve fast food.
“This is ridiculous,” she said.
Employees at the island restaurant got the news Friday morning.
Unlike most restaurants that close without so much as a goodbye, Luby’s tried to ease the shock by having employees break the news to customers.
Airam Monsivais, who had just returned to work from maternity leave, was among about 40 employees who will lose their jobs.
Monsivais was out telling customers of the closure Friday.
“This is a lot of people’s favorite restaurant,” she said.
Monsivais said she would try to get a job at Moody Gardens.
Cordetta Knatt, who had worked at the island Luby’s for 20 years, said she wasn’t worried.
“I’m going to take some time off and not stress,” she said. “God is in control of my life.”
After the closures, Luby’s will have 95 restaurants.
