Luby's saved?

Prolific Houston restaurateur could save Luby's with aggressive new move

Could Luby's live on?

When Luby's announced a plan of "liquidation and dissolution," the cafeteria chain's long-term prospects for survival seemed pretty dim, but a faint flicker of hope remains. In a document filed with the Securities and Exchange Commission, the company revealed it has entered into a confidential agreement with Luby's CEO Chris Pappas that could lead to his acquiring the company.

The document explicitly states that Pappas has only been granted access to financial information for the purpose of potentially making an offer for some portion of the company's assets. Pappas has not made an offer, and, even when he does, the company is not obligated to accept it. (The Houston Chronicle was first to report on the details of the SEC filing.)

Still, Pappas is one of the company's major shareholders, holding 18.43 percent of the company's shares. His brother, Harris Pappas, owns an additional 17.86 percent of the company's shares, per the filing. Their holdings include approximately 1 million shares owned by Pappas Restaurants, the Houston-based restaurant juggernaut they own together.

When Luby's announced the liquidation plan earlier this month, the company said it expected to realize between $92 and $123 million for its holdings, which also include the Fuddruckers chain and the real estate many of its restaurants occupy. At the time, Chris Pappas said the plan provided for the possibility that "well-capitalized owners" could maintain the restaurant's operations. As the co-owner of one of the city's most successful restaurant groups, he would certainly qualify.

Whatever the future holds, 80 Luby's and Fuddruckers locations remain open. Diners who want these establishments to remain in business might want to consider patronizing them to demonstrate to Pappas and his brother than they're worth acquiring.

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no cap

Chef-backed nonprofit will train the next generation of Houston hospitality

Courtesy of Culinary Careers Program

Aaron Bludorn has been involved with Culinary Careers Program for many years.

A culinary training program founded by one of America’s most prominent celebrity chefs is coming to Houston. Culinary Careers Program (C•CAP) will launch in Houston with a sold out dinner this Wednesday, September 16.

Founded by multiple time James Beard Award winner Marcus Samuelsson, Culinary Careers Program is a national workforce development nonprofit that partners with public schools to provide under-resourced students with the skills they need to succeed in jobs in the hospitality industry.

The nonprofit provides education, job training, apprenticeships, scholarships, and career opportunities that both help students find good jobs and supply restaurants with well-trained, highly-motivated employees.

To date, Culinary Careers Program has reached close to 400,000 students across the United States and awarded $79 million in college scholarships.

Houston chef and restaurateur Aaron Bludorn became involved with C•CAP when he served as executive chef of Cafe Boulud in New York City. He’s leading the charge to bring the program to Houston by hosting a sold out fundraiser at Bar Bludorn this Wednesday in collaboration with chef Nick Wong (Agnes and Sherman) and Leonard Botello IV (Truth BBQ).

“It’s so important that C•CAP comes to Houston. I think it’s very similar to, if we’re going to get good at soccer in the United States we need to focus on youth soccer and getting kids interested early,” Bludorn tells CultureMap.

“For Houston to continue to become a major culinary city in the United States, it’s important to focus on the next generation of chefs. C•CAP gives that opportunity to high school students to have on the job training while still being in school.”

As the owner of a growing group of restaurants, Bludorn recognizes that businesses need a steady stream of people. C•CAP participants arrive with basic skills that allow them to get up to speed more quickly than other applicants.

“It provides chefs with young talented cooks that have been vetted and given proper training. You’re not taking a guess on someone,” Bludorn says.

Botello IV’s participation shows that C•CAP is adapting to Texas. Students will have the opportunity to work at Truth BBQ, a Michelin Bib Gourmand recipient that Texas Monthly ranks as the state’s 10th best barbecue joint.

“There will be opportunities to become a chef or a general manager, but also to learn barbecue and get your foot in the door at a place like Truth and become a pitmaster. That on-the-job training is the most valuable,” Bludorn says.

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