luby's closure update

Cherished Texas cafeteria chain takes major step toward dissolution

It could be a year or more before Luby's closes.

Luby's has taken the next step toward "liquidation and dissolution." In a press release issued Tuesday, November 10, the Texas-based cafeteria chain announced that Institutional Shareholder Services Inc. ("ISS"), a proxy voting advisory firm, has recommended that Luby's stockholders vote in favor of the plan proposed by the company's board of directors to wind down operations and delist itself from the New York Stock Exchange (NYSE: LUB).

In its recommendation, ISS cited the "multi-year process" that Luby's has undertaken prior to proposing this step. The firm also noted that the stock market has reacted favorably to the announcement, with the value of Luby's shares more than doubling in value since September. A vote to approve the plan will take place November 17 at a special meeting of the company's stockholders.

First announced in September, the liquidation plan calls for Luby's to sell its various assets, including locations of Luby's and hamburger chain Fuddruckers, as well as its real estate holdings. Ultimately, Luby's hopes to generate between $92 million and $123 million from the process, which represents between $3 and $4 per share of its stock (approximately 30.7 million shares outstanding). Once approved, the plan could take up to a year to complete, the Houston Business Journal reports.

Currently, Luby's operates 80 Luby's and Fuddruckers locations across Texas and beyond. Many may remain open until the liquidation process is complete.

"We are here today and plan to be here for a long time," chief operating officer, Todd Coutee said in a previous statement. "We greatly value our loyal guests and invite them to continue to come out and dine in with us, or get our great food to go."

As for the possibility of a rescue plan to keep the restaurants open, Luby's CEO and Pappas Restaurants co-owner Christopher Pappas has yet to make an offer to purchase Luby's assets, the company added. In September, Pappas and his brother Harris Pappas entered into a confidential agreement with Luby's that granted them access to confidential financial information for the purposes of potentially buying the company. Together, the brothers own approximately 36 percent of Luby's outstanding shares.

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Big Burger Deal

New owner plans thoughtful growth for Texas burger chain Hopdoddy

Hopdoddy/Facebook

It sounds like growth is coming for Hopdoddy Burger Bar.

Austin-born chain Hopdoddy Burger Bar is now under new ownership. Founders Table Restaurant Group has acquired the burger business and aims to apply its "robust non-traditional licensing program" as it grows, a press release says.

Hopdoddy was founded in 2010 and now has 47 locations across the U.S., including more than 30 in Texas and 10 across the Houston area. It combines a fast-casual atmosphere with a gourmet ethos, serving burgers piled high with specialty ingredients like goat cheese, roasted tomatoes instead of slices, habaneros, and a variety of sauces. Non-beef patties are another specialty, including chicken, ahi tuna, and vegetable patties.

Founders Table has more than 200 restaurants across 18 states in its portfolio. Those include Protein Bar & Kitchen, Chopt, Dos Toros, and Field Trip. According to a press release, each of its brands emphasizes regional development.

Restaurant Business reported that the company would "continue to target non-traditional venues, including healthcare, education and transportation centers." That could mean that diners can expect to see more Hopdoddy locations in non-traditional spaces. The release does confirm that the acquisition means growth is coming.

"Hopdoddy is a standout brand with all the ingredients we look for: a differentiated concept, passionate guest loyalty, and a commitment to quality that resonates across markets," says Founders Table CEO Nick Marsh in the release. "We strongly believe in the power of the Founder's Table platform to accelerate growth, and this partnership marks an exciting step forward as we help Hopdoddy scale thoughtfully while staying true to the guest experience at the heart of the brand.”

Hopdoddy CEO Jeff Chandler will transition to an advisory role, ending 10 years in the top position. In February of this year, Chandler told Restaurant Business that he hoped to 14-16 new locations per year sometime after 2029. At the time, the brand was owned by private equity firm L Catterton. Harrington Park Advisors advised Hopdoddy on the transition.

Kenny Jett, formerly VP of operations, will become Hopdoddy's president.

"I've had the privilege of seeing firsthand what makes this brand so special — from our incredible team members to the loyal guests who support us every day," says Jett in the release. "I'm honored to step into this role and excited to build on the strong foundation we've created as we continue growing the brand."

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Big Burger Deal

New owner plans thoughtful growth for Texas burger chain Hopdoddy