Luby’s Cafeterias, Part I
Uploaded by lancej13 on Oct 26, 2011
This paper discusses specific issues with regard to Luby’s, a restaurant chain with headquarters in San Antonio, Texas. (10+ pages; 4 sources; MLA citation style)
I Introduction
Luby’s is a chain of food service outlets (mostly cafeterias) that began in Texas in 1947 and now serves not only that state, but has a presence in ten other states in the south and southeast. This paper explores some of the basic facets of the operation, including marketing, manufacturing and operations, financial matters, personnel matters, research and development, and community relations. Other parts of the operation will be considered separately.
The sources of information for this paper are the Luby’s website; other Internet information (if necessary) and an article by Richard Menger.
II Marketing
In general, there are three or four very broad categories in the food service industry: high-end, upscale dining; good sit-down restaurants; casual dining; and fast food. High-end, upscale restaurants are stand-alone operations, not part of a chain; they have great chefs who prepare delicious food and present it imaginatively, and going to one of them is an event. Le Cirque in New York is an example of this type of establishment. Diners pay hundreds of dollars for meals here: entrees may cost upwards of $50; appetizers $30-$40; and desserts run at $10-11. The wine list has wines that cost $25 to $800 a bottle.
Good sit-down restaurants may or may not be part of a chain. They feature good food at much lower prices than places like Le Cirque, but are still expensive when a family eats out. Entrees here run at the $12-25 range; appetizers and desserts $4-8. California’s Panda Inn is such a restaurant.
Casual dining restaurants are usually chains or franchise operations. They include Coco’s, Denny’s, Luby’s and similar chains. They have good food, reasonably priced, and a casual atmosphere. They make no claim to rival places like Le Cirque and Maxim’s, or even the better chains (Panda, Brigantine). They are usually priced for a family budget.
Fast food restaurants, which do a large drive-thru business, and where entrees may cost less than $1, round out the list. Fast food (McDonald’s, Burger King, Wendy’s) is what it is.
Luby’s direct competitors include Darden Restaurants (Olive Garden, Red Lobster), Sizzler, Souplantation and Home Town Buffet, among others. (Menger, p. C305). These restaurants feature freshly cooked foods at...