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Luby’s launches growth plans with opening of new prototype

HOUSTON Luby's Inc., operator of 128 namesake cafeterias, has opened its first new restaurant in seven years, a prototype in Cypress, Texas.

Luby’s plans to add four to six units in 2008 that incorporate the new prototype’s design, said Chris Pappas, president and chief executive of the Houston-based chain. He added that Luby’s initially would focus on growing existing markets in Texas but that the chain would consider new markets outside the state.

“The opening of the first next-generation Luby's cafeteria makes this an exciting time for our customers and our organization," Pappas said.

The new prototype’s exterior incorporates limestone, wood and stucco to evoke the Texas Hill Country. An open-view kitchen provides enhanced visibility and ambiance, and oversized windows surrounding the dining room allow in natural light. The cafeteria offers a more contemporary look with elements that include granite surfaces, exposed wood ceilings, terrazzo floors and cherry wood walls. The restaurant also features a covered seating area on the outdoor patio.

The prototype includes a dining counter with flat-screen televisions and bar-style seating to accommodate single diners. The counter also serves as a dessert and coffee bar, offering freshly brewed coffees, cappuccinos, espressos and iced coffees as well as milk shakes and ice cream. The food to-go area allows for curbside pickup, with a side entrance and access to the dining room and bar area.

Last month, Luby’s closed on a new five-year credit facility of up to $100 million to help fund new restaurant development, improvements in existing locations and expansion of the company’s on-site foodservice unit.

Luby’s said on Monday that it had opened a new facility at the Baylor College of Medicine as part of a new multiyear agreement to provide culinary services for the school’s Texas Medical Center campus in Houston.

The company has said that its expansion plans call for the opening of 45 to 50 new units over the next five years.

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