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Luby's, Inc. Message Board

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  • gycal gycal Jan 22, 2000 11:24 AM Flag

    Serious Talk

    The demographic shift that is occuring and will continue well into 2007 provide extremely strong drivers that sustain solid growth for the Luby business model

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    • Indeed it is puzzling that (with all the "smoke"
      about LUB "innovations") the CEO proclaims at the
      annual meeting that our prospects are so bright BECAUSE
      OF LUB demographic appeal to the OLDER market
      segments.

      And YET the much bally-hooed changes do NOT seem to
      target that segment but rather the younger, manufactured
      fast-food segment.

      Huh?

      And what is
      management's $ale$ track record?
      Quote from technical
      analysis posted here today (emphasis mine):

      "LUB's
      sales growth is FAR BELOW the INDUSTRY average. Given
      this scenario, LUB is LOSING MARKET SHARE to
      competitors."

      This management CANNOT hold onto OUR MOST VALUABLE
      ASSET: market shared earned over many decades.
      Why?

      The older age market segment (that our own CEO says
      is LUB future) is attracted by:

      QUALITY
      FOOD
      QUALITY SERVICE
      QUALITY EXPERIENCE,
      and
      VALUE

      So smart that our management is dilligently DILUTING
      each of those appeals!

      • 2 Replies to strategy2win
      • Is Lubys a good buy? It seems to be a goog growing company. The price seems to be right.

      • Part of the problem is the older customer base is
        literally dying off faster than Luby's can replace or
        attract newer customers. Remember
        that a cafeteria is
        not exactly user friendly
        to a young family
        pushing 2 highchairs. Nor is
        the interior decor very
        vibrant or exciting as
        a Chile's-Logan's-or Cracker
        Barrel. Manufactured food you say! I believe Luby's is
        adressing that already, pre-made dressings,
        pre-made
        rolls, pre-made fillings, pre-made chopped steak,
        pre-made chicken fried steak, pre-made liver, pre-made
        fried okra. Probably
        a better way to say it would be
        pre-prepped,
        but made from scratch! No Way! The old way wasn'nt
        good enough. Managements track record?
        I believe
        the price of the stock has hit an all
        time low.
        Nuff said on that subject. 2Win I believe that good
        food made from scratch served
        in a clean enviroment
        go hand in hand with good service. As long as those
        two items are a priority in each unit on a daily
        basis the quality value and experience will be there.

        Rock on Luby's.

    • To what specifics of LUB's business model are you
      referring? The aging boomers would probably prefer the good
      food made in the local kitchen with a reasonable quiet
      atmosphere. (But perhaps I do not understand this group.) And
      doesn't this business model remove the differentiation
      with the Chile's, Cheddar's, Logan's Roadhouses, etc.?
      If so, we've lost out distinction and will just have
      to compete on price, service and amenities. Or, is
      the new business model fast food? Help me understand
      your statement, as it seems to me that it does not
      answer my previous one. With some explanation, I could
      agree.

 
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