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.
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!
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.
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.