Luby’s has closed its Denton cafeteria, leaving several local civic clubs looking for new places to meet.

Citing a dismal fourth quarter, including a decline in sales and overall decline in customers, officials with the company closed the restaurant at 2440 S. Interstate 35E and seven other locations in the Dallas-Fort Worth area.

DRC/Barron Ludlum

Luby’s Cafeteria at 2440 S. Interstate 35E, in Southridge Village shopping center, is closed. Luby’s Inc. closed 25 underperforming stores, including the Denton location and seven others in the Dallas-Fort Worth area.

View larger More photos Photo store

Corporate officials declined to comment, referring to a company news release.

Last week, the company reported a $23.3 million fourth-quarter loss, compared to a $3.7 million loss for the same period a year ago. It also announced a decline in restaurant sales of $13.8 million due to low customer traffic and lower menu prices, according to a news release.

In the release, Chris Pappas, president and CEO of Luby’s Inc., said the challenging economic climate kept many customers from visiting his company’s restaurants.

Management assessed and evaluated each store and closed 25 underperforming restaurants, including three in Dallas, and one each in Fort Worth, Arlington, Grapevine and Bedford. Another 19 stores are set to close in the next two weeks, with one more during the first fiscal quarter of 2010, the company reported.

Linda Ratliff, the city’s economic development director, said she was sorry to hear of the cafeteria’s closing.

“I don’t know if it is a sign of the economy or a change in where people are eating out,” Ratliff said. “There are not many cafeteria concepts out there these days. It was a great place to get a balanced meal at a good price.”

The Denton Breakfast Kiwanis Club, which met regularly at Luby’s for many years, learned the cafeteria had closed when a member visited Thursday.

“They did not give us any advance warning,” said Bill Watson, secretary of the Denton Breakfast Kiwanis. “I think we had a sense that Luby’s was in financial trouble but did not think that they were going to close.”

Watson said he owed thanks to Luby’s for providing a meeting space at 6:30 a.m.

“They were gracious to provide us with breakfast even though they were not open at that time of day,” he said.

The Denton Breakfast Kiwanis will meet from 6:30 to 8 a.m. Wednesday at a temporary location, El Chaparral Grille at 324 E. McKinney St., Watson said.

Headquartered in Houston, Luby’s will continue to operate 95 restaurants in Texas, Arkansas and Oklahoma.

KARINA RAMÍREZ can be reached at 940-566-6878. Her e-mail address is kramirez@dentonrc.com.