The company will kick off the expansion with the opening of anew prototype store here next month. Next year Luby's executivesexpect to open four to six of the prototype units and then completethe rest of the expansion within five years.

"We believe the expansion of new units will generate favorableunit sales and strong returns on investment creating an attractivelong-term growth vehicle for the company," says Chris Pappas, thecompany's president and chief executive officer, in a statement.Pappas says Luby's will also consider acquisitions for growth.

During the release of the company's second-quarter results lastmonth, Pappas said that he expects the prototype stores to generatestrong sales. The roll out is taking place in an industry thatPappas says, "remains challenging with rising food commodity costsand new minimum wage increases that will impact labor costs."