Robinson’s Plans to Close Down In-Store Restaurants

J. W. Robinson Co., which has lost money in recent months, will phase out its restaurant operations as a cost-saving move, the department store chain’s parent company said Thursday.

“We as a company have been curtailing restaurant operations for some time,” said Jim Abrams, a May Department Stores spokesman. “It’s a common practice within the company and the industry, and when appropriate we’ll do so at Robinson’s.”

The Southern California chain operates restaurants in many of its 24 stores as well as four JWR Market food courts, featuring gourmet foods, wines and bakery goods. The first JWR Market, patterned after R. H. Macy & Co.’s Cellar in San Francisco, opened with much fanfare in 1982 in the basement of Robinson’s Beverly Hills store.

David C. Farrell, May’s chairman and chief executive, told Dow Jones News Service that Robinson’s would also cut advertising expenses and open more space for cosmetics and apparel. Those areas are traditionally more profitable than food service.

Farrell said St. Louis-based May expects to report next week that profits for the fourth quarter ended Jan. 31 and for the full year will rise about 10%. He added that those results will probably spur directors to raise the company’s dividend at their meeting Wednesday.