8-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 or 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): January 3, 2003

FURR'S RESTAURANT GROUP, INC.
(Exact name of registrant as specified in its charter)

Delaware	1-10725	75-2350724
(State or other jurisdiction of	(Commission File Number)	(I.R.S. Employer
incorporation or organization)		Identification No.)

3001 E. President George W. Bush Highway
Richardson, Texas	75082
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code: 972-808-2923

         Item 3.    Bankruptcy or Receivership

        On January 3, 2003, Furr’s Restaurant Group, Inc. (the “Company”) together with its principal operating subsidiary, Cafeteria Operators, L.P. (COLP) announced that they have filed for a voluntary petition for Chapter 11 relief in the United States Bankruptcy Court for the Northern District of Texas, Dallas Division, case number 03-30179-HDH-11.

         Item 7.    Exhibits.

Exhibit
Number         Description of Exhibit

   99.1             Press Release dated January 6, 2003.

SIGNATURE

        Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

FURR'S RESTAURANT GROUP, INC.

By: /s/ Nancy Ellefson                                                          

             Nancy Ellefson

             Vice President

Dated:      January 8, 2003

EXHIBIT INDEX

Exhibit
Number                          Description of Exhibit

   99.1                              Press Release dated January 6, 2003

EX-99.1

Home Office                                                                                                      Contact: William Snyder
PO Box 852800 - Richardson, Texas 75085-2800                                                         Acting Chief Executive Officer
Phone: (972) 808-2923

FOR IMMEDIATE RELEASE

FURR’S RESTAURANT GROUP, INC. FILES VOLUNTARY PETITION
FOR RELIEF UNDER CHAPTER 11 OF THE BANKRUPTCY CODE

RICHARDSON, TX, JANUARY 6, 2003. Furr’s Restaurant Group, Inc. (the “Company”), together with its principal operating subsidiary, Cafeteria Operators, L.P. (“COLP”), announced today that they have filed a voluntary petition for Chapter 11 relief in the United States Bankruptcy Court for Northern District of Texas, Dallas Division. Voluntary petitions and requests for joint administration were filed on behalf the Company, COLP and their subsidiaries. The Company’s restaurants remain open and the Company continues to operate as a debtor in possession of its assets.

The Company operates 75 cafeterias under the Furr’s and Bishop’s names in nine Midwestern, southwestern and western states. The Company also operates Dynamic Foods, its food preparation, processing and distribution division, in Lubbock, Texas. In August 2002, the Company announced that it had suffered a serious decline in same store revenues and operating results during the second quarter of the year based upon a combination of factors, including continued downward trends in the cafeteria segment of the restaurant industry and the failure of the Company’s effort to increase its customer counts by repositioning and actively advertising its service offering and pricing scheme beginning in April 2002. In the face of these unfavorable trends, the Company has been working to increase its customer traffic and revenues, and to implement significant cost reductions. While these measures have encountered some success, they have not been sufficient at this time to return the Company to a sustainable level of operating profit, culminating in today’s announcement.

This release contains statements relating to future results of the Company (including certain projections and business trends) that are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements regarding management’s present plans involve a number of risks and uncertainties. The actual results of the future events described in such forward-looking statements could differ materially from those stated in such forward-looking statements. Among the factors that could cause actual results to differ materially are: the realization of negative cash flow from operations, the unavailability of DIP financing, the impact that public disclosures of the Company’s liquidity and Chapter 11 filing may have on the Company’s business, adverse conditions in the restaurant industry and other competitive factors, governmental regulation, possible future litigation, seasonality of business, loss of material suppliers or increases in the costs of raw materials used in the Company’s food products, termination of key franchise and/or license agreements, as well as other risks and uncertainties disclosed in periodic reports on Form 10-K and Form 10-Q filed with the Securities and Exchange Commission.