RECENT RESTAURANT DISPOSITIONS

6 Months Ended

Mar. 31, 2012

Recent Restautant Dispositions [Text Block]

4. RECENT RESTAURANT DISPOSITIONS

Lease Expirations – On July 8, 2011, the Company entered into an agreement with the landlord of The Grill Room property located in New York City, whereby in exchange for a payment of $350,000 the Company vacated the property on October 31, 2011. Such payment and the related loss on closure of the property, in the amount of $179,000, are included in Other Operating Costs and Expenses in the Consolidated Condensed Statement of Operations for the 26-weeks ended March 31, 2012. This lease was scheduled to expire on December 31, 2011.

The Company was advised by the landlord that it would have to vacate the America property located in Washington, DC, which was on a month-to-month lease. The closure of this property occurred on November 7, 2011. The related loss on closure of this property, in the amount of $186,000, is included in Other Operating Costs and Expenses in the Consolidated Condensed Statement of Operations for the 26-weeks ended March 31, 2012.

Discontinued Operations – During the fourth fiscal quarter of 2010, the Company closed its Pinch & S’Mac operation located in New York City, and re-concepted the location as Polpette, which featured meatballs and other Italian food. Sales at Polpette failed to reach the level sufficient to achieve the results the Company required. On February 6, 2011, the Company closed this restaurant and on April 28, 2011 it was sold for $400,000. The Company realized a loss on the sale of $71,000 which was recorded during the second quarter of fiscal 2011 as well as operating losses of $148,000 for the 26-weeks ended April 2, 2011, all of which are included in discontinued operations in the accompanying Consolidated Statement of Operations.

Effective March 15, 2012, the Company vacated its food court operations at the MGM Grand Casino at the Foxwoods Resort Casino in Ledyard, CT. The Company determined that it would not be able to operate this facility profitably at this location at the current rent. As a result, the Company recorded a disposal loss in the amount of $270,000 which was recorded during the second quarter of fiscal 2011 as well as operating losses of $345,000 for the 26-weeks ended March 31, 2012, all of which are included in discontinued operations in the accompanying Consolidated Statement of Operations.

The results of discontinued operations were as follows:

	13 Weeks Ended						26 Weeks Ended
	March 31, 2012			April 2, 2011			March 31, 2012			April 2, 2011
	(In thousands)						(In thousands)
Loss before income taxes	$	(449	)	$	(510	)	$	(615	)	$	(955	)
Income tax benefit		(140	)		(84	)		(179	)		(192	)
Net loss	$	(309	)	$	(426	)	$	(436	)	$	(763	)