BBQ (BBQ) 10-Q 11 Aug 22 2022 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jul. 03, 2022	Aug. 08, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 03, 2022
Document Transition Report	false
Entity File Number	001-39053
Entity Registrant Name	BBQ HOLDINGS, INC.
Entity Incorporation, State or Country Code	MN
Entity Tax Identification Number	83-4222776
Entity Address, Address Line One	12701 Whitewater Drive, Suite 100
Entity Address, City or Town	Minnetonka
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55343
City Area Code	952
Local Phone Number	294-1300
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	BBQ
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		10,760,055
Entity Central Index Key	0001021270
Current Fiscal Year End Date	--01-01
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Small Business	true
Entity Emerging Growth Company	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jul. 03, 2022	Jan. 02, 2022
Current assets:
Cash and cash equivalents	$ 20,624,000	$ 40,309,000
Restricted cash	679,000	1,152,000
Accounts receivable, net of allowance for doubtful accounts of $336,000 and $270,000, respectively	3,816,000	5,476,000
Inventories	4,322,000	3,316,000
Prepaid expenses and other current assets	3,939,000	3,919,000
Total current assets	33,380,000	54,172,000
Property, equipment and leasehold improvements, net	47,621,000	39,943,000
Other assets:
Operating lease right-of-use assets	97,696,000	78,843,000
Goodwill	21,184,000	3,037,000
Intangible assets, net	30,383,000	23,444,000
Deferred tax asset, net	2,881,000	3,692,000
Other assets	1,460,000	1,292,000
Total assets	234,605,000	204,423,000
Current liabilities:
Accounts payable	5,681,000	7,661,000
Current portion of operating lease liabilities	14,344,000	11,904,000
Current portion of long-term debt and finance lease liabilities	1,957,000	1,621,000
Accrued compensation and benefits	7,418,000	7,121,000
Gift card liability	8,087,000	11,257,000
Other current liabilities	8,248,000	8,510,000
Total current liabilities	45,735,000	48,074,000
Long-term liabilities:
Operating lease liabilities, less current portion	93,531,000	77,729,000
Finance lease liabilities, less current portion	261,000	79,000
Long-term debt, less current portion	22,419,000	13,197,000
Other liabilities	1,314,000	997,000
Total liabilities	163,260,000	140,076,000
Shareholders’ equity:
#REF!	108,000	105,000
Additional paid-in capital	22,900,000	21,782,000
Retained earnings	48,337,000	43,391,000
Total shareholders’ equity	71,345,000	65,278,000
Non-controlling interest	0	(931,000)
Total equity	71,345,000	64,347,000
Total liabilities and equity	$ 234,605,000	$ 204,423,000

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) shares in Thousands, $ in Thousands	Jul. 03, 2022	Jan. 02, 2022
Common Stock, Number of Shares, Par Value and Other Disclosure [Abstract]
Accounts receivable net of allowance for doubtful accounts	$ 336	$ 270
Common stock par value (dollars per share)	$ 0.01	$ 0.01
Common stock authorized (shares)	100,000	100,000
Common stock issued (shares)	10,760	10,495
Common stock outstanding (shares)	10,760	10,495

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2022	Jul. 04, 2021	Jul. 03, 2022	Jul. 04, 2021
Revenue:
Revenue	$ 79,938	$ 45,520	$ 144,122	$ 82,839
Costs and expenses:
Food and beverage costs	22,820	11,932	41,177	21,989
Labor and benefits costs	24,348	12,429	43,734	22,683
Operating expenses	19,675	11,594	36,914	21,843
Depreciation and amortization expenses	2,238	1,433	4,661	2,985
General and administrative expenses	5,745	4,544	11,036	8,582
National advertising fund expenses	547	421	1,037	749
Asset impairment, estimated lease termination charges and other closing costs, net	16	25	425	37
Pre-opening expenses	86	92	151	120
Loss (gain) on disposal of property, net	(30)	143	14	135
Total costs and expenses	75,445	42,613	139,149	79,123
Income from operations	4,493	2,907	4,973	3,716
Other income (expense):
Interest expense	(167)	(261)	(287)	(315)
Interest income	2	74	10	98
Gain upon debt extinguishment	0	14,109	0	14,109
Gain on bargain purchase	159	0	197	0
Other gain	667	0	667	0
Total other income	661	13,922	587	13,892
Income before income taxes	5,154	16,829	5,560	17,608
Income tax expense	(985)	(399)	(744)	(481)
Net income	4,169	16,430	4,816	17,127
Net (income) loss attributable to non-controlling interest	10	(644)	130	(542)
Net income attributable to shareholders	$ 4,179	$ 15,786	$ 4,946	$ 16,585
Income per common share:
Basic net income per share (dollars per share)	$ 0.39	$ 1.70	$ 0.46	$ 1.79
Diluted net income per share (dollars per share)	$ 0.39	$ 1.64	$ 0.46	$ 1.73
Basic weighted average shares outstanding (shares)	10,756	9,304	10,654	9,256
Diluted weighted average shares outstanding (shares)	10,853	9,615	10,755	9,567
Restaurant sales, net
Revenue:
Revenue	$ 74,625	$ 41,205	$ 133,356	$ 74,808
Deferred franchise fees
Revenue:
Revenue	3,900	2,946	7,507	5,320
Franchisee national advertising fund contributions
Revenue:
Revenue	547	421	1,037	749
Licensing and other revenue
Revenue:
Revenue	$ 866	$ 948	$ 2,222	$ 1,962

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Changes In Shareholders' Equity - USD ($) shares in Thousands	Total	Total Shareholders' Equity	Common Stock	Additional Paid-in Capital	Retained Earnings	Non-controlling Interest
Beginning balance (shares) at Jan. 03, 2021			9,307
Beginning balance at Jan. 03, 2021	$ 26,933,000	$ 28,211,000	$ 93,000	$ 8,748,000	$ 19,370,000	$ (1,278,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of options, net of shares withheld for taxes (shares)			50
Issuance of common stock upon exercise of options, net of shares withheld for taxes	310,000	310,000	$ 1,000	309,000
Issuance of common stock pursuant to PIPE (shares)			1,000
Issuance of common stock pursuant to PIPE	12,462,000	12,462,000	$ 10,000	12,452,000
Stock-based compensation	638,000	638,000		638,000
Net income	17,127,000	16,585,000			16,585,000	542,000
Ending balance (shares) at Jul. 04, 2021			10,357
Ending balance at Jul. 04, 2021	57,470,000	58,206,000	$ 104,000	22,147,000	35,955,000	(736,000)
Beginning balance (shares) at Apr. 04, 2021			9,307
Beginning balance at Apr. 04, 2021	27,948,000	29,328,000	$ 93,000	9,066,000	20,169,000	(1,380,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of options, net of shares withheld for taxes (shares)			50
Issuance of common stock upon exercise of options, net of shares withheld for taxes	310,000	310,000	$ 1,000	309,000
Issuance of common stock pursuant to PIPE (shares)			1,000
Issuance of common stock pursuant to PIPE	12,462,000	12,462,000	$ 10,000	12,452,000
Stock-based compensation	320,000	320,000		320,000
Net income	16,430,000	15,786,000			15,786,000	644,000
Ending balance (shares) at Jul. 04, 2021			10,357
Ending balance at Jul. 04, 2021	57,470,000	58,206,000	$ 104,000	22,147,000	35,955,000	(736,000)
Beginning balance (shares) at Jan. 02, 2022			10,495
Beginning balance at Jan. 02, 2022	64,347,000	65,278,000	$ 105,000	21,782,000	43,391,000	(931,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of restricted common stock, net of shares withheld for taxes (shares)			232
Issuance of restricted common stock, net of shares withheld for taxes	$ (21,000)	(21,000)	$ 3,000	(24,000)
Issuance of common stock upon exercise of options, net of shares withheld for taxes (shares)	33		33
Issuance of common stock upon exercise of options, net of shares withheld for taxes	$ 122,000	122,000		122,000
Stock-based compensation	1,020,000	1,020,000		1,020,000
Net income	4,816,000	4,946,000			4,946,000	(130,000)
Sale of minority investment	1,061,000					1,061,000
Ending balance (shares) at Jul. 03, 2022			10,760
Ending balance at Jul. 03, 2022	71,345,000	71,345,000	$ 108,000	22,900,000	48,337,000	0
Beginning balance (shares) at Apr. 03, 2022			10,750
Beginning balance at Apr. 03, 2022	65,463,000	66,514,000	$ 108,000	22,248,000	44,158,000	(1,051,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of restricted common stock, net of shares withheld for taxes (shares)			5
Issuance of restricted common stock, net of shares withheld for taxes	(2,000)	(2,000)		(2,000)
Issuance of common stock upon exercise of options, net of shares withheld for taxes (shares)			5
Issuance of common stock upon exercise of options, net of shares withheld for taxes	18,000	18,000		18,000
Stock-based compensation	636,000	636,000		636,000
Net income	4,169,000	4,179,000			4,179,000	(10,000)
Sale of minority investment	1,061,000					1,061,000
Ending balance (shares) at Jul. 03, 2022			10,760
Ending balance at Jul. 03, 2022	$ 71,345,000	$ 71,345,000	$ 108,000	$ 22,900,000	$ 48,337,000	$ 0

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jul. 03, 2022	Jul. 04, 2021
Cash flows from operating activities:
Net income attributable to shareholders	$ 4,946,000	$ 16,585,000
Net income	4,816,000	17,127,000
Adjustments to reconcile net income to cash flows provided by operations:
Depreciation and amortization	4,661,000	2,985,000
Stock-based compensation	1,020,000	638,000
Loss on disposal of property, net	14,000	135,000
Asset impairment, estimated lease termination charges and other closing costs, net	425,000	0
Gain upon debt extinguishment	0	(14,109,000)
Gain on bargain purchase	(197,000)	0
Amortization of operating right-of-use assets	5,998,000	3,732,000
Deferred tax asset	811,000	481,000
Other gain	(851,000)	0
Other non-cash items	35,000	168,000
Changes in operating assets and liabilities:
Accounts receivable, net	1,609,000	(188,000)
Prepaid expenses and other assets	100,000	(2,479,000)
Accounts payable	(1,980,000)	665,000
Accrued compensation and benefits	400,000	3,923,000
Lease liabilities	(6,698,000)	(4,265,000)
Gift card liability	(3,457,000)	(970,000)
Accrued and other liabilities	(612,000)	1,041,000
Cash flows provided by operating activities	6,224,000	8,884,000
Cash flows from investing activities:
Purchases of property, equipment and leasehold improvements	(2,297,000)	(1,114,000)
Payments for acquired restaurants	(37,675,000)	0
Proceeds from disposal of minority investment	4,168,000	0
Transfer from HFS	0	46,000
Payments received on note receivable	0	23,000
Cash flows used for investing activities	(35,804,000)	(1,045,000)
Cash flows from financing activities:
Proceeds from long-term debt	10,509,000	0
Payments on long-term debt	(1,070,000)	(1,032,000)
Tax payments for restricted stock units and stock options exercised	(142,000)	0
Proceeds from sale of common stock, net of offering costs	0	12,462,000
Proceeds from exercise of stock options	125,000	310,000
Cash flows provided by financing activities	9,422,000	11,740,000
Increase (decrease) in cash, cash equivalents and restricted cash	(20,158,000)	19,579,000
Cash, cash equivalents and restricted cash, beginning of period	41,461,000	19,603,000
Cash, cash equivalents and restricted cash, end of period	21,303,000	39,182,000
Supplemental Disclosures
Cash paid for interest, net	283,000	587,000
Non-cash investing and financing activities:
Operating right-of-use assets acquired	24,616,000	0
Lease liabilities assumed pursuant to acquisitions	24,647,000	0
Gift card liability assumed pursuant to acquisitions	287,000	0
Inventory acquired pursuant to acquisitions	$ 561,000	$ 0

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jul. 03, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation Overview On August 8, 2022, a subsidiary of MTY Food Group Inc. (TSX:MTY) (“MTY”) and the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) providing for the acquisition of the Company by MTY in a transaction consisting of a tender offer (the “Offer”), followed by a subsequent merger, for all of the Company’s issued and outstanding common shares for cash consideration of US$17.25 per Company share representing total transaction value of approximately US$200 million (C$256 million) (the “Transaction”), including the Company’s net debt. The terms and conditions of the Merger Agreement were unanimously approved by the Boards of Directors of both companies. The Transaction is subject to customary closing conditions including receipt of applicable regulatory approvals. Basis of Presentation In September 2019 a holding company reorganization was completed in which Famous Dave’s of America, Inc. (“FDA”) became a wholly owned subsidiary of the new parent holding company named BBQ Holdings, Inc. (“BBQ Holdings”). As used in this Form 10-Q, “Company”, “we” and “our” refer to BBQ Holdings and its wholly owned subsidiaries. BBQ Holdings was incorporated on March 29, 2019 under the laws of the State of Minnesota, while FDA was incorporated in Minnesota on March 14, 1994. The Company develops, owns and operates restaurants under the name “Famous Dave’s”, “Village Inn”, “Barrio Queen”, “Granite City”, Real Urban Barbecue”, “Tahoe Joe’s Steakhouse”, “Bakers Square”, “Craft Republic”, “Fox & Hound”, and “Champps”. Additionally, the Company franchises restaurants under the name “Famous Dave’s” and “Village Inn”. As of July 3, 2022, there were 143 Famous Dave’s restaurants operating in three countries, including 43 Company-owned restaurants and 100 franchise-operated restaurants. This includes the nine Famous Dave’s ghost kitchens the Company operates out of its Granite City restaurants. A Clark Crew BBQ restaurant opened in December 2019 in Oklahoma City, Oklahoma. BBQ Holdings had a 20% ownership in this venture, and sold that entire ownership in June of 2022. The Company owns and operates 18 Granite City Food & Brewery restaurants located throughout the Midwest and two Real Urban Barbecue restaurants located in Illinois. On July 30, 2021, the Company completed the purchase of the Village Inn family restaurant concept currently with 24 Company-owned restaurants and 102 franchised restaurants, and the Bakers Square pie and comfort food concept currently with 14 Company-owned restaurants and six locations where Bakers Square pies are licensed. On October 8, 2021 the Company acquired the Tahoe Joe's Steakhouse brand, currently with four Company-owned restaurants. On March 11, 2022 the Company acquired three bar-centric locations, and on May 24, 2022, the Company acquired another bar-centric location, collectively referred to as “Famous Craft Concepts”. On April 11, 2022, the Company closed the purchase of Barrio Queen, a chain of seven authentic Mexican fine dining restaurants in Phoenix, Arizona. The accompanying condensed consolidated balance sheet as of January 2, 2022, which has been derived from audited financial statements, and the unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and Securities and Exchange Commission (“SEC”) Rules and Regulations. The information furnished in these condensed consolidated financial statements include normal recurring adjustments and reflect all adjustments, which are, in the opinion of management, necessary for a fair presentation. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. These unaudited financial statements represent the condensed consolidated financial statements of the Company and its subsidiaries as of July 3, 2022 and January 2, 2022, and for the three and six months ended July 3, 2022 and July 4, 2021. The results for the three and six months ended July 3, 2022 are not necessarily indicative of the results to be expected for the full fiscal year or any other interim period. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in BBQ Holdings, Inc.’s Annual Report on Form 10-K for the fiscal year ended January 2, 2022 as filed with the SEC on March 16, 2022. In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (“COVID-19”) as a pandemic and the United States declared a National Public Health Emergency. As a result, public health measures were taken to minimize exposure to the virus. These measures, some of which were government-mandated, were implemented globally resulting in a dramatic decrease in economic activity. During the second quarter of 2021, mandated restrictions began to ease in a number of the markets in which the Company operates. Although the Company has experienced some recovery from the initial impact of COVID-19, the long-term impact of COVID-19 on the economy and on its business remains uncertain, the duration and scope of which cannot currently be predicted. As new variants of COVID-19 are being discovered and cases continue to occur at material rates throughout the markets in which the Company does business, the Company cannot predict the severity of another surge, what additional restrictions may be enacted, to what extent it can maintain off-premise sales volumes, whether it can maintain sufficient staffing levels, or if individuals will be comfortable returning to its dining rooms during or following social distancing protocols, and what long-lasting effects the COVID-19 pandemic may have on the restaurants industry as a whole. The potential impact of the COVID-19 pandemic on consumer spending behavior, which may be a function of continued concerns over safety and/or depressed consumer sentiment due to adverse economic conditions, including job losses, will determine the significance of the impact to the Company’s operating results and financial position. The full impact of the COVID-19 pandemic continues to evolve as of the date of this report. Despite the fact that vaccines are now widely available across the country, there are widespread increases in diagnosed cases reported since the end of the second quarter of 2021 largely due to the spread of COVID-19 variants. The duration of the disruption on global, national, and local economies cannot be reasonably estimated at this time due to the ongoing effects of this situation. Management is continually evaluating the impact of this global crisis on its financial condition, liquidity, operations, suppliers, industry, and workforce and will take additional actions as necessary. Income Taxes The Company maintains a federal deferred tax asset (“DTA”) which was in the amount of $2.9 million as of July 3, 2022 and $3.7 million as of January 2, 2022. The Company evaluates the DTA on a quarterly basis to determine whether current facts and circumstances indicate that the DTA may not be fully realizable. As of July 3, 2022, the Company concluded that the DTA is fully realizable and that no further valuation allowance was necessary; however, the Company will continue to evaluate the DTA on a quarterly basis until the DTA has been fully utilized. The following table presents the Company’s effective tax rates for the periods presented: Three Months Ended Six Months Ended July 3, 2022 July 4, 2021 July 3, 2022 July 4, 2021 Effective tax rate 19.1 % 2.4 % 13.4 % 2.7 % The Company uses the discrete method to calculate the quarterly tax provision due to its inability to reliably estimate annual ordinary income (loss). The Company provides for income taxes based on its estimate of federal and state income tax liabilities. These estimates include, among other items, effective rates for state and local income taxes, allowable tax credits for items such as taxes paid on reported tip income, estimates related to depreciation and amortization expense allowable for tax purposes, and the tax deductibility of certain other items. The Company’s estimates are based on the information available at the time that the Company prepares the income tax provision. The Company generally files its annual income tax returns several months after its fiscal year-end. Income tax returns are subject to audit by federal, state, and local governments, generally years after the tax returns are filed. These returns could be subject to material adjustments due to differing interpretations of the tax laws. Cash and cash equivalents Cash equivalents include all investments with original maturities of three months or less or which are readily convertible into known amounts of cash and are not legally restricted. Accounts at each institution are insured by the Federal Deposit Insurance Corporation up to $250,000, while the remaining balances are uninsured. Restricted cash and marketing fund The Company has Marketing Development Funds, to which Company-owned Famous Dave’s and Village Inn restaurants, in addition to the majority of franchise-operated restaurants, contribute a percentage of net sales, for use in public relations and marketing development efforts. The funds held in this account are used in part to reimburse the Company for its marketing and digital services activities on behalf of the Famous Dave’s and Village Inn brands. The Company also receives funds from its suppliers to be used exclusively for point-of-sale equipment purchases for its own stores as well as its Famous Dave’s franchisees. As the assets held by these funds are considered to be restricted, the Company reflects the cash related to these funds within restricted cash on its consolidated balance sheets. The Company had approximately $679,000 and $1.2 million in these funds as of July 3, 2022 and January 2, 2022, respectively. Net income per common share Basic net income per common share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the reporting period. Diluted EPS equals net income divided by the sum of the weighted average number of shares of common stock outstanding plus all additional common stock equivalents, such as stock options and restricted stock units, when dilutive. The following table is a reconciliation of basic and diluted net income per common share: Three Months Ended Six Months Ended (in thousands, except per share data) July 3, 2022 July 4, 2021 July 3, 2022 July 4, 2021 Net income per share – basic: Net income attributable to shareholders $ 4,179 $ 15,786 $ 4,946 $ 16,585 Weighted average shares outstanding - basic 10,756 9,304 10,654 9,256 Basic net income per share attributable to shareholders $ 0.39 $ 1.70 $ 0.46 $ 1.79 Net income per share – diluted: Net income attributable to shareholders $ 4,179 $ 15,786 $ 4,946 $ 16,585 Weighted average shares outstanding - diluted 10,853 9,615 10,755 9,567 Diluted net income per share attributable to shareholders $ 0.39 $ 1.64 $ 0.46 $ 1.73 There were approximately 95,250 and 250 stock options outstanding as of July 3, 2022 and July 4, 2021, respectively, that were not included in the computation of diluted EPS because they were anti-dilutive.

RESTAURANT ACQUISITIONS

RESTAURANT ACQUISITIONS	6 Months Ended
	Jul. 03, 2022
Business Combinations [Abstract]
Restaurant Acquisitions	Restaurant Acquisitions On February 21, 2022, the Company completed the acquisition of the assets and operations of a Famous Dave’s franchise location in La Crosse, Wisconsin. The contract purchase price of the restaurant was approximately $50,000, exclusive of closing costs plus the assumption of the lease, gift card, and certain other liabilities. The assets acquired and the liabilities assumed were considered to be immaterial and were recorded at estimated fair values based on information available, including an ROU asset and offsetting liability of approximately $682,000. Pro forma results were deemed immaterial to the Company. On March 11, 2022, the Company completed the acquisition of three bar-centric locations, two of which are Craft Republic locations and one of which is a Fox and Hound location (collectively, “Famous Craft Concepts” or “FCC”). The purchase price of $4.6 million was funded with cash. Due to the timing of the signing and closing of this acquisition, the initial accounting for this acquisition is incomplete as of the date of this filing. As such, complete ASC 805 “Business Combinations” disclosures could not be made. Management recorded preliminary fair values for the assets acquired and liabilities assumed based on information available as of the date of this filing and will adjust those estimates in a subsequent period once the full independent valuation and management review is finalized. The consolidated statements of operations include the results of these operations from the date of acquisition. Revenue and earnings of the three FCC restaurants listed above included in the consolidated statements of operations in the quarter ended July 3, 2022 totaled approximately $1.9 million and $301,000, respectively, and for the six months ended July 3, 2022 they totaled approximately $2.5 million and $400,000, respectively. (in thousands) Assets acquired: Inventory 106 Property, plant, equipment and leasehold improvements, net 1,216 Lease right-of-use asset, net of unfavorable lease value 3,851 Identifiable intangible assets, net 689 Other current assets 30 Total identifiable assets acquired 5,892 Liabilities assumed: Lease liability (3,851) Other current liabilities (269) Net assets acquired 1,772 Goodwill 2,639 Total consideration transferred $ 4,411 On April 11, 2022, the Company completed the acquisition of Barrio Queen, a chain of authentic Mexican fine dining restaurants in Phoenix, Arizona. There are currently seven operating restaurants and a lease signed for an eighth with a target opening date in 2023. The purchase price of $28.5 million was funded with cash and debt. Goodwill is attributable to the future anticipated economic benefits from combining operations of the Company and Barrio Queen, including future growth into new markets and the workforce in place. All of the goodwill is expected to be deductible for U.S. federal income tax purposes. Due to the timing of the signing and closing of this acquisition, the initial accounting for this acquisition is incomplete as of the date of this filing. As such, complete ASC 805 “Business Combinations” disclosures could not be made. Management recorded preliminary fair values for the assets acquired and liabilities assumed based on information available as of the date of this filing and will adjust those estimates in a subsequent period once the full independent valuation and management review is finalized. The property, plant, equipment and leasehold improvements, net, and identifiable intangible assets, net represent Level 3 valuation measurements as they were based on unobservable inputs reflecting the Company’s assumptions used in developing a fair value estimate. These inputs required significant judgments and estimates at the time of the valuation. The Company engaged a third-party specialist to assist management in estimating the fair value of these assets. The property, plant, equipment and leasehold improvements, net, were valued using a cost plus modified age/life analysis method, and the intangible assets, net, which consisted solely of trademarks, were valued using a relief from royalty method. The consolidated statements of operations include the results of these operations from the date of acquisition. Revenue and earnings of Barrio Queen included in the consolidated statements of operations in the quarter ended July 3, 2022 totaled approximately $8.1 million and $1.1 million, respectively. The following table presents the allocation of assets acquired and liabilities assumed for the Barrio Queen Transaction: (in thousands) Assets acquired: Inventory 485 Property, plant, equipment and leasehold improvements, net 8,541 Lease right-of-use asset, net of unfavorable lease value 15,391 Identifiable intangible assets, net 6,100 Other current assets 221 Total identifiable assets acquired 30,738 Liabilities assumed: Lease liability (15,391) Other current liabilities (152) Net assets acquired 15,195 Goodwill 13,310 Total consideration transferred $ 28,505 On May 2, 2022, the Company closed on the acquisition of the assets and operations of two Famous Dave’s franchise locations in Nebraska. The contract purchase price for the restaurants was approximately $400,000, which included cash and the forgiveness of a promissory note, as well as the assumption of the lease, gift card, and certain other liabilities. The assets acquired and the liabilities assumed were considered to be immaterial and were recorded at estimated fair values based on information available, including an ROU asset and offsetting liability of approximately $3.0 million. Pro forma results were deemed immaterial to the Company. On May 24, 2022, the Company closed on the acquisition of the assets and operations of one bar-centric restaurant location, Champps in Eden Prairie, Minnesota, which included the royalty rights to two franchised Champps restaurants, located in Wisconsin and Indiana. The contract purchase price for the transaction was approximately $3.4 million, paid for with cash consideration subject to certain purchase price adjustments, as well as the assumption of the lease and certain other liabilities. The assets acquired and the liabilities assumed were considered to be immaterial and were recorded at estimated fair values based on information available, including an ROU asset and offsetting liability of approximately $222,000. Pro forma results were deemed immaterial to the Company. On June 13, 2022, the Company closed on the acquisition of the assets and operations of two Village Inn franchise locations in Virginia. The contract purchase price for the restaurants was approximately $850,000, paid for with cash consideration subject to certain purchase price adjustments, as well as the assumption of the lease, gift card, and certain other liabilities. The assets acquired and the liabilities assumed were considered to be immaterial and were recorded at estimated fair values based on information available, including an ROU asset and offsetting liability of approximately $1.4 million. Pro forma results were deemed immaterial to the Company. Unaudited pro forma results of operations for the three and six months ended July 3, 2022 as if the Company had acquired the operations of Barrio Queen, Famous Craft Concepts, Tahoe Joe's, and Village Inn and Bakers Square at the beginning of each period presented is as follows. The pro forma results include estimates and assumptions which management believes are reasonable. However, pro forma results are not necessarily indicative of the results that would have occurred if the business combination had been in effect on the dates indicated, or which may result in the future. For allocation of assets acquired and liabilities assumed regarding the Village Inn and Bakers Square and Tahoe Joe’s acquisitions see 10-K filed by the Company on March 16, 2022, and for provisional allocation of assets acquired and liabilities assumed regarding the Famous Craft Concepts acquisition, see 10-Q filed by the Company on May 12, 2022. Three Months Ended Six Months Ended July 3, 2022 July 4, 2021 July 3, 2022 July 4, 2021 (in thousands) Pro forma revenues $ 80,722 $ 71,957 $ 156,323 $ 135,714 Pro forma net income attributable to shareholders $ 4,342 $ 18,403 $ 7,364 $ 21,820 Basic pro forma net income per share attributable to shareholders $ 0.40 $ 1.98 $ 0.69 $ 2.36 Diluted pro forma net income per share attributable to shareholders $ 0.40 $ 1.91 $ 0.68 $ 2.28

PREPAID EXPENSES AND OTHER CURR

PREPAID EXPENSES AND OTHER CURRENT ASSETS	6 Months Ended
	Jul. 03, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Expenses and Other Current Assets	Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following at: (in thousands) July 3, 2022 January 2, 2022 Prepaid expenses and deferred costs $ 1,999 $ 2,241 Prepaid rent 1,321 1,384 Prepaid insurance 574 257 Other prepaid expenses 45 37 Prepaid expenses and other current assets $ 3,939 $ 3,919

PROPERTY, EQUIPMENT, AND LEASEH

PROPERTY, EQUIPMENT, AND LEASEHOLD IMPROVEMENTS, NET	6 Months Ended
	Jul. 03, 2022
Property, Plant and Equipment [Abstract]
Property, Equipment, And Leasehold Improvements, net	Property, Equipment and Leasehold Improvements, net Property, equipment and leasehold improvements, net, consisted of the following: (in thousands) July 3, 2022 January 2, 2022 Land, buildings, and improvements $ 44,222 $ 39,632 Furniture, fixtures, equipment and software 37,513 33,565 Décor 434 434 Construction in progress 1,280 — Accumulated depreciation and amortization (35,828) (33,688) Property, equipment and leasehold improvements, net $ 47,621 $ 39,943

GOODWILL

GOODWILL	6 Months Ended
	Jul. 03, 2022
Business Combination, Goodwill [Abstract]
Goodwill	Goodwill The change in the Company's goodwill balance is as follows for the six months ended July 3, 2022 and July 4, 2021: (in thousands) July 3, 2022 July 4, 2021 Balance, beginning of period 3,037 601 Acquisitions during the period 18,147 — Balance, end of period $ 21,184 $ 601

INTANGIBLE ASSETS, NET

INTANGIBLE ASSETS, NET	6 Months Ended
	Jul. 03, 2022
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Intangible Assets, net	Intangible Assets, net The Company has intangible assets that consist of liquor licenses, database, trademarks and patents, and franchise rights, net. The liquor licenses and trademarks/logos are indefinite-lived assets and are not subject to amortization. Franchise rights are amortized to depreciation and amortization expense on a straight-line basis over the estimated remaining life of the asset in accordance with the Company's useful life policy. Franchise rights generally amortize over a period of 10 years. Intangible assets consisted of the following: (in thousands) July 3, 2022 January 2, 2022 Franchise rights, net 10,836 11,104 Liquor licenses 974 1,018 Trademark/Logos/Patents 18,522 11,233 Database 51 89 Intangible assets, net $ 30,383 $ 23,444

OTHER CURRENT LIABILITIES

OTHER CURRENT LIABILITIES	6 Months Ended
	Jul. 03, 2022
Accrued Liabilities, Current [Abstract]
Other Current Liabilities	Other Current Liabilities Other current liabilities consisted of the following at: (in thousands) July 3, 2022 January 2, 2022 Sales tax payable and state income tax payable 2,054 1,657 Other accrued expense 1,486 3,613 Accrued real estate taxes 2,380 2,170 Accrued interest 9 26 Accrued utilities 597 560 Deferred revenue 1,607 366 Deferred franchise fees 115 118 Other current liabilities $ 8,248 $ 8,510

LONG-TERM DEBT

LONG-TERM DEBT	6 Months Ended
	Jul. 03, 2022
Debt Disclosure [Abstract]
Long-term Debt	Long-Term Debt On November 23, 2021, the Company, as borrower, entered into a credit agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A. The Credit Agreement had a five-year term and provided for up to a $5.0 million revolving line of credit and a $15.0 million term loan. The Credit Agreement also provided for the issuance of letters of credit in an aggregate amount up to $1,000,000 which, upon issuance, would be deemed advances under the revolving line of credit. Proceeds of borrowings were used to refinance all indebtedness previously owed to Choice Financial Group. The proceeds were also used for accretive capital allocation and for working capital purposes. The Credit Agreement was amended on April 11, 2022 (the “Amended Credit Agreement”), increasing the revolving line of credit to $25.0 million and the term loan to $25.0 million. The Amended Credit Agreement has a five-year term. Proceeds of borrowings were used for accretive capital allocation and for working capital purposes. Specifically, a portion of the increased borrowings was used to fund the acquisition of Barrio Queen that closed on April 11, 2022 . The Company’s obligations under the Amended Credit Agreement are secured by substantially all of its assets, excluding real property. Subject to certain conditions, borrowings under the Amended Credit Agreement bear interest in the range of 1.75% to 2.25% per annum plus SOFR. If SOFR becomes unavailable, the replacement rate will be determined pursuant to the terms of the Amended Credit Agreement. Quarterly principal payments are required with a balloon payment due at maturity. The Amended Credit Agreement contains customary representations, warranties and covenants, including the financial covenants to maintain a rent adjusted leverage ratio not greater than 4.5 to 1.0 and a fixed charge coverage ratio of not less than 1.1 to 1.0. In addition, the Amended Credit Agreement places restrictions on the Company’s ability to incur additional indebtedness, to create liens or other encumbrances, to sell or otherwise dispose of assets, to merge or consolidate with other entities, to make restricted payments such as dividends and stock repurchases, and to make capital expenditures in excess of $10.0 million in the aggregate during any fiscal year. Debt outstanding consisted of the following as of the periods presented: (in thousands) July 3, 2022 January 2, 2022 Term Loan $ 24,531 $ 15,000 Less: deferred financing costs (237) (209) Less: current portion of long-term debt (1,875) (1,594) Long-term debt, less current portion $ 22,419 $ 13,197

LEASES

LEASES	6 Months Ended
	Jul. 03, 2022
Leases [Abstract]
Leases	Leases The Company leases the property for its corporate headquarters and most of its Company-owned stores. The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of use (“ROU”) assets, current portion of operating lease liabilities, and operating lease liabilities in its consolidated balance sheets. Lease expense for lease payments is recognized on a straight-line basis over the lease term and is included in operating expenses and general and administrative expenses on the statement of operations. The components of lease expense for the period presented is as follows: (in thousands) Three Months Ended Three Months Ended Six Months Ended July 3, 2022 Six Months Ended July 4, 2021 Operating lease cost $ 4,256 $ 2,527 $ 7,998 $ 4,969 Short-term lease cost 129 166 257 262 Variable lease cost 213 130 429 498 Sublease income (46) (30) (100) (74) Total lease cost $ 4,552 $ 2,793 $ 8,584 $ 5,655 Supplemental cash flow information related to leases for the period presented is as follows: (in thousands) Six Months Ended July 3, 2022 Six Months Ended July 4, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 8,602 $ 4,517 Right-of-use assets obtained in exchange for new operating lease liabilities 26,429 1,163 Weighted-average remaining lease term of operating leases (in years) 8.2 10.0 Weighted-average discount rate of operating leases 4.37 % 5.31 %

REVENUE RECOGNITION

REVENUE RECOGNITION	6 Months Ended
	Jul. 03, 2022
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue RecognitionDeferred franchise fee revenue included in other liabilities consist primarily of franchise fees which are recognized straight-line over the life of the agreements, and area development fees which are deferred until a new restaurant is opened pursuant to the agreement. The following table illustrates estimated revenues expected to be recognized in the future related to unsatisfied performance obligations as of July 3, 2022: (in thousands) Fiscal Year 2022 $ 59 2023 112 2024 136 2025 79 2026 167 Thereafter 217 Total $ 770 The following table reflects the change in contract liabilities between January 2, 2022 and July 3, 2022: (in thousands) July 3, 2022 Beginning Balance $ 806 Additions 25 Revenue recognized (61) Ending Balance $ 770

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Jul. 03, 2022
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-based Compensation Effective May 5, 2015, the Company adopted the 2015 Equity Plan (the “2015 Plan”), pursuant to which it may grant stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance stock units and other stock and cash awards to eligible participants. The number of common stock reserved for issuance is 2,000,000. The Company also maintains an Amended and Restated 2005 Stock Incentive Plan (the “2005 Plan”). The 2005 Plan expired in 2015 and no additional options may be granted. Nonetheless, the 2005 Plan will remain in effect until all outstanding incentives granted thereunder have either been satisfied or terminated. As of July 3, 2022, there were 474,909 shares available for grant pursuant to the 2015 Plan. Stock options granted to employees and directors generally vest over two The Company utilizes the Black-Scholes option pricing model when determining the compensation cost associated with stock options issued using the following significant assumptions: • Stock price – Published trading market values of the Company’s common stock as of the date of grant. • Exercise price – The stated exercise price of the stock option. • Expected life – The simplified method as outlined in ASC 718. • Expected dividend – The rate of dividends that the Company expects to pay over the term of the stock option. • Volatility – Actual volatility over the most recent historical period equivalent to the expected life of the option. • Risk-free interest rate – The daily United States Treasury yield curve rate. The Company recognized stock-based compensation expense in its consolidated statements of operations for the three and six months ended July 3, 2022, and July 4, 2021, respectively, as follows: Three Months Ended Six Months Ended (in thousands) July 3, 2022 July 4, 2021 July 3, 2022 July 4, 2021 Stock options $ 79 $ 94 $ 166 $ 183 Restricted stock and restricted stock units 557 226 854 455 $ 636 $ 320 $ 1,020 $ 638 Information regarding the Company’s stock options is summarized below: (number of options in thousands) Number of Weighted Average Weighted Options outstanding at January 2, 2022 388 $ 7.13 7.3 Exercised (33) 3.76 Canceled, forfeited or expired (24) 11.83 Options outstanding at July 3, 2022 331 $ 7.12 6.9 Six Months Ended July 3, 2022 July 4, 2021 Weighted-average fair value of options granted during the period $ — $ 5.17 Expected life (in years) — 4.0 Expected dividend $ — $ — Expected stock volatility — % 71.12 % Risk-free interest rate — % 0.6 % Information regarding the Company’s restricted stock and restricted stock units is summarized below: (number of awards in thousands) Number of Weighted Average Weighted Unvested at January 2, 2022 305 $ 5.75 2.1 Granted 246 13.88 Exercised/Released (12) 12.76 Canceled, forfeited or expired (9) 6.27 Unvested at July 3, 2022 530 $ 9.33 2.3

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	6 Months Ended
	Jul. 03, 2022
Stockholders' Equity Note [Abstract]
Shareholders' Equity	Shareholders’ Equity On June 24, 2021, the Company entered into two separate Securities Purchase Agreements (each, a “Securities Purchase Agreement”) with institutional investors pursuant to which the Company raised (i) gross proceeds of $10,000,000, pursuant to an agreement to sell 800,000 shares of the Company’s common stock , and (ii) gross proceeds of $3,000,000 pursuant to an agreement to sell 200,000 shares of the Company’s common stock (such shares of common stock collectively referred to herein as the “Securities”, and the aggregate sale of 1,000,000 Securities referred to herein as the “Offering”). The Company used the net proceeds of the Offering for the VIBS Transaction described in Note 2 Restaurant Acquisitions found in our fiscal 2021 10-K filing. In connection with the closing of the Offering, the Company paid expenses of approximately of $572,000.

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES	6 Months Ended
	Jul. 03, 2022
Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [Abstract]
Variable Interest Entities	Variable Interest Entities A variable interest holder is considered to be the primary beneficiary of a variable interest entity (“VIE”) if it has the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. Once an entity is determined to be a VIE, the primary beneficiary is required to consolidate the entity. On July 18, 2018, the Company and Clark Championship Products LLC (“Clark”), an entity owned by Travis Clark, became members of Mercury BBQ LLC (“Mercury”) for the purposes of building out and operating the inaugural Clark Crew BBQ restaurant in Oklahoma City, Oklahoma (the “Restaurant”). Clark owned 80% of the units outstanding of Mercury and the Company owned 20% of the units outstanding of Mercury. Also in July 2019, the Company entered into a secured promissory note with Mercury which was amended in October 2019. This promissory note as amended (the “Loan”) was in the amount of $3.9 million, the proceeds of which were required to be used for the build out of the Restaurant. The Loan bore interest at a rate of 8% per annum and required payments of 100% of the excess monthly cash flows until the Loan and all interest accrued thereon was repaid. The Loan required a balloon payment of unpaid principal and accrued interest on July 15, 2025 and could have been prepaid at any time. Also on July 18, 2018, the Company and Clark entered into an intellectual property license agreement (the “License Agreement”) pursuant to which Clark granted to the Company an exclusive license to use and sublicense the patents, trademarks, trade names, service marks, logos and designs related to Clark Crew BBQ restaurants and products. The term of the License Agreement was indefinite and could only be terminated by mutual written consent, unless the Company breached the License Agreement. Because the Company provided more than half of the subordinated financial support of Mercury and controlled Mercury via its representation on the board of managers, the Company concluded that Mercury was a VIE, of which the Company was the primary beneficiary and consolidated Mercury.

LITIGATION

LITIGATION	6 Months Ended
	Jul. 03, 2022
Loss Contingency, Information about Litigation Matters [Abstract]
Litigation	LitigationIn the normal course of business, the Company is involved in a number of litigation matters that are incidental to the operation of the business. These matters generally include, among other things, matters with regard to employment, leases and general business-related issues. The Company currently believes that the resolution of any of these pending matters will not have a material adverse effect on its financial position or liquidity, but an adverse decision in more than one of the matters could be material to its consolidated results of operations.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jul. 03, 2022
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Charles Davidson, a franchisee of the Company, currently serves as a director of the Company and is the beneficial owner of approximately 15.7% of the Company’s common stock as of the date that these financial statements were available to be issued, by virtue of his ownership interest in Wexford Capital. The following table outlines amounts received from related parties during the three and six months ended July 3, 2022, and July 4, 2021, respectively: Three Months Ended Six Months Ended (in thousands) July 3, 2022 July 4, 2021 July 3, 2022 July 4, 2021 Revenues and NAF contributions - Charles Davidson 199 179 366 316 The following table outlines accounts receivable from related parties as of July 3, 2022 and January 2, 2022: (in thousands) July 3, 2022 January 2, 2022 Accounts receivable, net - Charles Davidson 77 64

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jul. 03, 2022
Accounting Policies [Abstract]
Basis of accounting policy	The accompanying condensed consolidated balance sheet as of January 2, 2022, which has been derived from audited financial statements, and the unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and Securities and Exchange Commission (“SEC”) Rules and Regulations. The information furnished in these condensed consolidated financial statements include normal recurring adjustments and reflect all adjustments, which are, in the opinion of management, necessary for a fair presentation. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. These unaudited financial statements represent the condensed consolidated financial statements of the Company and its subsidiaries as of July 3, 2022 and January 2, 2022, and for the three and six months ended July 3, 2022 and July 4, 2021. The results for the three and six months ended July 3, 2022 are not necessarily indicative of the results to be expected for the full fiscal year or any other interim period. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in BBQ Holdings, Inc.’s Annual Report on Form 10-K for the fiscal year ended January 2, 2022 as filed with the SEC on March 16, 2022.

BASIS OF PRESENTATION (Tables)

BASIS OF PRESENTATION (Tables)	6 Months Ended
	Jul. 03, 2022
Accounting Policies [Abstract]
Schedule of reconciliation from statutory tax rate to effective tax rate	The following table presents the Company’s effective tax rates for the periods presented: Three Months Ended Six Months Ended July 3, 2022 July 4, 2021 July 3, 2022 July 4, 2021 Effective tax rate 19.1 % 2.4 % 13.4 % 2.7 %
Schedule of reconciliation of basic and diluted net income per common share	The following table is a reconciliation of basic and diluted net income per common share: Three Months Ended Six Months Ended (in thousands, except per share data) July 3, 2022 July 4, 2021 July 3, 2022 July 4, 2021 Net income per share – basic: Net income attributable to shareholders $ 4,179 $ 15,786 $ 4,946 $ 16,585 Weighted average shares outstanding - basic 10,756 9,304 10,654 9,256 Basic net income per share attributable to shareholders $ 0.39 $ 1.70 $ 0.46 $ 1.79 Net income per share – diluted: Net income attributable to shareholders $ 4,179 $ 15,786 $ 4,946 $ 16,585 Weighted average shares outstanding - diluted 10,853 9,615 10,755 9,567 Diluted net income per share attributable to shareholders $ 0.39 $ 1.64 $ 0.46 $ 1.73

RESTAURANT ACQUISITIONS (Tables

RESTAURANT ACQUISITIONS (Tables)	6 Months Ended
	Jul. 03, 2022
Restaurant acquisitions
Schedule of allocation of assets acquired and liabilities assumed	(in thousands) Assets acquired: Inventory 106 Property, plant, equipment and leasehold improvements, net 1,216 Lease right-of-use asset, net of unfavorable lease value 3,851 Identifiable intangible assets, net 689 Other current assets 30 Total identifiable assets acquired 5,892 Liabilities assumed: Lease liability (3,851) Other current liabilities (269) Net assets acquired 1,772 Goodwill 2,639 Total consideration transferred $ 4,411 The following table presents the allocation of assets acquired and liabilities assumed for the Barrio Queen Transaction: (in thousands) Assets acquired: Inventory 485 Property, plant, equipment and leasehold improvements, net 8,541 Lease right-of-use asset, net of unfavorable lease value 15,391 Identifiable intangible assets, net 6,100 Other current assets 221 Total identifiable assets acquired 30,738 Liabilities assumed: Lease liability (15,391) Other current liabilities (152) Net assets acquired 15,195 Goodwill 13,310 Total consideration transferred $ 28,505
Schedule of pro forma information	For allocation of assets acquired and liabilities assumed regarding the Village Inn and Bakers Square and Tahoe Joe’s acquisitions see 10-K filed by the Company on March 16, 2022, and for provisional allocation of assets acquired and liabilities assumed regarding the Famous Craft Concepts acquisition, see 10-Q filed by the Company on May 12, 2022. Three Months Ended Six Months Ended July 3, 2022 July 4, 2021 July 3, 2022 July 4, 2021 (in thousands) Pro forma revenues $ 80,722 $ 71,957 $ 156,323 $ 135,714 Pro forma net income attributable to shareholders $ 4,342 $ 18,403 $ 7,364 $ 21,820 Basic pro forma net income per share attributable to shareholders $ 0.40 $ 1.98 $ 0.69 $ 2.36 Diluted pro forma net income per share attributable to shareholders $ 0.40 $ 1.91 $ 0.68 $ 2.28

PREPAID EXPENSES AND OTHER CU_2

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)	6 Months Ended
	Jul. 03, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of prepaid expenses and other current assets	Prepaid expenses and other current assets consisted of the following at: (in thousands) July 3, 2022 January 2, 2022 Prepaid expenses and deferred costs $ 1,999 $ 2,241 Prepaid rent 1,321 1,384 Prepaid insurance 574 257 Other prepaid expenses 45 37 Prepaid expenses and other current assets $ 3,939 $ 3,919

PROPERTY, EQUIPMENT, AND LEAS_2

PROPERTY, EQUIPMENT, AND LEASEHOLD IMPROVEMENTS, NET (Tables)	6 Months Ended
	Jul. 03, 2022
Property, Plant and Equipment [Abstract]
Schedule of property, equipment, and leasehold improvements, net	Property, equipment and leasehold improvements, net, consisted of the following: (in thousands) July 3, 2022 January 2, 2022 Land, buildings, and improvements $ 44,222 $ 39,632 Furniture, fixtures, equipment and software 37,513 33,565 Décor 434 434 Construction in progress 1,280 — Accumulated depreciation and amortization (35,828) (33,688) Property, equipment and leasehold improvements, net $ 47,621 $ 39,943

GOODWILL (Tables)

GOODWILL (Tables)	6 Months Ended
	Jul. 03, 2022
Business Combination, Goodwill [Abstract]
Schedule of goodwill	The change in the Company's goodwill balance is as follows for the six months ended July 3, 2022 and July 4, 2021: (in thousands) July 3, 2022 July 4, 2021 Balance, beginning of period 3,037 601 Acquisitions during the period 18,147 — Balance, end of period $ 21,184 $ 601

INTANGIBLE ASSETS, NET (Tables)

INTANGIBLE ASSETS, NET (Tables)	6 Months Ended
	Jul. 03, 2022
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Schedule of intangible assets	Intangible assets consisted of the following: (in thousands) July 3, 2022 January 2, 2022 Franchise rights, net 10,836 11,104 Liquor licenses 974 1,018 Trademark/Logos/Patents 18,522 11,233 Database 51 89 Intangible assets, net $ 30,383 $ 23,444

OTHER CURRENT LIABILITIES (Tabl

OTHER CURRENT LIABILITIES (Tables)	6 Months Ended
	Jul. 03, 2022
Accrued Liabilities, Current [Abstract]
Schedule of other current liabilities	Other current liabilities consisted of the following at: (in thousands) July 3, 2022 January 2, 2022 Sales tax payable and state income tax payable 2,054 1,657 Other accrued expense 1,486 3,613 Accrued real estate taxes 2,380 2,170 Accrued interest 9 26 Accrued utilities 597 560 Deferred revenue 1,607 366 Deferred franchise fees 115 118 Other current liabilities $ 8,248 $ 8,510

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	6 Months Ended
	Jul. 03, 2022
Debt Disclosure [Abstract]
Schedule of long-term debt	Debt outstanding consisted of the following as of the periods presented: (in thousands) July 3, 2022 January 2, 2022 Term Loan $ 24,531 $ 15,000 Less: deferred financing costs (237) (209) Less: current portion of long-term debt (1,875) (1,594) Long-term debt, less current portion $ 22,419 $ 13,197

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jul. 03, 2022
Leases [Abstract]
Schedule of lease cost	The components of lease expense for the period presented is as follows: (in thousands) Three Months Ended Three Months Ended Six Months Ended July 3, 2022 Six Months Ended July 4, 2021 Operating lease cost $ 4,256 $ 2,527 $ 7,998 $ 4,969 Short-term lease cost 129 166 257 262 Variable lease cost 213 130 429 498 Sublease income (46) (30) (100) (74) Total lease cost $ 4,552 $ 2,793 $ 8,584 $ 5,655
Schedule of supplemental cash flow information of leases	Supplemental cash flow information related to leases for the period presented is as follows: (in thousands) Six Months Ended July 3, 2022 Six Months Ended July 4, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 8,602 $ 4,517 Right-of-use assets obtained in exchange for new operating lease liabilities 26,429 1,163 Weighted-average remaining lease term of operating leases (in years) 8.2 10.0 Weighted-average discount rate of operating leases 4.37 % 5.31 %

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	6 Months Ended
	Jul. 03, 2022
Revenue from Contract with Customer [Abstract]
Schedule of estimated revenues expected to be recognized in the future related to unsatisfied performance obligations	The following table illustrates estimated revenues expected to be recognized in the future related to unsatisfied performance obligations as of July 3, 2022: (in thousands) Fiscal Year 2022 $ 59 2023 112 2024 136 2025 79 2026 167 Thereafter 217 Total $ 770
Schedule of change in contract liabilities	The following table reflects the change in contract liabilities between January 2, 2022 and July 3, 2022: (in thousands) July 3, 2022 Beginning Balance $ 806 Additions 25 Revenue recognized (61) Ending Balance $ 770

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jul. 03, 2022
Share-Based Payment Arrangement [Abstract]
Schedule of recognized stock-based compensation expense	The Company recognized stock-based compensation expense in its consolidated statements of operations for the three and six months ended July 3, 2022, and July 4, 2021, respectively, as follows: Three Months Ended Six Months Ended (in thousands) July 3, 2022 July 4, 2021 July 3, 2022 July 4, 2021 Stock options $ 79 $ 94 $ 166 $ 183 Restricted stock and restricted stock units 557 226 854 455 $ 636 $ 320 $ 1,020 $ 638
Schedule of stock option activity	Information regarding the Company’s stock options is summarized below: (number of options in thousands) Number of Weighted Average Weighted Options outstanding at January 2, 2022 388 $ 7.13 7.3 Exercised (33) 3.76 Canceled, forfeited or expired (24) 11.83 Options outstanding at July 3, 2022 331 $ 7.12 6.9
Schedule of stock option valuation assumptions	Six Months Ended July 3, 2022 July 4, 2021 Weighted-average fair value of options granted during the period $ — $ 5.17 Expected life (in years) — 4.0 Expected dividend $ — $ — Expected stock volatility — % 71.12 % Risk-free interest rate — % 0.6 %
Schedule of unvested restricted stock activity	Information regarding the Company’s restricted stock and restricted stock units is summarized below: (number of awards in thousands) Number of Weighted Average Weighted Unvested at January 2, 2022 305 $ 5.75 2.1 Granted 246 13.88 Exercised/Released (12) 12.76 Canceled, forfeited or expired (9) 6.27 Unvested at July 3, 2022 530 $ 9.33 2.3

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	6 Months Ended
	Jul. 03, 2022
Related Party Transactions [Abstract]
Schedules of related party transactions	The following table outlines amounts received from related parties during the three and six months ended July 3, 2022, and July 4, 2021, respectively: Three Months Ended Six Months Ended (in thousands) July 3, 2022 July 4, 2021 July 3, 2022 July 4, 2021 Revenues and NAF contributions - Charles Davidson 199 179 366 316 The following table outlines accounts receivable from related parties as of July 3, 2022 and January 2, 2022: (in thousands) July 3, 2022 January 2, 2022 Accounts receivable, net - Charles Davidson 77 64

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details)						6 Months Ended
	Apr. 11, 2022 restaurant	Mar. 11, 2022 restaurant	Oct. 08, 2021 restaurant	Jul. 30, 2021 restaurant location	Jul. 18, 2018	Jul. 03, 2022 restaurant item country
Business information
Number of restaurants						143
Number of countries in which entity operates | country						3
Mercury
Business information
Ownership percentage in VIE					20%	20%
Entity Operated Units
Business information
Number of restaurants						43
Franchised Units
Business information
Number of restaurants						100
Granite City Food & Brewery Restaurants
Business information
Number of restaurants						18
Number of restaurants operating Famous Dave's ghost kitchens | item						9
Real Urban Barbecue Restaurant
Business information
Number of restaurants						2
Village Inn Restaurants | Entity Operated Units
Business information
Number of restaurants acquired				24
Village Inn Restaurants | Franchised Units
Business information
Number of restaurants acquired				102
Bakers Square Restaurants
Business information
Number of locations where pies are licensed | location				6
Bakers Square Restaurants | Entity Operated Units
Business information
Number of restaurants acquired				14
Tahoe Joe's Steakhouse
Business information
Number of restaurants acquired			4
Famous Craft Concepts
Business information
Number of restaurants acquired		3
Barrio Queen Restaurants
Business information
Number of restaurants acquired	7

BASIS OF PRESENTATION - Income

BASIS OF PRESENTATION - Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2022	Jul. 04, 2021	Jul. 03, 2022	Jul. 04, 2021	Jan. 02, 2022
Accounting Policies [Abstract]
Deferred tax asset, net	$ 2.9		$ 2.9		$ 3.7
Effective tax rate	19.10%	2.40%	13.40%	2.70%

BASIS OF PRESENTATION - Restric

BASIS OF PRESENTATION - Restricted cash and marketing fund (Details) - USD ($) $ in Thousands	Jul. 03, 2022	Jan. 02, 2022
Restricted Cash [Abstract]
Restricted cash	$ 679	$ 1,152

BASIS OF PRESENTATION - Net inc

BASIS OF PRESENTATION - Net income per common share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2022	Jul. 04, 2021	Jul. 03, 2022	Jul. 04, 2021
Net income per share – basic:
Net income attributable to shareholders	$ 4,179	$ 15,786	$ 4,946	$ 16,585
Basic weighted average shares outstanding (shares)	10,756,000	9,304,000	10,654,000	9,256,000
Basic net income per share (dollars per share)	$ 0.39	$ 1.70	$ 0.46	$ 1.79
Net income per share – diluted:
Net income attributable to shareholders	$ 4,179	$ 15,786	$ 4,946	$ 16,585
Diluted weighted average shares outstanding (shares)	10,853,000	9,615,000	10,755,000	9,567,000
Diluted net income per share (dollars per share)	$ 0.39	$ 1.64	$ 0.46	$ 1.73
Anti-dilutive shares excluded from computation of diluted net income per share (shares)	95,250	250

RESTAURANT ACQUISITIONS - Narra

RESTAURANT ACQUISITIONS - Narrative (Details)							3 Months Ended		6 Months Ended
	Jun. 13, 2022 USD ($) restaurant	May 24, 2022 USD ($) restaurant	May 02, 2022 USD ($) restaurant	Apr. 11, 2022 USD ($) restaurant	Mar. 11, 2022 USD ($) restaurant	Feb. 21, 2022 USD ($)	Jul. 03, 2022 USD ($)	Jul. 04, 2021 USD ($)	Jul. 03, 2022 USD ($)	Jul. 04, 2021 USD ($)
Business Acquisition [Line Items]
Lease liability							$ 24,647,000	$ 0	$ 24,647,000	$ 0
Purchase price									37,675,000	0
Revenue from business combination							79,938,000	45,520,000	144,122,000	82,839,000
Income from business combination							4,493,000	$ 2,907,000	4,973,000	$ 3,716,000
Famous Dave's - La Cross, WI
Business Acquisition [Line Items]
Total consideration transferred						$ 50,000
Lease liability						682,000
ROU asset and offsetting liability						$ 682,000
Famous Craft Concepts
Business Acquisition [Line Items]
Number of restaurants acquired | restaurant					3
Total consideration transferred					$ 4,411,000
Lease liability					3,851,000
ROU asset and offsetting liability					3,851,000
Purchase price					$ 4,600,000
Revenue from business combination							1,900,000		2,500,000
Income from business combination							301,000		$ 400,000
Famous Dave's Restaurants - Nebraska
Business Acquisition [Line Items]
Number of restaurants acquired | restaurant			2
Total consideration transferred			$ 400,000
Lease liability			3,000,000
ROU asset and offsetting liability			$ 3,000,000
Bar-Centric
Business Acquisition [Line Items]
Number of restaurants acquired | restaurant		1
Total consideration transferred		$ 3,400,000
Lease liability		222,000
ROU asset and offsetting liability		$ 222,000
Champps
Business Acquisition [Line Items]
Number of restaurants acquired | restaurant		2
Village Inn Franchises
Business Acquisition [Line Items]
Number of restaurants acquired | restaurant	2
Total consideration transferred	$ 850,000
Lease liability	1,400,000
ROU asset and offsetting liability	$ 1,400,000
Barrio Queen Restaurants
Business Acquisition [Line Items]
Number of restaurants acquired | restaurant				7
Total consideration transferred				$ 28,505,000
Lease liability				15,391,000
ROU asset and offsetting liability				$ 15,391,000
Revenue from business combination							8,100,000
Income from business combination							$ 1,100,000
Craft Republic
Business Acquisition [Line Items]
Number of restaurants acquired | restaurant					2
Fox and Hound
Business Acquisition [Line Items]
Number of restaurants acquired | restaurant					1

RESTAURANT ACQUISITIONS - Sched

RESTAURANT ACQUISITIONS - Schedule of Allocation of Assets Acquired and Liabilities Assumed (Details) - USD ($)	Apr. 11, 2022	Mar. 11, 2022	Jul. 03, 2022	Jan. 02, 2022	Jul. 04, 2021	Jan. 03, 2021
Liabilities assumed:
Lease liability			$ (24,647,000)		$ 0
Goodwill			$ 21,184,000	$ 3,037,000	$ 601,000	$ 601,000
Famous Craft Concepts
Assets acquired:
Inventory		$ 106,000
Property, plant, equipment and leasehold improvements, net		1,216,000
Lease right-of-use asset, net of unfavorable lease value		3,851,000
Identifiable intangible assets, net		689,000
Other current assets		30,000
Total identifiable assets acquired		5,892,000
Liabilities assumed:
Lease liability		(3,851,000)
Other current liabilities		(269,000)
Net assets acquired		1,772,000
Goodwill		2,639,000
Total consideration transferred		$ 4,411,000
Barrio Queen Restaurants
Assets acquired:
Inventory	$ 485,000
Property, plant, equipment and leasehold improvements, net	8,541,000
Lease right-of-use asset, net of unfavorable lease value	15,391,000
Identifiable intangible assets, net	6,100,000
Other current assets	221,000
Total identifiable assets acquired	30,738,000
Liabilities assumed:
Lease liability	(15,391,000)
Other current liabilities	(152,000)
Net assets acquired	15,195,000
Goodwill	13,310,000
Total consideration transferred	$ 28,505,000

RESTAURANT ACQUISITIONS - Sch_2

RESTAURANT ACQUISITIONS - Schedule of Pro Forma Information (Details) - Recent Business Acquisitions - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2022	Jul. 04, 2021	Jul. 03, 2022	Jul. 04, 2021
Pro Forma
Pro forma revenues	$ 80,722	$ 71,957	$ 156,323	$ 135,714
Pro forma net income attributable to shareholders	$ 4,342	$ 18,403	$ 7,364	$ 21,820
Basic pro forma net income per share attributable to shareholders (dollars per share)	$ 0.40	$ 1.98	$ 0.69	$ 2.36
Diluted pro forma net income per share attributable to shareholders (dollars per share)	$ 0.40	$ 1.91	$ 0.68	$ 2.28

PREPAID EXPENSES AND OTHER CU_3

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands	Jul. 03, 2022	Jan. 02, 2022
Prepaid expenses and other current assets
Prepaid expenses and deferred costs	$ 1,999	$ 2,241
Prepaid rent	1,321	1,384
Prepaid insurance	574	257
Other prepaid expenses	45	37
Prepaid expenses and other current assets	$ 3,939	$ 3,919

PROPERTY, EQUIPMENT, AND LEAS_3

PROPERTY, EQUIPMENT, AND LEASEHOLD IMPROVEMENTS, NET (Details) - USD ($) $ in Thousands	Jul. 03, 2022	Jan. 02, 2022
Property, Plant and Equipment [Abstract]
Land, buildings, and improvements	$ 44,222	$ 39,632
Furniture, fixtures, equipment and software	37,513	33,565
Décor	434	434
Construction in progress	1,280	0
Accumulated depreciation and amortization	(35,828)	(33,688)
Property, equipment and leasehold improvements, net	$ 47,621	$ 39,943

GOODWILL (Details)

GOODWILL (Details) - USD ($)	6 Months Ended
	Jul. 03, 2022	Jul. 04, 2021
Goodwill [Roll Forward]
Balance, beginning of period	$ 3,037,000	$ 601,000
Acquisitions during the period	18,147,000	0
Balance, end of period	$ 21,184,000	$ 601,000

INTANGIBLE ASSETS, NET - Carryi

INTANGIBLE ASSETS, NET - Carrying Amounts (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 03, 2022	Jan. 02, 2022
Intangible assets
Intangible assets, net	$ 30,383	$ 23,444
Liquor licenses
Intangible assets
Indefinite lived assets	974	1,018
Trademark/Logos/Patents
Intangible assets
Indefinite lived assets	$ 18,522	11,233
Franchise rights, net
Intangible assets
Intangible asset useful life	10 years
Finite lived intangible assets, net	$ 10,836	11,104
Database
Intangible assets
Finite lived intangible assets, net	$ 51	$ 89

OTHER CURRENT LIABILITIES (Deta

OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Jul. 03, 2022	Jan. 02, 2022
Other current liabilities
Sales tax payable and state income tax payable	$ 2,054	$ 1,657
Other accrued expense	1,486	3,613
Accrued real estate taxes	2,380	2,170
Accrued interest	9	26
Accrued utilities	597	560
Other current liabilities	8,248	8,510
Deferred revenue
Other current liabilities
Deferred revenue	1,607	366
Deferred franchise fees
Other current liabilities
Deferred revenue	$ 115	$ 118

LONG-TERM DEBT - Narrative (Det

LONG-TERM DEBT - Narrative (Details) - Credit Agreement	Apr. 11, 2022 USD ($)	Nov. 23, 2021 USD ($)
Long-term debt
Facility term	5 years	5 years
Maximum amount of aggregate capital expenditures allowed during a fiscal year per the terms of the credit agreement	$ 10,000,000
Revolving line of credit
Long-term debt
Maximum borrowing capacity	25,000,000	$ 5,000,000
Letters of credit
Long-term debt
Maximum borrowing capacity		1,000,000
Term loan
Long-term debt
Term loan	$ 25,000,000	$ 15,000,000
Minimum
Long-term debt
Fixed charge coverage ratio	1.1
Minimum | SOFR
Long-term debt
Basis spread on variable rate	1.75%
Maximum
Long-term debt
Rent adjusted leverage ratio	4.5
Maximum | SOFR
Long-term debt
Basis spread on variable rate	2.25%

LONG-TERM DEBT - Long-Term Debt

LONG-TERM DEBT - Long-Term Debt - Components (Details) - USD ($) $ in Thousands	Jul. 03, 2022	Jan. 02, 2022
Long-term debt
Less: deferred financing costs	$ (237)	$ (209)
Less: current portion of long-term debt	(1,875)	(1,594)
Long-term debt, less current portion	22,419	13,197
Credit Agreement
Long-term debt
Term Loan	$ 24,531	$ 15,000

LEASES - Lease Expense (Details

LEASES - Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2022	Jul. 04, 2021	Jul. 03, 2022	Jul. 04, 2021
Lease expense
Operating lease cost	$ 4,256	$ 2,527	$ 7,998	$ 4,969
Short-term lease cost	129	166	257	262
Variable lease cost	213	130	429	498
Sublease income	(46)	(30)	(100)	(74)
Total lease cost	$ 4,552	$ 2,793	$ 8,584	$ 5,655

LEASES - Supplemental Cash Flow

LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 03, 2022	Jul. 04, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 8,602	$ 4,517
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 26,429	$ 1,163
Weighted-average remaining lease term of operating leases (in years)	8 years 2 months 12 days	10 years
Weighted-average discount rate of operating leases	4.37%	5.31%

REVENUE RECOGNITION - Estimated

REVENUE RECOGNITION - Estimated Revenues Expected And Change In Contract Liabilities Default (Details) $ in Thousands	6 Months Ended
	Jul. 03, 2022 USD ($)
Estimated future revenues expected to be recognized for performance obligations
Revenue expected to be recognized	$ 770
Change in contract liabilities
Beginning Balance	806
Additions	25
Revenue recognized	(61)
Ending Balance	770
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-04
Estimated future revenues expected to be recognized for performance obligations
Revenue expected to be recognized	$ 59
Change in contract liabilities
Revenue, remaining performance obligation, expected timing of satisfaction, period	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-02
Estimated future revenues expected to be recognized for performance obligations
Revenue expected to be recognized	$ 112
Change in contract liabilities
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Estimated future revenues expected to be recognized for performance obligations
Revenue expected to be recognized	$ 136
Change in contract liabilities
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-12-30
Estimated future revenues expected to be recognized for performance obligations
Revenue expected to be recognized	$ 79
Change in contract liabilities
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-12-29
Estimated future revenues expected to be recognized for performance obligations
Revenue expected to be recognized	$ 167
Change in contract liabilities
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-12-28
Estimated future revenues expected to be recognized for performance obligations
Revenue expected to be recognized	$ 217
Change in contract liabilities
Revenue, remaining performance obligation, expected timing of satisfaction, period

STOCK-BASED COMPENSATION - Gene

STOCK-BASED COMPENSATION - General Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2022	Jul. 04, 2021	Jul. 03, 2022	Jul. 04, 2021	Jun. 28, 2015
Stock-based compensation
Stock-based compensation expense	$ 636	$ 320	$ 1,020	$ 638
Equity Option
Stock-based compensation
Stock-based compensation expense	79	94	166	183
Restricted stock and restricted stock units
Stock-based compensation
Stock-based compensation expense	$ 557	$ 226	$ 854	$ 455
Employees and Directors | Equity Option
Stock-based compensation
Expiration period			10 years
Employees and Directors | Minimum | Equity Option
Stock-based compensation
Vesting period			2 years
Employees and Directors | Maximum | Equity Option
Stock-based compensation
Vesting period			4 years
2015 Plan
Stock-based compensation
Shares authorized for issuance					2,000,000
Shares available for grant	474,909		474,909
2005 Plan
Stock-based compensation
Shares available for grant	0		0

STOCK-BASED COMPENSATION - Stoc

STOCK-BASED COMPENSATION - Stock Options (Details) - $ / shares shares in Thousands	6 Months Ended		12 Months Ended
	Jul. 03, 2022	Jul. 04, 2021	Jan. 02, 2022
Number of Options
Outstanding at beginning of period (shares)	388
Exercised (shares)	(33)
Canceled, forfeited, or expired (shares)	(24)
Outstanding at end of period (shares)	331		388
Weighted Average Exercise Price
Options outstanding at beginning of period (dollars per share)	$ 7.13
Exercised options (dollars per share)	3.76
Canceled, forfeited, or expired (in dollars per share)		$ 11.83
Options outstanding at end of period (dollars per share)	$ 7.12		$ 7.13
Weighted Average Remaining Contractual Life in Years
Options outstanding	6 years 10 months 24 days		7 years 3 months 18 days

STOCK-BASED COMPENSATION - Valu

STOCK-BASED COMPENSATION - Valuation Assumptions (Details) - USD ($)	6 Months Ended
	Jul. 03, 2022	Jul. 04, 2021
Valuation Assumptions
Weighted-average fair value of options granted during the period (in dollars per share)	$ 0	$ 5.17
Expected life (in years)		4 years
Expected dividend	$ 0	$ 0
Expected stock volatility	0%	71.12%
Risk-free interest rate	0%	0.60%

STOCK-BASED COMPENSATION - Rest

STOCK-BASED COMPENSATION - Restricted Stock (Details) - Restricted stock and restricted stock units - $ / shares shares in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jul. 03, 2022	Jul. 03, 2022	Jan. 02, 2022
Number of Awards
Unvested at beginning of period (shares)		305
Granted (shares)		246
Exercised/Released (shares)		(12)
Canceled, forfeited, or expired (shares)		(9)
Unvested at end of period (shares)	530	530	305
Weighted Average Award Date Fair Value
Unvested at beginning of period (dollars per share)		$ 5.75
Granted (dollars per share)		13.88
Exercised/released (dollars per share)		12.76
Canceled, forfeited, or expired (dollars per share)		6.27
Unvested at end of period (dollars per share)	$ 9.33	$ 9.33	$ 5.75
Weighted Average Remaining Contractual Life in Years
Weighted average remaining contractual life in years	2 years 3 months 18 days		2 years 1 month 6 days

SHAREHOLDERS' EQUITY (Details)

SHAREHOLDERS' EQUITY (Details)		6 Months Ended
	Jun. 24, 2021 USD ($) agreement shares	Jul. 03, 2022 USD ($) shares	Jul. 04, 2021 USD ($)	Jan. 02, 2022 shares
Subsidiary, Sale of Stock [Line Items]
Proceeds from sale of common stock, net of offering costs | $		$ 0	$ 12,462,000
Common stock issued (shares) | shares		10,760,000		10,495,000
Private Placement
Subsidiary, Sale of Stock [Line Items]
Number of stock purchase agreements | agreement	2
Common stock issued (shares) | shares	1,000,000
Stock issuance expense paid | $	$ 572,000
Percent of investor purchase price due monthly as liquidated damages if covenants are not met	1%
Private Placement One
Subsidiary, Sale of Stock [Line Items]
Proceeds from sale of common stock, net of offering costs | $	$ 10,000,000
Common stock issued (shares) | shares	800,000
Private Placement Two
Subsidiary, Sale of Stock [Line Items]
Proceeds from sale of common stock, net of offering costs | $	$ 3,000,000
Common stock issued (shares) | shares	200,000
Maximum | Private Placement
Subsidiary, Sale of Stock [Line Items]
Percent of investor purchase price due monthly as liquidated damages if covenants are not met	6%

VARIABLE INTEREST ENTITIES (Det

VARIABLE INTEREST ENTITIES (Details) - USD ($)			6 Months Ended
	Jun. 15, 2022	Jul. 18, 2018	Jul. 03, 2022
Mercury
Variable Interest Entities
Promissory note		$ 3,900,000
Interest rate on promissory note		8%
Percentage of excess cash flows to be used to repay note receivable		100%
Mercury
Variable Interest Entities
Ownership percentage in VIE		20%	20%
Gain on disposal	$ 850,000
Clark | Mercury
Variable Interest Entities
Payments to acquire interests	1,200,000
Repayments of loan	2,800,000
Payments for consulting services	$ 250,000
Clark | Mercury
Variable Interest Entities
Ownership percentage		80%

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - Beneficial Owner - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2022	Jul. 04, 2021	Jul. 03, 2022	Jul. 04, 2021	Jan. 02, 2022
Related Party Transactions
Revenues and NAF contributions - Charles Davidson	$ 199	$ 179	$ 366	$ 316
Accounts receivable, net - Charles Davidson	$ 77		$ 77		$ 64
Beneficial ownership percentage			15.70%

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Aug. 09, 2022 - Subsequent Event - BBQ Holdings Inc - MTY Food Group Inc. $ / shares in Units, $ in Thousands, $ in Thousands	USD ($) $ / shares	CAD ($)
Subsequent Event [Line Items]
Common shares price (dollars per share)	$ 17.25
Total consideration transferred	$ 200,000	$ 256,000