BBQ (BBQ) 10-Q 16 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Oct. 02, 2016shares
Document and entity information [Abstract]
Document type	10-Q
Document period end date	Oct. 2, 2016
Document Period Focus	Q3
Amendment flag	false
Document Fiscal Year Focus	2,016
Entity registrant name	FAMOUS DAVES OF AMERICA INC
Entity central index key	1,021,270
Entity current reporting status	Yes
Entity voluntary filers	No
Current fiscal year end date	--01-01
Entity filer category	Smaller Reporting Company
Entity well known seasoned issuer	No
Entity common stock shares outstanding	6,957,628

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Oct. 02, 2016	Jan. 03, 2016
Current assets:
Cash and cash equivalents	$ 6,766,000	$ 5,300,000
Restricted Cash And Cash Equivalents	2,085,000	1,087,000
Accounts receivable, net	4,362,000	4,677,000
Inventories	1,886,000	2,070,000
Deferred tax asset	196,000	181,000
Prepaid expenses and other current assets	3,238,000	1,671,000
Assets held for sale	5,000	2,211,000
Total current assets	18,538,000	17,197,000
Property, equipment and leasehold improvements, net	25,929,000	32,491,000
Other assets:
Intangible assets, noncurrent	2,866,000	2,902,000
Deferred tax asset	4,420,000	4,411,000
Other assets	1,576,000	824,000
Total assets	53,329,000	57,825,000
Current liabilities:
Current portion of long-term debt and financing lease obligation	8,879,000	2,193,000
Line of Credit, Current	1,855,000	0
Accounts payable	5,599,000	5,685,000
Accrued compensation and benefits	1,571,000	1,390,000
Deferred tax liability, current	100,000	101,000
Other current liabilities	3,356,000	3,406,000
Liabilities held for sale		1,747,000
Total current liabilities	21,360,000	14,522,000
Long-term liabilities:
Long-term debt, less current portion	0	10,200,000
Financing lease obligations, less current portion	2,422,000	2,757,000
Other liabilities	8,721,000	8,285,000
Total liabilities	32,503,000	35,764,000
Shareholders' equity:
Common stock, $.01 par value, 100,000 shares authorized, 6,958 shares issued and outstanding at October 2, 2016 and January 3, 2016, respectively	66,000	66,000
Retained earnings	20,760,000	21,995,000
Total shareholders' equity	20,826,000	22,061,000
Total liabilities and shareholders' equity	$ 53,329,000	$ 57,825,000

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - $ / shares	Oct. 02, 2016	Jan. 03, 2016
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	100,000,000	100,000,000
Common stock issued (in shares)	6,958,000	6,958,000
Common Stock, Shares, Outstanding	6,958,000	6,958,000

Consolidated Statement of Opera

Consolidated Statement of Operations - USD ($) shares in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2016	Sep. 27, 2015	Oct. 02, 2016	Sep. 27, 2015
Revenue:
Restaurant sales, net	$ 20,999,000	$ 23,323,000	$ 63,013,000	$ 74,576,000
Franchise royalty revenue	4,311,000	4,312,000	13,162,000	13,263,000
Franchise fee revenue	0	0	135,000	255,000
Licensing and other revenue	200,000	245,000	784,000	765,000
Total Revenue	25,510,000	27,880,000	77,094,000	88,859,000
Costs and expenses:
Food and beverage costs	6,507,000	7,246,000	19,619,000	22,752,000
Labor and benefits costs	7,069,000	8,316,000	21,323,000	24,974,000
Operating expenses	6,618,000	6,976,000	18,681,000	21,396,000
Depreciation and amortization	909,000	1,064,000	2,845,000	3,387,000
General and administrative expenses	4,532,000	4,141,000	13,143,000	13,927,000
Asset impairment and estimated lease termination and other closing costs	3,620,000	650,000	4,684,000	1,626,000
Pre-opening expenses	0	0	0	0
Net loss on disposal of property	4,000	(1,781,000)	(181,000)	(1,756,000)
Total costs and expenses	29,259,000	26,612,000	80,114,000	86,306,000
Income from operations	(3,749,000)	1,268,000	(3,020,000)	2,553,000
Other expense:
Interest expense	(210,000)	(218,000)	(613,000)	(641,000)
Interest income	0	2,000	2,000	7,000
Other income (expense), net	(1,000)	1,000	0	1,000
Total other expense	(211,000)	(215,000)	(611,000)	(633,000)
Income before income taxes	(3,960,000)	1,053,000	(3,631,000)	1,920,000
Income tax expense	1,582,000	(96,000)	1,515,000	(440,000)
Net income from continuing operations	(2,378,000)	957,000	(2,116,000)	1,480,000
Income (Loss) from Discontinued Operations, Net of Tax	(81,000)	(249,000)	627,000	79,000
Net income (loss)	$ (2,459,000)	$ 708,000	$ (1,489,000)	$ 1,559,000
Income (loss) from continuing operations per basic share	$ (0.34)	$ 0.14	$ (0.3)	$ 0.21
Income loss from discontinued operations per basic share	(0.01)	(0.04)	0.09	0.01
Basic net income per common share	(0.35)	0.1	(0.21)	0.22
Income loss from continuing operations per diluted share	(0.34)	0.14	(0.3)	0.21
Income loss from discontinued operations per diluted share	(0.01)	(0.04)	0.09	0.01
Diluted net income per common share	$ (0.35)	$ 0.1	$ (0.21)	$ 0.22
Weighted average common of shares outstanding - basic	6,950	6,945	6,949	7,008
Weighted average common shares outstanding - diluted	6,950	6,958	6,949	7,027

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Oct. 02, 2016	Sep. 27, 2015
Cash flows from operating activities:
Net income from continuing operations	$ (2,116,000)	$ 1,480,000
Adjustments to reconcile net income to cash flows provided by operations:
Depreciation and amortization	2,845,000	3,387,000
Amortization Of Financing Costs	43,000	57,000
Net loss on disposal of property	(181,000)	(1,756,000)
Asset impairment and estimated lease termination and other closing costs	4,684,000	1,626,000
Deferred income taxes	(25,000)	(349,000)
Deferred rent and net amortization of lease interest assets and liablities	520,000	656,000
Stock-based compensation	254,000	319,000
Tax benefit for equity awards issued - operating activities	0	(153,000)
Restricted cash	(1,199,000)	(91,000)
Accounts receivable, net	(193,000)	(904,000)
Inventories	184,000	115,000
Prepaid expenses and other current assets	(1,571,000)	456,000
Deposits	(277,000)	18,000
Accounts payable	(388,000)	(7,000)
Accrued compensation and benefits	39,000	(2,047,000)
Other current liabilities	(98,000)	(596,000)
Other liabilities - operating activities	140,000	(39,000)
Long-term deferred compensation	0	(74,000)
Cash flows provided by continuing operating activities	2,661,000	2,098,000
Cash provided by discontinued operations	(839,000)	377,000
Cash flows provided by operating activities	1,822,000	2,475,000
Cash flows from investing activities:
Proceeds from the sale of restaurant assets	1,053,000	5,341,000
Purchases of property, equipment and leasehold improvements	(540,000)	(3,093,000)
Cash flows used for continuing investing activities	513,000	2,248,000
Cash flows provided by discontinued investing activities	1,150,000	(52,000)
Cash flows provided by (used for) investing activities	1,663,000	2,196,000
Cash flows from financing activities:
Proceeds from draws on line of credit	1,855,000	20,700,000
Payments on line of credit	0	(19,300,000)
Payments for debt issuance costs	(23,000)	(128,000)
Payments on long-term debt and financing lease obligations	(3,850,000)	(541,000)
(Payments for) proceeds from exercise of stock options	(1,000)	0
Tax benefit for equity awards issued - financing activities	0	153,000
Repurchase of common stock	0	(5,672,000)
Cash flows used for financing activities	(2,019,000)	(4,788,000)
Increase (decrease) in cash and cash equivalents	1,466,000	(117,000)
Cash and cash equivalents, beginning of year	5,300,000	2,133,000
Cash and cash equivalents, end of year	$ 6,766,000	$ 2,016,000

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Oct. 02, 2016
Nature Of Business And Significant Accounting Policies [Abstract]
Nature Of Business And Significant Accounting Policies [Text Block]	(1) Basis of Presentation We, Famous Dave's of America, Inc. (“Famous Dave’s” or the “Company”), were incorporated in Minnesota on March 14, 1994. We develop, own, operate and franchise restaurants under the name "Famous Dave's". As of October 2, 2016 , there were 176 Famous Dave’s restaurants operating in 32 states, the Commonwealth of Puerto Rico, Canada, and United Arab Emirates, including 37 company-owned restaurants and 139 franchise-operated restaurants. An additional 62 franchise restaurants were committed to be developed through signed Area Development Agreements as of October 2, 2016 . We prepared these consolidated financial statements i n accordance with Securities and Exchange Commission (“SEC”) Rules and Regulations. These unaudited financial statements represent the consolidated financial statements of Famous Dave’s and its subsidiaries as of October 2, 2016 and January 3, 2016 and for the three and nine month periods ended October 2, 2016 and September 27, 2015 , respectively. The information furnished in these financial statements includes normal recurring adjustments and reflects all adjustm ents, which are, in our opinion, necessary for a fair presentation. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Form 10-K for the fiscal year ended January 3, 2016 as fi led with the SEC. Due to the seasonality of our business, revenue and operating results for the three and nine months ended October 2, 2016 are not necessarily indicative of the results to be expected for the full year.

NET INCOME PER COMMON SHARE

NET INCOME PER COMMON SHARE	9 Months Ended
	Oct. 02, 2016
Earnings Per Share [Abstract]
Net Income Per Common Share [Policy Text Block]	(2) Net Income Per Share Basic net income per 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 commo n stock outstanding plus all additional common stock equivalents, such as stock options and restricted stock units, when dilutive. Following is a reconciliation of basic and diluted net income per share: Three Months Ended Nine Months Ended (in thousands, except per share data) October 2, September 27, October 2, September 27, 2016 2015 2016 2015 Net (loss) income per share – basic: Net (loss) income from continuing operations, net of taxes $ (2,378) $ 957 $ (2,116) $ 1,480 Net (loss) income from discontinued operations, net of taxes (81) (249) 627 79 Net (loss) income $ (2,459) $ 708 $ (1,489) $ 1,559 Weighted average shares outstanding 6,950 6,945 6,949 7,008 Net (loss) income from continuing operations per share – basic $ (0.34) $ 0.14 $ (0.30) $ 0.21 Net (loss) income from discontinued operations per share – basic $ (0.01) $ (0.04) $ 0.09 $ 0.01 Net (loss) income per share – basic $ (0.35) $ 0.10 $ (0.21) $ 0.22 Net (loss) income per share – diluted: Net (loss) income from continuing operations, net of taxes $ (2,378) $ 957 $ (2,116) $ 1,480 Net (loss) income from discontinued operations, net of taxes (81) (249) 627 79 Net (loss) income $ (2,459) $ 708 $ (1,489) $ 1,559 Weighted average shares outstanding 6,950 6,945 6,949 7,008 Dilutive impact of stock equivalents outstanding --- 13 --- 19 Adjusted weighted average shares outstanding 6,950 6,958 6,949 7,027 Net (loss) income from continuing operations per share – diluted $ (0.34) $ 0.14 $ (0.30) $ 0.21 Net (loss) income from discontinued operations per share – diluted $ (0.01) $ (0.04) $ 0.09 $ 0.01 Net (loss) income per share – diluted $ (0.35) $ 0.10 $ (0.21) $ 0.22 There were 543 ,000 and 221,000 options outstanding for the three and nine months ended October 2, 2016 and September 27, 2015 , respectively, that were not included in the computation of diluted EPS because they were anti-dilutive.

RESTRICTED CASH AND MARKETING F

RESTRICTED CASH AND MARKETING FUND	9 Months Ended
	Oct. 02, 2016
Restricted Cash [Abstract]
ScheduleOfRestrictedCashAndCashEquivalents	(3) Restricted Cash and Marketing Fund We have a system-wide Public Relations and Marketing Development Fund, to which Company-owned restaurants, in addition to the majority of franchise-operated restaurants, contribute a percent age of net sales, currently 1.0 %, for use in public relations and marketing development efforts throughout the system. The assets held by this fund are considered restricted. Accordingly, we reflect the cash related to this fund in restricted cash and re flect the liability in accounts payable on our consolidated balance sheets as of October 2, 2016 and January 3, 2016 . We had approximately $1.1 million in this fund as of October 2, 2016 and January 3, 2016 . In conjunction with the Company’s Credit Agreement, we have deposited 105% of the face amount of the undrawn letters of credit in a cash collateral account with the Administrative Agent. W e had approximately $ 1.0 million in restricted cash as of Oc tober 2, 2016, related to these undrawn letters of credit. We were not required to deposit funds in the cash collateral account as of January 3, 2016.

ALLOWANCE FOR DOUBTFUL ACCOUNTS

ALLOWANCE FOR DOUBTFUL ACCOUNTS	9 Months Ended
	Oct. 02, 2016
Accounts Receivable Net [Abstract]
Allowance For Credit Losses [TextBlock]	(4) Allowance for Doubtful Accounts Accounts Receivable, Net – We provide an allowance for uncollectible accounts on accounts receivable based on historical losses and existing economic conditions, when relevant. We provide for a general bad debt reserve for franchise receivables due to increases in days sales out standing and deterioration in general economic market conditions. This general reserve is based on the aging of receivables meeting specified criteria and is adjusted each quarter based on past due receivable balances. Additionally, we have periodically established a specific reserve on certain receivables as necessary. Any changes to the reserve are recorded in general and administrative expenses. The allowance for uncollectible accounts was approximately $695,000 and $246,000 , at October 2, 2016 and January 3, 2016 , respectively. Accounts receivable are written off when they become uncollectible, and payments subsequently received on such receivables are credited to allowance for doubtful accounts. Accounts receivable bal ances written off have not exceeded allowances provided. We believe all accounts receivable in excess of the allowance are fully collectible. If accounts receivable in excess of provided allowances are determined uncollectible, they are charged to expense in the period that determination is made. Outstanding past due accounts receivable are subject to a monthly interest charge on unpaid balances which is recorded as interest income in our consolidated statements of operations. In assessing recoverability of these receivables, we make judgments regarding the financial condition of the franchisees based primarily on past and current payment trends, as well as other variables, including annual financial information, which the franchisees are required to submi t to us, as well as other variables.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	9 Months Ended
	Oct. 02, 2016
Intangible Assets Disclosure [Abstract]
Intangible Assets Disclosure [Text Block]	(5 ) Intangible Assets , net T he Company has intangible assets that consist of liquor licenses and lease interest assets. The liquor licenses are indefinite lived assets and are not subject to amortization. The lease interest assets are amortized to occupancy costs on a straight-line basis over the remaining term of each respective lease . Amortization of the lease interest assets is expected to be approximately $47,500 per year, for the remaining useful life. A reconciliation of begi nning and ending amounts of intangible assets at October 2, 2016 and January 3, 2016, respectively, are presented in the table below: (in thousands) Remaining estimated useful life (years) Original Cost Accumulated Amortization Net Book Value Less Current Portion (1) Non- Current Portion Balance at October 2, 2016 Lease interest assets 23.3 $ 1,417 $ (313) $ 1,104 $ (48) $ 1,056 Liquor licenses 1,810 --- 1,810 --- 1,810 Total $ 3,227 $ (313) $ 2,914 $ (48) $ 2,866 (in thousands) Remaining estimated useful life (years) Original Cost Accumulated Amortization Net Book Value Less Current Portion (1) Non- Current Portion Balance at January 3, 2016 Lease interest assets 24.1 $ 1,417 $ (277) $ 1,140 $ (48) $ 1,092 Liquor licenses 1,810 --- 1,810 --- 1,810 Total $ 3,227 $ (277) $ 2,950 $ (48) $ 2,902 (1) The current portion is included in prepaid expenses and other current assets on the consolidated balance sheets.

CREDIT FACILITY AND DEBT COVENA

CREDIT FACILITY AND DEBT COVENANTS, LONG-TERM DEBT, AND FINANCING LEASE OBLIGATIONS	9 Months Ended
	Oct. 02, 2016
Debt Disclosure [Abstract]
Credit Facility, Long-Term Debt and Debt Covenants Disclosure [Text Block]	6) Credit Facility, Long-Term Debt and Debt Covenants On June 10, 2016, the Company and its subsidiaries (each, a “Borrower” and collectively, the “Borrowers”) entered into a Waiver and Second Amendment (the “Second Amendment”) to the Third Amended and Restated Credit Agreement, as amended (the “Credit Agreement”) with Wells Fargo, National Association as administrative agent and lender (the “Administrative Agent”). The Second Amendment Effective Date, as defined in the Second Amendment, is June 10, 2016. Pursuant to the Second Amendment, the Credit Agreement was amended and restated to terminate the revolving credit loan commitment (the “Facility”), change the maturity date of the revolving credit loans and the term loan from December 31, 2 018 to December 31, 2017, and obligate monthly payments of $ 200,000 to reduce the principal amount of the loans. Additionally, the Borrowers deposited 105 % of the face amount of the outstanding letters of credit in a cash collateral account with the Admin istrative Agent which is included in restricted cash on our Consolidated Balance Sheet. At October 2, 2016 , the principal amount outstanding under the Facility and the Term Loan was $1.9 million and $8.4 million, respectively , along with approximately $1.0 million in letters of credit for real estate locations. The Credit Agreement allows for termination by the Borrower without penalty at any time. Under the Credit Agreement, the Borrowers have granted the Lender a security interest in all current and future personal property of the Borrower. Principal amounts outstanding under the Facility bear interest either at an adjusted Eurodollar rate or “Base Rate” plus an applicable margin. For the nine months ended October 2, 2016 and September 27, 2015 , our weighted average interest rate for the Facility was 3.67% and 2.64% , respectively. Principal amounts outstanding under the Term Loan bear interest at the same rate as the Facility. The weighted average interest rate of the Term Loan f or the nine months ended October 2, 2016 w as 3.70% . There was no Term Loan at September 27, 2015. The Credit Agreement contains customary affirmative and negative covena nts for credit facilities of this type. For more information regarding the details of the customary affirmative and negative covenants, please refer to the full text of the Third Amended and Restated Credit Agreement dated May 8, 2015 filed as Exhibit 10. 2 to our Form 10-Q for the quarter ended March 29, 2015, which was filed on May 8, 2015, the First Amendment to the Credit Agreement filed as Exhibit 10.1 to our Current Report on Form 8-K, which was filed on December 11, 2015, and the Waiver and Second Am endment to the Credit Agreement filed as Exhibit 10.1 to our Current Report on Form 8-K filed on June 10, 2016. For the quarter ended October 2, 2016, we were in compliance with all covenants of the Credit Agreement except the Adjusted Leverage Ratio and the Minimum Consolidated EBITDA covenants . For the quarter ended October 2, 2016 the Adjusted Leverage Ratio was 5.57:1.00, which is higher than the maximum Adjusted Leverage Ratio permitted by the Credit Agreement of 5.50:1.00 For the quarter ende d October 2, 2016 our Adjusted EBITDA was $1.0 million, which is less than the minimum Adjusted EBITDA permitted by the Credit Agreement of $ 1.5 million for this quarter. It is an Event of Default under the Credit Agreement if Borrowers fail to comply wit h either the Adjusted Leverage Ratio or minimum Adjusted EBITDA covenant or any other covenant. Upon an Event of Default, the Lender has the right to declare the unpaid principal amount of all outstanding loans; all interest accrued and unpaid thereon, an d all other amounts owing or payable hereunder or under any other loan document to be immediately due and payable, as well as to exercise its other rights as a secured creditor. In addition, we are prohibited under the Credit Agreement from making dividen ds or distributions from one Borrower to another Borrower and purchasing common stock pursuant to a board-approved stock purchase program. On November 9, 2016, the Borrowers and Lender entered into a Forbearance Agreement pursuant to which the Lender agre ed to forbear from exercising its rights and remedies under the Credit Agreement relating to the existing defaults during a Forbearance Period ending December 9, 2016 or on the earlier date of any other Event of Default under the Credit Agreement or breach of the Forbearance Agreement. Under the Forbearance Agreement we have agreed not to request and Wells Fargo is not obligated to make any f urther extensions of credit to us under the Credit Agreement. During the Forbearance Period, we intend to closely m anage our expenses and cash balances to prevent a working capital shortfall. At November 9, 2016, the principal amount outstanding under the Facility was $9.9 million, along with approximately $595,000 in letters of credit for real estate locations. During the first nine months of fiscal 2016 the Company generated approximately $2.7 million in cash from operating activities compared to $2.1 million in the comparable period of the prior year. As of October 2, 2016, the Company ended the third quarter with total net debt of approximately $5.8 million. This compares to $11.4 million of net debt as of September 27, 2015. During the Forbearance Period the Company intends to finalize its refinancing arrangement. As a result of the Events of Default at October 2, 2016 and given the length of the Forbearance Period, all outstanding obligations under the Credit Agreement were classified as current liabilities.

OTHER CURRENT LIABILITIES

OTHER CURRENT LIABILITIES	9 Months Ended
	Oct. 02, 2016
Accrued Liabilities, Current [Abstract]
Other Current Liabilities Disclosure [Text Block]	( 7 ) O ther Current Liabilities Other current liabilities consisted of the following at: October 2, January 3, (in thousands) 2016 2016 Gift cards payable $ 1,319 $ 1,616 Other liabilities 1,066 869 Sales tax payable 437 674 Accrued real estate taxes 279 33 Deferred franchise fees 212 134 Accrued property and equipment purchases 28 40 Income tax payable 15 40 $ 3,356 $ 3,406

OTHER LIABILITIES

OTHER LIABILITIES	9 Months Ended
	Oct. 02, 2016
Other Liabilities [Abstract]
Other Liabilities Disclosure [Text Block]	(8) Other Liabilities Other liabilities consisted of the following at: October 2, January 3, (in thousands) 2016 2016 Deferred rent $ 7,656 $ 7,191 Other liabilities 521 455 Income taxes payable 174 12 Long term lease reserve 144 258 Long term deferred compensation 115 258 Asset retirement obligations 111 111 $ 8,721 $ 8,285

PERFORMANCE SHARES, STOCK OPTIO

PERFORMANCE SHARES, STOCK OPTIONS, OTHER FORMS OF COMPENSATION, AND COMMON SHARE REPURCHASES	9 Months Ended
	Oct. 02, 2016
Performance Shares, Stock Options, Other Forms Of Compensation And Common Share Repurchaces [Abstract]
Performance Shares, Stock Options, Other Forms of Compensation and Common Share Repurchases [Text Block]	(9 ) Performance Shares, Stock Options, Other Forms of Compensation, and Common Share Repurchases Stock-based Compensation Effective May 5, 2015, we adopted a 2015 Equity Plan (the “2015 Plan”), pursuant to which we 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. We also maintain an Amended and Restated 2005 Stock Incentive Plan (the “2005 Plan”) . Together, the 2015 Plan and 2005 Plan are referred to herein as the “Plans.” Under the 20 1 5 Plan, an aggregate of 103,800 shares of our Company’s common stock remained unreserved and available for issuance at October 2, 2016 . The 2005 Plan prohibits the granting of incentives after May 12, 2015, the tenth anniversary of the date such Plan was approved by the Company’s shareholders. Nonetheless, the 2005 Stock Incentive Plan will remain in effect until all outstanding incentives granted the reunder have either been satisfied or terminated. We recognized stock-based compensation expense in our consolidated statements of operations for the three and nine months ended October 2, 2016 and September 27, 2015 , respectively, as follows: Three Months Ended Nine Months Ended October 2, September 27, October 2, September 27, (in thousands) 2016 2015 2016 2015 Performance Stock Units $ --- $ (24) $ --- $ 12 Stock Options (1)(2) 157 (15) 209 241 Restricted Stock and Restricted Stock Units 15 15 45 45 $ 172 $ (24) $ 254 $ 298 (1) The three and nine months ended September 27, 2015 included the recapture of previously recorded stock-based compensation of approximately $105,000 due to employee departures. (2) The nine months ended October 2, 2016 included the recapture of previously recorded stock-based compensation of approximately $126,000 due to the departure of our previous CFO. Board of Directors’ Compensation We recognized board of d irectors’ c ompensation expense in our consolidated statement of operations for the three and nine months ended October 2, 2016 and September 27, 2015 , respectively, as follows: Three Months Ended Nine Months Ended October 2, September 27, October 2, September 27, 2016 2015 2016 2015 (in thousands) Stock-based compensation $ 15 $ 15 $ 45 $ 45 Stock option compensation 25 (79) 69 52 Cash compensation 30 35 65 188 ` Total board of directors' compensation $ 70 $ (29) $ 179 $ 285 Stock Options Below is detail related to recent stock option activity associated with certain key employees: Option Details Named Executive Title* Date Event Number Term Vesting period (in years) Edward H. Rensi CEO 1/15/2015 Grant (1) 75,000 5 Annually over three years Edward H. Rensi Director 7/11/2015 Forfeiture (1) (20,000) Brett D. Heffes Director 7/13/2015 Forfeiture (1) (20,000) David J. Mastrocola Director 7/15/2015 Forfeiture (1) (20,000) Abelardo Ruiz COO 8/31/2015 Grant 71,324 5 Monthly over four years Adam J. Wright CEO 1/1/2016 Grant 50,000 10 Monthly over two years Richard A. Pawlowski CFO 1/15/2016 Grant 6,000 1.21 Three variable installments Alfredo Martel CMO 2/12/2016 Grant 35,000 5 Monthly over four years Richard A. Pawlowski CFO 4/11/2016 Forfeiture (1) (78,000) Dexter Newman CFO 4/11/2016 Grant 70,000 10 Monthly over four years Ananda Gala Director 5/3/2016 Grant 20,000 10 Monthly over five years Bryan Wolff Director 5/3/2016 Grant 20,000 10 Monthly over five years Edward H. Rensi CEO 6/18/2016 Forfeiture (1) (75,000) Edward H. Rensi Director 7/11/2016 Expiration (1) (25,000) * Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Operating Officer (COO), Chief Marketing Officer (CMO) See footnote 18, Subsequent Events, for additional information (1) These stock option grants were part of the 2005 Plan rather than the 2015 Plan. The compensation expense for stock option grant s i s recognized under general and administrative expense in our consolidated statements of operations through the applicable service period. Other options granted to certain non-officer employees vest in equal annual installments over a period of four years and expire either five or ten years from the grant date . Compensation expense equal to the grant date fair value is generally recognized for these awards over the vesting period. Options granted to cer tain non-employees in exchange for future services either vest in monthly installments over a period of approximately two years or are granted monthly and vest immediately, and expire five years from the grant date. Expense equal to the current fair value is recognized over the vesting period, with the value being marked to market in each accounting period for any unvested portions of the awards. The fair value of each stock option is estimated on the date of grant using the Black-Scholes valuation method with the assumptions noted in the table below. Due to a lack of recent historical share option exercise experience, the Company uses a simplified method for estimating the expected life, as outlined in Accounting Standards Codification 718, calculated usi ng the following formula: (vesting term + original contract term)/2. Expected volatilities are based on the movement of the C ompany’s common stock price over the most recent historical period equivalent to the expected life of the option. The risk-free in terest rate for periods within the contractual life of the option is based on the U.S. maturities over the expected life at the time of grant. Information regarding our Company’s stock options is summarized below: (number of options in thousands) Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life in Years Options outstanding at January 3, 2016 507 $ 16.66 5.3 Granted 53 17.66 Forfeited (53) 32.02 Options outstanding at April 3, 2016 507 $ 13.95 5.2 Granted 206 5.60 Forfeited (3) 28.53 Expired (26) 32.05 Options outstanding at July 3, 2016 684 $ 10.65 5.9 Granted 46 5.82 Exercised (6) 5.90 Forfeited (78) 12.17 Canceled or expired (10) 31.05 Outstanding at October 2, 2016 636 $ 10.00 6.3 Options exercisable at October 2, 2016 242 $ 11.40 4.5 Weighted-average values and assumptions for valuing grants made: Nine Months Ended October 2, 2016 Fiscal 2015 Weighted average fair value of options granted $ 2.16 $ 4.90 Expected life (in years) 5.7 3.3 Expected stock volatility 41.3 % 51.2 % Risk-free interest rate 1.3 % 1.9 %

RETIREMENT SAVINGS PLANS

RETIREMENT SAVINGS PLANS	9 Months Ended
	Oct. 02, 2016
Retirement Savings Plans [Abstract]
Retirement Savings Plans Disclosure [Text Block]	( 10 ) Retirement Savings Plans 401(k) Plan We have a pre-tax salary reduction/profit-sharing plan under the provisions of Section 401(k) of the Internal Revenue Code, which covers employees meeting certain eligibility requirements. Information regarding our Company’s 401(k) Plan is summarized below: Three Months Ended Nine Months Ended October 2, September 27, October 2, September 27, 2016 2015 2016 2015 Employer match % 25% 25% 25% 25% % of earnings matched 4% 4% 4% 4% Employee contributions $ 63,000 $ 90,000 $ 250,000 $ 297,000 Employer match $ 26,000 $ 13,000 $ 40,000 $ 48,000 Non-Qualified Deferred Compensation Plan We have a Non-Qualified Deferred Compensation Plan effective as of February 25, 2005 (the “Deferred Compensation Plan”). Eligible participants are those employees who are at the “director” level and above and who are selected by the Company to participate in the Deferred Compensation Plan. Participants must complete a deferral election each year to indicate the level of compensation (salary, bonus and commissions) they wish to have deferred for the coming year. This deferral election is irrevocable except to the extent permitted by the Deferred Compensation Plan administrator, and the applicable regulations promulgated by the IRS. The board of directors administers the Deferred Compensation Plan and may change t he declared interest rate or any other aspects of the Deferred Compensation Plan at any time. Deferral periods are limited to the earlier of termination of employment or not less than three calendar years following the end of the applicable plan year. Ex tensions of the deferral period for a minimum of five years are allowed provided an election for extension is made at least one year before the first payment affected by the change. Payments can be in a lump sum or in equal payments over a two-, five- or ten-year period, plus interest from the commencement date. The Deferred Compensation Plan assets are kept in an unsecured account that has no trust fund. In the event of bankruptcy, participants entitled to future payments under the Deferred Compensation Plan would have no greater rights than that of an unsecured general creditor of the Company and the Deferred Compensation Plan confers no legal rights for interest or claim on any specific assets of the Company. Benefits provided by the Deferred Compensa tion Plan are not insured by the Pension Benefit Guaranty Corporation under Title IV of the Employee Retirement Income Security Act of 1974 (“ERISA”), because the pension insurance provisions of ERISA do not apply to the Deferred Compensation Plan. The ba lance of the Plan for the quarters ended October 2, 2016 and January 3, 2016 was approximately $163,000 and $547,000 , respectively. Of this balance approximately $ 48,000 and $ 109,000 was recorded in current liabilities and the remaining balance was recorded in other liabilities at October 2, 2016 and January 3, 2016 , respectively. Information regarding our Company’s Non-Qualified Deferred Compensation Plan is summarized below: Three Months Ended Nine Months Ended October 2, September 27, October 2, September 27, 2016 2015 2016 2015 Employer match % 25% 25% 25% 25% % of earnings matched 4% 4% 4% 4% Declared interest rate 6% 6% 6% 6% Employee contributions $ 10,000 $ 8,000 $ 23,000 $ 31,000 Employer match and interest $ 4,000 $ 8,000 $ 14,000 $ 25,000 Distributions $ 130,000 $ 92,000 $ 238,000 $ 107,000

ASSET IMPAIRMENT AND ESTIMATED

ASSET IMPAIRMENT AND ESTIMATED LEASE TERMINATION AND OTHER CLOSING COSTS	9 Months Ended
	Oct. 02, 2016
Asset Impairment And Estimated Lease Terminations And Other Closing Costs [Abstract]
Asset Impairment And Estimated Lease Terminations And Other Closing Costs Disclosure [Text Block]	(11) Asset Impairment and Estimated Lease Termination and Other Closing Costs In accordance with FASB Accounting Standards Codification for Property, Plant, and Equipment, we evaluate restaurant sites and long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of restaurant sites to be held and used is measured by a comparison of the carrying amount of the restaurant site to the undiscounted f uture net cash flows expected to be generated on a restaurant-by-restaurant basis. If a restaurant is determined to be impaired, the loss is measured by the amount by which the ca rrying amount of the restaurant’s assets exceeds its fair value. Fair value is estimated based on the best information available including estimated future cash flows, expected growth rates in comparable restaurant sales, remaining lease terms , discount rate and other factors. If these assumptions change in the future, we may be required to take additional impairment charges for the related assets. Considerable management judgment is necessary to estimate future cash flows. Accordingly, actual results could vary significantly from such estimates. Following is a summary of asse t impairment, estimated lease termination, and other closing costs f or the three and nine months ended October 2, 2016 and September 27, 2015. Three Months Ended Nine Months Ended (dollars in thousands) October 2, 2016 September 27, 2015 October 2, 2016 September 27, 2015 Impairment losses Restaurant optimization $ 3,420 $ - $ 4,313 $ - Software (1) - - 171 - Smithtown, NY (2) - - - 935 Total $ 3,420 $ - $ 4,484 $ 935 Restaurant closure expenses Smithtown, NY (3) 200 - 200 - N. Riverside, IL (4) - 368 - 368 N. Riverside, IL (5) - 122 - 122 Other (6) - 109 - 99 Richmond, VA area - 16 - 144 Eden Prairie, MN - 35 - (42) Total restaurant closure expenses $ 200 $ 650 $ 200 $ 691 Provision for impairment and restaurant closings $ 3,620 $ 650 $ 4,684 $ 1,626 (1) Asset impairment calculated at July 3, 2016 related to a software implementation project that was discontinued. (2) Asset impairment calculated at June 28, 2015 based upon expected sale of Smithtown restaurant. (3) Lease termination reserve associated with a letter of credit provided to a landlord for a previously closed restaurant. (4) Lease termination costs associated with the cancellation of a potential new restaurant location. (5) Write off of development costs associated with the cancellation of a potential new restaurant location. (6) Includes $191,000 in costs written-off associated with closing the Lombard, Illinois field office partially offset by an $86,000 recapture of deferred rent credits. Restaurant Optimization - During the third quarter of fiscal 2016, the Company recorded approximately $3.4 million in asset impairment charges associated with 11 restaurants which were slow to respond to several initiatives to turnaround operating performance. As a result, the Company determined that the estimated fair value of the assets was less than the net book value and recognized an impairment charge to reduce the related assets to the estimated fair value. As we continue to evaluate the res taurant portfolio we anticipate addressing the ongoing operation of the 11 locations impaired over the next 3 years by way of lease restructuring, lease assignment or subsequent closure at the end of their natural lease term.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Oct. 02, 2016
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	(12) Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement framework establishes a three-tier hierarchy. The three levels, in order of priority, are as follows: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. Level 1 measurements are determined by observ able inputs which include data sources and market prices available and visible outside of the entity. Level 2: Observable inputs other than quoted prices included within Level 1 for the asset or liability, either directly or indirectly. Level 3: Inputs that are used to estimate the fair value of the asset or liability. Level 3 measurements are determined by unobservable inputs , which include data and analysi s developed within the entity to assess the fair value. Transfers in and out of l evels will be ba sed on our judgment of the availability of unadjusted quoted prices in active markets, other observable inputs, and non-observable inputs. The following table (in thousands) summarizes the assets held for sale and property and equipment, in each case mea sured at fair value in our consolidated balance sheet as of January 3, 2016 and October 2, 2016 : Level 1 Level 2 Level 3 Total Balance at January 3, 2016 Assets Assets Held for Sale $ - $ 1,431 $ 780 $ 2,211 Property and Equipment $ - $ - $ 507 $ 507 Balance at October 2, 2016 Assets Assets Held for Sale $ - $ 5 $ - $ 5 Property and Equipment $ - $ - $ 1,165 $ 1,165 1 Assets Held for Sale were recorded at fair value and were valued based upon a Real Estate Broker’s Estimate of Value for the properties (Level 3) or negotiated sale price (Level 2). Property and Equipment recorded at fair value were valued based upon a Broker’s Estimate of Value or estimated discounted future cash flows (Level 3). These assets were adjusted to net realizable value based upon the decision to dispose of the property. Total assets held for sale were reduced during the nine months e nded October 2, 2016 due to the disposal of FDA’s Chicago operations sites (see note 13 ) and of one of the Richmond restaurant s. The remaining assets held for sale at October 2, 2016 reflect the net realizable value of a restaurant (see note 11 ) .

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS	9 Months Ended
	Oct. 02, 2016
Discontinued Operations And Disposal Groups [Abstract]
Disposal Groups Including Discontinued Operations Disclosure [TextBlock]	(13) Discontinued Operations On December 14, 2015, Famous Dave’s of America, Inc. and certain of its subsidiaries (collectively, the “Company”) entered into an Asset Purchase Agreement and related Real Estate Purchase Agreement (the “Purchase Agreements”) with Windy City Restaurant Holdings LLC and its affiliate (together, the “Purchaser”) pursuant to which the Company agreed to sell the assets comprising its seven Chicago, Illinois area Company-owned restaurants located in Addison, Algonquin, Bolingbrook, Evergreen Park, North Riverside, Orland Park and Oswego (collectively, “Purchased Restaurants”) to the Purchaser. Pursuant to the terms of this agreement, the Company received a total purchase price of $1.15 million during the quarter ended Ap ril 3, 2016, plus approximately $315,000 for the purchase of inventory on hand on the closing date. The Purchaser also assume d specified liabilities of the Company , including the Company’s existing leases for the Purchased Restaurants located in Bolingbr ook, North Riverside and Orland Park, Illinois. As a result of this asset sale, the Company recognized a pretax $1.1 million gain during the quarter ended April 3, 2016, primarily due to the write-off of the remaining $1.3 million deferred rent liability a ssociated with the leases assumed by the Purchaser, discussed above. The net assets and liabilities of the Purchased Restaurants associated with this transaction we re included in assets and liabilities held for sale on the accompanying Consolidated Balanc e Sheets at January 3, 2016. No related assets or liabilities remained at October 2, 2016. The carrying value of the assets and liabilities included in the asset sale was as follows (in thousands): (in thousands) January 3, 2016 Accounts receivable, net $ 65 Inventories 344 Prepaid expenses and other current assets 30 Total current assets 439 Property, equipment and leasehold improvements, net 991 Total assets $ 1,430 Accounts payable $ 10 Accrued compensation and benefits 96 Other current liabilities 389 Total current liabilities 495 Other liabilities 1,252 Total liabilities $ 1,747 The operating results of the Purchased Restaurants for the three and nine months ended October 2, 2016 and September 27, 2015 are summarized below. These results include costs directly attributable to the components of the businesses which were divested. Interest expense of $ 32,000 and $ 21,000 were allocated to discontinued operations for the nine months ended October 2, 2016 and September 27, 2015, respectively, based upon the portion of the borrowing base associated with discontinued operations. Income t ax expense (benefit) of $ 378,000 and ($ 111,000 ) for the nine months ended October 2, 2016 and September 27, 2015, respectively have also been allocated to discontinued operations. These adjustments have been made for all periods presented. Three Months Ended Nine Months Ended (in thousands) October 2, 2016 September 27, 2015 October 2, 2016 September 27, 2015 Revenue $ --- $ 3,919 $ 2,365 $ 12,975 (Loss) income from operations $ (23) $ (304) $ 1,019 $ 85 (Loss) income from discontinued operations, net of income taxes $ (81) $ (249) $ 627 $ 79

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES	9 Months Ended
	Oct. 02, 2016
Variable interest entity not primary beneficiary abstract
Variable interest entity disclosure [Text Block]	(14) Variable Interest Entities Once an entity is determined to be a variable interest entity (VIE), the party with the controlling financial interest, the primary beneficiary, is required to consolidate it. The Company has an installment agreement with a franchisee as the result of refranchising its Lincoln, Nebraska restaurant. While the franchise meets the definition of a VIE, the owners of the franchise operations are the primary beneficiaries of the entities, not the Company. Therefore, the fra nchise operations are not required to be consolidated in the Company’s consolidated financial statements. On August 11, 2015, the Company consummated the sale of its Greenwood, Indiana and Florence, Kentucky restaurants. In conjunction with that agreemen t, the Company entered into lease assignment agreements with the respective purchasers and landlords, releasing the Company of its obligations except in the event of default by the purchasers. As of October 2, 2016 and January 3, 2016, the amount of the f uture lease payments for which the Company would be liable in the event of a default are approximately $ 414,000 . An accrual related to any future obligation was not considered necessary at October 2, 2016 as the Company has determined the fair value of th is guarantee was zero as there was no indication that the purchasers would not be able to pay the required lease payments. While t his franchise meets the definition of a VIE, the owners of the franchise operations are the primary beneficiaries of the enti ties, not the Company. Therefore, the franchise operations are not required to be consolidated in the Company’s consolidated financial statements. On March 1, 2016, the Company consummated the sale of Chicago, Illinois restaurants. In conjunction with th at agreement, the Company entered into lease assignment agreements with the respective purchasers and three of the landlords, releasing the Company of its obligations except in the event of default by the purchasers. As of October 2, 2016, the amount of t he future lease payments for which the company would be liable in the event of a default are approximately $ 2.0 million. An accrual related to any future obligation was not considered necessary at October 2, 2016 as the Company has determined the fair val ue of this guarantee was zero as there was no indication that the purchasers would not be able to pay the required lease payments. While t his franchise meets the definition of a VIE, the owners of the franchise operations are the primary beneficiaries of the entities, not the Company. Therefore, the franchise operations are not required to be consolidated in the Company’s consolidated financial statements.

LITIGATION

LITIGATION	9 Months Ended
	Oct. 02, 2016
Litigation [Abstract]
Litigation Disclosure [Text Block]	(15) L itigation In 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 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 t he matters could be material to its consolidated results of operations. Famous Dave’s of America, Inc.’s (“Famous Dave’s”) filed a complaint on July 14, 2015, against a group of former franchisees in California seeking injunctive relief and damages for: (1) Federal Trademark Infringement; (2) Federal Trademark Dilution; (3) Federal Unfair Competition; (4) Federal Trade Dress Dilution; (5) Trademark Infringement under California Business and Professions Code § 14200; (6) Trademark Dilution under California Business and Professions Code §14200; (7) Common Law Trademark Infringement; (8) Unfair Competition under California Business and Professions Code § 17200; (9) False Advertising; (10) Breach of Contract; (11) Breach of Implied Covenant of Good Faith and F air Dealing; and (12) Intentional Interference with Contract. The claims stem from the former franchisees ’ breaches of their franchise agreements, including the failure to pay franchise fees and their continued operation of five restaurants utilizing Famou s Dave’s intellectual property without authorization. After two defendants in the case, Kurt Schneiter and M Mart 1, filed a demurrer to the Complaint, Famous Dave’s filed an Amended Complaint on October 9, 2015, reasserting the same claims. The case is ca ptioned Famous Dave’s of America, Inc., v. SR El Centro FD, Inc., et al., Case No. BC589329, and is currently pending before the Honorable Elihu M. Berle in the Superior Court of Los Angeles. By court order, dated June 6, 2016, Famous Dave’s successfully obtained a preliminary injunction, enjoining the former franchisee defendants from using Famous Dave’s intellectual property, including its trademarks and restaurant system. The preliminary injunction is currently the subject of a pending interlocutory ap peal which Famous Dave’s intends to oppose vigorously. On July 28, 2015, these franchisees (the “Plaintiffs”) filed a complaint against Famous Dave’s in the South Judicial District of the Superior Court of the County of Los Angeles. On March 10, 2016, P laintiffs re-filed this Complaint as a First Amended Cross-Complaint [Famous Dave’s of America, Inc. v. SR El Centro, Inc., et al., Superior Court of the State of California, County of Los Angeles, Central Division, Case No. BC589329] alleging that Famous Dave’s breached the Franchise Agreements for these restaurants by failing to provide certain marketing support and access to customer contact data, vendors, internet reporting and support to Plaintiffs, and failing to provide operations and preferred pract ices training to Plaintiffs’ designated representative. Plaintiffs further allege that such conduct by Famous Dave’s is a breach of the covenant of good faith and fair dealing. Plaintiffs also allege that Famous Dave’s aided and abetted John and Allan Ga ntes in breach of their fiduciary duty to Plaintiffs. Plaintiffs are seeking compensatory damages in amount not less than $20 million, punitive damages, costs and attorneys’ fees.

SUPPLEMENTAL CASH FLOWS INFORMA

SUPPLEMENTAL CASH FLOWS INFORMATION	9 Months Ended
	Oct. 02, 2016
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information Disclosures [Text Block]	(16 ) Supplemental Cash Flow Information Nine Months Ended October 2, September 27, 2016 2015 (in thousands) Cash paid for interest $ 566 $ 570 Cash paid for income taxes, net of refunds $ 266 $ 390 Non-cash investing and financing activities: Increase in accrued property and equipment purchases $ 10 $ 38

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements	9 Months Ended
	Oct. 02, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Recently Issued Accounting Pronouncement	( 17 ) Recently Issued Accounting Pronouncement In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers. The FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” in March 2016, ASU 2016-10 “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing” in April 2016, ASU 2016-11, “Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting” in May 2016 and ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” in May 2016. These new standards provide for a single, principles-based model for revenue recognition that replaces the existing revenue reco gnition guidance. In July 2015, the FASB deferred the effective date of ASU 2014-09 until annual and interim periods beginning on or after December 15, 2017. It will replace most existing revenue recognition guidance under U.S. GAAP when it becomes effect ive. It permits the use of either a retrospective or cumulative effect transition method and early adoption is not permitted. The Company has not yet selected a transition method and is currently evaluating the impact these standards will have on its conso lidated financial statements and related disclosures. In January 2015, the FASB issued ASU No. 2015-01, “Income Statement—Extraordinary and Unusual Items.” This update eliminates from Generally Accepted Accounting Principles (“ GAAP ”) the concept of extrao rdinary items. ASU 2015-01 is effective for the first interim period within fiscal years beginning after December 15, 2015, with early adoption permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. A reporting e ntity may apply the amendments prospectively or retrospectively to all prior periods presented in the financial statements. The Company adopted this ASU in the first quarter of 2016, but it had no impact on the consolidated financial statements . In April 2 015, the FASB issued guidance on the financial statement presentation of debt issuance costs. This guidance requires debt issuance costs to be presented in the balance sheet as a reduction of the related debt liability rather than as an asset. The standard will become effective for annual periods beginning after December 15, 2015 and for interim periods beginning after December 15, 2016. Early adoption is permitted. The standard requires companies to apply the guidance retrospectively to all prior periods. The Company will adopt this at fiscal year-end of 2016 and does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes, which requires entiti es to present deferred tax assets and deferred tax liabilities as noncurrent in a classified balance sheet. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 20 18. Early adoption is permitted for all entities. The Company plans to adopt this ASU at fiscal year-end of 2016 and is currently evaluating the impact of this new standard on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes the existing guidance for lease accounting, Leases (Topic 840). ASU 2016-02 requires lessees to recognize a lease liability and a right-of-use asset for all leases. Lessor accounting remains largely unchanged. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted for all entities. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after the date of initial adop tion, with an option to elect to use certain transition relief. The Company is currently evaluating the impact of this new standard on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Top ic 718): Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 simplifies several aspects related to the accounting for share-based payment transactions, including the accounting for income taxes, forfeitures, statutory tax withholding requi rements and classification on the statement of cash flows. For public entities, ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The Company is currently evaluating the impact of th is new standard on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash flow, and other Topics. ASU 2016-15 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2017. The Company does not expect the adoption of th is guidance to have a material impact on its consolidated financial statements.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Oct. 02, 2016
Subsequent Events [Abstract]
Subsequent Events Disclosure [Text Block]	(18) Subsequent Events The Company evaluated for the occurrence of subsequent events through the issuance date of the Company’s financial statements. No other recognized or non-recognized subsequent events occurred that require recognition or disclosure in the consolidated financial statements except as noted below . As of October 11, 2016, Adam Wright ceased being the Chief Executive Officer of Famous Dave’s of America, Inc. (the “Company”) and, effective October 12, 2016, resigned from the Company’s Board of Directors (the “Board”). On October 11, 2016, the Company appointed Michael Lister to serve as Chief Executive Officer and Chief Operating Officer. In connection with his appointment as Chief Executive Officer and Chief Operating Officer, Mr. Lister h as entered into an employment agreement which has a four year term. Under the employment agreement, Mr. Lister is entitled to receive an annual base salary of $ 300,000 and is eligible for annual bonus compensation at the discretion of the Board in amounts expected to be 50 % of his base salary, to be pro-rated in the case of any partial years worked. Provided that he is employed through December 31, 2016, Mr. Lister will receive a guaranteed minimum bonus of $ 18,750 for 2016. The Compa ny also granted to Mr. Lister five-year, 70,000 share non-qualified stock option s under the Company’s 2015 Equity Incentive Plan that will vest in equal monthly installments over the employment term (the “Stock Option”).

NET INCOME PER COMMON SHARE (Ta

NET INCOME PER COMMON SHARE (Tables)	9 Months Ended
	Oct. 02, 2016
Earnings Per Share [Abstract]
Schedule of Earnings Per Share Reconciliation [Table Text Block]	Three Months Ended Nine Months Ended (in thousands, except per share data) October 2, September 27, October 2, September 27, 2016 2015 2016 2015 Net (loss) income per share – basic: Net (loss) income from continuing operations, net of taxes $ (2,378) $ 957 $ (2,116) $ 1,480 Net (loss) income from discontinued operations, net of taxes (81) (249) 627 79 Net (loss) income $ (2,459) $ 708 $ (1,489) $ 1,559 Weighted average shares outstanding 6,950 6,945 6,949 7,008 Net (loss) income from continuing operations per share – basic $ (0.34) $ 0.14 $ (0.30) $ 0.21 Net (loss) income from discontinued operations per share – basic $ (0.01) $ (0.04) $ 0.09 $ 0.01 Net (loss) income per share – basic $ (0.35) $ 0.10 $ (0.21) $ 0.22 Net (loss) income per share – diluted: Net (loss) income from continuing operations, net of taxes $ (2,378) $ 957 $ (2,116) $ 1,480 Net (loss) income from discontinued operations, net of taxes (81) (249) 627 79 Net (loss) income $ (2,459) $ 708 $ (1,489) $ 1,559 Weighted average shares outstanding 6,950 6,945 6,949 7,008 Dilutive impact of stock equivalents outstanding --- 13 --- 19 Adjusted weighted average shares outstanding 6,950 6,958 6,949 7,027 Net (loss) income from continuing operations per share – diluted $ (0.34) $ 0.14 $ (0.30) $ 0.21 Net (loss) income from discontinued operations per share – diluted $ (0.01) $ (0.04) $ 0.09 $ 0.01 Net (loss) income per share – diluted $ (0.35) $ 0.10 $ (0.21) $ 0.22

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	9 Months Ended
	Oct. 02, 2016
Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets [Table Text Block]	(in thousands) Remaining estimated useful life (years) Original Cost Accumulated Amortization Net Book Value Less Current Portion (1) Non- Current Portion Balance at October 2, 2016 Lease interest assets 23.3 $ 1,417 $ (313) $ 1,104 $ (48) $ 1,056 Liquor licenses 1,810 --- 1,810 --- 1,810 Total $ 3,227 $ (313) $ 2,914 $ (48) $ 2,866 (in thousands) Remaining estimated useful life (years) Original Cost Accumulated Amortization Net Book Value Less Current Portion (1) Non- Current Portion Balance at January 3, 2016 Lease interest assets 24.1 $ 1,417 $ (277) $ 1,140 $ (48) $ 1,092 Liquor licenses 1,810 --- 1,810 --- 1,810 Total $ 3,227 $ (277) $ 2,950 $ (48) $ 2,902 (1) The current portion is included in prepaid expenses and other current assets on the consolidated balance sheets.

OTHER CURRENT LIABILITIES (Tabl

OTHER CURRENT LIABILITIES (Tables)	9 Months Ended
	Oct. 02, 2016
Accrued Liabilities, Current [Abstract]
Other Current Liabilities [Table Text Block]	October 2, January 3, (in thousands) 2016 2016 Gift cards payable $ 1,319 $ 1,616 Other liabilities 1,066 869 Sales tax payable 437 674 Accrued real estate taxes 279 33 Deferred franchise fees 212 134 Accrued property and equipment purchases 28 40 Income tax payable 15 40 $ 3,356 $ 3,406

OTHER LIABILITES (Tables)

OTHER LIABILITES (Tables)	9 Months Ended
	Oct. 02, 2016
Other Liabilities [Abstract]
Schedule Of Other Liabilities [Table Text Block]	October 2, January 3, (in thousands) 2016 2016 Deferred rent $ 7,656 $ 7,191 Other liabilities 521 455 Income taxes payable 174 12 Long term lease reserve 144 258 Long term deferred compensation 115 258 Asset retirement obligations 111 111 $ 8,721 $ 8,285

PERFORMANCE SHARES, STOCK OPT28

PERFORMANCE SHARES, STOCK OPTIONS, OTHER FORMS OF COMPENSATION, AND COMMON SHARE REPURCHASES (Tables)	9 Months Ended
	Oct. 02, 2016
Performance Shares, Stock Options, Other Forms Of Compensation And Common Share Repurchaces [Abstract]
Schedule of Stock-based Compensation Expense [Table Text Block]	Three Months Ended Nine Months Ended October 2, September 27, October 2, September 27, (in thousands) 2016 2015 2016 2015 Performance Stock Units $ --- $ (24) $ --- $ 12 Stock Options (1)(2) 157 (15) 209 241 Restricted Stock and Restricted Stock Units 15 15 45 45 $ 172 $ (24) $ 254 $ 298 (1) The three and nine months ended September 27, 2015 included the recapture of previously recorded stock-based compensation of approximately $105,000 due to employee departures. (2) The nine months ended October 2, 2016 included the recapture of previously recorded stock-based compensation of approximately $126,000 due to the departure of our previous CFO.
Schedule Of Director Compensation [Table Text Block]	Three Months Ended Nine Months Ended October 2, September 27, October 2, September 27, 2016 2015 2016 2015 (in thousands) Stock-based compensation $ 15 $ 15 $ 45 $ 45 Stock option compensation 25 (79) 69 52 Cash compensation 30 35 65 188 ` Total board of directors' compensation $ 70 $ (29) $ 179 $ 285
Schedule Of Other Share Based Compensation Activity [Table Text Block]	Stock Options Below is detail related to recent stock option activity associated with certain key employees: Option Details Named Executive Title* Date Event Number Term Vesting period (in years) Edward H. Rensi CEO 1/15/2015 Grant (1) 75,000 5 Annually over three years Edward H. Rensi Director 7/11/2015 Forfeiture (1) (20,000) Brett D. Heffes Director 7/13/2015 Forfeiture (1) (20,000) David J. Mastrocola Director 7/15/2015 Forfeiture (1) (20,000) Abelardo Ruiz COO 8/31/2015 Grant 71,324 5 Monthly over four years Adam J. Wright CEO 1/1/2016 Grant 50,000 10 Monthly over two years Richard A. Pawlowski CFO 1/15/2016 Grant 6,000 1.21 Three variable installments Alfredo Martel CMO 2/12/2016 Grant 35,000 5 Monthly over four years Richard A. Pawlowski CFO 4/11/2016 Forfeiture (1) (78,000) Dexter Newman CFO 4/11/2016 Grant 70,000 10 Monthly over four years Ananda Gala Director 5/3/2016 Grant 20,000 10 Monthly over five years Bryan Wolff Director 5/3/2016 Grant 20,000 10 Monthly over five years Edward H. Rensi CEO 6/18/2016 Forfeiture (1) (75,000) Edward H. Rensi Director 7/11/2016 Expiration (1) (25,000) * Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Operating Officer (COO), Chief Marketing Officer (CMO) See footnote 18, Subsequent Events, for additional information (1) These stock option grants were part of the 2005 Plan rather than the 2015 Plan.
Schedule Of Stock Options Activity [Table Text Block]	(number of options in thousands) Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life in Years Options outstanding at January 3, 2016 507 $ 16.66 5.3 Granted 53 17.66 Forfeited (53) 32.02 Options outstanding at April 3, 2016 507 $ 13.95 5.2 Granted 206 5.60 Forfeited (3) 28.53 Expired (26) 32.05 Options outstanding at July 3, 2016 684 $ 10.65 5.9 Granted 46 5.82 Exercised (6) 5.90 Forfeited (78) 12.17 Canceled or expired (10) 31.05 Outstanding at October 2, 2016 636 $ 10.00 6.3 Options exercisable at October 2, 2016 242 $ 11.40 4.5 Weighted-average values and assumptions for valuing grants made: Nine Months Ended October 2, 2016 Fiscal 2015 Weighted average fair value of options granted $ 2.16 $ 4.90 Expected life (in years) 5.7 3.3 Expected stock volatility 41.3 % 51.2 % Risk-free interest rate 1.3 % 1.9 %

RETIREMENT SAVINGS PLANS (Table

RETIREMENT SAVINGS PLANS (Tables)	9 Months Ended
	Oct. 02, 2016
Retirement Savings Plans [Abstract]
Defined Contribution Plan Disclosures [Table Text Block]	Three Months Ended Nine Months Ended October 2, September 27, October 2, September 27, 2016 2015 2016 2015 Employer match % 25% 25% 25% 25% % of earnings matched 4% 4% 4% 4% Employee contributions $ 63,000 $ 90,000 $ 250,000 $ 297,000 Employer match $ 26,000 $ 13,000 $ 40,000 $ 48,000
Deferred Compensation Arrangement With Individual Disclosure Postretirement Benefits [Table Text Block]	Three Months Ended Nine Months Ended October 2, September 27, October 2, September 27, 2016 2015 2016 2015 Employer match % 25% 25% 25% 25% % of earnings matched 4% 4% 4% 4% Declared interest rate 6% 6% 6% 6% Employee contributions $ 10,000 $ 8,000 $ 23,000 $ 31,000 Employer match and interest $ 4,000 $ 8,000 $ 14,000 $ 25,000 Distributions $ 130,000 $ 92,000 $ 238,000 $ 107,000

ASSET IMPAIRMENT AND ESTIMATE30

ASSET IMPAIRMENT AND ESTIMATED LEASE TERMINATION AND OTHER CLOSING COSTS (Tables)	9 Months Ended
	Oct. 02, 2016
Asset Impairment And Estimated Lease Terminations And Other Closing Costs [Abstract]
Asset impairment and estimated lease termination and other closing costs [Table Text Block]	Three Months Ended Nine Months Ended (dollars in thousands) October 2, 2016 September 27, 2015 October 2, 2016 September 27, 2015 Impairment losses Restaurant optimization $ 3,420 $ - $ 4,313 $ - Software (1) - - 171 - Smithtown, NY (2) - - - 935 Total $ 3,420 $ - $ 4,484 $ 935 Restaurant closure expenses Smithtown, NY (3) 200 - 200 - N. Riverside, IL (4) - 368 - 368 N. Riverside, IL (5) - 122 - 122 Other (6) - 109 - 99 Richmond, VA area - 16 - 144 Eden Prairie, MN - 35 - (42) Total restaurant closure expenses $ 200 $ 650 $ 200 $ 691 Provision for impairment and restaurant closings $ 3,620 $ 650 $ 4,684 $ 1,626 (1) Asset impairment calculated at July 3, 2016 related to a software implementation project that was discontinued. (2) Asset impairment calculated at June 28, 2015 based upon expected sale of Smithtown restaurant. (3) Lease termination reserve associated with a letter of credit provided to a landlord for a previously closed restaurant. (4) Lease termination costs associated with the cancellation of a potential new restaurant location. (5) Write off of development costs associated with the cancellation of a potential new restaurant location. (6) Includes $191,000 in costs written-off associated with closing the Lombard, Illinois field office partially offset by an $86,000 recapture of deferred rent credits.

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Oct. 02, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]	Level 1 Level 2 Level 3 Total Balance at January 3, 2016 Assets Assets Held for Sale $ - $ 1,431 $ 780 $ 2,211 Property and Equipment $ - $ - $ 507 $ 507 Balance at October 2, 2016 Assets Assets Held for Sale $ - $ 5 $ - $ 5 Property and Equipment $ - $ - $ 1,165 $ 1,165 1

DISCONTINUED OPERATIONS (Tables

DISCONTINUED OPERATIONS (Tables)	9 Months Ended
	Oct. 02, 2016
Discontinued Operations And Disposal Groups [Abstract]
Discontinued Operations Balance Sheet Disclosures [Table Text Block]	(in thousands) January 3, 2016 Accounts receivable, net $ 65 Inventories 344 Prepaid expenses and other current assets 30 Total current assets 439 Property, equipment and leasehold improvements, net 991 Total assets $ 1,430 Accounts payable $ 10 Accrued compensation and benefits 96 Other current liabilities 389 Total current liabilities 495 Other liabilities 1,252 Total liabilities $ 1,747
Discontinued Operations Income Statement [Table Text Block]	Three Months Ended Nine Months Ended (in thousands) October 2, 2016 September 27, 2015 October 2, 2016 September 27, 2015 Revenue $ --- $ 3,919 $ 2,365 $ 12,975 (Loss) income from operations $ (23) $ (304) $ 1,019 $ 85 (Loss) income from discontinued operations, net of income taxes $ (81) $ (249) $ 627 $ 79

SUPPLEMENTAL CASH FLOWS INFOR33

SUPPLEMENTAL CASH FLOWS INFORMATION (Tables)	9 Months Ended
	Oct. 02, 2016
Supplemental Cash Flow Information [Abstract]
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]	Nine Months Ended October 2, September 27, 2016 2015 (in thousands) Cash paid for interest $ 566 $ 570 Cash paid for income taxes, net of refunds $ 266 $ 390 Non-cash investing and financing activities: Increase in accrued property and equipment purchases $ 10 $ 38

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2016USD ($)	Sep. 27, 2015USD ($)	Oct. 02, 2016USD ($)	Sep. 27, 2015USD ($)
Franchisor Disclosure Line Items
Number Of Restaurants	176		176
Number of States in which Entity Operates	32		32
Number of Commonwealths	1		1
Number of Canadian Provinces	1		1
Pre-opening expenses	$ 0	$ 0	$ 0	$ 0
Franchised Units [Member]
Franchisor Disclosure Line Items
Number Of Restaurants	139		139
Committed Restaurants	62		62
Entity Operated Units [Member]
Franchisor Disclosure Line Items
Number Of Restaurants	37		37

NET INCOME PER COMMON SHARE (De

NET INCOME PER COMMON SHARE (Details) - USD ($)	3 Months Ended		9 Months Ended
	Oct. 02, 2016	Sep. 27, 2015	Oct. 02, 2016	Sep. 27, 2015
Earnings Per Share [Abstract]
Weighted average common shares outstanding basic	6,950,000	6,945,000	6,949,000	7,008,000
Basic net income per common share	$ (0.35)	$ 0.1	$ (0.21)	$ 0.22
Dilutive impact of common stock equivalents outstanding	0	13,000	0	19,000
Weighted average common shares outstanding diluted	6,950,000	6,958,000	6,949,000	7,027,000
Diluted net income per common share	$ (0.35)	$ 0.1	$ (0.21)	$ 0.22
Net income from continuing operations	$ (2,378,000)	$ 957,000	$ (2,116,000)	$ 1,480,000
Net income (loss) from discontinued operations, net of tax	(81,000)	(249,000)	627,000	79,000
Net income	$ (2,459,000)	$ 708,000	$ (1,489,000)	$ 1,559,000
Income (loss) from continuing operations per basic share	$ (0.34)	$ 0.14	$ (0.3)	$ 0.21
Income loss from discontinued operations per basic share	(0.01)	(0.04)	0.09	0.01
Income loss from continuing operations per diluted share	(0.34)	0.14	(0.3)	0.21
Income loss from discontinued operations per diluted share	$ (0.01)	$ (0.04)	$ 0.09	$ 0.01
Anti-dilutive Securities Excluded From Computation Of Earnings Per Share Amount			543,000	221,000

RESTRICTED CASH AND MARKETING36

RESTRICTED CASH AND MARKETING FUND (Details) - USD ($)	9 Months Ended
	Oct. 02, 2016	Jan. 03, 2016
Restricted Cash [Abstract]
Restricted cash	$ 2,085,000	$ 1,087,000
Franchisee Marketing Fund Contribution Rate	1.00%
Marketing Fund restricted cash	$ 1,100,000	$ 1,100,000
Cash collateral for undrawn letters of credit	$ 1,000,000

ALLOWANCE FOR DOUBTFUL ACCOUN37

ALLOWANCE FOR DOUBTFUL ACCOUNTS(Details) - USD ($)	Oct. 02, 2016	Jan. 03, 2016
Accounts Receivable Net [Abstract]
Allowance for Doubtful Accounts Receivable, Current	$ 695,000	$ 246,000

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($)	9 Months Ended	12 Months Ended
	Oct. 02, 2016	Jan. 03, 2016
Indefinite Lived Intangible Assets [Abstract]
Indefinite Lived Intangible Assets	$ 1,810,000	$ 1,810,000
Finite-Lived Intangible Assets [Abstract]
Weighted average amortization period (in years)	23 years 7 months 10 days	24 years 1 month 7 days
Lease interest asset, gross	$ 1,417,000	$ 1,417,000
Net book value of lease interest assets	1,104,000	1,140,000
Current portion of lease interest assets	48,000	48,000
Non current portion of lease interest assets	1,056,000	1,092,000
Accumulated Amortization Lease Assets	313,000	277,000
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract]
Future Amortization Expense Next Five Years for Finite Lived Asset	47,500
Intangible Assets Net Excluding Goodwill [Abstract]
Intangible Assets Net	2,914,000	2,950,000
Intangible Original Cost	3,227,000	3,227,000
Intangible assets, noncurrent	$ 2,866,000	$ 2,902,000

CREDIT FACILITY AND DEBT COVE39

CREDIT FACILITY AND DEBT COVENANTS, LONG-TERM DEBT, AND FINANCING LEASE OBLIGATIONS (Details) - USD ($)	3 Months Ended	9 Months Ended
	Oct. 02, 2016	Oct. 02, 2016	Jan. 03, 2016	Sep. 27, 2015
Debt Instrument [Line Items]
Letters of Credit Outstanding, Amount	$ 1,000,000	$ 1,000,000
Line of Credit, Current	1,855,000	1,855,000	$ 0
Long-term Debt, Current Maturities	8,879,000	8,879,000
Long-term debt, less current portion	0	0	10,200,000
Minimum monthly debt payment		200,000
Financing lease obligations, less current portion	2,422,000	2,422,000	$ 2,757,000
Future Payments Schedule [Abstract]
Long-term Debt, Total	$ 8,400,000	$ 8,400,000
Adjusted Leverage Ratio	5.57	5.57
EBITDA	$ 1,000,000
Letter Of Credit Deposit Required	105.00%	105.00%
Maximum [Member]
Future Payments Schedule [Abstract]
Adjusted Leverage Ratio	5.5	5.5
Minimum [Member]
Future Payments Schedule [Abstract]
EBITDA	$ 1,500,000
Credit Facility [Member]
Debt Instrument [Line Items]
Long-term Debt, Weighted Average Interest Rate	3.67%	3.67%		2.64%
Long-term Debt, Current Maturities	$ 1,855,000	$ 1,855,000
Long Term Debt [Member]
Debt Instrument [Line Items]
Long-term Debt, Weighted Average Interest Rate	3.70%	3.70%
Long-term Debt, Current Maturities	$ 8,400,000	$ 8,400,000

OTHER CURRENT LIABILITIES (Deta

OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Oct. 02, 2016	Jan. 03, 2016
Accrued Liabilities, Current [Abstract]
Gift cards payable	$ 1,319	$ 1,616
Other liabilities	1,066	869
Acccrued real estate taxes	279	33
Sales tax payable	437	674
Income taxes payable	15	40
Deferred franchise fees	212	134
Accrued property and equipment purchases	28	40
Total other current liabilities	$ 3,356	$ 3,406

OTHER LIABILITIES (Details)

OTHER LIABILITIES (Details) - USD ($) $ in Thousands	Oct. 02, 2016	Jan. 03, 2016
Other Liabilities [Abstract]
Deferred rent	$ 7,656	$ 7,191
Other liabilities	521	455
Lease reserve longterm	144	258
Long term deferred compensation	115	258
Asset retirement obligations	111	111
Income Taxes Payable, Noncurrent	174	12
Total other liabilities	$ 8,721	$ 8,285

PERFORMANCE SHARES, STOCK OPT42

PERFORMANCE SHARES, STOCK OPTIONS, OTHER FORMS OF COMPENSATION, AND COMMON SHARE REPURCHASES (Details) - USD ($)	3 Months Ended				9 Months Ended		12 Months Ended
	Oct. 02, 2016	Jul. 03, 2016	Apr. 03, 2016	Sep. 27, 2015	Oct. 02, 2016	Sep. 27, 2015	Jan. 03, 2016
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Number of Shares Available for Grant	103,800				103,800
Allocated Share-based Compensation Expense	$ 172,000			$ (24,000)	$ 254,000	$ 298,000
Board of Directors' Compensation [Abstract]
Board of Director Cash Compensation	30,000			35,000	65,000	188,000
Total Boardof Directors Compensation	$ 70,000			$ (29,000)	$ 179,000	285,000
Options Outstanding Rollforward [Abstract]
Outstanding options (in shares)	636,000	684,000	507,000		636,000		507,000
Outstanding Weighted Average Price	$ 10	$ 10.65	$ 13.945		$ 10		$ 16.66
Options granted	46,000	206,000	53,000
Granted Weighted Average Exercise Price	$ 5.82	$ 5.6	$ 17.658
Options Forfeited	78,000	3,000	53,000
Average Price of Shares Forfeited	$ 12.17	$ 28.53	$ 32.024		$ 12.17		$ 32.024
Exercise of stock options (in shares)	6,000
Exercised Weighted Average Exercise Price	$ 5.9			$ 0
Options canceled or expired (in shares)	10,000	26,000
Canceled or Expired Weighted Average Exercise Price	$ 31.05	$ 32.05
Options Outstanding Weighted Average Remaining Contractual Term	6 years 3 months 18 days	5 years 10 months 24 days	5 years 2 months 5 days				5 years 3 months 18 days
Options Exercisable	242,000				242,000
Exercisable Weighted Average Exercise Price	$ 11.4				$ 11.4
Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value					$ 2.16		$ 4.9
Fair Value Assumptions Expected Term					5 years 8 months 12 days		3 years 3 months 18 days
Expected stock volatility					41.30%		51.20%
Risk-free interest rate					1.30%		1.90%
Performance Shares and Performance Stock Units [Member]
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense				$ (24,000)		12,000
Stock Option [Member]
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 157,000			(15,000)	$ 209,000	241,000
Value Sharebased Compensation Forfeited					(126,000)
Restricted Stock And Restricted Stock Units [Member]
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	15,000			15,000	45,000	$ 45,000
Director [Member]
Options Outstanding Rollforward [Abstract]
Options Forfeited						20,000
Director1 [Member]
Options Outstanding Rollforward [Abstract]
Options Forfeited						20,000
Director Program [Member] | Stock Option [Member]
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense				(79,000)	69,000	$ 52,000
Director Program [Member] | Restricted Stock And Restricted Stock Units [Member]
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense				$ 15,000	$ 45,000	$ 45,000
Two Thousand Five Stock Option Plan [Member] | Stock Option [Member]
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	25,000
Two Thousand Five Stock Option Plan [Member] | Restricted Stock And Restricted Stock Units [Member]
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 15,000
Two Thousand Five Stock Option Plan [Member] | CEO Employment [Member]
Options Outstanding Rollforward [Abstract]
Options granted						75,000
Options Forfeited					75,000	20,000
Options canceled or expired (in shares)					25,000
Two Thousand Five Stock Option Plan [Member] | CFO Employment [Member]
Options Outstanding Rollforward [Abstract]
Options Forfeited					78,000
Two Thousand Five Stock Option Plan [Member] | Director2 [Member]
Options Outstanding Rollforward [Abstract]
Options granted					20,000	20,000
Two Thousand Five Stock Option Plan [Member] | Director3 [Member]
Options Outstanding Rollforward [Abstract]
Options granted					20,000	20,000
Two Thousand Fifteen Stock Option Plan [Member] | CEO1 Employment [Member]
Options Outstanding Rollforward [Abstract]
Options granted					50,000
Two Thousand Fifteen Stock Option Plan [Member] | CFO Employment [Member]
Options Outstanding Rollforward [Abstract]
Options granted					6,000
Two Thousand Fifteen Stock Option Plan [Member] | CFO1 Employment [Member]
Options Outstanding Rollforward [Abstract]
Options granted					70,000
Two Thousand Fifteen Stock Option Plan [Member] | COO Employment [Member]
Options Outstanding Rollforward [Abstract]
Options granted						71,324
Two Thousand Fifteen Stock Option Plan [Member] | CMO Employment [Member]
Options Outstanding Rollforward [Abstract]
Options granted					35,000

RETIREMENT SAVINGS PLANS (Detai

RETIREMENT SAVINGS PLANS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Oct. 02, 2016	Sep. 27, 2015	Oct. 02, 2016	Sep. 27, 2015	Jan. 03, 2016
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract]
Defined Contribution Plan, Employer Matching Contribution, Percent	25.00%	25.00%	25.00%	25.00%
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Percent	4.00%	4.00%	4.00%	4.00%
Defined Contribution Plan, Employee Contribution	$ 63,000	$ 90,000	$ 250,000	$ 297,000
Defined Contribution Plan, Employer Match	26,000	13,000	40,000	48,000
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 0	$ 0	$ 0	$ 0
Deferred Compensation Arrangements [Abstract]
Deferred Compensation Arrangement with Individual, Defined Contribution Plan, Employer Matching Contribution, Percent	25.00%	25.00%	25.00%	25.00%
Deferred Compensation Arrangements, Maximum Annual Contribution Per Employee, Percent	4.00%	4.00%	4.00%	4.00%
Deferred Compensation Arrangements, Interest Paid, Percent	6.00%	6.00%	6.00%	6.00%
Deferred Compensation Arrangement with Individual, Employee Contribution	$ 10,000	$ 8,000	$ 23,000	$ 31,000
Deferred Compensation Arrangement with Individual, Employer Contribution	4,000	8,000	14,000	25,000
Deferred Compensation Arrangement with Individual, Distributions Paid	238,000	$ 107,000	238,000	$ 107,000
Deferred Compensation Liability Current And Noncurrent	$ 163,000		$ 163,000		$ 547,000

ASSET IMPAIRMENT AND ESTIMATE44

ASSET IMPAIRMENT AND ESTIMATED LEASE TERMINATION AND OTHER CLOSING COSTS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Oct. 02, 2016	Sep. 27, 2015	Oct. 02, 2016	Sep. 27, 2015
Impaired Long-Lived Assets Held and Used [Line Items]
Asset Impairment Charges	$ 3,420,000		$ 4,484,000	$ 935,000
Costs For Closed Restaurants	200,000	$ 650,000	200,000	691,000
Asset impairment and estimated lease termination and other closing costs	3,620,000	650,000	4,684,000	1,626,000
Restaurant Optimization [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Asset Impairment Charges	3,420,000		4,313,000
Software Project [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Asset Impairment Charges			171,000
Smithtown, NY [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Asset Impairment Charges				935,000
Costs For Closed Restaurants	$ 200,000		$ 200,000
Asset impairment and estimated lease termination and other closing costs		0
North Riverside, IL [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Lease Reserve		368,000		368,000
Other Closing Costs		122,000		122,000
Various Restaurants [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Costs For Closed Restaurants		109,000		99,000
Asset impairment and estimated lease termination and other closing costs		0
Chicago, IL field office [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Other Closing Costs				191,000
Recaptured Accrued Expenses		(86,000)		(86,000)
Richmond, Virginia area restaurants [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Costs For Closed Restaurants		16,000		144,000
Eden Prairie, MN [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Costs For Closed Restaurants		$ 35,000		$ (42,000)

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Oct. 02, 2016	Jan. 03, 2016
Assets Fair Value Disclosure [Abstract]
Assets Held For Sale Long Lived Fair Value Disclosure	$ 5	$ 2,211
Property and Equipment, Net Fair Value Disclosure	1,165	507
Fair Value, Inputs, Level 1 [Member]
Assets Fair Value Disclosure [Abstract]
Assets Held For Sale Long Lived Fair Value Disclosure	0	0
Property and Equipment, Net Fair Value Disclosure	0	0
FairValueInputsLevel2Member
Assets Fair Value Disclosure [Abstract]
Assets Held For Sale Long Lived Fair Value Disclosure	5	1,431
Property and Equipment, Net Fair Value Disclosure	0	0
Fair Value Inputs Level 3 [Member]
Assets Fair Value Disclosure [Abstract]
Assets Held For Sale Long Lived Fair Value Disclosure	0	780
Property and Equipment, Net Fair Value Disclosure	$ 1,165	$ 507

DISCONTINUED OPERATIONS (DETAIL

DISCONTINUED OPERATIONS (DETAILS) - USD ($)	3 Months Ended		9 Months Ended
	Oct. 02, 2016	Sep. 27, 2015	Oct. 02, 2016	Sep. 27, 2015	Jan. 03, 2016
Impaired Long-Lived Assets Held for Sale [LineItems]
Accounts receivable, net					$ 65,000
Inventories					344,000
Prepaid expenses and other current assets					30,000
Total current assets					439,000
Property, equipment and leasehold improvements, net					991,000
Total assets					1,430,000
Accounts payable					10,000
Accrued compensation and benefits					96,000
Other current liabilities					389,000
Total current liabilities					495,000
Other liabilities					1,252,000
Total liabilities					$ 1,747,000
Revenues	$ 0	$ 3,919,000	$ 2,365,000	$ 12,975,000
Income from operations	(23,000)	(304,000)	1,019,000	85,000
Net income (loss) from discontinued operations, net of tax	$ (81,000)	$ (249,000)	627,000	79,000
Interest expense			32,000	21,000
Income tax expense			$ 378,000	$ 111,000

VARIABLE INTEREST ENTITY (Detai

VARIABLE INTEREST ENTITY (Details)	Oct. 02, 2016USD ($)
Kentucky Restaurants [Member]
Variable Interest Entity [Line Items]
GuaranteeObligationsMaximumExposure	$ 414,000
Chicago Restaurants [Member]
Variable Interest Entity [Line Items]
GuaranteeObligationsMaximumExposure	$ 2,000,000

SUPPLEMENTAL CASH FLOWS INFOR48

SUPPLEMENTAL CASH FLOWS INFORMATION (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 02, 2016	Sep. 27, 2015
Supplemental Cash Flow Information [Abstract]
Cash paid for interest	$ 566	$ 570
Income Taxes Paid, Net	266	390
Accrued property and equipment purchases	$ 10	$ 38

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details)	3 Months Ended
	Oct. 02, 2016USD ($)shares
Subsequent event line items
Officers Compensation	$ 300,000
Target bonus percentage	50.00%
Guaranteed minimum bonus	$ 18,750
Grants in period | shares	70,000