BBQ (BBQ) 10-K 27 Mar 20 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 29, 2019	Mar. 27, 2020	Jun. 30, 2019
Document and entity information [Abstract]
Document Type	10-K
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 29, 2019
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 290
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 Well Known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 17.3
Entity Common Stock Shares Outstanding		9,272,105
Current Fiscal Year End Date	--12-29
Document Fiscal Year Focus	2019
Document Period Focus	FY
Entity Central Index Key	0001021270
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 29, 2019	Dec. 30, 2018
Current assets:
Cash and cash equivalents	$ 5,325	$ 11,598
Restricted cash	761	842
Accounts receivable, net of allowance for doubtful accounts of $132,000 and $192,000, respectively	4,379	4,300
Inventories.	1,346	722
Prepaid income taxes and income taxes receivable	264	377
Prepaid expenses and other current assets	1,356	1,363
Assets held for sale	2,842
Total current assets	16,273	19,202
Property, equipment and leasehold improvements, net	19,756	10,385
Other assets:
Operating lease right-of-use assets	25,962
Goodwill	640	61
Intangible assets, net	2,213	1,428
Deferred tax asset, net	6,646	5,747
Other assets	1,591	1,533
Total assets	73,081	38,356
Current liabilities:
Accounts payable	3,967	3,765
Current portion of lease liabilities	4,230
Current portion of long-term debt and financing lease obligations	616	1,369
Accrued compensation and benefits	2,694	808
Other current liabilities	4,975	2,970
Total current liabilities	16,482	8,912
Long-term liabilities:
Lease liabilities, less current portion	26,957
Long-term debt, less current portion	6,258	2,411
Other liabilities	1,610	4,492
Total liabilities	51,307	15,815
Shareholders' equity:
Common stock, $.01 par value, 100,000 shares authorized, 9,272 and 9,085 shares issued and outstanding at December 29, 2019 and December 30, 2018, respectively	93	91
Additional paid-in capital	7,856	7,375
Retained earnings	14,423	15,075
Total shareholders' equity	22,372	22,541
Non-controlling interest	(598)
Total equity	21,774	22,541
Total liabilities and shareholders' equity	$ 73,081	$ 38,356

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) shares in Thousands, $ in Thousands	Dec. 29, 2019	Dec. 30, 2018
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Accounts receivable, Allowance for doubtful accounts	$ 132	$ 192
Common stock, Par value	$ 0.01	$ 0.01
Common stock, Shares authorized	100,000	100,000
Common stock, Shares issued	9,272	9,085
Common stock, Shares outstanding	9,272	9,085

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 29, 2019	Dec. 30, 2018
Revenue:
Revenue	$ 82,269	$ 54,888
Costs and expenses:
Food and beverage costs	21,541	11,973
Labor and benefits costs	24,565	13,663
Operating expenses	21,269	11,932
Depreciation and amortization expenses	2,231	1,264
General and administrative expenses	10,992	7,988
National advertising fund expenses	1,616	1,932
Asset impairment, estimated lease termination charges and other closing costs, net	1,296	145
Pre-opening expenses	460	0
(Gain) loss on disposal of property and bargain purchases, net	(74)	29
Total costs and expenses	83,896	48,926
(Loss) income from operations	(1,627)	5,962
Other income (expense):
Interest expense	(494)	(493)
Interest income	215	122
Total other expense	(279)	(371)
(Loss) income before income taxes	(1,906)	5,591
Income tax benefit (expense)	659	(729)
Net (loss) income	(1,247)	4,862
Less: Net loss attributable to non-controlling interest	598
Net (loss) income attributable to shareholders	$ (649)	$ 4,862
Basic net (loss) income per share attributable to shareholders	$ (0.07)	$ 0.57
Diluted net (loss) income per share attributable to shareholders	$ (0.07)	$ 0.56
Weighted average shares outstanding - basic	9,099	8,599
Weighted average shares outstanding - diluted	9,099	8,624
Restaurant sales, net
Revenue:
Revenue	$ 67,278	$ 38,051
Franchise royalty and fee revenue
Revenue:
Revenue	12,126	13,871
Franchisee national advertising fund contributions
Revenue:
Revenue	1,616	1,932
Licensing and other revenue
Revenue:
Revenue	$ 1,249	$ 1,034

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Total Shareholders' Equity	Non-controlling Interest	Total
Balance (in shares) at Dec. 31, 2017	7,376
Balance at Dec. 31, 2017	$ 70	$ 1,460	$ 11,951	$ 13,481		$ 13,481
Common stock issued pursuant to rights offering (in shares)	1,582
Common stock issued pursuant to rights offering	$ 18	5,119		5,137		$ 5,137
Exercise of stock options (in shares)	102					102
Exercise of stock options	$ 2	432		434		$ 434
Stock-based compensation (in shares)	25
Stock-based compensation	$ 1	364		365		365
Net income (loss)			4,862	4,862		4,862
Balance (in shares) at Dec. 30, 2018	9,085
Balance at Dec. 30, 2018	$ 91	7,375	15,075	22,541		22,541
Cumulative effect of change in accounting principle			(1,738)	(1,738)		$ (1,738)
Exercise of stock options (in shares)	5					5
Exercise of stock options		20		20		$ 20
Other			(3)	(3)		(3)
Stock-based compensation (in shares)	182
Stock-based compensation	$ 2	461		463		463
Net income (loss)			(649)	(649)	$ (598)	(1,247)
Balance (in shares) at Dec. 29, 2019	9,272
Balance at Dec. 29, 2019	$ 93	$ 7,856	$ 14,423	$ 22,372	$ (598)	$ 21,774

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2019	Dec. 30, 2018
Cash flows from operating activities:
Net (loss) income	$ (1,247)	$ 4,862
Adjustments to reconcile net income to cash flows provided by operations:
Depreciation and amortization	2,231	1,264
Stock-based compensation	463	278
Net (gain) loss on disposal of property and bargain purchases	(74)	29
Asset impairment, estimated lease termination charges and other closing costs (gain), net	1,273	(46)
Bad debts recovery	239	(30)
Deferred income taxes	(688)	639
Other non-cash items	291	(515)
Accounts receivable, net	(1,582)	(225)
Other assets	(449)	(389)
Accounts payable	258	(600)
Accrued and other liabilities	1,867	(1,390)
Cash flows provided by operating activities	2,582	3,877
Cash flows from investing activities:
Proceeds from the sale of assets	33	1,187
Purchases of property, equipment and leasehold improvements	(6,755)	(953)
Payments for acquired restaurants	(6,188)	(229)
Advances on notes receivable	(150)	(750)
Purchases of held to maturity securities		(6,995)
Payments received on note receivable	31
Maturity of held to maturity securities		6,995
Cash flows used for investing activities	(13,029)	(745)
Cash flows from financing activities:
Proceeds from long-term debt	4,300
Payments for debt issuance costs	(54)
Payments on long-term debt and financing lease obligations	(175)	(6,758)
Proceeds from sale of common stock, net of offering costs		5,120
Proceeds from exercise of stock options	22	520
Cash provided by (used for) financing activities	4,093	(1,118)
(Decrease) increase in cash, cash equivalents and restricted cash	(6,354)	2,014
Cash, cash equivalents and restricted cash, beginning of period	12,440	10,426
Cash, cash equivalents and restricted cash, end of period	6,086	12,440
Supplemental Disclosures
Cash paid for interest, net	244	292
Cash paid for income taxes, net		(148)
Non-cash investing and financing activities:
(Decrease) Increase in accrued property and equipment purchases	(39)	$ 22
Gift card liability assumed pursuant to acquisitions	705
Inventory acquired pursuant to acquisitions	103
Accounts receivable settled through acquisitions	$ 993

NATURE OF BUSINESS AND SIGNIFIC

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 29, 2019
Nature of Business and Significant Accounting Policies
Nature Of Business And Significant Accounting Policies	(1) NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES Nature of business On September 17, 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-K, “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, operates and franchises restaurants under the name “Famous Dave’s”, “Clark Crew BBQ”, “Granite City Food & Brewery” and “Real Urban Barbecue.” As of December 29, 2019, there were 128 Famous Dave’s restaurants operating in 32 states, Canada, and the United Arab Emirates, including 32 Company-owned restaurants and 96 franchise-operated restaurants. The first Clark Crew BBQ restaurant opened in December 2019 in Oklahoma City, Oklahoma. On March 16, 2020, we purchased one Real Urban Barbecue restaurant located in Vernon Hills, Illinois. On March 9, 2020, we purchased 18 Granite City Food & Brewery restaurants in connection with a Chapter 11 bankruptcy filing. Seasonality Our restaurants typically generate higher revenue in the second and third quarters of our fiscal year as a result of seasonal traffic increases and high catering sales experienced during the summer months, and lower revenue in the first and fourth quarters of our fiscal year, due to possible adverse weather which can disrupt customer and team member transportation to our restaurants. Principles of consolidation The accompanying consolidated financial statements include the accounts of our company and its wholly-owned and majority-owned subsidiaries. All inter-company transactions and balances have been eliminated in consolidation. Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates. Financial instruments Due to their short-term nature, the carrying value of our current financial assets and liabilities approximates their fair value. The fair value of long-term debt approximates the carrying amount based upon our expected borrowing rate for debt with similar remaining maturities and comparable risk. Segment reporting We have Company-owned and franchise-operated restaurants in the United States, Canada and the United Arab Emirates, and operate within the single industry segment of foodservice. We make operating decisions on behalf of the BBQ Holdings brand which includes both Company-owned and franchise-operated restaurants. In addition, all operating expenses are reported in total and are not allocated to franchising operations for either external or internal reporting. As a result, we have concluded that we have a single reporting segment. Fiscal year Our fiscal year ends on the Sunday nearest to December 31 of each year. Our fiscal year is generally 52 weeks; however, it periodically consists of 53 weeks. The fiscal years ended December 29, 2019 (fiscal 2019) and December 30, 2018 (fiscal 2018) each consisted of 52 weeks. Fiscal 2020, which ends on January 3, 2021, will consist of 53 weeks. 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. Our uninsured cash and restricted cash balances were $4.6 million as of the end of each fiscal year 2019 and 2018. There have been no losses of uninsured amounts. ​ Restricted cash and marketing fund We have a system-wide Marketing Development Fund, to which most Company-owned restaurants, in addition to the majority of franchise-operated restaurants, contribute a percentage of net sales, currently for use in public relations and marketing development efforts. The assets held by this fund are considered to be restricted. Accordingly, we reflect the cash related to this fund within restricted cash and reflect the liability within accounts payable on our consolidated balance sheets. We had approximately $761,000 and $700,000 in this fund as of December 29, 2019 and December 30, 2018, respectively. In conjunction with certain lease agreements, our company was previously required to deposit amounts for undrawn letters of credit in cash collateral accounts. We had approximately $143,000 of restricted cash as of December 30, 2018, related to these undrawn letters of credit. 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 outstanding 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. 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 our franchisees are required to submit to us. Any changes to the reserve are recorded in general and administrative expenses. Accounts receivable are written off when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for doubtful accounts. Accounts receivable balances written off have not exceeded allowances provided and we believe all accounts receivable in excess of allowances provided 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. As of December 29, 2019, we had a receivable from one franchisee in the amount of $588,000, and from another franchisee in the amount of $476,000 . A portion of these receivables was reserved. Inventories Inventories consist principally of small wares and supplies, food and beverages, and retail goods, and are recorded at the lower of cost (first-in, first-out) or net realizable value. Assets Held for Sale Property, equipment and leasehold improvements, net Property, equipment and leasehold improvements are stated at cost, net of accumulated depreciation. We recognize depreciation expense utilizing the straight-line method once an asset has been placed into service. The following table outlines the useful lives of our major classes of property, equipment and leasehold improvements: ​ ​ ​ ​ ​ Buildings ​ ​ 30 years Leasehold improvements ​ ​ 0 - 30 years Furniture, fixtures, equipment and software (excluding restaurant signage) ​ ​ 1 - 7 years Restaurant signage ​ ​ 10 - 15 years Decor ​ ​ 7 years ​ We capitalize labor costs associated with the implementation of significant information technology infrastructure projects based on actual labor rates per person including benefits, for all time spent on the implementation of software and are depreciated over 5 years. We capitalize construction overhead costs until the time a building is turned over to operations, which is approximately two weeks prior to opening and depreciate these items over the same useful life as leasehold improvements. We evaluate restaurant sites and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the 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 future net cash flows expected to be generated on a restaurant-by-restaurant basis. If a restaurant site is determined to be impaired, the loss is measured as the amount by which the carrying amount of the restaurant site 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 and other factors. Intangible Assets We have transferable liquor licenses in jurisdictions with a limited number of authorized liquor licenses. These licenses were capitalized as indefinite-lived intangible assets and are included in intangible assets, net in our consolidated balance sheets. We review annually the liquor licenses for impairment. The costs of obtaining non-transferable liquor licenses that are directly issued by local government agencies for nominal fees are expensed as incurred. Annual liquor license renewal fees are expensed over the renewal term. Goodwill represents the excess of cost over the fair value of identified net assets of businesses acquired. Goodwill is tested for impairment annually or on an interim basis if events or changes in circumstances between annual tests indicate a potential impairment. Factors considered include, but are not limited to historical financial performance, a significant decline in expected future cash flows, unanticipated competition, changes in management or key personnel, macroeconomic and industry conditions and the legal and regulatory environment. If the qualitative assessment indicates that it is more likely than not that an impairment exists, then a quantitative assessment is performed. The quantitative assessment requires an analysis of several best estimates and assumptions, including future sales and operating results, and other factors that could affect fair value or otherwise indicate potential impairment. The goodwill impairment assessment involves valuing our reporting units that carry goodwill and considers their projected ability to generate income from operations and positive cash flow in future periods. The fair value assessment could change materially if different estimates and assumptions were used. No goodwill impairment charges were recognized during the years ended December 29, 2019 and December 30, 2018. Reacquired franchise rights are amortized over the life of the related franchise agreement. We evaluate reacquired franchise rights in conjunction with our impairment evaluation of long-lived assets. Advertising Advertising costs are charged to expense as incurred. Advertising costs were approximately $2.8 million and $2.7 million for the years ended December 29, 2019 and December 30, 2018, respectively, and are included in operating expenses for local store marketing and in national advertising fund expenses for national advertising in the consolidated statements of operations. Research and development costs Research and development costs represent all expenses incurred in relation to the creation of new menu and promotional offerings, recipe enhancements and documentation activities. Research and development costs were approximately $489,000 and $441,000 Pre-opening expenses All start-up and pre-opening costs are expensed as incurred. Pre-opening rent during the build-out period is included in pre-opening expense. We incurred approximately $460,000 of pre-opening expenses during the year ended December 29, 2019 and no such expense during the year ended December 30, 2018. Leases We lease the property for our corporate headquarters, most of our Company-owned stores, and certain office and restaurant equipment. Beginning in fiscal 2019, we adopted ASU 2016-02 - Leases 5- easements one Exit and disposal costs Exit or disposal activities, including restaurant closures, include the cost of disposing of the assets and other facility-related expenses from previously closed restaurants. These costs are generally expensed as incurred. Additionally, at the date we cease using a property under an operating lease, we remove the remaining balance of the ROU asset. Any subsequent adjustments to the related liability as a result of lease termination are recorded in the period incurred. Upon disposal of the assets associated with a closed restaurant, any gain or loss is recorded in the same caption as the original impairment within our consolidated statements of operations. We recognize a liability for the fair value of a required asset retirement obligation (“ARO”) when such obligation is incurred. Our AROs are primarily associated with leasehold improvements which, at the end of a lease, we are contractually obligated to remove in order to comply with the lease agreement. Costs incurred for restaurants that have been closed, after the date of their closure, are presented within the asset impairment, estimated lease termination and other closing costs line item of our consolidated statements of operations. Net income (loss) per common share Basic net income (loss) per common share (“EPS”) is computed by dividing net income (loss) 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 (loss) income per common share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ (in thousands, except per share data) December 29, 2019 December 30, 2018 ​ Net (loss) income per share – basic: ​ ​ ​ ​ Net (loss) income attributable to shareholders ​ $ (649) ​ $ 4,862 ​ Weighted average shares outstanding - basic ​ 9,099 ​ 8,599 ​ Basic net (loss) income per share ​ $ (0.07) ​ $ 0.57 ​ ​ ​ ​ ​ ​ ​ ​ ​ Net (loss) income per share – diluted: ​ ​ ​ Net (loss) income attributable to shareholders ​ $ (649) ​ $ 4,862 ​ Weighted average shares outstanding - diluted ​ 9,099 ​ 8,624 ​ Diluted net (loss) income per share ​ $ (0.07) ​ $ 0.56 ​ ​ There were approximately 191,000 and 111,000 Stock-based compensation We recognize compensation cost for share-based awards granted to team members and board members based on their fair values at the time of grant over the requisite service period. Stock options granted to non-employees are marked to market as they vest. The bonus compensation of our Chief Executive Officer is issued in the form of unrestricted, freely tradable shares of our common stock and is expensed in full when earned. Our pre-tax compensation cost for stock options and other incentive awards is included in general and administrative expenses in our consolidated statements of operations. See Note 9 “Stock-based compensation.” Beginning in fiscal 2019, we adopted ASU 2018-07 – Stock Compensation , which simplifies the accounting related to nonemployee share-based payments. The update brings the accounting for nonemployees in line with that of awards granted to employees. The standard allows for measurement at the grant date for equity awards as opposed to the earlier of the performance commitment date or the date performance is complete. The new standard allows an entity to use the expected term or the contractual term. Income Taxes We provide for income taxes based on our 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. Our estimates are based on the information available to us at the time that we prepare the income tax provision. We generally file our annual income tax returns several months after our 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 or differing interpretations of the tax laws. Revenue recognition We recognize revenue at the point in time when food and services are provided to a restaurant Guest or other customer. Revenues from restaurant operations are presented net of discounts, coupons, employee meals and complimentary meals and recognized when food, beverage and retail products are sold. Sales tax collected from customers is excluded from sales and the obligation is included in sales tax payable until the taxes are remitted to the appropriate taxing authorities. Revenue from catered events are recognized in income upon satisfaction of the performance obligation (the date the event is held). All customer payments, including nonrefundable upfront deposits, are deferred as a liability until such time. We recognize franchise fee revenue on a straight-line basis over the life of the related franchise agreements and any exercised renewal periods. Cash payments are due upon the opening of a new restaurant or upon the execution of a renewal of the related franchise agreement. Our performance obligation with respect to franchise fee revenues consists of a license to utilize our company’s brand for a specified period of time, which is satisfied equally over the life of each franchise agreement. Area development fees are deferred until a new restaurant is opened pursuant to the area development agreement, at which time revenue is recognized on a straight-line basis over the life of the franchise agreement. Cash payments for area development agreements are typically due when an area development agreement has been executed. Gift card breakage revenue is recognized proportionately as gift cards are redeemed utilizing an estimated breakage rate based on our company’s historical experience. Gift card breakage revenue is reported within the licensing and other revenue line item of the consolidated statements of operations. Our company defers revenue associated with the estimated selling price of reward points earned pursuant to our loyalty program and establishes a corresponding liability. This deferral is based on the estimated value of the product for which the reward is expected to be redeemed, net of estimated unredeemed points. When a Guest redeems an earned reward, we recognize revenue for the redeemed product and reduce the deferred revenue. Deferred revenue associated with our loyalty program was not material as of December 29, 2019 and December 30, 2018. Contract liabilities consist of deferred revenue resulting from franchise fees paid by franchisees. We classify these liabilities within other current liabilities and other liabilities within our consolidated balance sheets based on the expected timing of revenue recognition associated with these liabilities. The following table reflects the change in contract liabilities between December 29, 2019 and December 30, 2018: ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ Balance, December 30, 2018 ​ $ 1,998 Revenue recognized ​ ​ (680) Balance, December 29, 2019 ​ $ 1,318 ​ The following table illustrates estimated revenues expected to be recognized in the future related to unsatisfied performance obligations as of December 29, 2019: ​ ​ ​ ​ ​ (in thousands) ​ Fiscal Year ​ 2020 ​ $ 130 2021 ​ 114 2022 ​ 112 2023 ​ 105 2024 ​ 93 Thereafter ​ 764 Total ​ $ 1,318 ​ Recent Accounting Guidance Recently adopted accounting guidance 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 were effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption was permitted for all entities. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842), which allows entities to initially apply the new lease standard as of the adoption date instead of at the beginning of the earliest period presented in the financial statements. The new lease standard provides for a modified retrospective approach or current period adjustment approach for all leases existing at, or entered into after the date of initial adoption, with an option to elect to use certain transition relief. We adopted the new lease standard as of the effective date by applying the current period adjustment approach, utilizing the package of practical expedients available and the practical expedient to not reassess land easements. ​ In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718), which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. Under the updated standard, an entity should apply the requirements of Topic 718 to nonemployee awards, except for specific guidance on inputs to an option-pricing model and the attribution of cost. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in the grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling or goods or services as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. The amendments in this ASU were effective for fiscal years beginning after December 15, 2018 and interim periods within that fiscal year. Early adoption was permitted, but no earlier than an entity’s adoption date of Topic 606. We adopted this new standard as of the effective date with no material impact on our consolidated financial statements. ​

INVENTORIES

INVENTORIES	12 Months Ended
	Dec. 29, 2019
Inventories
Inventories	(2) INVENTORIES Inventories consisted approximately of the following at: ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ December 29, 2019 ​ December 30, 2018 Food and beverage ​ $ 798 ​ $ 389 Smallwares and supplies ​ 548 ​ 333 ​ ​ $ 1,346 ​ $ 722 ​

INTANGIBLE ASSETS

INTANGIBLE ASSETS	12 Months Ended
	Dec. 29, 2019
Intangible Assets
Intangible Assets	(3) INTANGIBLE ASSETS We have intangible assets that consist of liquor licenses, goodwill and reacquired franchise rights, net. The liquor licenses and goodwill are indefinite-lived assets and are not subject to amortization. Reacquired franchise rights are amortized to depreciation and amortization expense on a straight-line basis over the remaining life of the reacquired franchise agreement. In fiscal 2018, we also included lease interest assets in intangible assets and amortized to occupancy costs on a straight-line basis over the remaining term of each respective lease. With the adoption of ASC 842 – Leases reclass Intangible assets consisted approximately of the following at: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ December 29, 2019 December 30, 2018 Lease interest assets, net ​ ​ ​ ​ - ​ ​ 768 Reacquired franchise rights, net ​ ​ ​ ​ 1,788 ​ ​ 25 Goodwill ​ ​ ​ ​ 640 ​ ​ 61 Liquor licenses ​ ​ ​ ​ 425 ​ ​ 635 Intangible assets, net ​ ​ ​ $ 2,853 ​ $ 1,489 ​ The following table provides the projected future amortization of reacquired franchise rights, net for the next five years, as of December 29, 2019: ​ ​ ​ ​ (in thousands) Reacquired Franchise Rights, net Fiscal 2020 $ 418 Fiscal 2021 ​ 418 Fiscal 2022 ​ 418 Fiscal 2023 ​ 253 Fiscal 2024 ​ 132 Thereafter ​ 149 ​ $ 1,788 ​ We recognized amortization expense related to reacquired franchise rights of approximately $306,000 and $1,000 during the years ended December 29, 2019 and December 30, 2018, respectively, and expect to recognize the remaining balance over a period of 8 years .

PROPERTY, EQUIPMENT, AND LEASEH

PROPERTY, EQUIPMENT, AND LEASEHOLD IMPROVEMENTS, NET	12 Months Ended
	Dec. 29, 2019
Property, Equipment, And Leasehold Improvements, Net
Property, Equipment, And Leasehold Improvements, Net	(4) PROPERTY, EQUIPMENT, AND LEASEHOLD IMPROVEMENTS, NET Property, equipment and leasehold improvements, net, consisted approximately of the following at: ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ December 29, 2019 ​ December 30, 2018 Land, buildings, and improvements ​ $ 28,185 ​ $ 24,191 Furniture, fixtures, equipment and software ​ 17,880 ​ 16,108 Décor ​ 584 ​ 681 Construction in progress ​ 483 ​ 138 Accumulated depreciation and amortization ​ (27,376) ​ (30,733) Property, equipment and leasehold improvements, net ​ $ 19,756 ​ $ 10,385 ​

OTHER CURRENT LIABILITIES

OTHER CURRENT LIABILITIES	12 Months Ended
	Dec. 29, 2019
Other Current Liabilities
Other Current Liabilities	(5) OTHER CURRENT LIABILITIES Other current liabilities consisted of the following at: ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) December 29, 2019 ​ December 30, 2018 Gift cards payable ​ $ 2,360 ​ $ 1,035 Accrued expenses ​ 1,874 ​ 1,238 Asset retirement obligations and lease reserves ​ ​ 6 ​ ​ 161 Sales tax payable ​ 584 ​ 274 State income tax payable ​ ​ — ​ ​ 16 Deferred franchise fees ​ 151 ​ 207 Accrued property and equipment purchases ​ — ​ 39 Other current liabilities ​ $ 4,975 ​ $ 2,970 ​

OTHER LIABILITIES

OTHER LIABILITIES	12 Months Ended
	Dec. 29, 2019
Other Liabilities
Other Liabilities	(6) OTHER LIABILITIES Other liabilities consisted of the following at December 29, 2019: ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) December 29, 2019 ​ December 30, 2018 Deferred rent ​ $ — ​ $ 1,787 Deferred franchise fees ​ ​ 1,165 ​ ​ 1,791 Miscellaneous other liabilities ​ 216 ​ 441 Asset retirement obligations ​ 3 ​ 16 Accrual for uncertain tax position ​ ​ 6 ​ ​ 10 Long-term lease reserve ​ — ​ 254 Long-term deferred compensation ​ 220 ​ 193 Other liabilities ​ $ 1,610 ​ $ 4,492 ​

LONG-TERM DEBT AND FINANCING LE

LONG-TERM DEBT AND FINANCING LEASE OBLIGATIONS	12 Months Ended
	Dec. 29, 2019
Long-term Debt and Financing Lease Obligations
Long-term Debt and Financing Lease Obligations	(7) LONG-TERM DEBT AND FINANCING LEASE OBLIGATIONS Long-term debt On June 20, 2019 (the “Effective Date”), we entered into a Loan Agreement among our company and Choice Financial Group (“Choice”). The Loan Agreement provides for a term loan from Choice to our company set forth therein in the principal amount of up to $24.0 million and is evidenced by a promissory note (the “First Note”) executed and delivered by our company to Choice on the Effective Date. The First Note has a maturity date of June 20, 2025. The first year of the First Note (the “Draw Period”) provides for payments of interest only, with the remaining five years requiring payments of interest and principal based on a 60 month amortization period. Interest shall be payable in an amount equal to the Wall Street Journal Prime Rate, but in no circumstances shall the rate of interest be less than 5.00%. The First Note may be prepaid, partially or in full, at any time and for no prepayment penalty. Proceeds from the loan were used to repay our previous real estate loan, dated December 2, 2016, which had an outstanding balance as of the Effective Date of approximately $2.6 million. The remainder of the First Note may be drawn upon during the Draw Period, provided that there are no uncured events of default. The Loan Agreement is secured by a mortgage and security agreement and fixture financing statement (the “First Mortgage”) granting to Choice a security interest in and title to certain real property in the state of Minnesota and as more fully described therein. The Loan Agreement contains customary representations and warranties and financial and other covenants and conditions, including, among other things, minimum debt service coverage ratio and post-closing covenant to maintain a complete deposit and cash management relationship with Choice. The Loan Agreement also places certain restrictions on, among other things, our ability to incur additional indebtedness, to create liens or other encumbrances, to use funds for purposes other than as stated therein, to sell or otherwise dispose of assets without the consent of Choice. In addition, the Loan Agreement contains events of default (subject to certain materiality thresholds and grace periods), including, without limitation, payment defaults; breaches of covenants; breaches of representations and warranties; failure to perform remediation of any environmental matters on the mortgaged property, as set forth in the First Mortgage; failure to perform or observe the covenants, conditions or terms of the First Loan Agreement and related agreements; certain bankruptcy events of our company and failure to timely provide financial statements. Also on the Effective Date, we also entered into a Revolving Promissory Note among our company and Choice. The Revolving Promissory Note provided for a revolving line of credit from Choice to our company set forth therein in the principal amount of up to $1.0 million (the “Second Note”) executed and delivered by our company to Choice on the Effective Date. The Second Note had a maturity date of December 2, 2019. The Second Note provided for monthly payments of interest only, with a balloon payment of the remaining outstanding balance and applicable interest due on the maturity date. Interest was to be payable in an amount equal to the 30-day London Interbank Offer Rate (“LIBOR”) plus 325 basis points, but in no circumstances was the rate of interest be less than 3.75%. Second Note has matured and no balance is due. As of December 29, 2019 and December 30, 2018, the weighted average interest rate on our long-term debt was 5.0% and 4.41%, respectively. The notes pursuant to the Loan Agreements are secured by substantially all of our assets and we are subject to various financial and non-financial covenants, including debt-service coverage ratio. As of December 29, 2019, we were in compliance with all of our covenants. In the event of a default, Choice has the right to terminate its obligations under the Loan Agreements and to accelerate the payment on any unpaid principal amounts then outstanding. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) December 29, 2019 ​ December 30, 2018 Term Loan ​ $ 6,924 $ — Real Estate Loan ​ ​ — ​ ​ 2,705 Less: deferred financing costs ​ (50) (131) Less: current portion of long-term debt ​ (616) (163) Long-term debt, less current portion ​ $ 6,258 $ 2,411 ​ ​ ​ ​ ​ ​ (in thousands) ​ Fiscal Year ​ 2020 ​ $ 616 2021 ​ 1,280 2022 ​ 1,347 2023 ​ 1,417 2024 ​ 1,490 Thereafter ​ 774 Total ​ $ 6,924 ​ Financing Lease Obligation Pursuant to an amended sale leaseback transaction, our company had an option to repurchase two properties at the end of the lease term. Because of our continuing involvement in the properties, the transaction was accounting for as a financing arrangement. As of December 30, 2018, the weighted-average interest rate of such obligation was approximately 8.09%. The Company repaid its financing lease obligation during the fiscal year ended December 29, 2019. ​

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 29, 2019
Commitments and Contingencies
Commitments and Contingencies	(8) COMMITMENTS AND CONTINGENCIES Operating Leases We lease most of our Company-owned restaurants and office facilities under non-cancelable operating leases with remaining minimum terms ranging from one % of gross sales above a minimum threshold. Beginning in fiscal 2019, we adopted ASC 842 – Leases. Under this standard, we determine if an arrangement is a lease at inception. Operating leases are included in ROU assets, current portion of operating lease liabilities, and operating lease liabilities in our consolidated balance sheets. ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at the commencement date. The following table sets forth certain information related to our rental activities as of the periods presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended (in thousands) ​ ​ ​ ​ ​ ​ ​ December 29, 2019 Operating lease cost ​ ​ ​ ​ ​ ​ ​ $ 4,261 ​ Short-term lease cost ​ ​ ​ ​ ​ ​ ​ ​ 123 ​ Variable lease cost ​ ​ ​ ​ ​ ​ ​ ​ 31 ​ Sublease income ​ ​ ​ ​ ​ ​ ​ ​ (248) ​ Total lease cost ​ ​ ​ ​ ​ ​ ​ ​ 4,167 ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ (in thousands) ​ December 29, 2019 ​ Cash paid for amounts included in the measurement of lease liabilities: ​ ​ ​ ​ Operating cash flows from operating leases ​ $ 4,424 ​ Right-of-use assets obtained in exchange for new operating lease liabilities ​ ​ 18,458 ​ Weighted-average remaining lease term of operating leases (in years) ​ ​ 9.56 ​ Weighted-average discount rate of operating leases ​ ​ 5.56 % ​ Future maturities of our lease liabilities, as of December 29, 2019, are as follows: ​ ​ ​ ​ ​ (in thousands) ​ Fiscal Year ​ 2020 ​ $ 5,194 2021 ​ 5,078 2022 ​ 4,785 2023 ​ 3,918 2024 ​ 2,856 Thereafter ​ 15,070 Total operating lease obligations ​ 36,901 Less imputed interest ​ (5,944) Total ​ $ 30,957 ​ Litigation In the normal course of business, we are 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. We currently believe that the resolution of any of these pending matters will not have a material adverse effect on our financial position or liquidity, but an adverse decision in more than one of the matters could be material to our consolidated results of operations. ​

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	12 Months Ended
	Dec. 29, 2019
Stock-based Compensation
Stock-Based Compensation	(9) STOCK-BASED COMPENSATION Effective May 5, 2015, we adopted the 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”). The 2005 Plan prohibits the granting of options pursuant to the 2005 plan after May 12, 2015, the tenth anniversary of the date the 2005 Plan was approved by our shareholders. Nonetheless, the 2005 Plan will remain in effect until all outstanding incentives granted thereunder have either been satisfied or terminated. As of December 29, 2019, there were 237,333 shares available for grant pursuant to the 2015 Plan. Stock options granted to employees and directors generally vest over two Stock options granted to certain non-employees either vest immediately or monthly over a period of two years. Options generally expire ten years from the date of grant. Compensation expense is recognized in general and administrative expense over the applicable service period. In fiscal 2019, we adopted ASU 2018-07, which changes the way we account for stock options granted to non-employees. See Note 1 – Nature of Business and Significant Accounting Policies. The incentive compensation of our Chief Executive Officer is tied to increases in our share price and calls for the issuance of freely tradable shares of our common stock upon the achievement of certain milestones. We utilize 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 our 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 we expect 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. We recognized stock-based compensation expense in its consolidated statements of operations for the twelve months ended December 29, 2019 and December 30, 2018, respectively, as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ (in thousands) December 29, 2019 December 30, 2018 ​ Stock options ​ $ 266 ​ $ 208 ​ Shares of common stock ​ ​ — ​ ​ 70 ​ Restricted stock ​ 198 ​ — ​ ​ ​ $ 463 ​ $ 278 ​ ​ The following is a roll-forward of our stock option activity for the periods presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ Number of ​ ​ ​ ​ Remaining ​ ​ Aggregate ​ ​ Options ​ Weighted Average ​ Contractual ​ ​ Intrinsic Value ​ (in thousands) Exercise Price Life in Years ​ (in thousands) Options outstanding at December 31, 2017 539 ​ $ 6.60 ​ 6.6 ​ $ 598 Granted 90 ​ 7.67 ​ ​ ​ ​ — Exercised ​ (102) ​ ​ 5.28 ​ ​ ​ ​ 273 Canceled, forfeited or expired (143) ​ 5.74 ​ ​ ​ ​ 231 Options outstanding at December 30, 2018 384 ​ $ 7.43 ​ 6.7 ​ $ 29 Granted 212 ​ 4.37 ​ ​ ​ ​ — Exercised (5) ​ 3.90 ​ ​ ​ ​ 6 Canceled, forfeited or expired (138) ​ 5.22 ​ ​ ​ ​ 68 Options outstanding at December 29, 2019 453 ​ $ 6.71 ​ 5.7 ​ $ 28 Options exercisable at December 29, 2019 280 ​ $ 7.54 ​ 5.1 ​ $ 19 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ December 29, 2019 ​ December 30, 2018 ​ Weighted-average fair value of options granted during the period ​ $ 1.88 ​ $ 3.73 ​ Expected life (in years) ​ 4.6 ​ 6.2 ​ Expected dividend ​ $ — ​ $ — ​ Expected stock volatility ​ 50.55 % 45.94 % Risk-free interest rate ​ 1.9 % 2.9 % ​

RETIREMENT SAVINGS PLANS

RETIREMENT SAVINGS PLANS	12 Months Ended
	Dec. 29, 2019
Retirement Savings Plans
Retirement Savings Plan	(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. The following table outlines certain information about our 401(k) plan: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ (dollars in thousands) ​ December 29, 2019 ​ December 30, 2018 ​ Employer contribution rate, percent of employee contributions ​ ​ 25.0 % 25.0 % Employee contribution rate, maximum percentage of employee earnings subject to employer matching ​ ​ 4.0 % 4.0 % Employee contributions ​ $ 570 ​ $ 469 ​ Employer match ​ $ 113 ​ $ 76 ​ Discretionary contributions ​ $ — ​ $ — ​ ​ Non-Qualified Deferred Compensation Plan We maintain a non-qualified deferred compensation plan, effective as of February 25, 2005 (the “DCP”) for eligible participants, as defined in the DCP. The DCP allows participating employees to defer a portion of their compensation (salary, bonus and commissions). The assets of the DCP are maintained in an unsecured account that has no trust fund. In the event of bankruptcy, participants entitled to future payments under the DCP would have no greater rights than that of an unsecured general creditor and the DCP confers no legal rights for interest or claim on any of our assets. The benefits provided by the DCP are not, nor are they required to be, insured. The following table outlines certain information about the DCP: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ (dollars in thousands) ​ December 29, 2019 ​ December 30, 2018 ​ Employer contribution rate, percent of employee contributions ​ ​ 25.0 % 25.0 % Employee contribution rate, maximum percentage of employee earnings subject to employer matching ​ ​ 4.0 % 4.0 % Declared interest rate ​ ​ 6.0 % 6.0 % Employee contributions ​ $ 47 ​ $ 36 ​ Employer match and interest ​ $ 6 ​ $ 17 ​ Distributions ​ $ 32 ​ $ 30 ​ ​

RESTAURANT ACQUISITIONS

RESTAURANT ACQUISITIONS	12 Months Ended
	Dec. 29, 2019
Restaurant Acquisitions
Restaurant Acquisitions	(11) RESTAURANT ACQUISITIONS On August 6, 2018, we completed the acquisition of a Famous Dave's restaurant in Janesville, Wisconsin. The seller of the restaurant was Team R N' B Wisconsin, LLC. The contract purchase price of the restaurant was approximately $37,000, exclusive of closing costs plus the assumption of the gift card liability. On October 8, 2018, we completed the acquisition of a Famous Dave's restaurant in Greenwood, Indiana. The seller of the restaurant was Greenwood Ribs, LLC. The contract purchase price of the restaurant was approximately $191,000, exclusive of closing costs plus the assumption of the gift card liability. The acquisitions were accounted for using the purchase method of accounting in accordance with ASC 805 “Business Combinations” and, accordingly, the consolidated statements of operations include the results of these operations from the date of acquisition. The assets acquired and the liabilities assumed were recorded at estimated fair values based on information available. ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ ​ ​ ​ Assets acquired: ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ ​ ​ ​ $ 4 Inventory ​ ​ ​ ​ ​ 66 Property, plant, equipment and leasehold improvements, net ​ ​ ​ ​ ​ 91 Goodwill ​ ​ ​ ​ ​ 42 Reacquired franchise rights, net ​ ​ ​ ​ ​ 25 Total assets acquired ​ ​ ​ ​ ​ 228 Gift card liability assumed ​ ​ ​ ​ ​ (25) Total purchase price ​ ​ ​ ​ $ 203 ​ On March 4, 2019, we completed the acquisition of the assets and operations of four Famous Dave's restaurants in Colorado (the “Colorado Restaurants”). The sellers of the Colorado Restaurants were Legendary BBQ, Inc., Quebec Square BBQ, Inc., Cornerstar BBQ, Inc., Razorback BBQ, Inc., and Larkridge BBQ, Inc. Pursuant to the same purchase agreement as the acquisition of the Colorado Restaurants, on June 3, 2019, we completed the acquisition of the assets and operations of one Famous Dave's restaurant in Grand Junction, Colorado (the “Grand Junction Restaurant”). The seller of the Grand Junction Restaurant was Mesa Mall BBQ, Inc. The contract purchase price of the Colorado Restaurants and the Grand Junction Restaurant was approximately $4.1 million, exclusive of acquisition costs of approximately $409,000, which are reflected in general and administrative expenses, plus the assumption of the gift card liability associated with the restaurants. Accounts receivable amounts owed to our company reduced the cash required to be paid for the purchase price. We also purchased inventory on hand as of the acquisition dates. Effective as of the closing date of the acquisitions, the franchise agreements for the Colorado Restaurants and the Grand Junction Restaurant were terminated. The acquisition was accounted for using the purchase method of accounting in accordance with ASC 805 “Business Combinations” and, accordingly, these consolidated statements of operations include the results of these operations from the date of acquisition. ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ ​ ​ ​ Assets acquired: ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ ​ ​ ​ $ 13 Inventory ​ ​ ​ ​ ​ 176 Property, plant, equipment and leasehold improvements, net ​ ​ ​ ​ ​ 3,139 Lease right-of-use asset, net of unfavorable lease value ​ ​ ​ ​ ​ 6,729 Identifiable intangible assets, net ​ ​ ​ ​ ​ 1,368 Total identifiable assets acquired ​ ​ ​ ​ ​ 11,425 Liabilities assumed: ​ ​ ​ ​ ​ ​ Gift card liability ​ ​ ​ ​ ​ (182) Lease liability ​ ​ ​ ​ ​ (7,116) Net assets acquired ​ ​ ​ ​ ​ 4,127 Goodwill ​ ​ ​ ​ ​ 373 Total consideration transferred ​ ​ ​ ​ $ 4,500 ​ On July 10, 2019, we completed the acquisition of the assets and operations of four Famous Dave's restaurants in Arizona (the “Arizona Restaurants”). The sellers of the Arizona Restaurants were Desert Ribs LLC, Famous Charlie LLC, Famous Freddie LLC, Famous Gracie LLC, and Famous George LLC, which were franchisees of the Company. The acquisition of the Arizona Restaurants was pursuant to the Purchase Agreement, as filed on June 26, 2019, resulting from a stalking horse bid in the sale process conducted under Sections 363 and 365 of Chapter 11 of the U.S. Bankruptcy Code. The purchase price of the Arizona Restaurants was approximately $1.6 million in cash and approximately $1.4 million for the assumption of gift card and other liabilities as specified in the Purchase Agreement, settlement of outstanding franchise billings, and fees related to debtor-in-possession financing. We incurred acquisition costs of approximately $166,000, which are reflected in general administrative expenses, associated with the purchase of the Arizona Restaurants. Effective as of the closing date of the acquisition, the franchise agreements for the Arizona Restaurants were terminated and outstanding receivables were considered additions to the purchase price. The acquisition was accounted for using the purchase method of accounting in accordance with ASC 805 “Business Combinations” and, accordingly, these consolidated statements of operations include the results of these operations from the date of acquisition. ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ ​ ​ ​ Assets acquired: ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ ​ ​ ​ $ 12 Inventory ​ ​ ​ ​ ​ 103 Property, plant, equipment and leasehold improvements, net ​ ​ ​ ​ ​ 5,177 Lease right-of-use asset, net of unfavorable lease value ​ ​ ​ ​ ​ 731 Total identifiable assets acquired ​ ​ ​ ​ ​ 6,023 Liabilities assumed: ​ ​ ​ ​ ​ ​ Gift card liability ​ ​ ​ ​ ​ (428) Lease liability ​ ​ ​ ​ ​ (2,992) Net assets acquired ​ ​ ​ ​ ​ 2,603 Goodwill ​ ​ ​ ​ ​ 415 Total consideration transferred ​ ​ ​ ​ $ 3,018 ​ The following table presents the allocation of assets acquired and liabilities assumed for individually immaterial acquisitions during the twelve months ended December 29, 2019: ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ ​ ​ ​ Assets acquired: ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ ​ ​ ​ $ 15 Inventory ​ ​ ​ ​ ​ 202 Property, plant, equipment and leasehold improvements, net ​ ​ ​ ​ ​ 362 Lease right-of-use asset, net of unfavorable lease value ​ ​ ​ ​ ​ 6,109 Identifiable intangible assets, net ​ ​ ​ ​ ​ 728 Total identifiable assets acquired ​ ​ ​ ​ ​ 7,416 Liabilities assumed: ​ ​ ​ ​ ​ ​ Gift card liability ​ ​ ​ ​ ​ (71) Lease liability ​ ​ ​ ​ ​ (6,715) Net assets acquired ​ ​ ​ ​ ​ 630 Gain on bargain purchase ​ ​ ​ ​ ​ (178) Total consideration transferred ​ ​ ​ ​ $ 452 ​ Unaudited pro forma results of operations for the fiscal years ended December 29, 2019 and December 30, 2018, as if we had acquired majority ownership of all operations on January 1, 2018 is as follows. The pro forma results include estimates and assumptions which our 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. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ December 29, 2019 ​ December 30, 2018 (in thousands) ​ ​ ​ ​ Pro forma revenues ​ $ 99,053 ​ $ 102,186 Pro forma net income ​ $ 75 ​ $ 7,308 Basic pro forma net income per share attributable to shareholders ​ $ 0.01 ​ $ 0.85 Diluted pro forma net income per share attributable to shareholders ​ $ 0.01 ​ $ 0.85 ​

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 29, 2019
Income Taxes
Income Taxes	(12) INCOME TAXES For financial reporting purposes, income (loss) before income taxes consists of the following components for the periods presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended (in thousands) December 29, 2019 December 30, 2018 United States ​ $ (2,072) ​ $ 5,370 Foreign ​ 166 ​ 221 Total ​ $ (1,906) ​ $ 5,591 ​ The following table summarizes the income tax (expense) benefit for the periods presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended (in thousands) December 29, 2019 December 30, 2018 Current: ​ ​ ​ ​ ​ ​ Federal ​ $ (10) ​ $ 4 State ​ (48) ​ (17) Foreign ​ (25) ​ (77) ​ ​ (83) ​ (90) ​ ​ ​ ​ ​ ​ ​ Deferred: ​ ​ Federal ​ 603 ​ (532) State ​ 139 ​ (107) ​ ​ 742 ​ (639) Total income tax (expense) benefit ​ $ 659 ​ $ (729) ​ The impact of uncertain tax positions taken or expected to be taken on income tax returns must be recognized in the financial statements at the largest amount that is more likely than not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized in the financial statements unless it is more likely than not of being sustained. The following is a reconciliation of the beginning and ending amounts of gross unrecognized tax benefit for the periods presented: ​ ​ ​ ​ ​ (in thousands) ​ ​ Balance at December 31, 2017 ​ 13 Decreases due to lapses of statutes of limitations ​ (5) Balance at December 30, 2018 ​ 8 Decreases due to lapses of statutes of limitations ​ (4) Balance at December 29, 2019 ​ $ 4 ​ Substantially all of our unrecognized tax benefits, if recognized, would impact our effective tax rate. We file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. The preparation of these income tax returns requires us to interpret and apply relevant federal and state income tax laws. It is common for federal and state taxing authorities to periodically examine filed tax returns. During these examinations, it is possible for taxing authorities to interpret facts or tax law differently than we do. As a result, we may be required to adjust tax liabilities affecting our effective tax rate. Tax years 2016 2015 We have significant net deferred tax assets (“DTA”), which results from the net temporary timing differences between amounts recorded within our consolidated financial statements in accordance with GAAP and such amounts measured in accordance with the laws of various taxing jurisdictions and as reported in our tax returns. A DTA generally represents future tax benefits to be received when temporary differences previously reported in our consolidated financial statements become deductible for income tax purposes, when net operating loss carry forwards are applied against future taxable income, or when tax credit carry forwards are utilized on our tax returns. As of December 29, 2019, the majority of our DTA resulted from net operating loss and tax credit carryforwards, which will not be realized unless we generate taxable income in the future. We evaluate our net deferred tax asset on a quarterly basis to determine whether current facts and circumstances indicate that the DTA may not be fully realizable and we provide for valuation allowances on those portions of the DTA that we don’t expect to realize. Significant judgment is required in determining the realizability of our DTA. The assessment of whether valuation allowances are required considers, among other matters, the nature, frequency and severity of any current and cumulative losses, forecasts of future profitability, the duration of statutory carry forward periods, our experience with loss carry forwards not expiring unused and tax planning alternatives. In analyzing the need for valuation allowances, we first considered our history of cumulative operating results for income tax purposes over the past three years in each of the tax jurisdictions in which we operate, our financial performance in recent quarters, statutory carry forward periods and tax planning alternatives. Finally, we considered both our near and long-term financial outlook. After considering all available evidence both positive and negative, we concluded that recognition of valuation allowances for substantially all of our DTA was not required. We recognized a valuation allowance relating to certain state net operating losses for which we believe that is it more likely than not that the benefit will not be realized. In recognition of this risk, we have provided a valuation allowance of $1.3 million on the deferred tax asset related to these state net operating loss carryforwards. ​ The following is a summary of the components of our net deferred tax assets as of the periods presented: ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) December 29, 2019 December 30, 2018 Deferred tax asset: ​ ​ ​ ​ ​ ​ Deferred rent ​ $ — ​ $ 411 Federal net operating loss carry-forwards ​ ​ 1,980 ​ 1,812 State net operating loss carry-forwards ​ 1,993 ​ 4,130 Intangible property basis difference ​ ​ (7) ​ 131 Financing lease obligation ​ — ​ 299 Tax credit carryover ​ 2,581 ​ 2,164 Accrued expenses ​ 168 ​ 205 Stock-based compensation ​ 187 ​ 103 Deferred revenue ​ 693 ​ 666 Lease reserve ​ 8,060 ​ 107 Accrued and deferred compensation ​ 53 ​ 36 Contribution carryover ​ 50 ​ 46 Transaction and organization costs ​ ​ 121 ​ ​ — Inventories ​ 10 ​ 5 Total deferred tax asset ​ $ 15,889 ​ $ 10,115 ​ ​ ​ ​ ​ ​ ​ Deferred tax liability: ​ ​ ​ ​ ​ ​ Property and equipment basis difference ​ $ (755) ​ $ (568) Inventories ​ (146) ​ (83) Prepaid expenses ​ (365) ​ (236) Right of use asset ​ (6,664) ​ — Total deferred tax liability ​ $ (7,930) ​ $ (887) ​ ​ ​ ​ ​ ​ ​ Net deferred tax assets ​ 7,959 ​ 9,228 Valuation allowance ​ (1,313) ​ (3,481) Deferred tax asset, net ​ $ 6,646 ​ $ 5,747 ​ As of December 29, 2019, we had cumulative state net operating loss carry-forwards for tax reporting purposes of approximately $25.2 million and federal net operating loss carry-forwards for tax reporting purposes of $9.4 million which, if not used, will begin to expire in fiscal 2020 and 2038 , respectively. The following is a reconciliation from our statutory tax rate to our effective tax rate for the periods presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ December 29, 2019 December 30, 2018 Federal statutory tax rate 21.0 % 21.0 % State taxes, net of valuation allowance and federal benefit (4.7) 2.2 Deferred rate change ​ 11.9 ​ (0.6) ​ Foreign taxes (2.0) 1.4 Tax effect of permanent differences 0.5 (0.1) Tax effect of general business credits 24.3 (3.4) Tax effect of foreign tax credit 2.0 (3.2) Uncertain tax positions 0.3 (0.1) Return to provision update ​ (173.8) ​ (15.7) ​ Change in valuation allowance ​ 171.8 ​ 11.5 ​ Other 0.9 — Effective tax rate 52.2 % 13.0 % ​ ​

ASSET IMPAIRMENT AND ESTIMATED

ASSET IMPAIRMENT AND ESTIMATED LEASE TERMINATION AND OTHER CLOSING COSTS	12 Months Ended
	Dec. 29, 2019
Asset Impairment and Estimated Lease Termination and Other Closing Costs
Asset Impairment and Estimated Lease Termination and Other Closing Costs	(13) ASSET IMPAIRMENT, ESTIMATED LEASE TERMINATION AND OTHER CLOSING COSTS The following is a summary of asset impairment, estimated lease termination and other closing costs for the periods presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended (dollars in thousands) December 29, 2019 December 30, 2018 Asset impairments, net ​ $ 282 ​ $ 89 Lease termination charges (income) and related costs ​ ​ 926 ​ ​ (271) Restaurant closure expenses ​ ​ 88 ​ ​ 327 Asset impairment, estimated lease termination charges and other closing costs ​ $ 1,296 ​ $ 145 ​ Below reflects the change in our reserve for lease termination costs for the periods presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deductions ​ ​ ​ ​ ​ ​ ​ ​ ​ Credits to ​ ​ ​ ​ ​ ​ ​ ​ Additions ​ Costs and ​ ​ ​ ​ ​ Balance at ​ Charged to ​ Expenses ​ Balance at ​ ​ Beginning of ​ Costs and ​ and Other ​ End of (in thousands) ​ Period ​ Expenses ​ Accounts ​ Period Year Ended December 29, 2019 ​ ​ Reserve for lease termination costs and asset retirement obligations ​ $ 431 182 (605) ​ $ 8 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 30, 2018 ​ ​ Reserve for lease termination costs and asset retirement obligations ​ $ 1,799 511 (1,879) ​ $ 431 ​ These amounts were recorded in other current liabilities or other liabilities depending on when we expected the amounts to be paid.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	12 Months Ended
	Dec. 29, 2019
Fair Value Measurements
Fair Value Measurements	(14) 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 observable inputs which include data sources and market prices available and visible outside of the entity. Level 2: Level 3: For assets and liabilities falling within Level 3 of the fair value hierarchy, a change in the input assumptions used could result in a change in the estimated fair value of the asset or liability. Transfers in and out of levels will be based on our judgment of the availability of unadjusted quoted prices in active markets, other observable inputs, and non-observable inputs. The carrying amounts of cash and cash equivalents reported in the consolidated balance sheets approximates fair value based on current interest rates and short-term maturities. The carrying amount of accounts receivable approximates fair value due to the short-term nature of accounts receivable. We believe that the carrying amount of long-term debt approximates fair value due to the variable interest rates charged on long-term debt or as a result of the proximity of the refinancing to the end of the fiscal year. We had no assets measured at fair value in our consolidated balance sheets as of December 29, 2019 and December 30, 2018 except for the assets recorded at fair value in conjunction with restaurant acquisitions. See Note 11 – Restaurant Acquisition ​

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES	12 Months Ended
	Dec. 29, 2019
Variable Interest Entities
Variable Interest Entities	(15) 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. We have an installment agreement with one of our franchisees as the result of refranchising our Lincoln, Nebraska restaurant. This franchisee is a VIE; however, the owners of the franchise operations are the primary beneficiaries of the entities; therefore, the franchise operations are not required to be consolidated in our consolidated financial statements. On November 1, 2017, we sold our Frederick, Maryland restaurant. Pursuant to the terms of the Frederick Agreement, we remained the primary obligor of the lease. As of December 29, 2019, the amount of future lease payments for which we would be liable in the event of a default was approximately $393,000. As the amount of such payments outweighed the amount of expected sublease income, in fiscal 2019, we recorded $200,000 as asset impairment related to ROU asset. Of such amount $159,000 approximates the present value of future minimum lease payments net of expected sublease receipts. On July 18, 2018, we 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 will own 80% of the units outstanding of Mercury and we will own 20% of the units outstanding of Mercury. Mercury shall be governed by three managers, two of which will be appointed by us and one of which will be appointed by Clark. Also in July 2019, we entered into a secured promissory note with Mercury which we amended in October 2019. This promissory note as amended (the “Loan”) was in the amount of $3.9 million, the proceeds of which are required to be used for the build out of the Restaurant. The Loan bears interest at a rate of 8% per annum and requires payments of 100% of the excess monthly cash flows until the Loan and all interest accrued thereon is repaid. The Loan requires a balloon payment of unpaid principal and accrued interest on July 15, 2025 and may be prepaid at any time. Also on July 18, 2018, we and Clark entered into an intellectual property license agreement (the “License Agreement”) pursuant to which Clark granted to us 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 is indefinite and may only be terminated by mutual written consent, unless we breach the License Agreement. Because we have provided more than half of the subordinated financial support of Mercury and control Mercury via our representation on the board of managers, we have concluded that Mercury is a VIE, of which we are the primary beneficiary and must consolidate Mercury. Mercury generated a net loss of approximately $748,000, of which $598,000 was recorded as non-controlling interest on our consolidated financial statements. As of December 29, 2019, Mercury had assets of $5.8 million, which primarily consist of fixed assets. The liabilities recognized as a result of consolidating Mercury BBQ’s results of operations do not represent additional claims on the general assets of BBQ Holdings, Inc.; rather, they represent claims against the specific assets of the Mercury BBQ’s. Conversely, assets recognized as a result of consolidating the Mercury BBQ’s results of operations do not represent additional assets that could be used to satisfy claims against the general assets of BBQ Holdings.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 29, 2019
Related Party Transactions
Related Party Transactions	(16) RELATED PARTY TRANSACTIONS Anand D. Gala is a franchisee and currently serves as one of our directors. Mr. Gala is the Founder, President and Chief Executive Officer of Gala Holdings International, a diversified holding company that conducts consulting, restaurant development and management operations. Charles Davidson is a franchisee of ours and is the beneficial owner of approximately 18.2% of our 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 years ended December 29, 2019 and December 30, 2018: ​ ​ ​ ​ ​ ​ ​ Year Ended (in thousands) December 29, 2019 December 30, 2018 Revenues and NAF contributions - Anand Gala $ 1,649 ​ $ 1,538 Revenues and NAF contributions - Charles Davidson ​ 314 ​ ​ 308 ​ The following table outlines accounts receivable, net from related parties as of December 29, 2019 and December 30, 2018: ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ December 29, 2019 December 30, 2018 Accounts receivable, net - Anand Gala ​ $ 290 ​ $ 271 Accounts receivable, net - Charles Davidson ​ ​ 77 ​ ​ 44 ​

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 29, 2019
Subsequent Events
Subsequent Events	(17) SUBSEQUENT EVENTS We evaluated for the occurrence of subsequent events through the issuance date of our 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. On February 11, 2020, we entered into an Asset Purchase Agreement with Granite City Food & Brewery Ltd. (“Granite City”) to acquire certain assets associated with Granite City restaurants in connection with the Chapter 11 filing of Granite City (the “Acquisition”). The Acquisition was approved by the Bankruptcy Court at a hearing on February 21, 2020. The purchase price for the assets purchased was $3,650,000. On March 9, 2020, we closed the Acquisition with cash on hand and borrowing under its existing loan agreement with Choice. Subsequent to December 29, 2019, we obtained funding from our agreement with Choice of $8.1 million in the aggregate. As of March 12, 2020, the balance on such note was $15.0 million. In March 2020 the World Health Organization declared the novel strain of coronavirus (“COVID-19”) a global pandemic. This contagious virus, which has continued to spread, has adversely affected workforces, customers, economies, and financial markets globally, leading to an economic downturn. It has also disrupted the normal operations of many businesses, including ours. There have been mandates from federal, state and local authorities requiring forced closures of certain businesses, which could negatively impact our business. As of the date of this filing, certain Company-owned and franchise restaurants have been temporarily closed or only able to offer to-go or delivery. While it is not possible for us to predict the duration or magnitude of the adverse results of the outbreak of COVID-19 and its effects on our business or results of operations at this time, we do anticipate it will have an adverse effect on our revenue and profitability in fiscal 2020. ​

SCHEDULE II - VALUATION AND QUA

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS	12 Months Ended
	Dec. 29, 2019
Schedule II - Valuation and Qualifying Accounts
Schedule II - Valuation and Qualifying Accounts	Financial Statement Schedule SCHEDULE II. VALUATION AND QUALIFYING ACCOUNTS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additions Deductions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Credits to ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Costs and ​ ​ ​ ​ Balance at ​ Charged to ​ Expenses ​ Balance at ​ ​ Beginning of ​ Costs and ​ and Other ​ End of (in thousands) ​ Period ​ Expenses ​ Accounts ​ Period Year ended December 30, 2018: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for doubtful accounts ​ $ 592 ​ $ — ​ $ (400) ​ $ 192 Reserve for lease termination costs and asset retirement obligation ​ ​ 1,799 ​ ​ 511 ​ ​ (1,879) ​ ​ 431 Reserve for corporate severance ​ ​ 355 ​ ​ 98 ​ ​ (453) ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended December 29, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for doubtful accounts ​ $ 192 ​ $ 74 ​ $ (133) ​ $ 132 Reserve for lease termination costs and asset retirement obligation ​ ​ 431 ​ 182 ​ (605) ​ ​ 8 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

NATURE OF BUSINESS AND SIGNIF_2

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 29, 2019
Nature of Business and Significant Accounting Policies
Nature of business	Nature of business On September 17, 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-K, “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, operates and franchises restaurants under the name “Famous Dave’s”, “Clark Crew BBQ”, “Granite City Food & Brewery” and “Real Urban Barbecue.” As of December 29, 2019, there were 128 Famous Dave’s restaurants operating in 32 states, Canada, and the United Arab Emirates, including 32 Company-owned restaurants and 96 franchise-operated restaurants. The first Clark Crew BBQ restaurant opened in December 2019 in Oklahoma City, Oklahoma. On March 16, 2020, we purchased one Real Urban Barbecue restaurant located in Vernon Hills, Illinois. On March 9, 2020, we purchased 18 Granite City Food & Brewery restaurants in connection with a Chapter 11 bankruptcy filing. Seasonality Our restaurants typically generate higher revenue in the second and third quarters of our fiscal year as a result of seasonal traffic increases and high catering sales experienced during the summer months, and lower revenue in the first and fourth quarters of our fiscal year, due to possible adverse weather which can disrupt customer and team member transportation to our restaurants.
Principles of consolidation	Principles of consolidation The accompanying consolidated financial statements include the accounts of our company and its wholly-owned and majority-owned subsidiaries. All inter-company transactions and balances have been eliminated in consolidation.
Use of estimates	Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates.
Financial instruments	Financial instruments Due to their short-term nature, the carrying value of our current financial assets and liabilities approximates their fair value. The fair value of long-term debt approximates the carrying amount based upon our expected borrowing rate for debt with similar remaining maturities and comparable risk.
Segment reporting	Segment reporting We have Company-owned and franchise-operated restaurants in the United States, Canada and the United Arab Emirates, and operate within the single industry segment of foodservice. We make operating decisions on behalf of the BBQ Holdings brand which includes both Company-owned and franchise-operated restaurants. In addition, all operating expenses are reported in total and are not allocated to franchising operations for either external or internal reporting. As a result, we have concluded that we have a single reporting segment.
Fiscal year	Fiscal year Our fiscal year ends on the Sunday nearest to December 31 of each year. Our fiscal year is generally 52 weeks; however, it periodically consists of 53 weeks. The fiscal years ended December 29, 2019 (fiscal 2019) and December 30, 2018 (fiscal 2018) each consisted of 52 weeks. Fiscal 2020, which ends on January 3, 2021, will consist of 53 weeks.
Cash and cash equivalents	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. Our uninsured cash and restricted cash balances were $4.6 million as of the end of each fiscal year 2019 and 2018. There have been no losses of uninsured amounts.
Restricted cash and marketing fund	​ Restricted cash and marketing fund We have a system-wide Marketing Development Fund, to which most Company-owned restaurants, in addition to the majority of franchise-operated restaurants, contribute a percentage of net sales, currently for use in public relations and marketing development efforts. The assets held by this fund are considered to be restricted. Accordingly, we reflect the cash related to this fund within restricted cash and reflect the liability within accounts payable on our consolidated balance sheets. We had approximately $761,000 and $700,000 in this fund as of December 29, 2019 and December 30, 2018, respectively. In conjunction with certain lease agreements, our company was previously required to deposit amounts for undrawn letters of credit in cash collateral accounts. We had approximately $143,000 of restricted cash as of December 30, 2018, related to these undrawn letters of credit.
Accounts receivable, net	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 outstanding 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. 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 our franchisees are required to submit to us. Any changes to the reserve are recorded in general and administrative expenses. Accounts receivable are written off when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for doubtful accounts. Accounts receivable balances written off have not exceeded allowances provided and we believe all accounts receivable in excess of allowances provided 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. As of December 29, 2019, we had a receivable from one franchisee in the amount of $588,000, and from another franchisee in the amount of $476,000 . A portion of these receivables was reserved.
Inventories	Inventories Inventories consist principally of small wares and supplies, food and beverages, and retail goods, and are recorded at the lower of cost (first-in, first-out) or net realizable value.
Assets Held for Sale	Assets Held for Sale
Property, equipment and leasehold improvements, net	Property, equipment and leasehold improvements, net Property, equipment and leasehold improvements are stated at cost, net of accumulated depreciation. We recognize depreciation expense utilizing the straight-line method once an asset has been placed into service. The following table outlines the useful lives of our major classes of property, equipment and leasehold improvements: ​ ​ ​ ​ ​ Buildings ​ ​ 30 years Leasehold improvements ​ ​ 0 - 30 years Furniture, fixtures, equipment and software (excluding restaurant signage) ​ ​ 1 - 7 years Restaurant signage ​ ​ 10 - 15 years Decor ​ ​ 7 years ​ We capitalize labor costs associated with the implementation of significant information technology infrastructure projects based on actual labor rates per person including benefits, for all time spent on the implementation of software and are depreciated over 5 years. We capitalize construction overhead costs until the time a building is turned over to operations, which is approximately two weeks prior to opening and depreciate these items over the same useful life as leasehold improvements. We evaluate restaurant sites and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the 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 future net cash flows expected to be generated on a restaurant-by-restaurant basis. If a restaurant site is determined to be impaired, the loss is measured as the amount by which the carrying amount of the restaurant site 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 and other factors.
Intangible assets	Intangible Assets We have transferable liquor licenses in jurisdictions with a limited number of authorized liquor licenses. These licenses were capitalized as indefinite-lived intangible assets and are included in intangible assets, net in our consolidated balance sheets. We review annually the liquor licenses for impairment. The costs of obtaining non-transferable liquor licenses that are directly issued by local government agencies for nominal fees are expensed as incurred. Annual liquor license renewal fees are expensed over the renewal term. Goodwill represents the excess of cost over the fair value of identified net assets of businesses acquired. Goodwill is tested for impairment annually or on an interim basis if events or changes in circumstances between annual tests indicate a potential impairment. Factors considered include, but are not limited to historical financial performance, a significant decline in expected future cash flows, unanticipated competition, changes in management or key personnel, macroeconomic and industry conditions and the legal and regulatory environment. If the qualitative assessment indicates that it is more likely than not that an impairment exists, then a quantitative assessment is performed. The quantitative assessment requires an analysis of several best estimates and assumptions, including future sales and operating results, and other factors that could affect fair value or otherwise indicate potential impairment. The goodwill impairment assessment involves valuing our reporting units that carry goodwill and considers their projected ability to generate income from operations and positive cash flow in future periods. The fair value assessment could change materially if different estimates and assumptions were used. No goodwill impairment charges were recognized during the years ended December 29, 2019 and December 30, 2018. Reacquired franchise rights are amortized over the life of the related franchise agreement. We evaluate reacquired franchise rights in conjunction with our impairment evaluation of long-lived assets.
Advertising	Advertising Advertising costs are charged to expense as incurred. Advertising costs were approximately $2.8 million and $2.7 million for the years ended December 29, 2019 and December 30, 2018, respectively, and are included in operating expenses for local store marketing and in national advertising fund expenses for national advertising in the consolidated statements of operations.
Research and development costs	Research and development costs Research and development costs represent all expenses incurred in relation to the creation of new menu and promotional offerings, recipe enhancements and documentation activities. Research and development costs were approximately $489,000 and $441,000
Pre-opening expenses	Pre-opening expenses All start-up and pre-opening costs are expensed as incurred. Pre-opening rent during the build-out period is included in pre-opening expense. We incurred approximately $460,000 of pre-opening expenses during the year ended December 29, 2019 and no such expense during the year ended December 30, 2018.
Leases	Leases We lease the property for our corporate headquarters, most of our Company-owned stores, and certain office and restaurant equipment. Beginning in fiscal 2019, we adopted ASU 2016-02 - Leases 5- easements one
Exit and disposal costs	Exit and disposal costs Exit or disposal activities, including restaurant closures, include the cost of disposing of the assets and other facility-related expenses from previously closed restaurants. These costs are generally expensed as incurred. Additionally, at the date we cease using a property under an operating lease, we remove the remaining balance of the ROU asset. Any subsequent adjustments to the related liability as a result of lease termination are recorded in the period incurred. Upon disposal of the assets associated with a closed restaurant, any gain or loss is recorded in the same caption as the original impairment within our consolidated statements of operations. We recognize a liability for the fair value of a required asset retirement obligation (“ARO”) when such obligation is incurred. Our AROs are primarily associated with leasehold improvements which, at the end of a lease, we are contractually obligated to remove in order to comply with the lease agreement. Costs incurred for restaurants that have been closed, after the date of their closure, are presented within the asset impairment, estimated lease termination and other closing costs line item of our consolidated statements of operations.
Net income (loss) per common share	Net income (loss) per common share Basic net income (loss) per common share (“EPS”) is computed by dividing net income (loss) 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 (loss) income per common share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ (in thousands, except per share data) December 29, 2019 December 30, 2018 ​ Net (loss) income per share – basic: ​ ​ ​ ​ Net (loss) income attributable to shareholders ​ $ (649) ​ $ 4,862 ​ Weighted average shares outstanding - basic ​ 9,099 ​ 8,599 ​ Basic net (loss) income per share ​ $ (0.07) ​ $ 0.57 ​ ​ ​ ​ ​ ​ ​ ​ ​ Net (loss) income per share – diluted: ​ ​ ​ Net (loss) income attributable to shareholders ​ $ (649) ​ $ 4,862 ​ Weighted average shares outstanding - diluted ​ 9,099 ​ 8,624 ​ Diluted net (loss) income per share ​ $ (0.07) ​ $ 0.56 ​ ​ There were approximately 191,000 and 111,000
Stock-based compensation	Stock-based compensation We recognize compensation cost for share-based awards granted to team members and board members based on their fair values at the time of grant over the requisite service period. Stock options granted to non-employees are marked to market as they vest. The bonus compensation of our Chief Executive Officer is issued in the form of unrestricted, freely tradable shares of our common stock and is expensed in full when earned. Our pre-tax compensation cost for stock options and other incentive awards is included in general and administrative expenses in our consolidated statements of operations. See Note 9 “Stock-based compensation.” Beginning in fiscal 2019, we adopted ASU 2018-07 – Stock Compensation , which simplifies the accounting related to nonemployee share-based payments. The update brings the accounting for nonemployees in line with that of awards granted to employees. The standard allows for measurement at the grant date for equity awards as opposed to the earlier of the performance commitment date or the date performance is complete. The new standard allows an entity to use the expected term or the contractual term.
Income taxes	Income Taxes We provide for income taxes based on our 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. Our estimates are based on the information available to us at the time that we prepare the income tax provision. We generally file our annual income tax returns several months after our 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 or differing interpretations of the tax laws.
Revenue recognition	Revenue recognition We recognize revenue at the point in time when food and services are provided to a restaurant Guest or other customer. Revenues from restaurant operations are presented net of discounts, coupons, employee meals and complimentary meals and recognized when food, beverage and retail products are sold. Sales tax collected from customers is excluded from sales and the obligation is included in sales tax payable until the taxes are remitted to the appropriate taxing authorities. Revenue from catered events are recognized in income upon satisfaction of the performance obligation (the date the event is held). All customer payments, including nonrefundable upfront deposits, are deferred as a liability until such time. We recognize franchise fee revenue on a straight-line basis over the life of the related franchise agreements and any exercised renewal periods. Cash payments are due upon the opening of a new restaurant or upon the execution of a renewal of the related franchise agreement. Our performance obligation with respect to franchise fee revenues consists of a license to utilize our company’s brand for a specified period of time, which is satisfied equally over the life of each franchise agreement. Area development fees are deferred until a new restaurant is opened pursuant to the area development agreement, at which time revenue is recognized on a straight-line basis over the life of the franchise agreement. Cash payments for area development agreements are typically due when an area development agreement has been executed. Gift card breakage revenue is recognized proportionately as gift cards are redeemed utilizing an estimated breakage rate based on our company’s historical experience. Gift card breakage revenue is reported within the licensing and other revenue line item of the consolidated statements of operations. Our company defers revenue associated with the estimated selling price of reward points earned pursuant to our loyalty program and establishes a corresponding liability. This deferral is based on the estimated value of the product for which the reward is expected to be redeemed, net of estimated unredeemed points. When a Guest redeems an earned reward, we recognize revenue for the redeemed product and reduce the deferred revenue. Deferred revenue associated with our loyalty program was not material as of December 29, 2019 and December 30, 2018. Contract liabilities consist of deferred revenue resulting from franchise fees paid by franchisees. We classify these liabilities within other current liabilities and other liabilities within our consolidated balance sheets based on the expected timing of revenue recognition associated with these liabilities. The following table reflects the change in contract liabilities between December 29, 2019 and December 30, 2018: ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ Balance, December 30, 2018 ​ $ 1,998 Revenue recognized ​ ​ (680) Balance, December 29, 2019 ​ $ 1,318 ​ The following table illustrates estimated revenues expected to be recognized in the future related to unsatisfied performance obligations as of December 29, 2019: ​ ​ ​ ​ ​ (in thousands) ​ Fiscal Year ​ 2020 ​ $ 130 2021 ​ 114 2022 ​ 112 2023 ​ 105 2024 ​ 93 Thereafter ​ 764 Total ​ $ 1,318 ​
Recent accounting guidance	Recent Accounting Guidance Recently adopted accounting guidance 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 were effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption was permitted for all entities. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842), which allows entities to initially apply the new lease standard as of the adoption date instead of at the beginning of the earliest period presented in the financial statements. The new lease standard provides for a modified retrospective approach or current period adjustment approach for all leases existing at, or entered into after the date of initial adoption, with an option to elect to use certain transition relief. We adopted the new lease standard as of the effective date by applying the current period adjustment approach, utilizing the package of practical expedients available and the practical expedient to not reassess land easements. ​ In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718), which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. Under the updated standard, an entity should apply the requirements of Topic 718 to nonemployee awards, except for specific guidance on inputs to an option-pricing model and the attribution of cost. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in the grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling or goods or services as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. The amendments in this ASU were effective for fiscal years beginning after December 15, 2018 and interim periods within that fiscal year. Early adoption was permitted, but no earlier than an entity’s adoption date of Topic 606. We adopted this new standard as of the effective date with no material impact on our consolidated financial statements.

NATURE OF BUSINESS AND SIGNIF_3

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 29, 2019
Nature of Business and Significant Accounting Policies
Schedule of property, plant and equipment useful lives	​ ​ ​ ​ ​ Buildings ​ ​ 30 years Leasehold improvements ​ ​ 0 - 30 years Furniture, fixtures, equipment and software (excluding restaurant signage) ​ ​ 1 - 7 years Restaurant signage ​ ​ 10 - 15 years Decor ​ ​ 7 years
Schedule of reconciliation of basic and diluted net (loss) income per common share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ (in thousands, except per share data) December 29, 2019 December 30, 2018 ​ Net (loss) income per share – basic: ​ ​ ​ ​ Net (loss) income attributable to shareholders ​ $ (649) ​ $ 4,862 ​ Weighted average shares outstanding - basic ​ 9,099 ​ 8,599 ​ Basic net (loss) income per share ​ $ (0.07) ​ $ 0.57 ​ ​ ​ ​ ​ ​ ​ ​ ​ Net (loss) income per share – diluted: ​ ​ ​ Net (loss) income attributable to shareholders ​ $ (649) ​ $ 4,862 ​ Weighted average shares outstanding - diluted ​ 9,099 ​ 8,624 ​ Diluted net (loss) income per share ​ $ (0.07) ​ $ 0.56 ​
Schedule of change in contract liabilities	​ ​ ​ ​ ​ (in thousands) ​ ​ ​ Balance, December 30, 2018 ​ $ 1,998 Revenue recognized ​ ​ (680) Balance, December 29, 2019 ​ $ 1,318
Schedule of estimated revenues expected to be recognized in the future related to unsatisfied performance obligations	​ ​ ​ ​ ​ (in thousands) ​ Fiscal Year ​ 2020 ​ $ 130 2021 ​ 114 2022 ​ 112 2023 ​ 105 2024 ​ 93 Thereafter ​ 764 Total ​ $ 1,318

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
	Dec. 29, 2019
Inventories
Schedule of inventories	​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ December 29, 2019 ​ December 30, 2018 Food and beverage ​ $ 798 ​ $ 389 Smallwares and supplies ​ 548 ​ 333 ​ ​ $ 1,346 ​ $ 722

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 29, 2019
Intangible Assets
Schedule of intangible assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ December 29, 2019 December 30, 2018 Lease interest assets, net ​ ​ ​ ​ - ​ ​ 768 Reacquired franchise rights, net ​ ​ ​ ​ 1,788 ​ ​ 25 Goodwill ​ ​ ​ ​ 640 ​ ​ 61 Liquor licenses ​ ​ ​ ​ 425 ​ ​ 635 Intangible assets, net ​ ​ ​ $ 2,853 ​ $ 1,489
Schedule of projected future amortization of lease interest assets and reacquired franchise rights	​ ​ ​ ​ (in thousands) Reacquired Franchise Rights, net Fiscal 2020 $ 418 Fiscal 2021 ​ 418 Fiscal 2022 ​ 418 Fiscal 2023 ​ 253 Fiscal 2024 ​ 132 Thereafter ​ 149 ​ $ 1,788

PROPERTY, EQUIPMENT, AND LEAS_2

PROPERTY, EQUIPMENT, AND LEASEHOLD IMPROVEMENTS, NET (Tables)	12 Months Ended
	Dec. 29, 2019
Property, Equipment, And Leasehold Improvements, Net
Schedule of property, equipment, and leasehold improvements, net	​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ December 29, 2019 ​ December 30, 2018 Land, buildings, and improvements ​ $ 28,185 ​ $ 24,191 Furniture, fixtures, equipment and software ​ 17,880 ​ 16,108 Décor ​ 584 ​ 681 Construction in progress ​ 483 ​ 138 Accumulated depreciation and amortization ​ (27,376) ​ (30,733) Property, equipment and leasehold improvements, net ​ $ 19,756 ​ $ 10,385

OTHER CURRENT LIABILITIES (Tabl

OTHER CURRENT LIABILITIES (Tables)	12 Months Ended
	Dec. 29, 2019
Other Current Liabilities
Schedule of other current liabilities	​ ​ ​ ​ ​ ​ ​ ​ (in thousands) December 29, 2019 ​ December 30, 2018 Gift cards payable ​ $ 2,360 ​ $ 1,035 Accrued expenses ​ 1,874 ​ 1,238 Asset retirement obligations and lease reserves ​ ​ 6 ​ ​ 161 Sales tax payable ​ 584 ​ 274 State income tax payable ​ ​ — ​ ​ 16 Deferred franchise fees ​ 151 ​ 207 Accrued property and equipment purchases ​ — ​ 39 Other current liabilities ​ $ 4,975 ​ $ 2,970

OTHER LIABILITIES (Tables)

OTHER LIABILITIES (Tables)	12 Months Ended
	Dec. 29, 2019
Other Liabilities
Schedule of other noncurrent liabilities	​ ​ ​ ​ ​ ​ ​ ​ (in thousands) December 29, 2019 ​ December 30, 2018 Deferred rent ​ $ — ​ $ 1,787 Deferred franchise fees ​ ​ 1,165 ​ ​ 1,791 Miscellaneous other liabilities ​ 216 ​ 441 Asset retirement obligations ​ 3 ​ 16 Accrual for uncertain tax position ​ ​ 6 ​ ​ 10 Long-term lease reserve ​ — ​ 254 Long-term deferred compensation ​ 220 ​ 193 Other liabilities ​ $ 1,610 ​ $ 4,492

LONG-TERM DEBT AND FINANCING _2

LONG-TERM DEBT AND FINANCING LEASE OBLIGATIONS (Tables)	12 Months Ended
	Dec. 29, 2019
Long-term Debt and Financing Lease Obligations
Schedule of long-term debt	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) December 29, 2019 ​ December 30, 2018 Term Loan ​ $ 6,924 $ — Real Estate Loan ​ ​ — ​ ​ 2,705 Less: deferred financing costs ​ (50) (131) Less: current portion of long-term debt ​ (616) (163) Long-term debt, less current portion ​ $ 6,258 $ 2,411
Schedule of minimum principal payments on long-term debt	​ ​ ​ ​ ​ (in thousands) ​ Fiscal Year ​ 2020 ​ $ 616 2021 ​ 1,280 2022 ​ 1,347 2023 ​ 1,417 2024 ​ 1,490 Thereafter ​ 774 Total ​ $ 6,924

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 29, 2019
Commitments and Contingencies
Schedule of lease cost	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended (in thousands) ​ ​ ​ ​ ​ ​ ​ December 29, 2019 Operating lease cost ​ ​ ​ ​ ​ ​ ​ $ 4,261 ​ Short-term lease cost ​ ​ ​ ​ ​ ​ ​ ​ 123 ​ Variable lease cost ​ ​ ​ ​ ​ ​ ​ ​ 31 ​ Sublease income ​ ​ ​ ​ ​ ​ ​ ​ (248) ​ Total lease cost ​ ​ ​ ​ ​ ​ ​ ​ 4,167 ​
Schedule of Supplemental Cash Flow Information Of Leases	​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ (in thousands) ​ December 29, 2019 ​ Cash paid for amounts included in the measurement of lease liabilities: ​ ​ ​ ​ Operating cash flows from operating leases ​ $ 4,424 ​ Right-of-use assets obtained in exchange for new operating lease liabilities ​ ​ 18,458 ​ Weighted-average remaining lease term of operating leases (in years) ​ ​ 9.56 ​ Weighted-average discount rate of operating leases ​ ​ 5.56 %
Schedule of future maturities of lease liabilities	​ ​ ​ ​ ​ (in thousands) ​ Fiscal Year ​ 2020 ​ $ 5,194 2021 ​ 5,078 2022 ​ 4,785 2023 ​ 3,918 2024 ​ 2,856 Thereafter ​ 15,070 Total operating lease obligations ​ 36,901 Less imputed interest ​ (5,944) Total ​ $ 30,957

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	12 Months Ended
	Dec. 29, 2019
Stock-based Compensation
Schedule of recognized stock-based compensation expense	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ (in thousands) December 29, 2019 December 30, 2018 ​ Stock options ​ $ 266 ​ $ 208 ​ Shares of common stock ​ ​ — ​ ​ 70 ​ Restricted stock ​ 198 ​ — ​ ​ ​ $ 463 ​ $ 278 ​
Schedule of stock option activity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ Number of ​ ​ ​ ​ Remaining ​ ​ Aggregate ​ ​ Options ​ Weighted Average ​ Contractual ​ ​ Intrinsic Value ​ (in thousands) Exercise Price Life in Years ​ (in thousands) Options outstanding at December 31, 2017 539 ​ $ 6.60 ​ 6.6 ​ $ 598 Granted 90 ​ 7.67 ​ ​ ​ ​ — Exercised ​ (102) ​ ​ 5.28 ​ ​ ​ ​ 273 Canceled, forfeited or expired (143) ​ 5.74 ​ ​ ​ ​ 231 Options outstanding at December 30, 2018 384 ​ $ 7.43 ​ 6.7 ​ $ 29 Granted 212 ​ 4.37 ​ ​ ​ ​ — Exercised (5) ​ 3.90 ​ ​ ​ ​ 6 Canceled, forfeited or expired (138) ​ 5.22 ​ ​ ​ ​ 68 Options outstanding at December 29, 2019 453 ​ $ 6.71 ​ 5.7 ​ $ 28 Options exercisable at December 29, 2019 280 ​ $ 7.54 ​ 5.1 ​ $ 19
Schedule of stock option valuation assumptions	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ December 29, 2019 ​ December 30, 2018 ​ Weighted-average fair value of options granted during the period ​ $ 1.88 ​ $ 3.73 ​ Expected life (in years) ​ 4.6 ​ 6.2 ​ Expected dividend ​ $ — ​ $ — ​ Expected stock volatility ​ 50.55 % 45.94 % Risk-free interest rate ​ 1.9 % 2.9 %

RETIREMENT SAVINGS PLANS (Table

RETIREMENT SAVINGS PLANS (Tables)	12 Months Ended
	Dec. 29, 2019
Retirement Savings Plans
Schedule of information on 401(k) plan	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ (dollars in thousands) ​ December 29, 2019 ​ December 30, 2018 ​ Employer contribution rate, percent of employee contributions ​ ​ 25.0 % 25.0 % Employee contribution rate, maximum percentage of employee earnings subject to employer matching ​ ​ 4.0 % 4.0 % Employee contributions ​ $ 570 ​ $ 469 ​ Employer match ​ $ 113 ​ $ 76 ​ Discretionary contributions ​ $ — ​ $ — ​
Schedule of non-qualified deferred compensation plan information	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ (dollars in thousands) ​ December 29, 2019 ​ December 30, 2018 ​ Employer contribution rate, percent of employee contributions ​ ​ 25.0 % 25.0 % Employee contribution rate, maximum percentage of employee earnings subject to employer matching ​ ​ 4.0 % 4.0 % Declared interest rate ​ ​ 6.0 % 6.0 % Employee contributions ​ $ 47 ​ $ 36 ​ Employer match and interest ​ $ 6 ​ $ 17 ​ Distributions ​ $ 32 ​ $ 30 ​

RESTAURANT ACQUISITIONS (Tables

RESTAURANT ACQUISITIONS (Tables)	12 Months Ended
	Dec. 29, 2019
Business Acquisition [Line Items]
Schedule of pro forma information	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ December 29, 2019 ​ December 30, 2018 (in thousands) ​ ​ ​ ​ Pro forma revenues ​ $ 99,053 ​ $ 102,186 Pro forma net income ​ $ 75 ​ $ 7,308 Basic pro forma net income per share attributable to shareholders ​ $ 0.01 ​ $ 0.85 Diluted pro forma net income per share attributable to shareholders ​ $ 0.01 ​ $ 0.85
Restaurant Acquisitions 2018
Business Acquisition [Line Items]
Schedule of allocation of assets acquired and liabilities assumed	​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ ​ ​ ​ Assets acquired: ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ ​ ​ ​ $ 4 Inventory ​ ​ ​ ​ ​ 66 Property, plant, equipment and leasehold improvements, net ​ ​ ​ ​ ​ 91 Goodwill ​ ​ ​ ​ ​ 42 Reacquired franchise rights, net ​ ​ ​ ​ ​ 25 Total assets acquired ​ ​ ​ ​ ​ 228 Gift card liability assumed ​ ​ ​ ​ ​ (25) Total purchase price ​ ​ ​ ​ $ 203
Arizona Restaurants
Business Acquisition [Line Items]
Schedule of allocation of assets acquired and liabilities assumed	​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ ​ ​ ​ Assets acquired: ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ ​ ​ ​ $ 12 Inventory ​ ​ ​ ​ ​ 103 Property, plant, equipment and leasehold improvements, net ​ ​ ​ ​ ​ 5,177 Lease right-of-use asset, net of unfavorable lease value ​ ​ ​ ​ ​ 731 Total identifiable assets acquired ​ ​ ​ ​ ​ 6,023 Liabilities assumed: ​ ​ ​ ​ ​ ​ Gift card liability ​ ​ ​ ​ ​ (428) Lease liability ​ ​ ​ ​ ​ (2,992) Net assets acquired ​ ​ ​ ​ ​ 2,603 Goodwill ​ ​ ​ ​ ​ 415 Total consideration transferred ​ ​ ​ ​ $ 3,018
Colorado and Grand Junction Restaurants
Business Acquisition [Line Items]
Schedule of allocation of assets acquired and liabilities assumed	​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ ​ ​ ​ Assets acquired: ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ ​ ​ ​ $ 13 Inventory ​ ​ ​ ​ ​ 176 Property, plant, equipment and leasehold improvements, net ​ ​ ​ ​ ​ 3,139 Lease right-of-use asset, net of unfavorable lease value ​ ​ ​ ​ ​ 6,729 Identifiable intangible assets, net ​ ​ ​ ​ ​ 1,368 Total identifiable assets acquired ​ ​ ​ ​ ​ 11,425 Liabilities assumed: ​ ​ ​ ​ ​ ​ Gift card liability ​ ​ ​ ​ ​ (182) Lease liability ​ ​ ​ ​ ​ (7,116) Net assets acquired ​ ​ ​ ​ ​ 4,127 Goodwill ​ ​ ​ ​ ​ 373 Total consideration transferred ​ ​ ​ ​ $ 4,500
Other individually immaterial acquisitions
Business Acquisition [Line Items]
Schedule of allocation of assets acquired and liabilities assumed	​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ ​ ​ ​ Assets acquired: ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ ​ ​ ​ $ 15 Inventory ​ ​ ​ ​ ​ 202 Property, plant, equipment and leasehold improvements, net ​ ​ ​ ​ ​ 362 Lease right-of-use asset, net of unfavorable lease value ​ ​ ​ ​ ​ 6,109 Identifiable intangible assets, net ​ ​ ​ ​ ​ 728 Total identifiable assets acquired ​ ​ ​ ​ ​ 7,416 Liabilities assumed: ​ ​ ​ ​ ​ ​ Gift card liability ​ ​ ​ ​ ​ (71) Lease liability ​ ​ ​ ​ ​ (6,715) Net assets acquired ​ ​ ​ ​ ​ 630 Gain on bargain purchase ​ ​ ​ ​ ​ (178) Total consideration transferred ​ ​ ​ ​ $ 452

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 29, 2019
Income Taxes
Schedule of components of income (loss) before income taxes	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended (in thousands) December 29, 2019 December 30, 2018 United States ​ $ (2,072) ​ $ 5,370 Foreign ​ 166 ​ 221 Total ​ $ (1,906) ​ $ 5,591
Schedule of components of income tax (expense) benefit	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended (in thousands) December 29, 2019 December 30, 2018 Current: ​ ​ ​ ​ ​ ​ Federal ​ $ (10) ​ $ 4 State ​ (48) ​ (17) Foreign ​ (25) ​ (77) ​ ​ (83) ​ (90) ​ ​ ​ ​ ​ ​ ​ Deferred: ​ ​ Federal ​ 603 ​ (532) State ​ 139 ​ (107) ​ ​ 742 ​ (639) Total income tax (expense) benefit ​ $ 659 ​ $ (729)
Schedule of reconciliation of gross unrecognized tax benefit	​ ​ ​ ​ ​ (in thousands) ​ ​ Balance at December 31, 2017 ​ 13 Decreases due to lapses of statutes of limitations ​ (5) Balance at December 30, 2018 ​ 8 Decreases due to lapses of statutes of limitations ​ (4) Balance at December 29, 2019 ​ $ 4
Schedule of the components of net deferred tax assets	​ ​ ​ ​ ​ ​ ​ ​ (in thousands) December 29, 2019 December 30, 2018 Deferred tax asset: ​ ​ ​ ​ ​ ​ Deferred rent ​ $ — ​ $ 411 Federal net operating loss carry-forwards ​ ​ 1,980 ​ 1,812 State net operating loss carry-forwards ​ 1,993 ​ 4,130 Intangible property basis difference ​ ​ (7) ​ 131 Financing lease obligation ​ — ​ 299 Tax credit carryover ​ 2,581 ​ 2,164 Accrued expenses ​ 168 ​ 205 Stock-based compensation ​ 187 ​ 103 Deferred revenue ​ 693 ​ 666 Lease reserve ​ 8,060 ​ 107 Accrued and deferred compensation ​ 53 ​ 36 Contribution carryover ​ 50 ​ 46 Transaction and organization costs ​ ​ 121 ​ ​ — Inventories ​ 10 ​ 5 Total deferred tax asset ​ $ 15,889 ​ $ 10,115 ​ ​ ​ ​ ​ ​ ​ Deferred tax liability: ​ ​ ​ ​ ​ ​ Property and equipment basis difference ​ $ (755) ​ $ (568) Inventories ​ (146) ​ (83) Prepaid expenses ​ (365) ​ (236) Right of use asset ​ (6,664) ​ — Total deferred tax liability ​ $ (7,930) ​ $ (887) ​ ​ ​ ​ ​ ​ ​ Net deferred tax assets ​ 7,959 ​ 9,228 Valuation allowance ​ (1,313) ​ (3,481) Deferred tax asset, net ​ $ 6,646 ​ $ 5,747
Schedule of reconciliation from statutory tax rate to effective tax rate	​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ December 29, 2019 December 30, 2018 Federal statutory tax rate 21.0 % 21.0 % State taxes, net of valuation allowance and federal benefit (4.7) 2.2 Deferred rate change ​ 11.9 ​ (0.6) ​ Foreign taxes (2.0) 1.4 Tax effect of permanent differences 0.5 (0.1) Tax effect of general business credits 24.3 (3.4) Tax effect of foreign tax credit 2.0 (3.2) Uncertain tax positions 0.3 (0.1) Return to provision update ​ (173.8) ​ (15.7) ​ Change in valuation allowance ​ 171.8 ​ 11.5 ​ Other 0.9 — Effective tax rate 52.2 % 13.0 %

ASSET IMPAIRMENT AND ESTIMATE_2

ASSET IMPAIRMENT AND ESTIMATED LEASE TERMINATION AND OTHER CLOSING COSTS (Tables)	12 Months Ended
	Dec. 29, 2019
Asset Impairment and Estimated Lease Termination and Other Closing Costs
Schedule of asset impairment, estimated lease termination and other closing costs	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended (dollars in thousands) December 29, 2019 December 30, 2018 Asset impairments, net ​ $ 282 ​ $ 89 Lease termination charges (income) and related costs ​ ​ 926 ​ ​ (271) Restaurant closure expenses ​ ​ 88 ​ ​ 327 Asset impairment, estimated lease termination charges and other closing costs ​ $ 1,296 ​ $ 145
Schedule of change in reserve for lease termination costs	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deductions ​ ​ ​ ​ ​ ​ ​ ​ ​ Credits to ​ ​ ​ ​ ​ ​ ​ ​ Additions ​ Costs and ​ ​ ​ ​ ​ Balance at ​ Charged to ​ Expenses ​ Balance at ​ ​ Beginning of ​ Costs and ​ and Other ​ End of (in thousands) ​ Period ​ Expenses ​ Accounts ​ Period Year Ended December 29, 2019 ​ ​ Reserve for lease termination costs and asset retirement obligations ​ $ 431 182 (605) ​ $ 8 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 30, 2018 ​ ​ Reserve for lease termination costs and asset retirement obligations ​ $ 1,799 511 (1,879) ​ $ 431

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	12 Months Ended
	Dec. 29, 2019
Related Party Transactions
Schedules of related party transactions	The following table outlines amounts received from related parties during the years ended December 29, 2019 and December 30, 2018: ​ ​ ​ ​ ​ ​ ​ Year Ended (in thousands) December 29, 2019 December 30, 2018 Revenues and NAF contributions - Anand Gala $ 1,649 ​ $ 1,538 Revenues and NAF contributions - Charles Davidson ​ 314 ​ ​ 308 ​ The following table outlines accounts receivable, net from related parties as of December 29, 2019 and December 30, 2018: ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ December 29, 2019 December 30, 2018 Accounts receivable, net - Anand Gala ​ $ 290 ​ $ 271 Accounts receivable, net - Charles Davidson ​ ​ 77 ​ ​ 44

NATURE OF BUSINESS AND SIGNIF_4

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Details)	Mar. 16, 2020restaurant	Mar. 09, 2020restaurant	Jan. 03, 2021	Dec. 29, 2019USD ($)restaurantitem$ / sharesshares	Dec. 30, 2018USD ($)$ / sharesshares
Business information
Duration of a fiscal reporting year			371 days	364 days
Number of restaurants | restaurant				128
Number of states in which entity operates | item				32
FDIC insured cash amount per account				$ 250,000
Uninsured cash balances				4,600,000	$ 4,600,000
Losses on uninsured cash balances				0	0
Restricted cash				761,000	842,000
Accounts receivable, net				4,379,000	4,300,000
Advertising expense				2,800,000	2,700,000
Research and development expense				489,000	441,000
Pre-opening expenses				460,000	0
Assets held for sale
Assets held for sale				2,842,000
Contract sale price for assets held for sale				3,600,000
Goodwill
Goodwill impairment				0	0
Net income (loss) per common share
Net (loss) income attributable to shareholders				$ (649,000)	$ 4,862,000
Weighted average shares outstanding - basic | shares				9,099,000	8,599,000
Basic net (loss) income per share | $ / shares				$ (0.07)	$ 0.57
Weighted average shares outstanding - diluted | shares				9,099,000	8,624,000
Diluted net (loss) income per share | $ / shares				$ (0.07)	$ 0.56
Anti-dilutive shares excluded from computation of diluted net income per share | shares				191,000	111,000
Accounts Receivable | Customer Concentration Risk | Franchisee One
Business information
Accounts receivable, net				$ 588,000
Accounts Receivable | Customer Concentration Risk | Franchisee Two
Business information
Accounts receivable, net				476,000
Public Relations and Marketing Development Fund
Business information
Restricted cash				$ 761,000	$ 700,000
Cash Restricted for Letters of Credit
Business information
Restricted cash					$ 143,000
Minimum
Business information
Duration of a fiscal reporting year				364 days
Maximum
Business information
Duration of a fiscal reporting year				371 days
Buildings
Property, equipment and leasehold improvements
Useful lives				30 years
Furniture, Fixtures, Equipment and Software | Minimum
Property, equipment and leasehold improvements
Useful lives				1 year
Furniture, Fixtures, Equipment and Software | Maximum
Property, equipment and leasehold improvements
Useful lives				7 years
Software
Property, equipment and leasehold improvements
Useful lives				5 years
Leasehold Improvements | Minimum
Property, equipment and leasehold improvements
Useful lives				0 years
Leasehold Improvements | Maximum
Property, equipment and leasehold improvements
Useful lives				30 years
Restaurant Signage | Minimum
Property, equipment and leasehold improvements
Useful lives				10 years
Restaurant Signage | Maximum
Property, equipment and leasehold improvements
Useful lives				15 years
Decor
Property, equipment and leasehold improvements
Useful lives				7 years
Real Urban Barbecue Restaurant
Business information
Number of restaurants acquired | restaurant	1
Granite City Food & Brewery Restaurants
Business information
Number of restaurants acquired | restaurant		18
Franchised Units
Business information
Number of restaurants | restaurant				96
Entity Operated Units
Business information
Number of restaurants | restaurant				32

NATURE OF BUSINESS AND SIGNIF_5

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - ASU 2016-02 (Details) $ in Thousands	12 Months Ended
	Dec. 29, 2019USD ($)Options
Leases
Operating lease liability | $	$ 30,957
Operating lease, renewal term	5 years
Lease, Practical Expedients, Package [true false]	true
Lease, Practical Expedient, Land Easement [true false]	true
Lessee, Operating Lease, Existence of Option to Extend [true false]	true
Lease, Practical Expedient, Use of Hindsight [true false]	false
Minimum
Leases
Operating lease, term	5 years
Number of renewal options | Options	1
Operating lease, remaining lease term	1 year
Maximum
Leases
Operating lease, term	20 years
Operating lease, remaining lease term	20 years

NATURE OF BUSINESS AND SIGNIF_6

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - ASC 606 (Details) $ in Thousands	12 Months Ended
	Dec. 29, 2019USD ($)
Change in contract liabilities
Beginning balance	$ 1,998
Revenue recognized	(680)
Ending balance	1,318
Estimated future revenues expected to be recognized for performance obligations
Revenue expected to be recognized	1,318
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-12-30
Estimated future revenues expected to be recognized for performance obligations
Revenue expected to be recognized	$ 130
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-04
Estimated future revenues expected to be recognized for performance obligations
Revenue expected to be recognized	$ 114
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-03
Estimated future revenues expected to be recognized for performance obligations
Revenue expected to be recognized	$ 112
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 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	$ 105
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	$ 93
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	$ 764
Revenue, remaining performance obligation, expected timing of satisfaction, period

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Dec. 29, 2019	Dec. 30, 2018
Inventories
Food and beverage	$ 798	$ 389
Smallwares and supplies	548	333
Inventories	$ 1,346	$ 722

INTANGIBLE ASSETS - Carrying Am

INTANGIBLE ASSETS - Carrying Amounts (Details) - USD ($) $ in Thousands	Dec. 30, 2019	Dec. 29, 2019	Dec. 30, 2018
Intangible assets
Operating lease right-of-use assets		$ 25,962
Goodwill		640	$ 61
Liquor licenses		425	635
Intangible assets, net		2,853	1,489
Lease Interest Assets
Intangible assets
Finite lived intangible assets, net			768
Lease Interest Assets | ASU 2016-02 | Restatement Adjustment
Intangible assets
Operating lease right-of-use assets	$ 768
Finite lived intangible assets, net	$ (768)
Franchise Rights
Intangible assets
Finite lived intangible assets, net		$ 1,788	$ 25

INTANGIBLE ASSETS - Amortizatio

INTANGIBLE ASSETS - Amortization Expense (Details) - Franchise Rights - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2019	Dec. 30, 2018
Intangible assets
Fiscal 2020	$ 418
Fiscal 2021	418
Fiscal 2022	418
Fiscal 2023	253
Fiscal 2024	132
Thereafter	149
Finite lived intangible assets, net	1,788	$ 25
Amortization expense	$ 306	$ 1
Estimated useful life	8 years

PROPERTY, EQUIPMENT, AND LEAS_3

PROPERTY, EQUIPMENT, AND LEASEHOLD IMPROVEMENTS, NET (Details) - USD ($) $ in Thousands	Dec. 29, 2019	Dec. 30, 2018
Property, Equipment, And Leasehold Improvements, Net
Land, buildings, and improvements	$ 28,185	$ 24,191
Furniture, fixtures, equipment and software	17,880	16,108
Decor	584	681
Construction in progress	483	138
Accumulated depreciation and amortization	(27,376)	(30,733)
Property, equipment and leasehold improvements, net	$ 19,756	$ 10,385

OTHER CURRENT LIABILITIES (Deta

OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 29, 2019	Dec. 30, 2018
Other current liabilities
Gift cards payable	$ 2,360	$ 1,035
Accrued expenses	1,874	1,238
Asset retirement obligations and lease reserves	6	161
Sales tax payable	584	274
State income tax payable		16
Deferred franchise fees	151	207
Accrued property and equipment purchases		39
Total other current liabilities	$ 4,975	$ 2,970

OTHER LIABILITIES (Details)

OTHER LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 29, 2019	Dec. 30, 2018
Other Liabilities
Deferred rent		$ 1,787
Deferred franchise fees	$ 1,165	1,791
Miscellaneous other liabilities	216	441
Asset retirement obligations	3	16
Accrual for uncertain tax position	6	10
Long-term lease reserve		254
Long-term deferred compensation	220	193
Other liabilities	$ 1,610	$ 4,492

LONG-TERM DEBT AND FINANCING _3

LONG-TERM DEBT AND FINANCING LEASE OBLIGATIONS - Narrative (Details) $ in Thousands	Jun. 20, 2019USD ($)	Dec. 30, 2018USD ($)property	Dec. 29, 2019USD ($)
Long-term debt
Weighted average interest rate		4.41%	5.00%
Outstanding balance			$ 6,924
Revolving Promissory Note
Long-term debt
Maximum borrowing capacity	$ 1,000
Outstanding balance	$ 0
Revolving Promissory Note | 30-day LIBOR
Long-term debt
Debt instrument, basis spread on variable rate	3.25%
Minimum | Prime Rate
Long-term debt
Rate of interest	5.00%
Minimum | Revolving Promissory Note
Long-term debt
Rate of interest	3.75%
Financing Arrangement - Sale Leaseback
Long-term debt
Weighted average interest rate		8.09%
Number of properties that can be repurchased at the end of the lease term | property		2
Term Loan
Long-term debt
Maximum borrowing capacity	$ 24,000
Period of time, after the first year of the draw period, during which both principal and interest payments are due	5 years
Debt principal amortization period	60 months
Outstanding balance			$ 6,924
Prepayment penalty	$ 0
Real Estate Loan
Long-term debt
Outstanding balance	$ 2,600	$ 2,705

LONG-TERM DEBT AND FINANCING _4

LONG-TERM DEBT AND FINANCING LEASE OBLIGATIONS - Long-Term Debt and Financing Lease (Details) - USD ($) $ in Thousands	Dec. 29, 2019	Jun. 20, 2019	Dec. 30, 2018
Debt Instrument Carrying Amount	$ 6,924
Less: deferred financing costs	(50)		$ (131)
Less: current portion of long-term debt	(616)		(163)
Long-term debt, less current portion	6,258		2,411
Term Loan
Debt Instrument Carrying Amount	$ 6,924
Real Estate Loan
Debt Instrument Carrying Amount		$ 2,600	$ 2,705

LONG-TERM DEBT AND FINANCING _5

LONG-TERM DEBT AND FINANCING LEASE OBLIGATIONS - Future Maturities (Details) $ in Thousands	Dec. 29, 2019USD ($)
Long-term debt maturities
2020	$ 616
2021	1,280
2022	1,347
2023	1,417
2024	1,490
Thereafter	774
Total	$ 6,924

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details)	12 Months Ended
	Dec. 29, 2019
Minimum
Operating lease, remaining lease term	1 year
Contingent rentals as a percentage of gross sales	5.00%
Maximum
Operating lease, remaining lease term	20 years
Contingent rentals as a percentage of gross sales	8.00%

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Rent Information (Details) $ in Thousands	12 Months Ended
	Dec. 29, 2019USD ($)
Commitments and Contingencies
Operating lease cost	$ 4,261
Short-term lease cost	123
Variable lease cost	31
Sublease income	(248)
Total lease cost	$ 4,167

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES - Supplemental Cash Flow Information Related to Leases (Details) $ in Thousands	12 Months Ended
	Dec. 29, 2019USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 4,424
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 18,458
Weighted-average remaining lease term of operating leases (in years)	9 years 6 months 21 days
Weighted-average discount rate of operating leases	5.56%

COMMITMENTS AND CONTINGENCIES_4

COMMITMENTS AND CONTINGENCIES - Future Minimum Payments (Details) $ in Thousands	Dec. 29, 2019USD ($)
Maturities of lease liabilities
2020	$ 5,194
2021	5,078
2022	4,785
2023	3,918
2024	2,856
Thereafter	15,070
Total operating lease obligations	36,901
Less imputed interest	(5,944)
Total lease liability	$ 30,957

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2019	Dec. 30, 2018
Stock-based compensation
Shares available for grant	237,333
Unrecognized stock-based compensation cost	$ 408
Unrecognized stock-based compensation costs, expected period of recognition	3 years
Stock-based compensation expense	$ 463	$ 278
Stock Options
Stock-based compensation
Stock-based compensation expense	266	208
Performance Shares
Stock-based compensation
Stock-based compensation expense		$ 70
Restricted Stock
Stock-based compensation
Stock-based compensation expense	$ 198
Employees and Directors | Stock Options
Stock-based compensation
Expiration period	10 years
Employees and Directors | Minimum | Stock Options
Stock-based compensation
Vesting period	2 years
Employees and Directors | Maximum | Stock Options
Stock-based compensation
Vesting period	5 years
Non-employee | Stock Options
Stock-based compensation
Vesting period	2 years
Expiration period	10 years

STOCK-BASED COMPENSATION - Stoc

STOCK-BASED COMPENSATION - Stock Options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 29, 2019	Dec. 30, 2018	Dec. 31, 2017
Number of Options
Options outstanding at beginning of period	384	539
Granted	212	90
Exercised	(5)	(102)
Cancelled, forfeited or expired	(138)	(143)
Options outstanding at end of period	453	384	539
Options Exercisable	280
Weighted Average Exercise Price
Options outstanding at beginning of period	$ 7.43	$ 6.60
Granted	4.37	7.67
Exercised	3.90	5.28
Cancelled, forfeited or expired	5.22	5.74
Options outstanding at end of period	6.71	$ 7.43	$ 6.60
Exercisable weighted average exercise price	$ 7.54
Weighted Average Remaining Contractual Life
Options outstanding	5 years 8 months 12 days	6 years 8 months 12 days	6 years 7 months 6 days
Options exercisable	5 years 1 month 6 days
Aggregate Intrinsic Value
Options outstanding at beginning of period	$ 29	$ 598
Exercised	6	273
Cancelled, forfeited or expired	68	231
Options outstanding at end of period	28	$ 29	$ 598
Exercisable intrinsic value	$ 19

STOCK-BASED COMPENSATION - Valu

STOCK-BASED COMPENSATION - Valuation Assumptions (Details) - $ / shares	12 Months Ended
	Dec. 29, 2019	Dec. 30, 2018
Valuation Assumptions
Weighted-average fair value of options granted during the period	$ 1.88	$ 3.73
Expected life (in years)	4 years 7 months 6 days	6 years 2 months 12 days
Expected dividend	0.00%	0.00%
Expected stock volatility	50.55%	45.94%
Risk-free interest rate	1.90%	2.90%

RETIREMENT SAVINGS PLANS (Detai

RETIREMENT SAVINGS PLANS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2019	Dec. 30, 2018
401(K) Plan
Employer contribution rate, percent of employee contributions	25.00%	25.00%
Employee contribution rate, maximum percentage of employee earnings subject to employer matching	4.00%	4.00%
Employee contributions	$ 570	$ 469
Employer match	$ 113	$ 76
Non-Qualified Deferred Compensation Plan
Employer contribution rate, percent of employee contributions	25.00%	25.00%
Employee contribution rate, maximum percentage of employee earnings subject to employer matching	4.00%	4.00%
Declared interest rate	6.00%	6.00%
Employee contributions	$ 47	$ 36
Employer match and interest	6	17
Distributions	$ 32	$ 30

RESTAURANT ACQUISITIONS - 2018

RESTAURANT ACQUISITIONS - 2018 Acquisitions (Details) - USD ($)	Dec. 29, 2019	Dec. 30, 2018	Oct. 08, 2018	Aug. 06, 2018
Acquisitions
Goodwill	$ 640,000	$ 61,000
Restaurant Acquisitions 2018
Acquisitions
Cash and cash equivalents		4,000
Inventory		66,000
Property, plant, equipment and leasehold improvements, net		91,000
Goodwill		42,000
Total identifiable assets acquired		228,000
Gift card liability		(25,000)
Total consideration transferred		203,000
Janesville, WI Restaurant
Acquisitions
Total consideration transferred				$ 37,000
Greenwood, IN Restaurant
Acquisitions
Total consideration transferred			$ 191,000
Franchise Rights | Restaurant Acquisitions 2018
Acquisitions
Reacquired franchise rights, net		$ 25,000

RESTAURANT ACQUISITIONS - 2019

RESTAURANT ACQUISITIONS - 2019 Acquisitions (Details)	Jul. 10, 2019USD ($)restaurant	Jun. 03, 2019USD ($)restaurant	Mar. 04, 2019restaurant	Dec. 29, 2019USD ($)	Dec. 30, 2018USD ($)
Acquisitions
Cash paid for acquisition				$ 6,188,000	$ 229,000
Liabilities assumed
Goodwill				640,000	$ 61,000
Arizona Restaurants
Acquisitions
Number of restaurants acquired | restaurant	4
Cash paid for acquisition	$ 1,600,000
Purchase consideration - liabilities and costs assumed	1,400,000
Acquisition costs	166,000
Assets acquired:
Cash and cash equivalents	12,000
Inventory	103,000
Property, plant, equipment and leasehold improvements, net	5,177,000
Lease right-of-use asset, net of unfavorable lease value	731,000
Total identifiable assets acquired	6,023,000
Liabilities assumed
Gift card liability	(428,000)
Lease liability	(2,992,000)
Net assets acquired	2,603,000
Goodwill	415,000
Total consideration transferred	$ 3,018,000
Colorado and Grand Junction Restaurants
Acquisitions
Contract purchase price of an acquisition net of related costs		$ 4,100,000
Acquisition costs		409,000
Assets acquired:
Cash and cash equivalents		13,000
Inventory		176,000
Property, plant, equipment and leasehold improvements, net		3,139,000
Lease right-of-use asset, net of unfavorable lease value		6,729,000
Identifiable intangible assets, net		1,368,000
Total identifiable assets acquired		11,425,000
Liabilities assumed
Gift card liability		(182,000)
Lease liability		(7,116,000)
Net assets acquired		4,127,000
Goodwill		373,000
Total consideration transferred		$ 4,500,000
Colorado Restaurants
Acquisitions
Number of restaurants acquired | restaurant			4
Grand Junction Restaurant
Acquisitions
Number of restaurants acquired | restaurant		1
Other individually immaterial acquisitions
Assets acquired:
Cash and cash equivalents				15,000
Inventory				202,000
Property, plant, equipment and leasehold improvements, net				362,000
Lease right-of-use asset, net of unfavorable lease value				6,109,000
Identifiable intangible assets, net				728,000
Total identifiable assets acquired				7,416,000
Liabilities assumed
Gift card liability				(71,000)
Lease liability				(6,715,000)
Net assets acquired				630,000
Gain on bargain purchase				(178,000)
Total consideration transferred				$ 452,000

RESTAURANT ACQUISITIONS - Pro F

RESTAURANT ACQUISITIONS - Pro Forma (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 29, 2019	Dec. 30, 2018
Pro Forma
Pro forma revenues	$ 99,053	$ 102,186
Pro forma net income	$ 75	$ 7,308
Basic pro forma net income per share attributable to shareholders	$ 0.01	$ 0.85
Diluted pro forma net income per share attributable to shareholders	$ 0.01	$ 0.85

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	12 Months Ended
	Dec. 29, 2019	Dec. 30, 2018
Decrease in unrecognized tax benefits reasonably possible	$ 4,000
Valuation allowance	1,313,000	$ 3,481,000
Decrease in valuation allowance	$ 2,168,000
Domestic Tax Authority
Open tax years	2016 2017 2018 2019
Operating loss carryforwards	$ 9,400,000
Domestic Tax Authority | Minimum
Operating loss carryforwards, expiration date	Jan. 2, 2039
State and Local Jurisdiction
Open tax years	2015 2016 2017 2018 2019
Operating loss carryforwards	$ 25,200,000
State and Local Jurisdiction | Minimum
Operating loss carryforwards, expiration date	Jan. 3, 2021

INCOME TAXES - Income Before In

INCOME TAXES - Income Before Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2019	Dec. 30, 2018
Income Taxes
United States	$ (2,072)	$ 5,370
Foreign	166	221
Total	$ (1,906)	$ 5,591

INCOME TAXES - Components of In

INCOME TAXES - Components of Income Tax (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2019	Dec. 30, 2018
Income Taxes
Federal	$ (10)	$ 4
State	(48)	(17)
Foreign	(25)	(77)
Total current income tax (expense) benefit	(83)	(90)
Federal	603	(532)
State	139	(107)
Deferred Income Tax Expense (Benefit), Total	742	(639)
Total Income tax benefit (expense)	$ 659	$ (729)

INCOME TAXES - Unrecognized Tax

INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2019	Dec. 30, 2018
Income Taxes
Unrecognized tax benefits, beginning balance	$ 8	$ 13
Decreases due to lapses of statutes of limitations	(4)	(5)
Unrecognized tax benefits, ending balance	$ 4	$ 8

INCOME TAXES - Deferred Tax Ass

INCOME TAXES - Deferred Tax Assets (Details) - USD ($) $ in Thousands	Dec. 29, 2019	Dec. 30, 2018
Income Taxes
Deferred rent		$ 411
Federal net operating loss carry-forwards	$ 1,980	1,812
State net operating loss carry-forwards	1,993	4,130
Intangible property basis difference	(7)	131
Financing lease obligation		299
Tax credit carryover	2,581	2,164
Accrued expenses	168	205
Stock-based compensation	187	103
Deferred revenue	693	666
Lease reserve	8,060	107
Accrued and deferred compensation	53	36
Contribution carryover	50	46
Transaction and organization costs	121
Inventories	10	5
Total deferred tax assets	15,889	10,115
Property and equipment basis difference	(755)	(568)
Inventories	(146)	(83)
Prepaid expenses	(365)	(236)
Right of use asset	(6,664)
Total deferred tax liability	(7,930)	(887)
Net deferred tax assets	7,959	9,228
Valuation allowance	(1,313)	(3,481)
Deferred tax asset, net	$ 6,646	$ 5,747

INCOME TAXES - Effective Tax Ra

INCOME TAXES - Effective Tax Rate Reconciliation (Details)	12 Months Ended
	Dec. 29, 2019	Dec. 30, 2018
Income Taxes
Federal statutory tax rate	21.00%	21.00%
State taxes, net of valuation allowance and federal benefit	(4.70%)	2.20%
Deferred rate change	11.90%	(0.60%)
Foreign taxes	(2.00%)	1.40%
Tax effect of permanent differences	0.50%	(0.10%)
Tax effect of general business credits	24.30%	(3.40%)
Tax effect of foreign tax credit	2.00%	(3.20%)
Uncertain tax positions	0.30%	(0.10%)
Return to provision update	(173.80%)	(15.70%)
Change in valuation allowance	171.80%	11.50%
Other	0.90%
Effective tax rate	52.20%	13.00%

ASSET IMPAIRMENT, ESTIMATED LEA

ASSET IMPAIRMENT, ESTIMATED LEASE TERMINATION AND OTHER CLOSING COSTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2019	Dec. 30, 2018
Asset Impairments and Business Exit Costs
Asset impairments, net	$ 282	$ 89
Asset impairment, estimated lease termination and other closing costs	1,296	145
Lease Termination Charges
Asset Impairments and Business Exit Costs
Business exit costs	926	(271)
Balance at Beginning of Period	431	1,799
Additions: Charged To Costs and Expenses	182	511
Deductions: Credits to Costs and Expenses and Other Accounts	(605)	(1,879)
Balance at End of Period	8	431
Restaurant Closure Expenses
Asset Impairments and Business Exit Costs
Business exit costs	$ 88	$ 327

VARIABLE INTEREST ENTITY (Detai

VARIABLE INTEREST ENTITY (Details) - USD ($) $ in Thousands	Jul. 18, 2018	Oct. 27, 2019	Dec. 29, 2019	Dec. 30, 2018
Variable Interest Entities
Net income (loss)			$ (1,247)	$ 4,862
Non-controlling interest			598
Assets			73,081	$ 38,356
Variable Interest Entity, Primary Beneficiary | Reportable Legal Entities
Variable Interest Entities
Non-controlling interest			598
Frederick, Maryland Restaurant
Variable Interest Entities
Maximum loss exposure			393
Asset impairment			200
Future minimum lease payments, net of sublease receipts			159
Mercury BBQ
Variable Interest Entities
Promissory note		$ 3,900
Interest rate on promissory note		8.00%
Percentage of excess cash flows to be used to repay note receivable		100.00%
Mercury BBQ
Variable Interest Entities
Ownership percentage	20.00%
Clark Championship Products | Mercury BBQ
Variable Interest Entities
Ownership percentage	80.00%
Mercury BBQ
Variable Interest Entities
Net income (loss)			748
Assets			5,800
Non-controlling Interest
Variable Interest Entities
Net income (loss)			$ (598)

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2019	Dec. 30, 2018
Director
Related Party Transactions
Revenues and NAF contributions	$ 1,649	$ 1,538
Accounts receivable from related parties	290	271
Beneficial Owner
Related Party Transactions
Revenues and NAF contributions	314	308
Accounts receivable from related parties	$ 77	$ 44
Beneficial ownership percentage	18.20%

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Subsequent Event - USD ($) $ in Thousands	Mar. 09, 2020	Mar. 12, 2020
Granite City Food & Brewery Ltd.
Subsequent event line items
Payment to acquire assets	$ 3,650
Term Loan
Subsequent event line items
Amount drawn on loan agreement		$ 8,100
Outstanding balance		$ 15,000

VALUATION AND QUALIFYING ACCOUN

VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2019	Dec. 30, 2018
Allowance For Doubtful Accounts
Valuation and Qualifying Accounts
Balance at Beginning of Period	$ 192	$ 592
Additions: Charged To Costs and Expenses	74
Deductions: Credits to Costs and Expenses and Other Accounts	(133)	(400)
Balance at End of Period	132	192
Lease Termination Costs and Asset Retirement Obligations
Valuation and Qualifying Accounts
Balance at Beginning of Period	431	1,799
Additions: Charged To Costs and Expenses	182	511
Deductions: Credits to Costs and Expenses and Other Accounts	(605)	(1,879)
Balance at End of Period	$ 8	431
Corporate Severance
Valuation and Qualifying Accounts
Balance at Beginning of Period		355
Additions: Charged To Costs and Expenses		98
Deductions: Credits to Costs and Expenses and Other Accounts		$ (453)