BBQ (BBQ) 10-Q 19 May 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Apr. 04, 2021	May 16, 2021
Document and entity information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Apr. 4, 2021
Entity File Number	001-39053
Entity Registrant Name	BBQ HOLDINGS, INC.
Entity Incorporation, State or Country Code	MN
Entity Tax Identification Number	83-4222776
Entity Address, Address Line One	12701 Whitewater Drive, Suite 100
Entity Address, City or Town	Minnetonka
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55343
City Area Code	952
Local Phone Number	294-1300
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	BBQ
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock Shares Outstanding		9,307,442
Current Fiscal Year End Date	--01-02
Document Fiscal Year Focus	2021
Document Period Focus	Q1
Entity Central Index Key	0001021270
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 04, 2021	Jan. 03, 2021
Current assets:
Cash and cash equivalents	$ 21,224	$ 18,101
Restricted cash	1,361	1,502
Accounts receivable, net of allowance for doubtful accounts of $289,000 and $132,000, respectively	4,176	4,823
Inventories.	2,380	2,271
Prepaid expenses and other current assets	2,417	1,252
Assets held for sale	1,070	1,070
Total current assets	32,628	29,019
Property, equipment and leasehold improvements, net	31,508	32,389
Other assets:
Operating lease right-of-use assets	59,920	61,634
Goodwill	601	601
Intangible assets, net	9,850	9,967
Deferred tax asset, net	4,935	4,934
Other assets	1,669	1,724
Total assets	141,111	140,268
Current liabilities:
Accounts payable	8,020	6,385
Current portion of lease liabilities	6,332	6,185
Current portion of long-term debt	2,138	2,111
Accrued compensation and benefits	4,068	2,390
Other current liabilities	8,156	9,766
Total current liabilities	28,714	26,837
Long-term liabilities:
Lease liabilities, less current portion	61,445	63,105
Long-term debt, less current portion	21,628	22,169
Other liabilities	1,376	1,224
Total liabilities	113,163	113,335
Shareholders' equity:
Common stock, $.01 par value, 100,000 shares authorized, 9,307 and 9,307 shares issued and outstanding at April 4, 2021 and January 3, 2021, respectively	93	93
Additional paid-in capital	9,066	8,748
Retained earnings	20,169	19,370
Total shareholders' equity	29,328	28,211
Non-controlling interest	(1,380)	(1,278)
Total equity	27,948	26,933
Total liabilities and shareholders' equity	$ 141,111	$ 140,268

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) shares in Thousands, $ in Thousands	Apr. 04, 2021	Jan. 03, 2021
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Accounts receivable, Allowance for doubtful accounts	$ 289	$ 132
Common stock, Par value	$ 0.01	$ 0.01
Common stock, Shares authorized	100,000	100,000
Common stock, Shares issued	9,307	9,307
Common stock, Shares outstanding	9,307	9,307

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 04, 2021	Mar. 29, 2020
Revenue:
Revenue	$ 37,319	$ 23,855
Costs and expenses:
Food and beverage costs	10,057	6,754
Labor and benefits costs	10,254	7,721
Operating expenses	10,249	6,626
Depreciation and amortization expenses	1,552	1,045
General and administrative expenses	4,038	3,032
National advertising fund expenses	328	282
Asset impairment, estimated lease termination charges and other closing costs, net	12	173
Pre-opening expenses	28	25
Gain on disposal of property, net	(8)	(477)
Total costs and expenses	36,510	25,181
Loss from operations	809	(1,326)
Other income (expense):
Interest expense	(54)	(119)
Interest income	24	43
Gain on bargain purchase		14,364
Total other income (expense)	(30)	14,288
Income (loss) before income taxes	779	12,962
Income tax benefit	(82)	349
Net income (loss)	697	13,311
Net loss attributable to non-controlling interest	102	396
Net income (loss) attributable to shareholders	$ 799	$ 13,707
Basic net income (loss) per share attributable to shareholders	$ 0.09	$ 1.50
Diluted net income (loss) per share attributable to shareholders	$ 0.08	$ 1.49
Weighted average shares outstanding - basic	9,208	9,121
Weighted average shares outstanding - diluted	9,501	9,202
Restaurant sales, net
Revenue:
Revenue	$ 33,603	$ 20,703
Franchise royalty and fee revenue
Revenue:
Revenue	2,374	2,524
Franchisee national advertising fund contributions
Revenue:
Revenue	328	282
Licensing and other revenue
Revenue:
Revenue	$ 1,014	$ 346

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - 3 months ended Apr. 04, 2021 - 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 Jan. 03, 2021	9,307
Balance at Jan. 03, 2021	$ 93	$ 8,748	$ 19,370	$ 28,211	$ (1,278)	$ 26,933
Stock-based compensation		318		318		318
Net income (loss)			799	799	(102)	697
Balance (in shares) at Apr. 04, 2021	9,307
Balance at Apr. 04, 2021	$ 93	$ 9,066	$ 20,169	$ 29,328	$ (1,380)	$ 27,948

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Apr. 04, 2021	Mar. 29, 2020
Cash flows from operating activities:
Net income	$ 697	$ 13,311
Adjustments to reconcile net income to cash flows provided by operations:
Depreciation and amortization	1,552	1,045
Stock-based compensation	318	137
Net gain on disposal	(8)	(477)
Gain on bargain purchase		(14,364)
Deferred income taxes	82	(399)
Other non-cash items	186	(19)
Accounts receivable, net	598	(720)
Prepaid expenses and other assets	(2,579)	781
Accounts payable	1,635	3,130
Accrued and other liabilities	323	(2,687)
Cash flows provided by (used for) operating activities	2,804	(262)
Cash flows from investing activities:
Proceeds from the sale of assets	691
Purchases of property, equipment and leasehold improvements		(949)
Payments for acquired restaurants		(3,969)
Payments received on note receivable	6	12
Cash flows provided by (used for) investing activities	697	(4,906)
Cash flows from financing activities:
Proceeds from long-term debt		8,101
Payments for debt issuance costs		(35)
Cash (used for) provided by financing activities	(519)	8,066
Increase (decrease) in cash, cash equivalents and restricted cash	2,982	2,898
Cash, cash equivalents and restricted cash, beginning of period	19,603	6,086
Cash, cash equivalents and restricted cash, end of period	22,585	8,984
Supplemental Disclosures
Cash paid (received) for interest, net	$ 116	(15)
Non-cash investing and financing activities:
Gift card liability assumed pursuant to acquisitions		3,968
Inventory acquired pursuant to acquisitions		$ 1,178

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Apr. 04, 2021
Nature of Business and Significant Accounting Policies
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]	(1) Basis of Presentation Basis of Presentation In September 2019 a holding company reorganization was completed in which Famous Dave’s of America, Inc. (“FDA”) became a wholly owned subsidiary of the new parent holding company named BBQ Holdings, Inc. (“BBQ Holdings”). As used in this Form 10-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 and operates restaurants under the name “Famous Dave’s”, “Clark Crew BBQ”, “Granite City Food & Brewery” and “Real Urban Barbecue.” Additionally, the Company franchises restaurants under the name “Famous Dave’s”. As of April 4, 2021, there were 128 Famous Dave’s restaurants operating in 31 states, Canada, and the United Arab Emirates, including 27 Company-owned restaurants and 101 franchise-operated restaurants. The first Clark Crew BBQ restaurant opened in December 2019 in Oklahoma City, Oklahoma. BBQ Holdings has a 20 % ownership in this venture. In March 2020, the Company purchased 18 Granite City Food & Brewery restaurants located throughout the Midwest and one Real Urban Barbecue restaurant located in Vernon Hills, Illinois. These accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and Securities and Exchange Commission (“SEC”) Rules and Regulations. The information furnished in these condensed consolidated financial statements include normal recurring adjustments and reflect all adjustments, which are, in the opinion of management, necessary for a fair presentation. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. These unaudited financial statements represent the condensed consolidated financial statements of the Company and its subsidiaries as of April 4, 2021 and January 3, 2021, and for the three months ended April 4, 2021 and March 29, 2020. The results for the three months ended April 4, 2021 are not necessarily indicative of the results to be expected for the full fiscal year or any other interim period. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in BBQ Holding, Inc.’s Annual Report on Form 10-K for the fiscal year ended January 3, 2021 as filed with the SEC on April 2, 2021. In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (“COVID-19”) as a pandemic and the United States declared a National Public Health Emergency. As a result, public health measures were taken to minimize exposure to the virus. These measures, some of which are government-mandated, have been implemented globally resulting in a dramatic decrease in economic activity. During the first quarter of 2021, mandated restrictions began to ease in a number of the markets in which the Company operates. Although the Company has experienced some recovery from the initial impact of COVID-19, the long-term impact of COVID-19 on the economy and on its business remains uncertain, the duration and scope of which cannot currently be predicted. The Company cannot predict if there will be another surge, what additional restrictions may be enacted, to what extent it can maintain off-premise sales volumes, whether it can maintain sufficient staffing levels, or if individuals will be comfortable returning to its dining rooms during or following social distancing protocols, and what long-lasting effects the COVID-19 pandemic may have on the restaurants industry as a whole. The extent of the reopening process, along with the potential impact of the COVID-19 pandemic on consumer spending behavior, which may be a function of continued concerns over safety and/or depressed consumer sentiment due to adverse economic conditions, including job losses, will determine the significance of the impact to the Company’s operating results and financial position. The full impact of the COVID-19 pandemic continues to evolve as of the date of this report. The duration of the disruption on global, national, and local economies cannot be reasonably estimated at this time due to the ongoing effects of this situation. Management is continually evaluating the impact of this global crisis on its financial condition, liquidity, operations, suppliers, industry, and workforce and will take additional actions as necessary. Reclassifications Certain prior period amounts have been reclassified to conform to the current period’s presentation. These reclassifications did not have an impact on the reported net income for any of the periods presented. Income Taxes The Company maintains a federal deferred tax asset (“DTA”) in the amount of $4.9 million as of April 4, 2021 and January 3, 2021. The Company evaluates the DTA on a quarterly basis to determine whether current facts and circumstances indicate that the DTA may not be fully realizable. As of April 4, 2021, the Company concluded that the DTA is fully realizable and that no further valuation allowance was necessary; however, the Company will continue to evaluate the DTA on a quarterly basis until the DTA has been fully utilized. The following table presents the Company’s effective tax rates for the periods presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ April 4, 2021 March 29, 2020 ​ Effective tax rate ​ 10.5 % ​ (2.7) % ​ The Company provides for income taxes based on its estimate of federal and state income tax liabilities. These estimates include, among other items, effective rates for state and local income taxes, allowable tax credits for items such as taxes paid on reported tip income, estimates related to depreciation and amortization expense allowable for tax purposes, and the tax deductibility of certain other items. The Company’s estimates are based on the information available at the time that the Company prepares the income tax provision. The Company generally files its annual income tax returns several months after its fiscal year-end. Income tax returns are subject to audit by federal, state, and local governments, generally years after the tax returns are filed. These returns could be subject to material adjustments due to differing interpretations of the tax laws. Cash and cash equivalents On May 14, 2020, the Company invested $3.5 million in a certificate of deposit (CD) through Choice Bank. The interest rate on this CD is 0.15 %. Interest is compounded every 30 days and the CD automatically renews monthly. This balance is included with cash and cash equivalents on the Company’s balance sheet. Restricted cash and marketing fund The Company has a Marketing Development Fund, to which Company-owned Famous Dave’s restaurants, in addition to the majority of franchise-operated restaurants, contribute a percentage of net sales, for use in public relations and marketing development efforts. The funds held in this account are used in part to reimburse the Company for its marketing and digital services activities on behalf of the Famous Dave’s brand. The Company also receives funds from its suppliers to be used exclusively for point-of-sale equipment purchases for its own stores as well as its franchisees. As the assets held by these funds are considered to be restricted, the Company reflects the cash related to these funds within restricted cash and reflect the liability within accrued expenses on its consolidated balance sheets. The Company had approximately $1.4 million and $1.5 million in these funds as of April 4, 2021 and January 3, 2021, respectively. Assets Held for Sale As of April 4, 2021, the Company had assets held for sale of approximately $1.1 million related to an owned property for which it has entered into agreements to sell for a contract purchase price of $2.5 million. Net income per common share Basic net income per common share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the reporting period. Diluted EPS equals net income divided by the sum of the weighted average number of shares of common stock outstanding plus all additional common stock equivalents, such as stock options and restricted stock units, when dilutive. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ (in thousands, except per share data) April 4, 2021 March 29, 2020 ​ Net income per share – basic: ​ ​ ​ ​ Net income attributable to shareholders ​ $ 799 ​ $ 13,707 ​ Weighted average shares outstanding - basic ​ 9,208 ​ 9,121 ​ Basic net income per share attributable to shareholders ​ $ 0.09 ​ $ 1.50 ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income per share – diluted: ​ ​ ​ Net income attributable to shareholders ​ $ 799 ​ $ 13,707 ​ Weighted average shares outstanding - diluted ​ 9,501 ​ 9,202 ​ Diluted net income per share attributable to shareholders ​ $ 0.08 ​ $ 1.49 ​ ​ There were approximately 24,000 and 228,197 stock options outstanding as of April 4, 2021 and March 29, 2020, respectively, that were not included in the computation of diluted EPS because they were anti-dilutive.

PREPAID EXPENSES AND OTHER CURR

PREPAID EXPENSES AND OTHER CURRENT ASSETS	3 Months Ended
	Apr. 04, 2021
Deferred Costs, Capitalized, Prepaid, And Other Assets Disclosure
Prepaid Expenses and Other Current Assets [Text Block]	(2) Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following at: ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) April 4, 2021 January 3, 2021 Prepaid expenses and deferred costs $ 1,492 $ 950 Prepaid insurance ​ ​ 925 ​ ​ 302 Prepaid expenses and other current assets $ 2,417 $ 1,252 ​

PROPERTY, EQUIPMENT, AND LEASEH

PROPERTY, EQUIPMENT, AND LEASEHOLD IMPROVEMENTS, NET	3 Months Ended
	Apr. 04, 2021
Property, Equipment, And Leasehold Improvements, Net
Property, Equipment, And Leasehold Improvements, Net	(3) Property, Equipment and Leasehold Improvements, net Property, equipment and leasehold improvements, net, consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ April 4, 2021 ​ January 3, 2021 Land, buildings, and improvements ​ $ 32,016 ​ $ 31,731 Furniture, fixtures, equipment and software ​ 28,774 ​ 28,373 Décor ​ 475 ​ 475 Construction in progress ​ 323 ​ 1,121 Accumulated depreciation and amortization ​ (30,080) ​ (29,311) Property, equipment and leasehold improvements, net ​ $ 31,508 ​ $ 32,389 ​

INTANGIBLE ASSETS, NET

INTANGIBLE ASSETS, NET	3 Months Ended
	Apr. 04, 2021
Intangible Assets
Intangible Assets	(4) Intangible Assets, net The Company has intangible assets that consist of liquor licenses, database, trademarks and patents, and reacquired franchise rights, net. The liquor licenses and trademarks/logos 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. The database is amortized over three years . Intangible assets consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ April 4, 2021 January 3, 2021 Reacquired franchise rights, net ​ ​ ​ ​ 1,148 ​ ​ 1,246 Goodwill ​ ​ ​ ​ 601 ​ ​ 601 Liquor licenses ​ ​ ​ ​ 868 ​ ​ 868 Trademark/Logos/Patents ​ ​ ​ ​ 7,688 ​ ​ 7,688 Database ​ ​ ​ ​ 146 ​ ​ 165 Intangible assets, net ​ ​ ​ $ 10,451 ​ $ 10,568 ​

OTHER CURRENT LIABILITIES

OTHER CURRENT LIABILITIES	3 Months Ended
	Apr. 04, 2021
Other Current Liabilities
Other Current Liabilities	(5) Other Current Liabilities Other current liabilities consisted of the following at: ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) April 4, 2021 ​ January 3, 2021 Gift cards payable ​ $ 4,990 ​ $ 6,553 Sales tax payable ​ 1,269 ​ 1,286 Other accrued expense ​ ​ 1,257 ​ ​ 1,394 Accrued interest ​ 130 ​ 115 Accrued utilities ​ ​ 231 ​ ​ 199 Deferred revenue ​ ​ 189 ​ ​ 124 Deferred franchise fees ​ 90 ​ 95 Other current liabilities ​ $ 8,156 ​ $ 9,766 ​

LONG-TERM DEBT

LONG-TERM DEBT	3 Months Ended
	Apr. 04, 2021
Long-term Debt and Financing Lease Obligations
Long-term Debt	(6) Long-Term Debt On June 20, 2019, the Company entered into a Loan Agreement among the Company and Choice Financial Group. The Loan Agreement provides for a term loan in the principal amount of up to $24.0 million and is evidenced by a promissory note. The note has a maturity date of June 20, 2025. The first year of the note provided for payments of interest only, with the remaining five years requiring payments of interest and principal based on a 60 month amortization period. Interest is 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 note may be prepaid, partially or in full, at any time and for no prepayment penalty. The Company is subject to various financial and non-financial covenants on this debt, including a debt-service coverage ratio. As of April 4, 2021, the note balance was $9.9 million, and the Company was compliant with all of its covenants. In fiscal year 2020, the Company received funds of approximately $14.0 million in aggregate in connection with “Small Business Loans” under the Paycheck Protection Program (“PPP Loans”). These amounts were borrowed pursuant to the terms of the PPP Loans, in favor of Choice Financial Group. After a thorough review and consultation with advisors, pursuant to the guidance provided by Small Business Administration, the Company was able to certify with a high level of confidence that it met the requirements of the loans which bear interest at 1% per annum and mature in 24 months from the date of disbursement of funds. Under certain circumstances, all or a portion of the PPP Loans may be forgiven, however, there can be no assurance that any portion of the PPP Loans will be forgiven and that the Company would not be required to repay all or part of the PPP Loans. If the PPP Loans are forgiven in full, no interest and principal payments will be required. Interest and principal payments under the PPP Loans are being deferred until such time the amount of forgiveness is determined. The PPP Loans contain certain covenants which, among other things, restrict the borrower’s use of the proceeds of the PPP Loans to the payment of payroll costs, interest on mortgage obligations, rent obligations and utility expenses. In addition, the PPP Loans require compliance with all other loans or other agreements with any creditor of the borrower, to the extent that a default under any loan or other agreement would materially affect the borrower’s ability to repay the PPP Loans and limit the ability of the borrower to make certain changes to its ownership structure. Debt outstanding under the above referenced promissory notes consisted of the following as of the periods presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) April 4, 2021 ​ January 3, 2021 Term Loan ​ $ 9,884 $ 10,403 PPP Loans ​ ​ 13,957 ​ ​ 13,957 Less: deferred financing costs ​ (75) (80) Less: current portion of long-term debt ​ (2,138) (2,111) Long-term debt, less current portion ​ $ 21,628 $ 22,169 ​

LEASES

LEASES	3 Months Ended
	Apr. 04, 2021
Leases [Abstract]
Lessee Operating And Finance Leases [Text Block]	(7) Leases The Company leases the property for its corporate headquarters, most of its Company-owned stores, and certain office and restaurant equipment. The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of use (“ROU”) assets, current portion of operating lease liabilities, and operating lease liabilities in its consolidated balance sheets. Lease expense for lease payments is recognized on a straight-line basis over the lease term and is included in operating expenses and general and administrative expenses on the statement of operations. The components of lease expense for the period presented is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Three Months Ended (in thousands) ​ April 4, 2021 ​ March 29, 2020 Operating lease cost ​ $ 2,442 ​ $ 1,596 Short-term lease cost ​ ​ 96 ​ ​ 31 Variable lease cost ​ ​ 368 ​ ​ - Sublease income ​ ​ (44) ​ ​ - Total lease cost ​ $ 2,862 ​ $ 1,627 Supplemental cash flow information related to leases for the period presented is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Three Months Ended ​ (in thousands) ​ April 4, 2021 ​ March 29, 2020 ​ Cash paid for amounts included in the measurement of lease liabilities: ​ ​ ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ $ 2,155 ​ $ 1,791 ​ Right-of-use assets obtained in exchange for new operating lease liabilities ​ ​ - ​ ​ 51,682 ​ Weighted-average remaining lease term of operating leases (in years) ​ ​ 10.1 ​ ​ 11.0 ​ Weighted-average discount rate of operating leases ​ ​ 5.27 % ​ 5.26 % ​

REVENUE RECOGNITION

REVENUE RECOGNITION	3 Months Ended
	Apr. 04, 2021
Revenue from Contract with Customer [Abstract]
Revenue from Contract with Customer [Text Block]	(8) Revenue Recognition Deferred revenue liabilities consist primarily of franchise fees which are recognized straight-line over the life of the agreements, and area development fees which are deferred until a new restaurant is opened pursuant to the agreement. The following table illustrates estimated revenues expected to be recognized in the future related to unsatisfied performance obligations as of April 4, 2021: ​ ​ ​ ​ ​ (in thousands) ​ Fiscal Year ​ 2021 ​ $ 67 2022 ​ 90 2023 ​ 90 2024 ​ 88 2025 ​ 82 Thereafter ​ 450 Total ​ $ 867 ​ The following table reflects the change in contract liabilities between April 4, 2021 and January 3, 2021: ​ ​ ​ ​ ​ ​ (in thousands) ​ January 3, 2021 ​ Beginning Balance ​ $ 901 ​ Revenue recognized ​ ​ (34) ​ Ending Balance ​ $ 867 ​ ​ ​

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	Apr. 04, 2021
Stock-based Compensation
Stock-Based Compensation	(9) Stock-based Compensation Effective May 5, 2015, the Company adopted the 2015 Equity Plan (the “2015 Plan”), pursuant to which it may grant stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance stock units and other stock and cash awards to eligible participants. The number of common stock reserved for issuance is 1,500,000 . The Company also maintains an Amended and Restated 2005 Stock Incentive Plan (the “2005 Plan”). The 2005 Plan expired in 2015 and no additional options may be granted. Nonetheless, the 2005 Plan will remain in effect until all outstanding incentives granted thereunder have either been satisfied or terminated. As of April 4, 2021, there were 184,476 shares available for grant pursuant to the 2015 Plan. Stock options granted to employees and directors generally vest over two The Company utilizes the Black-Scholes option pricing model when determining the compensation cost associated with stock options issued using the following significant assumptions: ● Stock price – Published trading market values of the Company’s common stock as of the date of grant. ● Exercise price – The stated exercise price of the stock option. ● Expected life – The simplified method as outlined in ASC 718. ● Expected dividend – The rate of dividends that the Company expects to pay over the term of the stock option. ● Volatility – Actual volatility over the most recent historical period equivalent to the expected life of the option. ● Risk-free interest rate – The daily United States Treasury yield curve rate. The Company recognized stock-based compensation expense in its consolidated statements of operations for the three months ended April 4, 2021 and March 29, 2020, respectively, as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ (in thousands) April 4, 2021 March 29, 2020 ​ Stock options ​ $ 89 ​ $ 81 ​ Restricted stock ​ 229 ​ 56 ​ ​ ​ $ 318 ​ $ 137 ​ ​ Information regarding the Company’s stock options is summarized below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ ​ ​ Remaining ​ ​ Number of ​ Weighted Average ​ Contractual (number of options in thousands) Options Exercise Price Life in Years Options outstanding at January 3, 2021 557 ​ $ 4.53 ​ ​ Granted 14 ​ 6.00 ​ ​ Exercised ​ — ​ ​ — ​ ​ Canceled, forfeited or expired ​ (11) ​ ​ 3.40 ​ ​ Options outstanding at April 4, 2021 560 ​ $ 4.58 ​ 6.5 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ April 4, 2021 ​ March 29, 2020 ​ Weighted-average fair value of options granted during the period ​ $ 2.74 ​ $ 1.86 ​ Expected life (in years) ​ 2.5 ​ 4.7 ​ Expected dividend ​ $ — ​ $ — ​ Expected stock volatility ​ 76.48 % 51.21 % Risk-free interest rate ​ 0.2 % 1.6 % ​ Information regarding the Company’s restricted stock is summarized below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ ​ ​ Remaining ​ ​ Number of ​ Weighted Average ​ Contractual (number of awards in thousands) Awards Award Date Fair Value Life in Years Unvested at January 3, 2021 475 ​ $ 4.43 ​ ​ Granted — ​ — ​ ​ Exercised/Released ​ (14) ​ ​ 4.71 ​ ​ Unvested at April 4, 2021 461 ​ $ 4.42 ​ 1.8 ​

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES	3 Months Ended
	Apr. 04, 2021
Variable Interest Entities
Variable Interest Entities	(10) 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. The Company has an installment agreement with one of its franchisees as a result of refranchising its Lincoln, Nebraska restaurant. This franchisee is a VIE; however, the owners of the franchise operations are the primary beneficiaries of the entities, not the Company. Therefore, the franchise operations are not required to be consolidated in the Company’s consolidated financial statements. On July 18, 2018, the Company and Clark Championship Products LLC (“Clark”), an entity owned by Travis Clark, became members of Mercury BBQ LLC (“Mercury”) for the purposes of building out and operating the inaugural Clark Crew BBQ restaurant in Oklahoma City, Oklahoma (the “Restaurant”). Clark will own 80% of the units outstanding of Mercury and the Company will own 20% of the units outstanding of Mercury. Because the Company has provided more than half of the subordinated financial support of Mercury and control Mercury via its representation on the board of managers, the Company has concluded that Mercury is a VIE, of which the Company is the primary beneficiary and must consolidate Mercury. Mercury generated a net loss of approximately $128,000 during the first quarter of fiscal year 2021, of which $102,000 was recorded as non-controlling interest on our condensed consolidated financial statements. During the first quarter of fiscal year 2020, Mercury generated a net loss of $496,000, of which $396,000 was recorded as non-controlling interest on our condensed consolidated financial statements. As of April 4, 2021, Mercury’s assets included approximately $2.9 million of property, equipment and leasehold improvements, net, a $1.8 million ROU asset and $158,000 of inventory. 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.

LITIGATION

LITIGATION	3 Months Ended
	Apr. 04, 2021
Litigation [Abstract]
Litigation Disclosure [Text Block]	(11) Litigation As of the date of this filing, there are two potentially material litigation matters involving the Company. Graham v. Famous Dave’s of America, Inc., has been ongoing since January 2019. It revolves around claims under Maryland wage and hour law and the U.S. Fair Labor Standards Act. After reviewing all the evidence during discovery, the Company believes there is some liability on its part but is in the midst of determining that total exposure. The Company has been in settlement talks with the Plaintiff. At this time the parties have agreed to a final settlement value of $995,000 . If the court approves this amount, the case will be settled for that value. The Company believes it has appropriately accrued for the settlement amount at this time. Zia Properties v. Famous Dave’s of America, Inc. is a breach of contract case revolving around the Colorado Springs, Co lease. The Company exited the property at the end of the lease in August 2020. The Landlord claims, pursuant to the lease, that the Company was required to make certain repairs before exiting. The Company disagrees with all the claims in the complaint and will vigorously defend. In March 2021, the Company completed an agreement in the case of Hamilton Commons v. Famous Dave’s of America, Inc. related to a breach of contract of a lease of the Famous Dave’s at Mays Landing, NJ. The parties agreed to dismiss the matter as a result of the Lease Modification (the “Agreement”) which was executed by all the parties. The Agreement stipulated that in consideration for $130,000, the Company would continue to make monthly payments beginning in March 2021, the parties shall both market the property to find a new tenant to replace the Company before the lease term expires, and at the time this lease terminates or ends, the landlord shall pay $193,000 for the liquor license, which is owned by the Company. There are terms in the Agreement about the criteria of the new tenant the landlord can choose to accept or deny and that the Company must supplement the rent of the new tenant if the rent paid by the new tenant does not meet or exceed what the Company would pay through January 31, 2023. In the normal course of business, the Company is involved in a number of litigation matters that are incidental to the operation of the business. These matters generally include, among other things, matters with regard to employment and general business-related issues. The Company currently believes that the resolution of any of these pending matters will not have a material adverse effect on its financial position or liquidity, but an adverse decision in more than one of the matters could be material to its consolidated results of operations.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Apr. 04, 2021
Related Party Transactions
Related Party Transactions	(12) Related Party Transactions Anand D. Gala Charles Davidson, a franchisee of the Company, currently serves as a director of the Company and is the beneficial owner of approximately 17.4% of the Company’s common stock as of the date that these financial statements were available to be issued, by virtue of his ownership interest in Wexford Capital. The following table outlines amounts received from related parties during the three months ended April 4, 2021 and March 29, 2020: ​ ​ ​ ​ ​ ​ ​ Three Months Ended (in thousands) April 4, 2021 March 29, 2020 Revenues and NAF contributions - Anand Gala $ 322 ​ $ 344 Revenues and NAF contributions - Charles Davidson ​ 138 ​ ​ 166 The following table outlines accounts receivable from related parties as of April 4,2021 and January 3, 2021: ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ April 4, 2021 January 3, 2021 Accounts receivable, net - Anand Gala ​ $ 246 ​ $ 207 Accounts receivable, net - Charles Davidson ​ ​ 64 ​ ​ 52 ​

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Apr. 04, 2021
Subsequent Events
Subsequent Events	(13) Subsequent Events ​ The Company evaluated for the occurrence of subsequent events through the issuance date of its financial statements. No recognized or non-recognized subsequent events occurred that require recognition or disclosure in the condensed consolidated financial statements. ​

BASIS OF PRESENTATION (Tables)

BASIS OF PRESENTATION (Tables)	3 Months Ended
	Apr. 04, 2021
Nature of Business and Significant Accounting Policies
Schedule of reconciliation of basic and diluted net (loss) income per common share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ (in thousands, except per share data) April 4, 2021 March 29, 2020 ​ Net income per share – basic: ​ ​ ​ ​ Net income attributable to shareholders ​ $ 799 ​ $ 13,707 ​ Weighted average shares outstanding - basic ​ 9,208 ​ 9,121 ​ Basic net income per share attributable to shareholders ​ $ 0.09 ​ $ 1.50 ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income per share – diluted: ​ ​ ​ Net income attributable to shareholders ​ $ 799 ​ $ 13,707 ​ Weighted average shares outstanding - diluted ​ 9,501 ​ 9,202 ​ Diluted net income per share attributable to shareholders ​ $ 0.08 ​ $ 1.49 ​
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ April 4, 2021 March 29, 2020 ​ Effective tax rate ​ 10.5 % ​ (2.7) %

PREPAID EXPENSES AND OTHER CU_2

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)	3 Months Ended
	Apr. 04, 2021
Deferred Costs, Capitalized, Prepaid, And Other Assets Disclosure
Prepaid Expenses and Other Current Assets [Table Text Block]	​ ​ ​ ​ ​ ​ ​ ​ (in thousands) April 4, 2021 January 3, 2021 Prepaid expenses and deferred costs $ 1,492 $ 950 Prepaid insurance ​ ​ 925 ​ ​ 302 Prepaid expenses and other current assets $ 2,417 $ 1,252

PROPERTY, EQUIPMENT, AND LEAS_2

PROPERTY, EQUIPMENT, AND LEASEHOLD IMPROVEMENTS, NET (Tables)	3 Months Ended
	Apr. 04, 2021
Property, Equipment, And Leasehold Improvements, Net
Schedule of property, equipment, and leasehold improvements, net	​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ April 4, 2021 ​ January 3, 2021 Land, buildings, and improvements ​ $ 32,016 ​ $ 31,731 Furniture, fixtures, equipment and software ​ 28,774 ​ 28,373 Décor ​ 475 ​ 475 Construction in progress ​ 323 ​ 1,121 Accumulated depreciation and amortization ​ (30,080) ​ (29,311) Property, equipment and leasehold improvements, net ​ $ 31,508 ​ $ 32,389

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	3 Months Ended
	Apr. 04, 2021
Intangible Assets
Schedule of intangible assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ April 4, 2021 January 3, 2021 Reacquired franchise rights, net ​ ​ ​ ​ 1,148 ​ ​ 1,246 Goodwill ​ ​ ​ ​ 601 ​ ​ 601 Liquor licenses ​ ​ ​ ​ 868 ​ ​ 868 Trademark/Logos/Patents ​ ​ ​ ​ 7,688 ​ ​ 7,688 Database ​ ​ ​ ​ 146 ​ ​ 165 Intangible assets, net ​ ​ ​ $ 10,451 ​ $ 10,568

OTHER CURRENT LIABILITIES (Tabl

OTHER CURRENT LIABILITIES (Tables)	3 Months Ended
	Apr. 04, 2021
Other Current Liabilities
Schedule of other current liabilities	​ ​ ​ ​ ​ ​ ​ ​ (in thousands) April 4, 2021 ​ January 3, 2021 Gift cards payable ​ $ 4,990 ​ $ 6,553 Sales tax payable ​ 1,269 ​ 1,286 Other accrued expense ​ ​ 1,257 ​ ​ 1,394 Accrued interest ​ 130 ​ 115 Accrued utilities ​ ​ 231 ​ ​ 199 Deferred revenue ​ ​ 189 ​ ​ 124 Deferred franchise fees ​ 90 ​ 95 Other current liabilities ​ $ 8,156 ​ $ 9,766

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	3 Months Ended
	Apr. 04, 2021
Long-term Debt and Financing Lease Obligations
Schedule of long-term debt	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) April 4, 2021 ​ January 3, 2021 Term Loan ​ $ 9,884 $ 10,403 PPP Loans ​ ​ 13,957 ​ ​ 13,957 Less: deferred financing costs ​ (75) (80) Less: current portion of long-term debt ​ (2,138) (2,111) Long-term debt, less current portion ​ $ 21,628 $ 22,169

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Apr. 04, 2021
Leases [Abstract]
Lease, Cost [Table Text Block]	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Three Months Ended (in thousands) ​ April 4, 2021 ​ March 29, 2020 Operating lease cost ​ $ 2,442 ​ $ 1,596 Short-term lease cost ​ ​ 96 ​ ​ 31 Variable lease cost ​ ​ 368 ​ ​ - Sublease income ​ ​ (44) ​ ​ - Total lease cost ​ $ 2,862 ​ $ 1,627
Lessee Supplemental Cash Flow Information Of Leases [Table Text Block]	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Three Months Ended ​ (in thousands) ​ April 4, 2021 ​ March 29, 2020 ​ Cash paid for amounts included in the measurement of lease liabilities: ​ ​ ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ $ 2,155 ​ $ 1,791 ​ Right-of-use assets obtained in exchange for new operating lease liabilities ​ ​ - ​ ​ 51,682 ​ Weighted-average remaining lease term of operating leases (in years) ​ ​ 10.1 ​ ​ 11.0 ​ Weighted-average discount rate of operating leases ​ ​ 5.27 % ​ 5.26 %

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	3 Months Ended
	Apr. 04, 2021
Revenue from Contract with Customer [Abstract]
Schedule of estimated revenues expected to be recognized in the future related to unsatisfied performance obligations	​ ​ ​ ​ ​ (in thousands) ​ Fiscal Year ​ 2021 ​ $ 67 2022 ​ 90 2023 ​ 90 2024 ​ 88 2025 ​ 82 Thereafter ​ 450 Total ​ $ 867
Schedule of change in contract liabilities	​ ​ ​ ​ ​ ​ (in thousands) ​ January 3, 2021 ​ Beginning Balance ​ $ 901 ​ Revenue recognized ​ ​ (34) ​ Ending Balance ​ $ 867 ​

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Apr. 04, 2021
Stock-based Compensation
Schedule of recognized stock-based compensation expense	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ (in thousands) April 4, 2021 March 29, 2020 ​ Stock options ​ $ 89 ​ $ 81 ​ Restricted stock ​ 229 ​ 56 ​ ​ ​ $ 318 ​ $ 137 ​
Schedule of stock option activity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ ​ ​ Remaining ​ ​ Number of ​ Weighted Average ​ Contractual (number of options in thousands) Options Exercise Price Life in Years Options outstanding at January 3, 2021 557 ​ $ 4.53 ​ ​ Granted 14 ​ 6.00 ​ ​ Exercised ​ — ​ ​ — ​ ​ Canceled, forfeited or expired ​ (11) ​ ​ 3.40 ​ ​ Options outstanding at April 4, 2021 560 ​ $ 4.58 ​ 6.5
Schedule of stock option valuation assumptions	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ April 4, 2021 ​ March 29, 2020 ​ Weighted-average fair value of options granted during the period ​ $ 2.74 ​ $ 1.86 ​ Expected life (in years) ​ 2.5 ​ 4.7 ​ Expected dividend ​ $ — ​ $ — ​ Expected stock volatility ​ 76.48 % 51.21 % Risk-free interest rate ​ 0.2 % 1.6 %
Schedule of unvested restricted stock activity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ ​ ​ Remaining ​ ​ Number of ​ Weighted Average ​ Contractual (number of awards in thousands) Awards Award Date Fair Value Life in Years Unvested at January 3, 2021 475 ​ $ 4.43 ​ ​ Granted — ​ — ​ ​ Exercised/Released ​ (14) ​ ​ 4.71 ​ ​ Unvested at April 4, 2021 461 ​ $ 4.42 ​ 1.8

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	3 Months Ended
	Apr. 04, 2021
Related Party Transactions
Schedules of related party transactions	The following table outlines amounts received from related parties during the three months ended April 4, 2021 and March 29, 2020: ​ ​ ​ ​ ​ ​ ​ Three Months Ended (in thousands) April 4, 2021 March 29, 2020 Revenues and NAF contributions - Anand Gala $ 322 ​ $ 344 Revenues and NAF contributions - Charles Davidson ​ 138 ​ ​ 166 The following table outlines accounts receivable from related parties as of April 4,2021 and January 3, 2021: ​ ​ ​ ​ ​ ​ ​ (in thousands) ​ April 4, 2021 January 3, 2021 Accounts receivable, net - Anand Gala ​ $ 246 ​ $ 207 Accounts receivable, net - Charles Davidson ​ ​ 64 ​ ​ 52

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) $ in Thousands	May 14, 2020USD ($)	Jul. 18, 2018	Mar. 29, 2020USD ($)restaurant	Dec. 29, 2019	Apr. 04, 2021USD ($)restaurantstate	Mar. 29, 2020USD ($)	Jan. 03, 2021USD ($)
Business information
Number of restaurants | restaurant					128
Number of states in which entity operates | state					31
Deferred tax asset, net					$ 4,900
Effective tax rate					10.50%	(2.70%)
Cash and Cash Equivalents, at Carrying Value [Abstract]
Certificate of deposit	$ 3,500
CD interest rate	0.15%
Frequency of compounding interest on a CD	30 days
Restricted cash and marketing fund
Restricted cash					$ 1,361		$ 1,502
Assets held for sale
Assets held for sale					1,070		1,070
Contract sale price for assets held for sale					2,500
Concentrations of risk
Accounts receivable, net					$ 4,176		$ 4,823
Mercury
Business information
Ownership percentage in VIE		20.00%		20.00%
Entity Operated Units
Business information
Number of restaurants | restaurant					27
Franchised Units
Business information
Number of restaurants | restaurant					101
Marketing Development Fund
Restricted cash and marketing fund
Restricted cash			$ 1,500		$ 1,400	$ 1,500
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

BASIS OF PRESENTATION - Net Inc

BASIS OF PRESENTATION - Net Income per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Apr. 04, 2021	Mar. 29, 2020
Earnings Per Share [Abstract]
Net income	$ 799	$ 13,707
Weighted average shares outstanding - basic	9,208,000	9,121,000
Weighted average shares outstanding - diluted	9,501,000	9,202,000
Basic net income per common share	$ 0.09	$ 1.50
Earnings Per Share, Diluted	$ 0.08	$ 1.49
Anti-dilutive shares excluded from computation of diluted net income per share	24,000	228,197

PREPAID EXPENSES AND OTHER CU_3

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands	Apr. 04, 2021	Jan. 03, 2021
Prepaid expenses and other current assets
Prepaid expenses and deferred costs	$ 1,492	$ 950
Prepaid insurance	925	302
Prepaid expenses and other current assets	$ 2,417	$ 1,252

PROPERTY, EQUIPMENT, AND LEAS_3

PROPERTY, EQUIPMENT, AND LEASEHOLD IMPROVEMENTS, NET (Details) - USD ($) $ in Thousands	Apr. 04, 2021	Jan. 03, 2021
Property, Equipment, And Leasehold Improvements, Net
Land, buildings, and improvements	$ 32,016	$ 31,731
Furniture, fixtures, equipment and software	28,774	28,373
Decor	475	475
Construction in progress	323	1,121
Accumulated depreciation and amortization	(30,080)	(29,311)
Property, equipment and leasehold improvements, net	$ 31,508	$ 32,389

INTANGIBLE ASSETS - Carrying Am

INTANGIBLE ASSETS - Carrying Amounts (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 04, 2021	Jan. 03, 2021
Intangible assets
Goodwill	$ 601	$ 601
Intangible assets, net	10,451	10,568
Liquor Licenses
Intangible assets
Indefinite lived assets	868	868
Trademarks, Logos, and Patents
Intangible assets
Indefinite lived assets	7,688	7,688
Franchise Rights
Intangible assets
Finite lived intangible assets, net	$ 1,148	1,246
Database
Intangible assets
Estimated useful life	3 years
Finite lived intangible assets, net	$ 146	$ 165

OTHER CURRENT LIABILITIES (Deta

OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Apr. 04, 2021	Jan. 03, 2021
Other current liabilities
Gift cards payable	$ 4,990	$ 6,553
Sales tax payable	1,269	1,286
Other accrued expenses	1,257	1,394
Accrued interest	130	115
Accrued utilities	231	199
Total other current liabilities	8,156	9,766
Customer loyalty program
Other current liabilities
Deferred revenue	189	124
Franchise royalty and fee revenue
Other current liabilities
Deferred revenue	$ 90	$ 95

LONG-TERM DEBT - Narrative (Det

LONG-TERM DEBT - Narrative (Details) - USD ($) $ in Thousands	Jun. 20, 2019	Apr. 04, 2021	Jan. 03, 2021
Long-term debt
Principal payments		$ 519
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		$ 9,884	$ 10,403
Prepayment penalty	$ 0
Term Loan | Minimum | Prime Rate
Long-term debt
Rate of interest	5.00%

LONG-TERM DEBT - PPP Loans (Det

LONG-TERM DEBT - PPP Loans (Details) - PPP Loans $ in Millions	12 Months Ended
	Jan. 03, 2021USD ($)
Long-term debt
Rate of interest	1.00%
Loan term	24 months
FDA
Long-term debt
Loan amount	$ 14

LONG-TERM DEBT - Long-Term Debt

LONG-TERM DEBT - Long-Term Debt and Financing Lease (Details) - USD ($) $ in Thousands	Apr. 04, 2021	Jan. 03, 2021
Long-term debt
Less: deferred financing costs	$ (75)	$ (80)
Less: current portion of long-term debt	(2,138)	(2,111)
Long-term debt, less current portion	21,628	22,169
Term Loan
Long-term debt
Debt Instrument Carrying Amount	9,884	10,403
PPP Loans
Long-term debt
Debt Instrument Carrying Amount	$ 13,957	$ 13,957

LEASES - Lease Expense (Details

LEASES - Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 04, 2021	Mar. 29, 2020
Lease expense
Operating lease cost	$ 2,442	$ 1,596
Short-term lease cost	96	31
Variable lease cost	368
Sublease income	(44)
Total lease cost	$ 2,862	$ 1,627

LEASES - Supplemental Cash Flow

LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 04, 2021	Mar. 29, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 2,155	$ 1,791
Right-of-use assets obtained in exchange for new operating lease liabilities		$ 51,682
Weighted-average remaining lease term of operating leases (in years)	10 years 1 month 6 days	11 years
Weighted-average discount rate of operating leases	5.27%	5.26%

REVENUE RECOGNITION - Estimated

REVENUE RECOGNITION - Estimated Revenues Expected And Change In Contract Liabilities Default (Details) $ in Thousands	3 Months Ended
	Apr. 04, 2021USD ($)
Estimated future revenues expected to be recognized for performance obligations
Revenue expected to be recognized	$ 867
Change in contract liabilities
Beginning balance	901
Revenue recognized	(34)
Ending balance	867
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-05
Estimated future revenues expected to be recognized for performance obligations
Revenue expected to be recognized	$ 67
Revenue, remaining performance obligation, expected timing of satisfaction, period	9 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	$ 90
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	$ 90
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	$ 88
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	$ 82
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-12-29
Estimated future revenues expected to be recognized for performance obligations
Revenue expected to be recognized	$ 450
Revenue, remaining performance obligation, expected timing of satisfaction, period

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 04, 2021	Mar. 29, 2020	Jun. 28, 2015
Stock-based compensation
Stock-based compensation expense	$ 318	$ 137
Stock Options
Stock-based compensation
Stock-based compensation expense	89	81
Restricted Stock
Stock-based compensation
Stock-based compensation expense	$ 229	$ 56
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
2015 Plan
Stock-based compensation
Shares authorized for issuance			1,500,000
Shares available for grant	184,476
2005 Plan
Stock-based compensation
Shares available for grant	0

STOCK-BASED COMPENSATION - Stoc

STOCK-BASED COMPENSATION - Stock Options (Details) shares in Thousands	3 Months Ended
	Apr. 04, 2021$ / sharesshares
Number of Options
Options outstanding at beginning of period | shares	557
Granted | shares	14
Cancelled, forfeited or expired | shares	(11)
Options outstanding at end of period | shares	560
Weighted Average Exercise Price
Options outstanding at beginning of period | $ / shares	$ 4.53
Granted | $ / shares	6
Cancelled, forfeited or expired | $ / shares	3.40
Options outstanding at end of period | $ / shares	$ 4.58
Weighted Average Remaining Contractual Life
Options outstanding	6 years 6 months

STOCK-BASED COMPENSATION - Valu

STOCK-BASED COMPENSATION - Valuation Assumptions (Details) - $ / shares	3 Months Ended
	Apr. 04, 2021	Mar. 29, 2020
Valuation Assumptions
Weighted-average fair value of options granted during the period	$ 2.74	$ 1.86
Expected life (in years)	2 years 6 months	4 years 8 months 12 days
Expected dividend	0.00%	0.00%
Expected stock volatility	76.48%	51.21%
Risk-free interest rate	0.20%	1.60%

STOCK-BASED COMPENSATION - Rest

STOCK-BASED COMPENSATION - Restricted Stock (Details) - Restricted Stock shares in Thousands	3 Months Ended
	Apr. 04, 2021$ / sharesshares
Number of Awards
Unvested at beginning of period | shares	475
Exercised/Released | shares	(14)
Unvested at end of period | shares	461
Weighted Average Award Date Fair Value
Unvested at beginning of period | $ / shares	$ 4.43
Exercised/Released | $ / shares	4.71
Unvested at end of period | $ / shares	$ 4.42
Weighted Average Remaining Contractual Life
Unvested at end of period	1 year 9 months 18 days

VARIABLE INTEREST ENTITY (Detai

VARIABLE INTEREST ENTITY (Details) - USD ($) $ in Thousands	Jul. 18, 2018	Dec. 29, 2019	Apr. 04, 2021	Mar. 29, 2020	Jan. 03, 2021
Variable Interest Entities
Net loss			$ (697)	$ (13,311)
Net loss attributable to non-controlling interest			102	396
Non-controlling interest			1,380		$ 1,278
Property, equipment and leasehold improvements, net			31,508		32,389
Operating lease right-of-use assets			59,920		61,634
Inventory			2,380		$ 2,271
Mercury
Variable Interest Entities
Ownership percentage in VIE	20.00%	20.00%
Clark | Mercury
Variable Interest Entities
Ownership percentage	80.00%
Mercury
Variable Interest Entities
Net loss			128	$ 496
Property, equipment and leasehold improvements, net			2,900
Operating lease right-of-use assets			1,800
Inventory			$ 158

LITIGATION (Details)

LITIGATION (Details) $ in Thousands	1 Months Ended	3 Months Ended
	Apr. 04, 2021USD ($)	Apr. 04, 2021USD ($)item
Litigation
Number of potentially material litigation matters | item		2
Graham v. Famous Dave's of America
Litigation
Settlement consideration		$ 995
Hamilton Commons v. Famous Daves of America
Litigation
Settlement consideration	$ 130
Amount due from landlord for liquor license at termination of lease	$ 193

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 04, 2021	Mar. 29, 2020	Jan. 03, 2021
Director
Related Party Transactions
Revenues and NAF contributions	$ 322	$ 344
Accounts receivable from related parties	246		$ 207
Beneficial Owner
Related Party Transactions
Revenues and NAF contributions	138	$ 166
Accounts receivable from related parties	$ 64		$ 52
Beneficial ownership percentage	17.40%