Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 30, 2013 | Mar. 31, 2014 | Jul. 01, 2013 |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'COSI INC | ' | ' |
Entity Central Index Key | '0001171014 | ' | ' |
Current Fiscal Year End Date | '--12-30 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $36.70 |
Entity Common Stock, Shares Outstanding | ' | 18,308,934 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Dec-13 | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $6,021 | $15,417 |
Accounts receivable, net | 594 | 1,235 |
Notes receivable, current portion | 551 | 462 |
Inventories | 779 | 893 |
Prepaid expenses and other current assets | 1,348 | 1,620 |
Total current assets | 9,293 | 19,627 |
Furniture and fixtures, equipment and leasehold improvements, net | 8,195 | 9,900 |
Notes receivable, net of current portion | 0 | 573 |
Other assets | 1,115 | 1,093 |
Total assets | 18,603 | 31,193 |
Current liabilities: | ' | ' |
Accounts payable | 2,462 | 2,886 |
Accrued expenses | 9,088 | 9,447 |
Deferred franchise revenue | 18 | 61 |
Current portion of other long-term liabilities | 196 | 140 |
Total current liabilities | 11,764 | 12,534 |
Deferred franchise revenue | 1,931 | 1,923 |
Other long-term liabilities, net of current portion | 2,189 | 2,701 |
Total liabilities | 15,884 | 17,158 |
Stockholders' equity: | ' | ' |
Common stock - $.01 par value; 100,000,000 shares authorized, 18,106,979 and 18,278,308 shares issued, respectively | 181 | 183 |
Additional paid-in capital | 297,181 | 297,051 |
Treasury stock, 59,886 shares at cost | -1,198 | -1,198 |
Accumulated deficit | -293,445 | -282,001 |
Total stockholders' equity | 2,719 | 14,035 |
Total liabilities and stockholders' equity | $18,603 | $31,193 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 30, 2013 | Dec. 31, 2012 |
Stockholders' equity: | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 18,106,979 | 18,278,308 |
Treasury stock, shares (in shares) | 59,886 | 59,886 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Loss (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 30, 2013 | Dec. 31, 2012 | Jan. 02, 2012 |
Revenues: | ' | ' | ' |
Restaurant net sales | $83,338 | $94,757 | $98,920 |
Franchise fees and royalties | 2,989 | 3,195 | 3,215 |
Total revenues | 86,327 | 97,952 | 102,135 |
Costs and expenses: | ' | ' | ' |
Cost of food and beverage | 20,736 | 22,171 | 22,902 |
Restaurant labor and related benefits | 32,379 | 34,165 | 36,068 |
Occupancy and other restaurant operating expenses | 28,971 | 30,337 | 31,330 |
Total operating costs and expenses | 82,086 | 86,673 | 90,300 |
General and administrative expenses | 11,746 | 11,641 | 13,824 |
Depreciation and amortization | 2,724 | 3,613 | 4,230 |
Restaurant pre-opening expenses | 29 | 0 | 0 |
Provision for losses on asset impairments and disposals | 1,122 | 424 | 431 |
Closed store costs | 124 | 117 | 61 |
Lease termination expense (income), net | 57 | -13 | 22 |
Gain on sale of assets | -34 | 0 | -149 |
Total costs and expenses | 97,854 | 102,455 | 108,719 |
Operating loss | -11,527 | -4,503 | -6,584 |
Other income (expense): | ' | ' | ' |
Interest expense | 0 | 0 | -1 |
Other income | 83 | 62 | 46 |
Total other income | 83 | 62 | 45 |
Net loss and comprehensive loss | ($11,444) | ($4,441) | ($6,539) |
Per Share Data: | ' | ' | ' |
Loss per share, basic and diluted (in dollars per share) | ($0.64) | ($0.29) | ($0.51) |
Weighted average common shares outstanding (in shares) | 17,993,858 | 15,207,588 | 12,842,125 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Common Stock [Member] | Additional Paid In Capital [Member] | Treasury Stock [Member] | Accumulated Deficit [Member] | Total | |
In Thousands, except Share data, unless otherwise specified | ||||||
Balance at Dec. 27, 2010 | $129 | $283,776 | ($1,198) | ($271,021) | $11,686 | |
Balance (in shares) at Dec. 27, 2010 | 12,920,723 | ' | 59,886 | ' | ' | |
Increase (Decrease) in Stockholders' Equity [Abstract] | ' | ' | ' | ' | ' | |
Issuance of restricted stock, net of forfeitures | 3 | -3 | ' | ' | 0 | |
Issuance of restricted stock, net of forfeitures (in shares) | 321,119 | ' | ' | ' | ' | |
Stock-based compensation | ' | 371 | ' | ' | 371 | |
Net loss | ' | ' | ' | -6,539 | -6,539 | |
Balance at Jan. 02, 2012 | 132 | 284,144 | -1,198 | -277,560 | 5,518 | |
Balance (in shares) at Jan. 02, 2012 | 13,241,841 | ' | 59,886 | ' | ' | |
Increase (Decrease) in Stockholders' Equity [Abstract] | ' | ' | ' | ' | ' | |
Issuance of common stock, net of issuance costs | [1] | 50 | 12,509 | ' | ' | 12,559 |
Issuance of common stock, net of issuance costs (in shares) | [1] | 4,915,461 | ' | ' | ' | ' |
Issuance of restricted stock, net of forfeitures | 1 | -1 | ' | ' | 0 | |
Issuance of restricted stock, net of forfeitures (in shares) | 120,890 | ' | ' | ' | ' | |
Stock-based compensation | ' | 399 | ' | ' | 399 | |
Net loss | ' | ' | ' | -4,441 | -4,441 | |
Balance at Dec. 31, 2012 | 183 | 297,051 | -1,198 | -282,001 | 14,035 | |
Balance (in shares) at Dec. 31, 2012 | 18,278,192 | ' | 59,886 | ' | ' | |
Increase (Decrease) in Stockholders' Equity [Abstract] | ' | ' | ' | ' | ' | |
Forfeiture of restricted stock | -2 | 2 | ' | ' | 0 | |
Forfeiture of restricted stock (in shares) | -171,213 | ' | ' | ' | ' | |
Stock-based compensation | ' | 128 | ' | ' | 128 | |
Net loss | ' | ' | ' | -11,444 | -11,444 | |
Balance at Dec. 30, 2013 | $181 | $297,181 | ($1,198) | ($293,445) | $2,719 | |
Balance (in shares) at Dec. 30, 2013 | 18,106,979 | ' | 59,886 | ' | ' | |
[1] | Represents the proceeds, net of issuance costs, of approximately $221,000 from the shareholder rights offering and related private placement to directors and officers of the Company, completed in July 2012 |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | 1 Months Ended |
In Thousands, unless otherwise specified | Jul. 31, 2012 |
Consolidated Statements of Stockholders' Equity [Abstract] | ' |
Issuance costs related to sale of stock | $221,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 30, 2013 | Dec. 31, 2012 | Jan. 02, 2012 |
Cash flows from operating activities: | ' | ' | ' |
Net loss | ($11,444) | ($4,441) | ($6,539) |
Adjustments to reconcile net loss to net cash used in operating activities | ' | ' | ' |
Depreciation and amortization | 2,724 | 3,613 | 4,230 |
Gain on sale of assets | -34 | 0 | -149 |
Non-cash portion of asset impairments and disposals | 1,122 | 424 | 431 |
Provision for bad debts | 491 | 46 | 117 |
Stock-based compensation expense | 128 | 399 | 371 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | 600 | -683 | -19 |
Notes receivable | 36 | 175 | 492 |
Inventories | 115 | -176 | 27 |
Prepaid expenses and other current assets | 272 | -140 | 159 |
Other assets | -28 | 26 | 40 |
Accounts payable and accrued expenses | -771 | -1,319 | 1,180 |
Deferred franchise revenue | -35 | -175 | -140 |
Lease termination reserve | -64 | -30 | -288 |
Other liabilities | -406 | -674 | -1,230 |
Net cash used in operating activities | -7,294 | -2,955 | -1,318 |
Cash flows from investing activities: | ' | ' | ' |
Capital expenditures | -2,142 | -1,409 | -2,011 |
Proceeds from sale of assets | 40 | 0 | 244 |
Net cash used in investing activities | -2,102 | -1,409 | -1,767 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from issuance of common stock | 0 | 12,780 | 0 |
Common stock issuance costs | 0 | -221 | 0 |
Net cash provided by financing activities | 0 | 12,559 | 0 |
Net (decrease) increase in cash and cash equivalents | -9,396 | 8,195 | -3,085 |
Cash and cash equivalents, beginning of year | 15,417 | 7,222 | 10,307 |
Cash and cash equivalents, end of year | 6,021 | 15,417 | 7,222 |
Cash paid for: | ' | ' | ' |
Corporate franchise and income taxes | $138 | $154 | $205 |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||||||
Dec. 30, 2013 | |||||||||||||||||||||
Organization and Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||||||||||
Organization and Summary of Significant Accounting Policies | ' | ||||||||||||||||||||
1. Organization and Summary of Significant Accounting Policies | |||||||||||||||||||||
Organization | |||||||||||||||||||||
Cosi, Inc., a Delaware corporation, owns, operates, and franchises fast-casual dining restaurants which sell high-quality, made-to-order sandwiches, salads, bowls, and coffees along with a variety of other soft drink beverages, teas, baked goods and alcoholic beverages. As of December 30, 2013, there were 70 Company-owned and 52 franchised restaurants operating in 16 states, the District of Columbia, the United Arab Emirates (UAE), and Costa Rica. | |||||||||||||||||||||
Fiscal Year | |||||||||||||||||||||
Our fiscal year ends on the Monday closest to December 31. Fiscal years ended December 30, 2013, December 31, 2012, January 2, 2012 are referred to as fiscal 2013, 2012, and 2011, respectively. Each of fiscal years 2013 and 2012 included 52 weeks while fiscal year 2011 included 53 weeks. | |||||||||||||||||||||
Basis of Presentation | |||||||||||||||||||||
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and include the accounts of the Company and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated. | |||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||
We consider all short-term investments with a maturity of three months or less from the date of purchase to be cash equivalents. | |||||||||||||||||||||
Concentration of Credit Risks | |||||||||||||||||||||
Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash deposits. We place our cash deposits in Federal Deposit Insurance Corporation (“FDIC”) insured financial institutions. Balances of cash deposits may, at times, exceed FDIC insured limits. We have never experienced losses related to these balances. | |||||||||||||||||||||
Our accounts receivable consist principally of trade or “house” accounts representing corporate customers and amounts due from franchisees. We have established credit procedures and analyses to control the granting of credit to customers. Credit card transactions at the Company’s restaurants are processed by a single service provider. | |||||||||||||||||||||
Accounts Receivable | |||||||||||||||||||||
Trade accounts receivable are stated at net realizable value. The Company maintains a reserve for potential uncollectible accounts based on historical trends and known current factors impacting the Company’s customers or franchisees. | |||||||||||||||||||||
Inventories | |||||||||||||||||||||
Inventories are stated at the lower of cost, determined using a weighted average valuation method that approximates the first-in, first-out method, or market, and consist principally of food, beverage, liquor, packaging and related food supplies. | |||||||||||||||||||||
Furniture and Fixtures, Equipment and Leasehold Improvements | |||||||||||||||||||||
Furniture and fixtures, equipment and leasehold improvements are stated at cost. Depreciation of furniture and fixtures and equipment is computed using the straight‑line method over estimated useful lives that range from two to ten years. Leasehold improvements are amortized using the straight‑line method over the shorter of their estimated useful lives or the term of the related leases. | |||||||||||||||||||||
Upon retirement or sale, the cost of assets disposed of and their related accumulated depreciation are removed from the accounts. Any resulting gain or loss is credited or charged to operations. Maintenance and repairs are charged to expense when incurred, while betterments are capitalized. | |||||||||||||||||||||
Long-Lived Assets | |||||||||||||||||||||
Impairment losses are recorded on long‑lived assets on a restaurant-by-restaurant basis whenever impairment factors are determined to be present. We consider a consistent history of poor financial operating performance to be the primary indicator of potential impairment for individual restaurant locations. We determine whether a restaurant location is impaired based on expected undiscounted cash flows, generally for the remainder of the original lease term, and then determine the impairment charge based on discounted cash flows for the same period. | |||||||||||||||||||||
In accordance with the provisions of the impairment or disposal subsections of ASC 360-10, Property, Plant & Equipment, long-lived assets held and used with a carrying amount of $2.2 million were written down to their fair value of $1.2 million, resulting in asset impairment and disposal charges of $1.0 million which were included in earnings for fiscal 2013. We considered all relevant valuation techniques that could be obtained without undue cost and effort, and concluded that the discounted cash flow approach continued to provide the most relevant and reliable means by which to determine fair value of the long-lived assets held and used. | |||||||||||||||||||||
Long-lived assets held | Total value at | Prices in Active | Significant | Significant | Total | ||||||||||||||||
and used | end of period | Markets for | Observable | Unobservable | Gains | ||||||||||||||||
Identical Assets | Inputs | Inputs | (Losses) | ||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
30-Dec-13 | $ | 1,219 | $ | - | $ | - | $ | 1,219 | $ | (1,005 | ) | ||||||||||
$ | 1,219 | $ | - | $ | - | $ | 1,219 | $ | (1,005 | ) | |||||||||||
31-Dec-12 | $ | 348 | $ | - | $ | - | $ | 348 | $ | (424 | ) | ||||||||||
$ | 348 | $ | - | $ | - | $ | 348 | $ | (424 | ) | |||||||||||
2-Jan-12 | $ | 647 | $ | - | $ | - | $ | 647 | $ | (431 | ) | ||||||||||
$ | 647 | $ | - | $ | - | $ | 647 | $ | (431 | ) | |||||||||||
The asset impairment charges relate to ten and four underperforming restaurants and to maintenance capital expenditures on previously impaired restaurants in fiscal years 2013 and 2012, respectively. | |||||||||||||||||||||
Accounting for Lease Obligations | |||||||||||||||||||||
We recognize rent expense on a straight-line basis over the lease term commencing on the date we take possession. We record landlord allowances as deferred rent in other long-term liabilities on the consolidated balance sheets and amortize them on a straight-line basis over the term of the related lease. | |||||||||||||||||||||
Lease Termination Charges | |||||||||||||||||||||
Future store closings, if any, resulting from our decision to close underperforming locations prior to their scheduled lease expiration dates may result in additional lease termination charges. For all exit activities, we estimate our likely liability under contractual leases for restaurants that have been closed. Such estimates have affected the amount and timing of charges to operating results and are impacted by management’s judgments about the time it may take to find a suitable subtenant or assignee, or the terms under which a termination of the lease agreement may be negotiated with the landlord. We recognize costs associated with exit or disposal activities at the time a commitment to an exit or disposal plan is communicated to the landlord. | |||||||||||||||||||||
We incurred lease termination charges of approximately $0.1 million during fiscal 2013 related to the closing of two Company-owned restaurants in the Northeast where we reached early termination agreements with the landlords. The lease termination charges that we recorded in fiscal years 2012 and 2011 were immaterial. | |||||||||||||||||||||
A summary of lease termination reserve activity is as follows: | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Balance as of December 27, 2010 | 533 | ||||||||||||||||||||
Charged to costs and expenses | 22 | ||||||||||||||||||||
Payments and adjustments | (310 | ) | |||||||||||||||||||
Balance as of January 2, 2012 | 245 | ||||||||||||||||||||
Charged to costs and expenses | 2 | ||||||||||||||||||||
Payments and adjustments | (33 | ) | |||||||||||||||||||
Balance as of December 31, 2012 | 214 | ||||||||||||||||||||
Charged to costs and expenses | 127 | ||||||||||||||||||||
Payments and adjustments | (191 | ) | |||||||||||||||||||
Balance as of December 30, 2013 | 150 | ||||||||||||||||||||
Other Liabilities | |||||||||||||||||||||
Other liabilities consist of deferred rent, landlord allowances and accrued lease termination costs (see Note 12 to our consolidated financial statements). | |||||||||||||||||||||
Income Taxes | |||||||||||||||||||||
We have recorded a full valuation allowance to reduce our deferred tax assets that relate primarily to net operating loss carryforwards. Our determination of the valuation allowance is based on an evaluation of whether it is more likely than not that we will be able to utilize the net operating loss carryforwards based on the Company’s operating results. A positive adjustment to income will be recorded in future years if we determine that we could realize these deferred tax assets. | |||||||||||||||||||||
As of December 30, 2013, we had net operating loss (“NOL”) carryforwards of approximately $226.0 million for U.S. federal income tax purposes. Under the Internal Revenue Code, an “ownership change” with respect to a corporation can significantly limit the amount of pre-ownership change NOLs and certain other tax assets that the corporation may utilize after the ownership change to offset future taxable income, possibly reducing the amount of cash available to the corporation to satisfy its obligations. An ownership change generally would occur if the aggregate stock ownership of holders of at least 5% of our stock increases by more than 50 percentage points over the preceding three year period. We do not believe that the rights offering and the related private placement of common stock that we completed in fiscal years 2012 and 2010 have triggered an ownership change. In addition, a limitation would not have an impact on our consolidated financial statements as we have recorded a valuation allowance for the entire amount of our deferred tax assets. | |||||||||||||||||||||
We adopted ASC 740-10, Income Taxes, which prescribes a comprehensive financial statement model of how a company should recognize, measure, present and disclose uncertain tax positions that the company has taken or expects to take in its income tax returns. The standard requires that only income tax benefits that meet the “more likely than not” recognition threshold be recognized or continue to be recognized on the effective date. Initial recognition amounts would have been reported as a cumulative effect of a change in accounting principle. | |||||||||||||||||||||
Should the Company need to accrue interest or penalties on uncertain tax positions, it would recognize the interest as interest expense and the penalties as a general and administrative expense. | |||||||||||||||||||||
Due to our unexpired NOLs, Cosi could be subject to IRS income tax examination for the tax year 1996 and all subsequent years. We could also be subject to state income tax examinations in certain states where we have unexpired NOLs. | |||||||||||||||||||||
Revenue Recognition | |||||||||||||||||||||
Restaurant Net Sales. Our Company-owned restaurant sales are composed almost entirely of food and beverage sales. We record revenue at the time of the purchase of our products by our customers. | |||||||||||||||||||||
Franchise Fees and Royalties. Franchise fees and royalties includes fees earned from franchise agreements entered into with area developers and franchise operators, as well as royalties received based on sales generated at franchised restaurants. We recognize the franchise fee in the period in which a franchise location opens or when fees are forfeited as a result of a termination of an area developer agreement. We recognize franchise royalties in the period in which sales are made by our franchise operators. | |||||||||||||||||||||
Gift Card Sales. We offer our customers the opportunity to purchase gift cards at our restaurants and through our website. Customers can purchase these cards at varying dollar amounts. At the time of purchase by the customer, we record a gift card liability for the face value of the card purchased. We recognize the revenue and reduce the gift card liability when the gift card is redeemed. We do not reduce our recorded liability for potential non-use of purchased gift cards. | |||||||||||||||||||||
Gain on Sale of Assets | |||||||||||||||||||||
The gain from the sale of one liquor license that we recognized during fiscal 2013 was immaterial. During fiscal 2011, we recognized a gain of approximately $0.1 million related to the sale of four liquor licenses. | |||||||||||||||||||||
Restaurant Pre-opening Expenses | |||||||||||||||||||||
Restaurant pre-opening expenses are expensed as incurred and include the costs of recruiting, hiring and training the initial restaurant work force, travel, the cost of food and labor used during the period before opening, the cost of initial quantities of supplies and other direct costs related to the opening or remodeling of a restaurant. Pre-opening expenses also include rent expense recognized on a straight-line basis from the date we take possession through the period of construction or renovation prior to opening the restaurant. The restaurant pre-opening expenses that we incurred during fiscal 2013 related to the relocation of one Company-owned restaurant were immaterial. | |||||||||||||||||||||
Advertising Costs | |||||||||||||||||||||
Domestic franchise-operated Cosi® restaurants contribute 1% of their sales to a national marketing fund and are also required to spend 1% of their sales on advertising in their local markets. Our international franchise-operated restaurants contribute 0.5% of their sales to an international marketing fund. The Company also contributes 1% of sales from Company-owned restaurants to the national marketing fund. The Company’s contributions, as well as its own local market media costs, are recorded as part of occupancy and other restaurant operating expenses on the Company’s consolidated statements of operations. Advertising costs are expensed as incurred and were approximately $0.9 million, $1.2 million, and $2.1 million in fiscal years 2013, 2012, and 2011, respectively. | |||||||||||||||||||||
Net Loss Per Share | |||||||||||||||||||||
Basic and diluted loss per common share is calculated by dividing the net loss by the weighted-average common shares outstanding during each period. As of December 30, 2013, December 31, 2012, and January 2, 2012, there were, respectively, 11,325, 271,400, and 322,100 unvested restricted shares of common stock outstanding and 53,514, 38,552 and 41,071 out-of-the-money stock options to purchase shares of common stock. There were no in-the-money stock options as of the end of fiscal years 2013, 2012, and 2011. The unvested restricted shares and the out-of-the-money stock options meet the requirements for participating securities but were not included in the computation of basic and diluted earnings per share because we incurred a net loss in all periods presented and, hence, the impact would be anti-dilutive. | |||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||
In accordance with ASC 718-10-25, Compensation – Stock Compensation, we recognize stock-based compensation expense according to the fair value recognition provision which generally requires, among other things, that all employee share-based compensation is measured using a fair value method and that all the resulting compensation expense is recognized in the financial statements. In accordance with the standard, our stock-based compensation expense is recognized on a straight-line basis over the requisite service period of the award, which is the vesting term. As a result, we recognized stock compensation expense of approximately $0.1 million, $0.4 million, and $0.4 million during fiscal years 2013, 2012, and 2011, respectively. We measure the estimated fair value of our granted stock options using a Black-Scholes pricing model and of our restricted stock based on the fair market value of a share of registered stock on the date of the grant. | |||||||||||||||||||||
Segment Information | |||||||||||||||||||||
Operating segments are defined as components of an enterprise about which separate financial information is available and is evaluated regularly by the chief operating decision maker in deciding how to allocate resources in assessing performance. Our chief operating decision maker reviews one aggregated set of financial statements to make decisions about resource allocations and to assess performance. Consequently, we have one reportable segment for all sales generated. | |||||||||||||||||||||
Accounting Estimates | |||||||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the 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 may differ from those estimates. | |||||||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||||||
Effective January 1, 2013, the Company adopted Accounting Standards Update (“ASU”) No. 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” The adoption of ASU 2013-02 concerns presentation and disclosure only and did not have an impact on the Company’s consolidated financial position or results of operations. | |||||||||||||||||||||
Accounts_Receivable
Accounts Receivable | 12 Months Ended | ||||||||
Dec. 30, 2013 | |||||||||
Accounts Receivable [Abstract] | ' | ||||||||
Accounts Receivable | ' | ||||||||
2. Accounts Receivable | |||||||||
Accounts receivable consist of the following: | |||||||||
December 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Due from franchisees | $ | 473 | $ | 724 | -2 | ||||
Accounts receivable, trade | 342 | 359 | |||||||
Other | 123 | 116 | |||||||
Hurricane insurance-related | - | 193 | |||||||
Service vendor receivable | - | 146 | |||||||
Total receivables | 938 | 1,538 | |||||||
Less: allowance for doubtful accounts | (344 | )(1) | (303 | ) | |||||
Accounts receivable, net | $ | 594 | $ | 1,235 | |||||
(1) Does not include approximately $0.45 million in reserve on a note receivable from a franchisee presented in Note 5. Notes Receivable | |||||||||
(2) Includes approximately $0.3 million in deferred franchise royalties and marketing funds paid during fiscal 2013 | |||||||||
A summary of the reserve for doubtful accounts follows: | |||||||||
(in thousands) | |||||||||
Balance as of December 27, 2010 | 145 | ||||||||
Charged to costs and expenses | 117 | ||||||||
Deductions | (8 | ) | (a) | ||||||
Balance as of January 2, 2012 | 254 | ||||||||
Charged to costs and expenses | 46 | ||||||||
Deductions | 3 | (a) | |||||||
Balance as of December 31, 2012 | 303 | ||||||||
Charged to costs and expenses | 491 | (b) | |||||||
Deductions | - | (a) | |||||||
Balance as of December 30, 2013 | 794 | ||||||||
(a) Recovery (write-off) of uncollectible accounts | |||||||||
(b) Includes approximately $0.5 million reserve on a note receivable from a franchisee |
Prepaid_Expenses_and_Other_Cur
Prepaid Expenses and Other Current Assets | 12 Months Ended | ||||||||
Dec. 30, 2013 | |||||||||
Prepaid Expenses and Other Current Assets [Abstract] | ' | ||||||||
Prepaid Expenses and Other Current Assets | ' | ||||||||
3. Prepaid Expenses and Other Current Assets | |||||||||
Prepaid expenses and other current assets consist of the following: | |||||||||
December 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Prepaid insurance | $ | 1,263 | $ | 1,468 | |||||
Other | 85 | 152 | |||||||
Prepaid expenses and other current assets | $ | 1,348 | $ | 1,620 |
Furniture_and_Fixtures_Equipme
Furniture and Fixtures, Equipment and Leasehold Improvements | 12 Months Ended | ||||||||
Dec. 30, 2013 | |||||||||
Furniture and Fixtures, Equipment and Leasehold Improvements [Abstract] | ' | ||||||||
Furniture and Fixtures, Equipment and Leasehold Improvements | ' | ||||||||
4. Furniture and Fixtures, Equipment and Leasehold Improvements | |||||||||
Furniture and fixtures, equipment and leasehold improvements consist of the following: | |||||||||
December 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Leasehold improvements | $ | 31,361 | $ | 32,061 | |||||
Furniture and fixtures | 10,325 | 10,729 | |||||||
Computer and telephone equipment | 11,492 | 11,670 | |||||||
Restaurant equipment | 16,228 | 16,242 | |||||||
Vehicles | 39 | 35 | |||||||
Total furniture and fixtures, equipment and leasehold improvements | 69,445 | 70,737 | |||||||
Less accumulated depreciation and amortization | (61,250 | ) | (60,837 | ) | |||||
Furniture and fixtures, equipment and leasehold improvements, net | $ | 8,195 | $ | 9,900 | |||||
Depreciation and amortization expense for fiscal years 2013, 2012, and 2011 was approximately $2.7 million, $3.6 million, and $4.2 million, respectively. | |||||||||
Notes_Receivable
Notes Receivable | 12 Months Ended | ||||||||
Dec. 30, 2013 | |||||||||
Notes Receivable [Abstract] | ' | ||||||||
Notes Receivable | ' | ||||||||
5. Notes Receivable | |||||||||
December 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Sale of restaurans to a franchisee in 2010 | 925 | 885 | |||||||
Other | 76 | 150 | |||||||
Total notes receivable | 1,001 | 1,035 | |||||||
Less: allowance for doubtful accounts | (450 | )(1) | - | ||||||
Total other assets | $ | 551 | $ | 1,035 | |||||
(1) Denotes a reserve on a note receivable from a franchisee included in the summary of the reserve for doubtful accounts in Note 2. Accounts Receivable. |
Other_Assets
Other Assets | 12 Months Ended | ||||||||
Dec. 30, 2013 | |||||||||
Other Assets [Abstract] | ' | ||||||||
Other Assets | ' | ||||||||
6. Other Assets | |||||||||
Other assets consist of the following: | |||||||||
December 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Security deposits | 788 | 725 | |||||||
Trademarks | 195 | 195 | |||||||
Liquor licenses | 85 | 92 | |||||||
Other | 47 | 81 | |||||||
Total other assets | $ | 1,115 | $ | 1,093 |
Accrued_Expenses
Accrued Expenses | 12 Months Ended | ||||||||
Dec. 30, 2013 | |||||||||
Accrued Expenses [Abstract] | ' | ||||||||
Accrued Expenses | ' | ||||||||
7. Accrued Expenses | |||||||||
Accrued expenses consist of the following: | |||||||||
December 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Payroll and related benefits and taxes | $ | 2,143 | $ | 2,133 | |||||
Unredeemed gift cards/certificates | 2,067 | 1,773 | |||||||
Insurance | 1,327 | 1,539 | |||||||
Utilities | 857 | 979 | |||||||
Rent | 516 | 532 | |||||||
Professional and legal | 497 | 397 | |||||||
Taxes other than income taxes | 383 | 665 | |||||||
Deferred credits | 323 | 370 | |||||||
Advertising | 103 | 179 | |||||||
Other | 872 | 880 | |||||||
Total accrued expenses | $ | 9,088 | $ | 9,447 |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 30, 2013 | |||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
8. Income Taxes | |||||||||||||
Significant components of our deferred tax assets, net of any deferred tax liabilities, are as follows: | |||||||||||||
December 30, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss carryforward | $ | 89,488 | $ | 84,296 | |||||||||
Depreciation expense and impairment of long-lived assets | 14,215 | 14,829 | |||||||||||
Contractual lease increases | 885 | 1,040 | |||||||||||
Deferred franchise revenue | 1,244 | 1,250 | |||||||||||
Stock-based compensation | 1,161 | 1,163 | |||||||||||
Lease termination accrual | 60 | 85 | |||||||||||
Accrued expenses | (34 | ) | 45 | ||||||||||
Allowance for doubtful accounts | 315 | 121 | |||||||||||
Total deferred tax assets | 107,334 | 102,829 | |||||||||||
Valuation allowance | (107,334 | ) | (102,829 | ) | |||||||||
Net deferred taxes | $ | - | $ | - | |||||||||
As of December 30, 2013, we have federal net operating tax loss carryforwards (NOL’s) of approximately $226.0 million which, if not used, will expire from 2018 through 2033. We have recorded a valuation allowance to offset the benefit associated with the deferred tax assets described above due to the uncertainty of realizing the related benefits. As a result of the net loss reported for fiscal 2013, the Company has no income tax expense. | |||||||||||||
Below is a reconciliation of the statutory federal income tax rate to the effective tax rate as a percentage of income before income taxes: | |||||||||||||
December 30, | December 31, | January 2, | |||||||||||
2013 | 2012 | 2012 | |||||||||||
Statutory federal income tax rate | 35 | % | 35 | % | 35 | % | |||||||
State income taxes | 4.6 | 4.6 | 4.6 | ||||||||||
39.6 | 39.6 | 39.6 | |||||||||||
Less valuation allowance | (39.6 | ) | (39.6 | ) | (39.6 | ) | |||||||
Effective Tax Rate | 0 | % | 0 | % | 0 | % | |||||||
Under the Internal Revenue Code, an “ownership change” with respect to a corporation can significantly limit the amount of pre-ownership change NOLs and certain other tax assets that the corporation may utilize after the ownership change to offset future taxable income. An ownership change generally would occur if the aggregate stock ownership of holders of at least 5% of our stock increases by more than 50 percentage points over the preceding three year period. We do not believe that the purchase of shares of our common stock pursuant to the rights offering and the related private placement of common stock that we completed in fiscal years 2012 and 2010 have triggered an ownership change. In addition, a limitation would not have an impact on our consolidated financial statements as we have recorded a valuation allowance for the entire amount of our deferred tax assets. | |||||||||||||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Dec. 30, 2013 | |
Stockholders' Equity [Abstract] | ' |
Stockholders' Equity | ' |
9. Stockholders’ Equity | |
Rights Offering and Private Placement of Common Stock | |
On July 9, 2012, we completed a shareholders’ rights offering to our shareholders of record as of May 24, 2012. We issued a total of 4,915,461 shares of our $0.01 par value common stock at a subscription price of $2.60 per share. Of those shares, our executive officers and outside directors purchased an aggregate of 633,581 shares of our $0.01 par value common stock, at a subscription price of $2.60 per share, through a private placement, based on the number of shares that would have been available to them had they executed their basic and oversubscription privilege in the rights offering. We received net proceeds of approximately $12.6 million from the rights offering and the private placement of common stock. | |
On January 6, 2010, we completed a shareholders’ rights offering to our shareholders of record as of November 9, 2009. We issued a total of 2,500,000 shares of our $0.01 par value common stock at a subscription price of $2.00 per share. In conjunction with the rights offering, our executive officers and outside directors purchased an aggregate 112,919 shares of our $0.01 par value common stock, at a subscription price of $2.00 per share, through a private placement. We received, in the aggregate, net proceeds of approximately $4.9 million from the rights offering and the private placement of common stock. | |
We do not believe that the July 9, 2012 or the January 6, 2010 rights offering and the related private placement of common stock triggered an ownership change which would generally occur if the aggregate stock ownership of holders of at least 5% of our stock increases by more than 50 percentage points over the preceding three year period. | |
Under the Internal Revenue Code, an “ownership change” with respect to a corporation can significantly limit the amount of pre-ownership change NOLs and certain other tax assets that the corporation may utilize after the ownership change to offset future taxable income, possibly reducing the amount of cash available to the corporation to satisfy its obligations. | |
Reverse Common Stock Split | |
On May 8, 2013, the Company filed a Certificate of Amendment to its Amended and Restated Certificate of Incorporation to implement a one-for-four reverse split of its common stock, par value $0.01 per share, as approved by the Company’s stockholders at the Annual Meeting of Stockholders on May 8, 2013. The reverse split was effective as of 8:00 a.m. (Eastern Time) on May 9, 2013, and the Company’s common stock began trading on the NASDAQ Global Market on a post-split basis on May 9, 2013. | |
StockBased_Employee_Compensati
Stock-Based Employee Compensation | 12 Months Ended | ||||||||||||||||||||||
Dec. 30, 2013 | |||||||||||||||||||||||
Stock-Based Employee Compensation [Abstract] | ' | ||||||||||||||||||||||
Stock-Based Employee Compensation | ' | ||||||||||||||||||||||
10. Stock-Based Employee Compensation | |||||||||||||||||||||||
We have had several long-term incentive compensation plans, including the Amended and Restated Cosi, Inc. Long-Term Incentive Plan, that provided for the granting of incentive and nonqualified stock options to employees. On May 2, 2005, the Cosi, Inc. 2005 Omnibus Long-Term Incentive Plan (the “Omnibus Plan”) went into effect, superseding all prior long-term incentive plans. The Omnibus Plan provides for the issuance of restricted stock, restricted stock units, incentive and nonqualified stock options, and any other stock awards that may be payable in shares, cash, other securities, and any other form of property as may be determined by the Compensation Committee of our Board of Directors. The purpose of this plan is to attract and retain qualified individuals and to align their interest with those of stockholders by providing certain employees of Cosi, Inc. and its affiliates with the opportunity to receive stock-based and other long-term incentive grants. The terms and conditions of stock-based awards under the plans are determined by the Compensation Committee of the Board of Directors. The grants are issued at fair market value and generally vest over a period of four or five years. We currently account for stock option grants in accordance with ASC 718-10-25 Compensation – Stock Compensation. | |||||||||||||||||||||||
When the Omnibus Plan went into effect, 925,000 authorized but unissued common shares that were reserved under the Amended and Restated Cosi, Inc. Long Term Incentive Plan continued to be reserved for issuance under the Omnibus Plan. No additional awards will be granted under any of the prior long-term incentive plans. During fiscal 2012, an Amendment to the 2005 Omnibus Long-Term Incentive Plan was approved which increased the number of shares available for issuance under the Plan by 375,000. | |||||||||||||||||||||||
As of December 30, 2013, approximately 0.7 million shares of common stock, in the aggregate, were reserved for issuance under the Omnibus Plan and for outstanding grants under the prior long-term incentive plans. | |||||||||||||||||||||||
A summary of stock-based compensation follows: | |||||||||||||||||||||||
Fiscal Year | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Stock option compensation expense | $ | 7 | $ | - | $ | - | |||||||||||||||||
Restricted stock compensation expense, net of forfeitures | 121 | 399 | 371 | ||||||||||||||||||||
Total non-cash, stock-based compensation expense,net of forfeitures | $ | 128 | $ | 399 | $ | 371 | |||||||||||||||||
As of December 30, 2013, the unrecognized compensation expense related to restricted stock shares and stock options granted under the Omnibus Plan was immaterial. The expense will be recognized on a straight-line basis from the date of each grant through fiscal 2017 and is recorded in general and administrative expenses in our consolidated statements of operations. | |||||||||||||||||||||||
A summary of option activity for fiscal years 2013, 2012, and 2011 follows: | |||||||||||||||||||||||
Weighted | |||||||||||||||||||||||
Weighted | Average | Aggregate | |||||||||||||||||||||
Number of | Average Exercise | Remaining | Intrinsic | ||||||||||||||||||||
Options | Price | Contractual Term | Value | ||||||||||||||||||||
(in years) | (in thousands) | ||||||||||||||||||||||
Outstanding as of December 27, 2010 | 135,744 | $ | 38.8 | 1.6 | $ | - | |||||||||||||||||
Granted | - | - | |||||||||||||||||||||
Exercised | - | - | |||||||||||||||||||||
Cancelled/Expired | (94,674 | ) | $ | 46.96 | - | ||||||||||||||||||
Outstanding as of January 2, 2012 | 41,071 | $ | 20 | 2.5 | $ | - | |||||||||||||||||
Granted | - | - | |||||||||||||||||||||
Exercised | - | - | |||||||||||||||||||||
Cancelled/Expired | (2,518 | ) | $ | 13.88 | - | ||||||||||||||||||
Outstanding as of December 31, 2012 | 38,552 | $ | 20.4 | 1.7 | $ | - | |||||||||||||||||
Granted | 25,000 | 2.8 | |||||||||||||||||||||
Exercised | - | - | |||||||||||||||||||||
Cancelled/Expired | (10,038 | ) | $ | 21.02 | - | ||||||||||||||||||
Outstanding as of December 30, 2013 | 53,514 | $ | 12.05 | 3.9 | $ | - | |||||||||||||||||
Exercisable as of December 30, 2013 | 53,514 | $ | 12.05 | 3.9 | $ | - | |||||||||||||||||
There were 53,514 outstanding, out-of-the-money stock options as of the end of fiscal 2013. We granted 25,000 stock options during fiscal 2013 with a fair value of $0.07 million. No stock options were exercised during any of the fiscal years presented As of the end of fiscal 2013, the outstanding stock options had no intrinsic value as they were all out-of-the-money. | |||||||||||||||||||||||
The following table summarizes information about stock options outstanding at December 30, 2013: | |||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||
Weighted | |||||||||||||||||||||||
Average | Weighted | Weighted | |||||||||||||||||||||
Number of | Remaining | Average | Number of | Average | |||||||||||||||||||
Options | Contractual | Exercise | Options | Exercise | |||||||||||||||||||
Range of Exercise Prices | Outstanding | Life in Years | Price | Exercisable | Price | ||||||||||||||||||
$ | 2.80 - $10.80 | 25,000 | 7.5 | $ | 2.8 | 5,000 | $ | 2.8 | |||||||||||||||
$ | 10.81 - $18.92 | 16,245 | 0.6 | 18.8 | 16,245 | 18.8 | |||||||||||||||||
$ | 18.93 - $20.72 | 1,207 | 0.7 | 20.5 | 1,207 | 20.5 | |||||||||||||||||
$ | 20.73 - $20.98 | 6,697 | 0.8 | 20.8 | 6,697 | 20.8 | |||||||||||||||||
$ | 20.99 - $27.76 | 4,365 | 1 | 24.2 | 4,365 | 24.2 | |||||||||||||||||
53,514 | 3.9 | $ | 12.05 | 33,514 | $ | 17.57 | |||||||||||||||||
Pursuant to the 2005 Omnibus Plan and in accordance with the terms and conditions prescribed by the Compensation Committee of our Board of Directors, we granted 30,000 shares of restricted stock to employees during fiscal 2013. We did not grant any shares of restricted stock to employees in fiscal 2012. During the same year, we converted 91,250 previously issues restricted stock units into restricted stock shares. During fiscal 2011, we granted and issued 299,500 restricted stock shares and 25,000 stock units to key employees. The vesting of these shares and stock units occurs as follows, except where provided differently in the following paragraphs: (i) 20% of the stock shares and stock units vested on the grant date, and (ii) an additional 20% of the stock shares and stock units will vest on each anniversary of the grant date provided that at each such date the employee continues to be employed by the Company. The value of the shares and the stock units for the grants made during fiscal years 2013 and 2011, based on the closing price of our common stock on the date of the grants, was approximately $0.1 million and $0.9 million, respectively. During fiscal years 2013, 2012, and 2011, previously issued shares and units of restricted common stock of 256,725, 13,463, and 60,600, respectively, were forfeited. The value of the forfeited shares and units of restricted common stock, based on the closing price of our common stock on the dates of the grants, was approximately $0.7 million, $0.05 million, and $0.3 million in fiscal years 2013, 2012, and 2011, respectively. | |||||||||||||||||||||||
Included in the restricted stock activity table below are 55,512, 43,103, and 32,219 shares issued during fiscal years 2013, 2012, and 2011, respectively, to members of the Board of Directors pursuant to the Cosi Non-Employee Director Stock Incentive Plan and the Omnibus Plan. These shares had an aggregate value of approximately $0.1 million at the time of issuance in all three fiscal years and vested upon issuance. The fair value of the restricted stock that vested during fiscal 2013 was approximately $0.3 million. | |||||||||||||||||||||||
The following tables summarize the Company’s restricted stock activity: | |||||||||||||||||||||||
Number of | Weighted | ||||||||||||||||||||||
Shares of | Average | ||||||||||||||||||||||
Restricted | Grant-Date | ||||||||||||||||||||||
Stock | Fair Value | ||||||||||||||||||||||
Non-vested at December 27, 2010 | 51,263 | $ | 5.08 | ||||||||||||||||||||
Granted | 331,719 | 3.2 | |||||||||||||||||||||
Vested | 50,281 | 4.96 | |||||||||||||||||||||
Forfeited / Canceled | (10,600 | ) | 7.56 | ||||||||||||||||||||
Non-vested at Janaury 2, 2012 | 322,100 | $ | 3.08 | ||||||||||||||||||||
Granted | 43,103 | 3.48 | |||||||||||||||||||||
Vested | 80,340 | 3.56 | |||||||||||||||||||||
Forfeited / Canceled | (13,463 | ) | 4.68 | ||||||||||||||||||||
Non-vested at December 31, 2012 | 271,400 | $ | 2.96 | ||||||||||||||||||||
Granted | 85,512 | 2.91 | |||||||||||||||||||||
Vested | 88,862 | 3 | |||||||||||||||||||||
Forfeited / Canceled | (256,725 | ) | 2.88 | ||||||||||||||||||||
Non-vested at December 30, 2013 | 11,325 | $ | 4.08 | ||||||||||||||||||||
Weighted | |||||||||||||||||||||||
Number of | Average | ||||||||||||||||||||||
Restricted | Grant-Date | ||||||||||||||||||||||
Stock Units | Fair Value | ||||||||||||||||||||||
Non-vested at December 27, 2010 | 215,000 | $ | 1.51 | ||||||||||||||||||||
Granted | 100,000 | 1.45 | |||||||||||||||||||||
Vested | 115,000 | 2.12 | |||||||||||||||||||||
Forfeited | (200,000 | ) | 1.13 | ||||||||||||||||||||
Non-vested at January 2, 2012 | - | $ | - | ||||||||||||||||||||
Granted | - | - | |||||||||||||||||||||
Vested | - | - | |||||||||||||||||||||
Forfeited | - | - | |||||||||||||||||||||
Non-vested at December 31, 2012 | - | $ | - | ||||||||||||||||||||
Granted | - | - | |||||||||||||||||||||
Vested | - | - | |||||||||||||||||||||
Forfeited | - | - | |||||||||||||||||||||
Non-vested at December 30, 2013 | - | $ | - |
Defined_Contribution_Plan
Defined Contribution Plan | 12 Months Ended |
Dec. 30, 2013 | |
Defined Contribution Plan [Abstract] | ' |
Defined Contribution Plan | ' |
11. Defined Contribution Plan | |
We have a 401(k) Plan (the “Plan”) for all qualified employees. The Plan provides for a matching employer contribution of 50% up to the first 4% of the employees’ deferred savings. The employer contributions made during the employee’s first year of employment vest upon the completion of one year of employment. Employer contributions made subsequent to the first year of employment vest immediately. The deferred amount cannot exceed 20% of an individual participant’s compensation in any calendar year. Our contributions to the Plan were approximately $0.1 million in each of the fiscal years 2013, 2012 and 2011. Subsequent to the end of fiscal year 2013, as part of various cost containment initiatives, we suspended the employer matching contribution to the Plan. | |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 30, 2013 | |||||
Commitments and Contingencies [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
12. Commitments and Contingencies | |||||
Commitments | |||||
As of December 30, 2013, we are committed under lease agreements expiring through 2024 for occupancy of our retail restaurants and for office space at the following minimum annual rentals: | |||||
Fiscal Year | Amount | ||||
(in thousands) | |||||
2014 | 11,831 | ||||
2015 | 10,479 | ||||
2016 | 7,686 | ||||
2017 | 4,543 | ||||
2018 | 2,957 | ||||
Thereafter | 8,409 | ||||
$ | 45,905 | ||||
Amounts shown are net of approximately $0.2 million of sublease rental income under non‑cancelable subleases. Rental expense for fiscal years 2013, 2012, and 2011 totaled $12.6, $13.1 million, and $13.1 million, respectively. Certain lease agreements have renewal options ranging from 3 years to 5 years. In addition, certain leases obligate us to pay additional rent if restaurant sales reach certain minimum levels (percentage rent). Amounts incurred under these additional rent provisions and agreements were approximately $0.2 million in each of the fiscal years 2013, 2012, and 2011. | |||||
Certain of our lease agreements provide for scheduled rent increases during the lease term or for rental payments to commence at a date other than the date of initial occupancy. Rent expense is recognized on a straight‑line basis over the term of the respective leases from the date we take possession. Our obligation with respect to these scheduled rent increases has been presented as a long‑term liability in other liabilities in the accompanying consolidated balance sheets and totaled $1.7 million, $2.1 million, and $2.6 million as of the end of fiscal years 2013, 2012, and 2011, respectively. | |||||
Certain of our leases also provide for landlord contributions to offset a portion of the cost of our leasehold improvements. These allowances are recorded as deferred liabilities and amortized on a straight-line basis as a reduction to rent expense over the term of the related leases. Included in other long-term liabilities in the accompanying consolidated balance sheets for fiscal years 2013, 2012, and 2011 were landlord allowances of $0.2 million, $0.5 million, and $0.7 million, respectively. | |||||
As of December 30, 2013, the Company had outstanding approximately $0.2 million in standby letters of credit, which were provided as security deposits for certain of the lease obligations. The letters of credit are fully secured by cash deposits or marketable securities held in accounts at the issuing banks and are not available for withdrawal by the Company. These amounts are included as a component of “Other Assets” in the accompanying consolidated balance sheets. | |||||
As of December 30, 2013, future minimum lease payments related to restaurants that have been closed or locations with subleased spaces are approximately $0.5 million, before expected sublease payments, with remaining lease terms ranging from one to three years. For each of these locations, a lease termination reserve has been established based upon management’s estimate of the cost to exit the lease or the time it would take to enter into a new sublease. The accompanying consolidated balance sheet includes a liability of $0.2 million in accrued lease termination costs with a current portion of $0.05 million as of the end of fiscal year 2013. | |||||
Purchase Commitments | |||||
We have agreements with some of the nation’s largest food, paper, and beverage manufacturers in the industry. This enables us to provide our restaurants with high quality proprietary food products and non-food items at competitive prices. We source and negotiate prices directly with these suppliers and distribute these products to our restaurants primarily through a national network that consists of some of the nation’s largest independent distributors. These primary suppliers and independent distributors have parallel facilities and systems to minimize the risk of any disruption of our supply chain. We do not utilize a commissary system. Our inventory control system allows each restaurant to place orders electronically with our master distributor and then transmits the invoices electronically to our accounts payable system. | |||||
We have an agreement with Distribution Market Advantage, Inc. (“Distribution Marketing Advantage”) that provides us access to a national network of independent distributors. Under this agreement the independent distributors supply us with approximately 76% of our food and paper products, primarily under pricing agreements that we negotiate directly with the suppliers. This agreement was renegotiated and has been extended through December 2015. | |||||
We have a long-term beverage marketing agreement with the Coca‑Cola Company. We received a marketing allowance under this agreement, which is being recognized as a reduction to expense ratably based on actual products purchased. Effective January 1, 2011, the beverage marketing agreement with the Coca-Cola Company was amended to provide for additional products as well as higher marketing allowances based on purchases. | |||||
In October 2010, we entered into an agreement to purchase all contracted coffee products through a single supplier, Royal Cup Coffee, Inc. This agreement expires in October 2015. | |||||
Self‑Insurance | |||||
We have a self‑insured group health insurance plan. We are responsible for all covered claims to a maximum limit of $100,000 per participant and an additional aggregating maximum limit of $50,000 for the plan year. Benefits paid in excess of these limits are reimbursed to the plan under our stop-loss policy. In addition, we have an aggregate stop-loss policy whereby our liability for total claims submitted cannot exceed a pre‑determined dollar factor based upon, among other things, past years’ claims experience, actual claims paid, the number of plan participants and monthly accumulated aggregate deductibles. We did not exceed this pre-determined maximum during fiscal years 2013, 2012, and 2011. For our 2014 plan year, this pre-determined dollar amount is $1.2 million. Health insurance expense for fiscal years 2013, 2012, and 2011 was $1.5 million, $1.4 million, and $1.3 million, respectively. The balance in the self-insurance reserve account was approximately $0.2 million and $0.1 million at December 30, 2013 and December 31, 2012, respectively. | |||||
Litigation | |||||
From time to time, we are a defendant in litigation arising in the ordinary course of our business. As of the date of this report, there are no legal proceedings that would require accrual or disclosure under ASC 450. | |||||
Other events | |||||
Reverse Common Stock Split | |||||
On May 8, 2013, the Company filed a Certificate of Amendment to its Amended and Restated Certificate of Incorporation to implement a one-for-four reverse split of its common stock, par value $0.01 per share, as approved by the Company’s stockholders at the Annual Meeting of Stockholders on May 8, 2013. The reverse split was effective as of 8:00 a.m. (Eastern Time) on May 9, 2013, and the Company’s common stock began trading on the NASDAQ Global Market on a post-split basis on May 9, 2013. | |||||
Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing | |||||
On August 20, 2013, the Company received notice from the Listing Qualifications Department of the Nasdaq Stock Market indicating that, for the period ended July 1, 2013, the Company no longer met the required minimum of $10,000,000 in stockholders' equity needed for continued listing under Listing Rule 5450(b)(1)(A). The notification letter stated that the Company had until October 4, 2013 to submit a plan to regain compliance. If a plan was submitted and accepted, the Company could be afforded up to 180 calendar days, or until February 16, 2014, to regain compliance. If a plan was submitted and not accepted, the Company might appeal to a Nasdaq Listing Qualifications Panel. Alternatively, the Company might consider applying for a transfer to The Nasdaq Capital Market provided it satisfied the requirements for continued listing on that market. | |||||
On October 4, 2013, the Company submitted an application to transfer its securities to The Nasdaq Capital Market. On October 7, 2013, the Company received notice from the Nasdaq Listing Qualifications Department indicating that the application was approved and that the Company’s securities would be transferred to the Nasdaq Capital Market at the opening of business on October 9, 2013. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
Entry into a Senior Secured Promissory Note Agreement | |
On April XX, 2014, the Company entered into a $5.0 million Senior Secured Promissory Note Agreement with Lloyd I. Miller, III. The Note bears interest at nine (9%) per annum, compounded semi-annually, and payable in arrears on a semi-annual basis. At the Company’s option, the first two semi-annual interest payments may be paid at eleven (11%) in kind in the form of additional Notes. The principal obligations under the Note are due three (3) years from the effective date of the Note. The Note provides for the payment of a finance fee of 3.5% of the principal amount of the Note at closing. The Note is guaranteed by the Company’s subsidiaries and secured by a lien on all assets of the Company and its subsidiaries. | |
Appointment of a New President and CEO | |
On March 17, 2014, the Company appointed R.J. Dourney as President and CEO as well as a member of the Board of Directors. Prior to his appointment, R.J. was founder and CEO of Hearthstone, a Boston based company which operates 13 restaurants in the Boston market as Cosi’s largest franchisee. | |
Election to Cause Merger Agreement | |
On March 18, 2014, Cosi, Inc. (the “Company” or “Cosi”) entered into an Election to Cause Merger Agreement (collectively with all exhibits thereto, the “Agreement”) with Hearthstone Associates, LLC (“Hearthstone”), Robert J. Dourney and Nancy Dourney (collectively with Robert J. Dourney, the “Holders”). Hearthstone, which is wholly-owned by the Holders, operates certain Company franchise restaurants through its wholly-owned subsidiary, Hearthstone Partners, LLC (the “Subsidiary”). | |
Under the terms of the Agreement, the Company granted to Hearthstone the sole and exclusive right (the “Right”), exercisable at the discretion of Hearthstone at any time after January 1, 2015 and before March 18, 2015, to elect to require Cosi to acquire Hearthstone by effecting a reverse triangular merger of Hearthstone with and into a subsidiary of Cosi (the “Merger”). If the Merger is consummated, the Company shall issue 1,790,993 shares of common stock of the Company to the Holders in the Merger. | |
The obligation of the Company to effect the Merger is subject to the satisfaction of a number of conditions at the time of the Merger, including (a) the transfer to Hearthstone of all indebtedness under a certain existing promissory note made by Robert J. Dourney to a third party, (b) the completion of construction of certain additional Company franchise restaurants, (c) the receipt of certain lender consents, (d) the approval of the Merger by the shareholders of the Company if then required pursuant to the NASDAQ Stock Market Rules and (e) other customary conditions. | |
The Company has provided customary representations and warranties to Hearthstone and is obligated to indemnify Hearthstone and the Subsidiary from any breach by the Company of such representations and warranties or the Agreement. The Company’s indemnification obligations shall terminate if the Right is not exercised prior to its expiration. In the event of a material breach of the Agreement by either the Company or Hearthstone, the other party, in addition to other remedies available at law, may be entitled to rescind the Merger, if applicable. | |
Until the Merger is consummated or the Right expires, Hearthstone and the Subsidiary are bound by certain restrictive covenants, including prohibitions or limitations on issuing or transferring equity securities, incurring additional debt, engaging in acquisitions, dispositions or mergers, amending governance documents, or suffering events of default under their loan or franchise agreements. In addition, Hearthstone and Subsidiary are obligated to provide the Company access to their financial information, books and records and personnel until the Merger is consummated or the Right expires. | |
The Election to Cause Merger Agreement between the Company, Hearthstone, Robert J. Dourney and Nancy Dourney was filed as Exhibit 2.1 to the Company’s Current Report on Form 8-K dated March 21, 2014 and is incorporated in this Report in its entirety by reference. | |
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||||||
Dec. 30, 2013 | |||||||||||||||||||||
Organization and Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||||||||||
Organization | ' | ||||||||||||||||||||
Organization | |||||||||||||||||||||
Cosi, Inc., a Delaware corporation, owns, operates, and franchises fast-casual dining restaurants which sell high-quality, made-to-order sandwiches, salads, bowls, and coffees along with a variety of other soft drink beverages, teas, baked goods and alcoholic beverages. As of December 30, 2013, there were 70 Company-owned and 52 franchised restaurants operating in 16 states, the District of Columbia, the United Arab Emirates (UAE), and Costa Rica. | |||||||||||||||||||||
Fiscal Year | ' | ||||||||||||||||||||
Fiscal Year | |||||||||||||||||||||
Our fiscal year ends on the Monday closest to December 31. Fiscal years ended December 30, 2013, December 31, 2012, January 2, 2012 are referred to as fiscal 2013, 2012, and 2011, respectively. Each of fiscal years 2013 and 2012 included 52 weeks while fiscal year 2011 included 53 weeks. | |||||||||||||||||||||
Basis of Presentation | ' | ||||||||||||||||||||
Basis of Presentation | |||||||||||||||||||||
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and include the accounts of the Company and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated. | |||||||||||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||
We consider all short-term investments with a maturity of three months or less from the date of purchase to be cash equivalents. | |||||||||||||||||||||
Concentration of Credit Risks | ' | ||||||||||||||||||||
Concentration of Credit Risks | |||||||||||||||||||||
Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash deposits. We place our cash deposits in Federal Deposit Insurance Corporation (“FDIC”) insured financial institutions. Balances of cash deposits may, at times, exceed FDIC insured limits. We have never experienced losses related to these balances. | |||||||||||||||||||||
Our accounts receivable consist principally of trade or “house” accounts representing corporate customers and amounts due from franchisees. We have established credit procedures and analyses to control the granting of credit to customers. Credit card transactions at the Company’s restaurants are processed by a single service provider. | |||||||||||||||||||||
Accounts Receivable | ' | ||||||||||||||||||||
Accounts Receivable | |||||||||||||||||||||
Trade accounts receivable are stated at net realizable value. The Company maintains a reserve for potential uncollectible accounts based on historical trends and known current factors impacting the Company’s customers or franchisees. | |||||||||||||||||||||
Inventories | ' | ||||||||||||||||||||
Inventories | |||||||||||||||||||||
Inventories are stated at the lower of cost, determined using a weighted average valuation method that approximates the first-in, first-out method, or market, and consist principally of food, beverage, liquor, packaging and related food supplies. | |||||||||||||||||||||
Furniture and Fixtures, Equipment and Leasehold Improvements | ' | ||||||||||||||||||||
Furniture and Fixtures, Equipment and Leasehold Improvements | |||||||||||||||||||||
Furniture and fixtures, equipment and leasehold improvements are stated at cost. Depreciation of furniture and fixtures and equipment is computed using the straight‑line method over estimated useful lives that range from two to ten years. Leasehold improvements are amortized using the straight‑line method over the shorter of their estimated useful lives or the term of the related leases. | |||||||||||||||||||||
Upon retirement or sale, the cost of assets disposed of and their related accumulated depreciation are removed from the accounts. Any resulting gain or loss is credited or charged to operations. Maintenance and repairs are charged to expense when incurred, while betterments are capitalized. | |||||||||||||||||||||
Long-Lived Assets | ' | ||||||||||||||||||||
Long-Lived Assets | |||||||||||||||||||||
Impairment losses are recorded on long‑lived assets on a restaurant-by-restaurant basis whenever impairment factors are determined to be present. We consider a consistent history of poor financial operating performance to be the primary indicator of potential impairment for individual restaurant locations. We determine whether a restaurant location is impaired based on expected undiscounted cash flows, generally for the remainder of the original lease term, and then determine the impairment charge based on discounted cash flows for the same period. | |||||||||||||||||||||
In accordance with the provisions of the impairment or disposal subsections of ASC 360-10, Property, Plant & Equipment, long-lived assets held and used with a carrying amount of $2.2 million were written down to their fair value of $1.2 million, resulting in asset impairment and disposal charges of $1.0 million which were included in earnings for fiscal 2013. We considered all relevant valuation techniques that could be obtained without undue cost and effort, and concluded that the discounted cash flow approach continued to provide the most relevant and reliable means by which to determine fair value of the long-lived assets held and used. | |||||||||||||||||||||
Long-lived assets held | Total value at | Prices in Active | Significant | Significant | Total | ||||||||||||||||
and used | end of period | Markets for | Observable | Unobservable | Gains | ||||||||||||||||
Identical Assets | Inputs | Inputs | (Losses) | ||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
30-Dec-13 | $ | 1,219 | $ | - | $ | - | $ | 1,219 | $ | (1,005 | ) | ||||||||||
$ | 1,219 | $ | - | $ | - | $ | 1,219 | $ | (1,005 | ) | |||||||||||
31-Dec-12 | $ | 348 | $ | - | $ | - | $ | 348 | $ | (424 | ) | ||||||||||
$ | 348 | $ | - | $ | - | $ | 348 | $ | (424 | ) | |||||||||||
2-Jan-12 | $ | 647 | $ | - | $ | - | $ | 647 | $ | (431 | ) | ||||||||||
$ | 647 | $ | - | $ | - | $ | 647 | $ | (431 | ) | |||||||||||
The asset impairment charges relate to ten and four underperforming restaurants and to maintenance capital expenditures on previously impaired restaurants in fiscal years 2013 and 2012, respectively. | |||||||||||||||||||||
Accounting for Lease Obligations | ' | ||||||||||||||||||||
Accounting for Lease Obligations | |||||||||||||||||||||
We recognize rent expense on a straight-line basis over the lease term commencing on the date we take possession. We record landlord allowances as deferred rent in other long-term liabilities on the consolidated balance sheets and amortize them on a straight-line basis over the term of the related lease. | |||||||||||||||||||||
Lease Termination Charges | ' | ||||||||||||||||||||
Lease Termination Charges | |||||||||||||||||||||
Future store closings, if any, resulting from our decision to close underperforming locations prior to their scheduled lease expiration dates may result in additional lease termination charges. For all exit activities, we estimate our likely liability under contractual leases for restaurants that have been closed. Such estimates have affected the amount and timing of charges to operating results and are impacted by management’s judgments about the time it may take to find a suitable subtenant or assignee, or the terms under which a termination of the lease agreement may be negotiated with the landlord. We recognize costs associated with exit or disposal activities at the time a commitment to an exit or disposal plan is communicated to the landlord. | |||||||||||||||||||||
We incurred lease termination charges of approximately $0.1 million during fiscal 2013 related to the closing of two Company-owned restaurants in the Northeast where we reached early termination agreements with the landlords. The lease termination charges that we recorded in fiscal years 2012 and 2011 were immaterial. | |||||||||||||||||||||
A summary of lease termination reserve activity is as follows: | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Balance as of December 27, 2010 | 533 | ||||||||||||||||||||
Charged to costs and expenses | 22 | ||||||||||||||||||||
Payments and adjustments | (310 | ) | |||||||||||||||||||
Balance as of January 2, 2012 | 245 | ||||||||||||||||||||
Charged to costs and expenses | 2 | ||||||||||||||||||||
Payments and adjustments | (33 | ) | |||||||||||||||||||
Balance as of December 31, 2012 | 214 | ||||||||||||||||||||
Charged to costs and expenses | 127 | ||||||||||||||||||||
Payments and adjustments | (191 | ) | |||||||||||||||||||
Balance as of December 30, 2013 | 150 | ||||||||||||||||||||
Other Liabilities | ' | ||||||||||||||||||||
Other Liabilities | |||||||||||||||||||||
Other liabilities consist of deferred rent, landlord allowances and accrued lease termination costs (see Note 12 to our consolidated financial statements). | |||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||
Income Taxes | |||||||||||||||||||||
We have recorded a full valuation allowance to reduce our deferred tax assets that relate primarily to net operating loss carryforwards. Our determination of the valuation allowance is based on an evaluation of whether it is more likely than not that we will be able to utilize the net operating loss carryforwards based on the Company’s operating results. A positive adjustment to income will be recorded in future years if we determine that we could realize these deferred tax assets. | |||||||||||||||||||||
As of December 30, 2013, we had net operating loss (“NOL”) carryforwards of approximately $226.0 million for U.S. federal income tax purposes. Under the Internal Revenue Code, an “ownership change” with respect to a corporation can significantly limit the amount of pre-ownership change NOLs and certain other tax assets that the corporation may utilize after the ownership change to offset future taxable income, possibly reducing the amount of cash available to the corporation to satisfy its obligations. An ownership change generally would occur if the aggregate stock ownership of holders of at least 5% of our stock increases by more than 50 percentage points over the preceding three year period. We do not believe that the rights offering and the related private placement of common stock that we completed in fiscal years 2012 and 2010 have triggered an ownership change. In addition, a limitation would not have an impact on our consolidated financial statements as we have recorded a valuation allowance for the entire amount of our deferred tax assets. | |||||||||||||||||||||
We adopted ASC 740-10, Income Taxes, which prescribes a comprehensive financial statement model of how a company should recognize, measure, present and disclose uncertain tax positions that the company has taken or expects to take in its income tax returns. The standard requires that only income tax benefits that meet the “more likely than not” recognition threshold be recognized or continue to be recognized on the effective date. Initial recognition amounts would have been reported as a cumulative effect of a change in accounting principle. | |||||||||||||||||||||
Should the Company need to accrue interest or penalties on uncertain tax positions, it would recognize the interest as interest expense and the penalties as a general and administrative expense. | |||||||||||||||||||||
Due to our unexpired NOLs, Cosi could be subject to IRS income tax examination for the tax year 1996 and all subsequent years. We could also be subject to state income tax examinations in certain states where we have unexpired NOLs. | |||||||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||||||
Revenue Recognition | |||||||||||||||||||||
Restaurant Net Sales. Our Company-owned restaurant sales are composed almost entirely of food and beverage sales. We record revenue at the time of the purchase of our products by our customers. | |||||||||||||||||||||
Franchise Fees and Royalties. Franchise fees and royalties includes fees earned from franchise agreements entered into with area developers and franchise operators, as well as royalties received based on sales generated at franchised restaurants. We recognize the franchise fee in the period in which a franchise location opens or when fees are forfeited as a result of a termination of an area developer agreement. We recognize franchise royalties in the period in which sales are made by our franchise operators. | |||||||||||||||||||||
Gift Card Sales. We offer our customers the opportunity to purchase gift cards at our restaurants and through our website. Customers can purchase these cards at varying dollar amounts. At the time of purchase by the customer, we record a gift card liability for the face value of the card purchased. We recognize the revenue and reduce the gift card liability when the gift card is redeemed. We do not reduce our recorded liability for potential non-use of purchased gift cards. | |||||||||||||||||||||
Gain on Sale of Assets | ' | ||||||||||||||||||||
Gain on Sale of Assets | |||||||||||||||||||||
The gain from the sale of one liquor license that we recognized during fiscal 2013 was immaterial. During fiscal 2011, we recognized a gain of approximately $0.1 million related to the sale of four liquor licenses. | |||||||||||||||||||||
Restaurant Pre-opening Expenses | ' | ||||||||||||||||||||
Restaurant Pre-opening Expenses | |||||||||||||||||||||
Restaurant pre-opening expenses are expensed as incurred and include the costs of recruiting, hiring and training the initial restaurant work force, travel, the cost of food and labor used during the period before opening, the cost of initial quantities of supplies and other direct costs related to the opening or remodeling of a restaurant. Pre-opening expenses also include rent expense recognized on a straight-line basis from the date we take possession through the period of construction or renovation prior to opening the restaurant. The restaurant pre-opening expenses that we incurred during fiscal 2013 related to the relocation of one Company-owned restaurant were immaterial. | |||||||||||||||||||||
Advertising Costs | ' | ||||||||||||||||||||
Advertising Costs | |||||||||||||||||||||
Domestic franchise-operated Cosi® restaurants contribute 1% of their sales to a national marketing fund and are also required to spend 1% of their sales on advertising in their local markets. Our international franchise-operated restaurants contribute 0.5% of their sales to an international marketing fund. The Company also contributes 1% of sales from Company-owned restaurants to the national marketing fund. The Company’s contributions, as well as its own local market media costs, are recorded as part of occupancy and other restaurant operating expenses on the Company’s consolidated statements of operations. Advertising costs are expensed as incurred and were approximately $0.9 million, $1.2 million, and $2.1 million in fiscal years 2013, 2012, and 2011, respectively. | |||||||||||||||||||||
Net Loss Per Share | ' | ||||||||||||||||||||
Net Loss Per Share | |||||||||||||||||||||
Basic and diluted loss per common share is calculated by dividing the net loss by the weighted-average common shares outstanding during each period. As of December 30, 2013, December 31, 2012, and January 2, 2012, there were, respectively, 11,325, 271,400, and 322,100 unvested restricted shares of common stock outstanding and 53,514, 38,552 and 41,071 out-of-the-money stock options to purchase shares of common stock. There were no in-the-money stock options as of the end of fiscal years 2013, 2012, and 2011. The unvested restricted shares and the out-of-the-money stock options meet the requirements for participating securities but were not included in the computation of basic and diluted earnings per share because we incurred a net loss in all periods presented and, hence, the impact would be anti-dilutive. | |||||||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||
In accordance with ASC 718-10-25, Compensation – Stock Compensation, we recognize stock-based compensation expense according to the fair value recognition provision which generally requires, among other things, that all employee share-based compensation is measured using a fair value method and that all the resulting compensation expense is recognized in the financial statements. In accordance with the standard, our stock-based compensation expense is recognized on a straight-line basis over the requisite service period of the award, which is the vesting term. As a result, we recognized stock compensation expense of approximately $0.1 million, $0.4 million, and $0.4 million during fiscal years 2013, 2012, and 2011, respectively. We measure the estimated fair value of our granted stock options using a Black-Scholes pricing model and of our restricted stock based on the fair market value of a share of registered stock on the date of the grant. | |||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||
Segment Information | |||||||||||||||||||||
Operating segments are defined as components of an enterprise about which separate financial information is available and is evaluated regularly by the chief operating decision maker in deciding how to allocate resources in assessing performance. Our chief operating decision maker reviews one aggregated set of financial statements to make decisions about resource allocations and to assess performance. Consequently, we have one reportable segment for all sales generated. | |||||||||||||||||||||
Accounting Estimates | ' | ||||||||||||||||||||
Accounting Estimates | |||||||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the 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 may differ from those estimates. | |||||||||||||||||||||
Recent Accounting Pronouncements | ' | ||||||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||||||
Effective January 1, 2013, the Company adopted Accounting Standards Update (“ASU”) No. 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” The adoption of ASU 2013-02 concerns presentation and disclosure only and did not have an impact on the Company’s consolidated financial position or results of operations. | |||||||||||||||||||||
Organization_and_Summary_of_Si2
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 30, 2013 | |||||||||||||||||||||
Organization and Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||||||||||
Schedule of fair value of long-lived assets held and used | ' | ||||||||||||||||||||
In accordance with the provisions of the impairment or disposal subsections of ASC 360-10, Property, Plant & Equipment, long-lived assets held and used with a carrying amount of $2.2 million were written down to their fair value of $1.2 million, resulting in asset impairment and disposal charges of $1.0 million which were included in earnings for fiscal 2013. We considered all relevant valuation techniques that could be obtained without undue cost and effort, and concluded that the discounted cash flow approach continued to provide the most relevant and reliable means by which to determine fair value of the long-lived assets held and used. | |||||||||||||||||||||
Long-lived assets held | Total value at | Prices in Active | Significant | Significant | Total | ||||||||||||||||
and used | end of period | Markets for | Observable | Unobservable | Gains | ||||||||||||||||
Identical Assets | Inputs | Inputs | (Losses) | ||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
30-Dec-13 | $ | 1,219 | $ | - | $ | - | $ | 1,219 | $ | (1,005 | ) | ||||||||||
$ | 1,219 | $ | - | $ | - | $ | 1,219 | $ | (1,005 | ) | |||||||||||
31-Dec-12 | $ | 348 | $ | - | $ | - | $ | 348 | $ | (424 | ) | ||||||||||
$ | 348 | $ | - | $ | - | $ | 348 | $ | (424 | ) | |||||||||||
2-Jan-12 | $ | 647 | $ | - | $ | - | $ | 647 | $ | (431 | ) | ||||||||||
$ | 647 | $ | - | $ | - | $ | 647 | $ | (431 | ) | |||||||||||
Summary of lease termination reserve activity | ' | ||||||||||||||||||||
A summary of lease termination reserve activity is as follows: | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Balance as of December 27, 2010 | 533 | ||||||||||||||||||||
Charged to costs and expenses | 22 | ||||||||||||||||||||
Payments and adjustments | (310 | ) | |||||||||||||||||||
Balance as of January 2, 2012 | 245 | ||||||||||||||||||||
Charged to costs and expenses | 2 | ||||||||||||||||||||
Payments and adjustments | (33 | ) | |||||||||||||||||||
Balance as of December 31, 2012 | 214 | ||||||||||||||||||||
Charged to costs and expenses | 127 | ||||||||||||||||||||
Payments and adjustments | (191 | ) | |||||||||||||||||||
Balance as of December 30, 2013 | 150 |
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 12 Months Ended | ||||||||
Dec. 30, 2013 | |||||||||
Accounts Receivable [Abstract] | ' | ||||||||
Schedule of components of accounts receivable | ' | ||||||||
Accounts receivable consist of the following: | |||||||||
December 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Due from franchisees | $ | 473 | $ | 724 | -2 | ||||
Accounts receivable, trade | 342 | 359 | |||||||
Other | 123 | 116 | |||||||
Hurricane insurance-related | - | 193 | |||||||
Service vendor receivable | - | 146 | |||||||
Total receivables | 938 | 1,538 | |||||||
Less: allowance for doubtful accounts | (344 | )(1) | (303 | ) | |||||
Accounts receivable, net | $ | 594 | $ | 1,235 | |||||
(1) Does not include approximately $0.45 million in reserve on a note receivable from a franchisee presented in Note 5. Notes Receivable | |||||||||
(2) Includes approximately $0.3 million in deferred franchise royalties and marketing funds paid during fiscal 2013 | |||||||||
Summary of reserve for doubtful accounts | ' | ||||||||
A summary of the reserve for doubtful accounts follows: | |||||||||
(in thousands) | |||||||||
Balance as of December 27, 2010 | 145 | ||||||||
Charged to costs and expenses | 117 | ||||||||
Deductions | (8 | ) | (a) | ||||||
Balance as of January 2, 2012 | 254 | ||||||||
Charged to costs and expenses | 46 | ||||||||
Deductions | 3 | (a) | |||||||
Balance as of December 31, 2012 | 303 | ||||||||
Charged to costs and expenses | 491 | (b) | |||||||
Deductions | - | (a) | |||||||
Balance as of December 30, 2013 | 794 | ||||||||
(a) Recovery (write-off) of uncollectible accounts | |||||||||
(b) Includes approximately $0.5 million reserve on a note receivable from a franchisee |
Prepaid_Expenses_and_Other_Cur1
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended | ||||||||
Dec. 30, 2013 | |||||||||
Prepaid Expenses and Other Current Assets [Abstract] | ' | ||||||||
Schedule of components of prepaid expenses and other current assets | ' | ||||||||
Prepaid expenses and other current assets consist of the following: | |||||||||
December 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Prepaid insurance | $ | 1,263 | $ | 1,468 | |||||
Other | 85 | 152 | |||||||
Prepaid expenses and other current assets | $ | 1,348 | $ | 1,620 |
Furniture_and_Fixtures_Equipme1
Furniture and Fixtures, Equipment and Leasehold Improvements (Tables) | 12 Months Ended | ||||||||
Dec. 30, 2013 | |||||||||
Furniture and Fixtures, Equipment and Leasehold Improvements [Abstract] | ' | ||||||||
Schedule of components of furniture and fixtures, equipment and leasehold improvements | ' | ||||||||
Furniture and fixtures, equipment and leasehold improvements consist of the following: | |||||||||
December 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Leasehold improvements | $ | 31,361 | $ | 32,061 | |||||
Furniture and fixtures | 10,325 | 10,729 | |||||||
Computer and telephone equipment | 11,492 | 11,670 | |||||||
Restaurant equipment | 16,228 | 16,242 | |||||||
Vehicles | 39 | 35 | |||||||
Total furniture and fixtures, equipment and leasehold improvements | 69,445 | 70,737 | |||||||
Less accumulated depreciation and amortization | (61,250 | ) | (60,837 | ) | |||||
Furniture and fixtures, equipment and leasehold improvements, net | $ | 8,195 | $ | 9,900 |
Notes_Receivable_Tables
Notes Receivable (Tables) | 12 Months Ended | ||||||||
Dec. 30, 2013 | |||||||||
Notes Receivable [Abstract] | ' | ||||||||
Schedule of notes receivable | ' | ||||||||
December 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Sale of restaurans to a franchisee in 2010 | 925 | 885 | |||||||
Other | 76 | 150 | |||||||
Total notes receivable | 1,001 | 1,035 | |||||||
Less: allowance for doubtful accounts | (450 | )(1) | - | ||||||
Total other assets | $ | 551 | $ | 1,035 | |||||
(1) Denotes a reserve on a note receivable from a franchisee included in the summary of the reserve for doubtful accounts in Note 2. Accounts Receivable. |
Other_Assets_Tables
Other Assets (Tables) | 12 Months Ended | ||||||||
Dec. 30, 2013 | |||||||||
Other Assets [Abstract] | ' | ||||||||
Schedule of components of other assets | ' | ||||||||
Other assets consist of the following: | |||||||||
December 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Security deposits | 788 | 725 | |||||||
Trademarks | 195 | 195 | |||||||
Liquor licenses | 85 | 92 | |||||||
Other | 47 | 81 | |||||||
Total other assets | $ | 1,115 | $ | 1,093 |
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 12 Months Ended | ||||||||
Dec. 30, 2013 | |||||||||
Accrued Expenses [Abstract] | ' | ||||||||
Schedule of components of accrued expenses | ' | ||||||||
Accrued expenses consist of the following: | |||||||||
December 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Payroll and related benefits and taxes | $ | 2,143 | $ | 2,133 | |||||
Unredeemed gift cards/certificates | 2,067 | 1,773 | |||||||
Insurance | 1,327 | 1,539 | |||||||
Utilities | 857 | 979 | |||||||
Rent | 516 | 532 | |||||||
Professional and legal | 497 | 397 | |||||||
Taxes other than income taxes | 383 | 665 | |||||||
Deferred credits | 323 | 370 | |||||||
Advertising | 103 | 179 | |||||||
Other | 872 | 880 | |||||||
Total accrued expenses | $ | 9,088 | $ | 9,447 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 30, 2013 | |||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||
Schedule of significant components of deferred tax assets, net of any deferred tax liabilities | ' | ||||||||||||
Significant components of our deferred tax assets, net of any deferred tax liabilities, are as follows: | |||||||||||||
December 30, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss carryforward | $ | 89,488 | $ | 84,296 | |||||||||
Depreciation expense and impairment of long-lived assets | 14,215 | 14,829 | |||||||||||
Contractual lease increases | 885 | 1,040 | |||||||||||
Deferred franchise revenue | 1,244 | 1,250 | |||||||||||
Stock-based compensation | 1,161 | 1,163 | |||||||||||
Lease termination accrual | 60 | 85 | |||||||||||
Accrued expenses | (34 | ) | 45 | ||||||||||
Allowance for doubtful accounts | 315 | 121 | |||||||||||
Total deferred tax assets | 107,334 | 102,829 | |||||||||||
Valuation allowance | (107,334 | ) | (102,829 | ) | |||||||||
Net deferred taxes | $ | - | $ | - | |||||||||
Schedule of reconciliation of the statutory federal income tax rate to the effective tax rate as a percentage of income before income taxes | ' | ||||||||||||
Below is a reconciliation of the statutory federal income tax rate to the effective tax rate as a percentage of income before income taxes: | |||||||||||||
December 30, | December 31, | January 2, | |||||||||||
2013 | 2012 | 2012 | |||||||||||
Statutory federal income tax rate | 35 | % | 35 | % | 35 | % | |||||||
State income taxes | 4.6 | 4.6 | 4.6 | ||||||||||
39.6 | 39.6 | 39.6 | |||||||||||
Less valuation allowance | (39.6 | ) | (39.6 | ) | (39.6 | ) | |||||||
Effective Tax Rate | 0 | % | 0 | % | 0 | % |
StockBased_Employee_Compensati1
Stock-Based Employee Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 30, 2013 | |||||||||||||||||||||||
Stock-Based Employee Compensation [Abstract] | ' | ||||||||||||||||||||||
Summary of stock-based compensation | ' | ||||||||||||||||||||||
A summary of stock-based compensation follows: | |||||||||||||||||||||||
Fiscal Year | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Stock option compensation expense | $ | 7 | $ | - | $ | - | |||||||||||||||||
Restricted stock compensation expense, net of forfeitures | 121 | 399 | 371 | ||||||||||||||||||||
Total non-cash, stock-based compensation expense,net of forfeitures | $ | 128 | $ | 399 | $ | 371 | |||||||||||||||||
Summary of option activity | ' | ||||||||||||||||||||||
A summary of option activity for fiscal years 2013, 2012, and 2011 follows: | |||||||||||||||||||||||
Weighted | |||||||||||||||||||||||
Weighted | Average | Aggregate | |||||||||||||||||||||
Number of | Average Exercise | Remaining | Intrinsic | ||||||||||||||||||||
Options | Price | Contractual Term | Value | ||||||||||||||||||||
(in years) | (in thousands) | ||||||||||||||||||||||
Outstanding as of December 27, 2010 | 135,744 | $ | 38.8 | 1.6 | $ | - | |||||||||||||||||
Granted | - | - | |||||||||||||||||||||
Exercised | - | - | |||||||||||||||||||||
Cancelled/Expired | (94,674 | ) | $ | 46.96 | - | ||||||||||||||||||
Outstanding as of January 2, 2012 | 41,071 | $ | 20 | 2.5 | $ | - | |||||||||||||||||
Granted | - | - | |||||||||||||||||||||
Exercised | - | - | |||||||||||||||||||||
Cancelled/Expired | (2,518 | ) | $ | 13.88 | - | ||||||||||||||||||
Outstanding as of December 31, 2012 | 38,552 | $ | 20.4 | 1.7 | $ | - | |||||||||||||||||
Granted | 25,000 | 2.8 | |||||||||||||||||||||
Exercised | - | - | |||||||||||||||||||||
Cancelled/Expired | (10,038 | ) | $ | 21.02 | - | ||||||||||||||||||
Outstanding as of December 30, 2013 | 53,514 | $ | 12.05 | 3.9 | $ | - | |||||||||||||||||
Exercisable as of December 30, 2013 | 53,514 | $ | 12.05 | 3.9 | $ | - | |||||||||||||||||
Schedule of stock option exercisable | ' | ||||||||||||||||||||||
The following table summarizes information about stock options outstanding at December 30, 2013: | |||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||
Weighted | |||||||||||||||||||||||
Average | Weighted | Weighted | |||||||||||||||||||||
Number of | Remaining | Average | Number of | Average | |||||||||||||||||||
Options | Contractual | Exercise | Options | Exercise | |||||||||||||||||||
Range of Exercise Prices | Outstanding | Life in Years | Price | Exercisable | Price | ||||||||||||||||||
$ | 2.80 - $10.80 | 25,000 | 7.5 | $ | 2.8 | 5,000 | $ | 2.8 | |||||||||||||||
$ | 10.81 - $18.92 | 16,245 | 0.6 | 18.8 | 16,245 | 18.8 | |||||||||||||||||
$ | 18.93 - $20.72 | 1,207 | 0.7 | 20.5 | 1,207 | 20.5 | |||||||||||||||||
$ | 20.73 - $20.98 | 6,697 | 0.8 | 20.8 | 6,697 | 20.8 | |||||||||||||||||
$ | 20.99 - $27.76 | 4,365 | 1 | 24.2 | 4,365 | 24.2 | |||||||||||||||||
53,514 | 3.9 | $ | 12.05 | 33,514 | $ | 17.57 | |||||||||||||||||
Summary of the Company's restricted stock activity | ' | ||||||||||||||||||||||
The following tables summarize the Company’s restricted stock activity: | |||||||||||||||||||||||
Number of | Weighted | ||||||||||||||||||||||
Shares of | Average | ||||||||||||||||||||||
Restricted | Grant-Date | ||||||||||||||||||||||
Stock | Fair Value | ||||||||||||||||||||||
Non-vested at December 27, 2010 | 51,263 | $ | 5.08 | ||||||||||||||||||||
Granted | 331,719 | 3.2 | |||||||||||||||||||||
Vested | 50,281 | 4.96 | |||||||||||||||||||||
Forfeited / Canceled | (10,600 | ) | 7.56 | ||||||||||||||||||||
Non-vested at Janaury 2, 2012 | 322,100 | $ | 3.08 | ||||||||||||||||||||
Granted | 43,103 | 3.48 | |||||||||||||||||||||
Vested | 80,340 | 3.56 | |||||||||||||||||||||
Forfeited / Canceled | (13,463 | ) | 4.68 | ||||||||||||||||||||
Non-vested at December 31, 2012 | 271,400 | $ | 2.96 | ||||||||||||||||||||
Granted | 85,512 | 2.91 | |||||||||||||||||||||
Vested | 88,862 | 3 | |||||||||||||||||||||
Forfeited / Canceled | (256,725 | ) | 2.88 | ||||||||||||||||||||
Non-vested at December 30, 2013 | 11,325 | $ | 4.08 | ||||||||||||||||||||
Summary of restricted stock unit activity | ' | ||||||||||||||||||||||
Weighted | |||||||||||||||||||||||
Number of | Average | ||||||||||||||||||||||
Restricted | Grant-Date | ||||||||||||||||||||||
Stock Units | Fair Value | ||||||||||||||||||||||
Non-vested at December 27, 2010 | 215,000 | $ | 1.51 | ||||||||||||||||||||
Granted | 100,000 | 1.45 | |||||||||||||||||||||
Vested | 115,000 | 2.12 | |||||||||||||||||||||
Forfeited | (200,000 | ) | 1.13 | ||||||||||||||||||||
Non-vested at January 2, 2012 | - | $ | - | ||||||||||||||||||||
Granted | - | - | |||||||||||||||||||||
Vested | - | - | |||||||||||||||||||||
Forfeited | - | - | |||||||||||||||||||||
Non-vested at December 31, 2012 | - | $ | - | ||||||||||||||||||||
Granted | - | - | |||||||||||||||||||||
Vested | - | - | |||||||||||||||||||||
Forfeited | - | - | |||||||||||||||||||||
Non-vested at December 30, 2013 | - | $ | - |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 30, 2013 | |||||
Commitments and Contingencies [Abstract] | ' | ||||
Schedule of minimum annual rentals | ' | ||||
As of December 30, 2013, we are committed under lease agreements expiring through 2024 for occupancy of our retail restaurants and for office space at the following minimum annual rentals: | |||||
Fiscal Year | Amount | ||||
(in thousands) | |||||
2014 | 11,831 | ||||
2015 | 10,479 | ||||
2016 | 7,686 | ||||
2017 | 4,543 | ||||
2018 | 2,957 | ||||
Thereafter | 8,409 | ||||
$ | 45,905 |
Organization_and_Summary_of_Si3
Organization and Summary of Significant Accounting Policies (Details) | 12 Months Ended | ||
Dec. 30, 2013 | Dec. 31, 2012 | Jan. 02, 2012 | |
Week | Week | Week | |
State | |||
Organization [Line Items] | ' | ' | ' |
Number of states in which the entity owns and operates restaurants | 16 | ' | ' |
Fiscal Year | ' | ' | ' |
Number of weeks in a fiscal year | 52 | 52 | 53 |
Company-owned [Member] | ' | ' | ' |
Organization [Line Items] | ' | ' | ' |
Number of company-owned restaurants | 70 | ' | ' |
Franchises [Member] | ' | ' | ' |
Organization [Line Items] | ' | ' | ' |
Number of company-owned restaurants | 52 | ' | ' |
Organization_and_Summary_of_Si4
Organization and Summary of Significant Accounting Policies (Details 2) (Furniture, fixtures and equipment [Member]) | 12 Months Ended |
Dec. 30, 2013 | |
Minimum [Member] | ' |
Furniture and fixtures, equipment and leasehold improvements [Line Items] | ' |
Useful life | '2 years |
Maximum [Member] | ' |
Furniture and fixtures, equipment and leasehold improvements [Line Items] | ' |
Useful life | '10 years |
Organization_and_Summary_of_Si5
Organization and Summary of Significant Accounting Policies (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 30, 2013 | Dec. 31, 2012 | Jan. 02, 2012 |
Long-lived assets [Line Items] | ' | ' | ' |
Asset impairment and disposal charges | ($1,005) | ($424) | ($431) |
Underperforming assets [Member] | ' | ' | ' |
Long-lived assets [Line Items] | ' | ' | ' |
Number of underperforming restaurants | 10 | 4 | ' |
Total value at end of period [Member] | ' | ' | ' |
Long-lived assets [Line Items] | ' | ' | ' |
Long-lived assets held and used | 1,219 | 348 | 647 |
Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Long-lived assets [Line Items] | ' | ' | ' |
Long-lived assets held and used | 0 | 0 | 0 |
Significant Observable Inputs (Level 2) [Member] | ' | ' | ' |
Long-lived assets [Line Items] | ' | ' | ' |
Long-lived assets held and used | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Long-lived assets [Line Items] | ' | ' | ' |
Long-lived assets held and used | 1,219 | 348 | 647 |
Carrying value [Member] | ' | ' | ' |
Long-lived assets [Line Items] | ' | ' | ' |
Long-lived assets held and used | $2,200 | ' | ' |
Organization_and_Summary_of_Si6
Organization and Summary of Significant Accounting Policies (Details 4) (Restaurant leaseholds [Member], Terminated operating leases [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 30, 2013 |
Lease termination charges [Line Items] | ' |
Lease termination charges incurred | $0.10 |
Northeast [Member] | ' |
Lease termination charges [Line Items] | ' |
Number of restaurant leases terminated | 2 |
Organization_and_Summary_of_Si7
Organization and Summary of Significant Accounting Policies (Details 5) (USD $) | 0 Months Ended | 12 Months Ended | 12 Months Ended | |||
Jan. 06, 2010 | Dec. 30, 2013 | Dec. 30, 2013 | Dec. 30, 2013 | Dec. 31, 2012 | Jan. 02, 2012 | |
U.S. federal income tax [Member] | Lease termination reserve [Member] | Lease termination reserve [Member] | Lease termination reserve [Member] | |||
Changes in lease termination reserve activity [Abstract] | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | ' | $214,000 | $245,000 | $533,000 |
Charged to costs and expenses | ' | ' | ' | 127,000 | 2,000 | 22,000 |
Payments and adjustments | ' | ' | ' | -191,000 | -33,000 | -310,000 |
Balance at the end of the period | ' | ' | ' | 150,000 | 214,000 | 245,000 |
Income Taxes [Abstract] | ' | ' | ' | ' | ' | ' |
Net operating loss carryforwards for U.S. federal income tax purposes | ' | $226,000,000 | $226,000,000 | ' | ' | ' |
Minimum percentage of stock ownership required to effect ownership change (in hundredths) | 5.00% | 5.00% | ' | ' | ' | ' |
Minimum percentage points by which aggregate stock ownership of holders of at least 5% of stock must increase to effect ownership change (in hundredths) | 50.00% | 50.00% | ' | ' | ' | ' |
Period over which aggregate stock ownership of holders of at least 5% of stock must increase to effect ownership change | '3 years | '3 years | ' | ' | ' | ' |
Organization_and_Summary_of_Si8
Organization and Summary of Significant Accounting Policies (Details 6) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 30, 2013 | Dec. 31, 2012 | Jan. 02, 2012 |
License | License | ||
Gain on Sale of Assets [Abstract] | ' | ' | ' |
Number of liquor license | 1 | ' | 4 |
Gain on sale of liquor licenses | $34 | $0 | $149 |
Organization_and_Summary_of_Si9
Organization and Summary of Significant Accounting Policies (Details 7) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 30, 2013 | Dec. 31, 2012 | Jan. 02, 2012 |
Advertising costs [Line Items] | ' | ' | ' |
Advertising expense | $0.90 | $1.20 | $2.10 |
Domestic franchises [Member] | ' | ' | ' |
Advertising costs [Line Items] | ' | ' | ' |
Percentage of sales contributed to a national marketing fund (in hundredths) | 1.00% | ' | ' |
Percentage of sales required to be spent on advertising in local markets (in hundredths) | 1.00% | ' | ' |
International franchises [Member] | ' | ' | ' |
Advertising costs [Line Items] | ' | ' | ' |
Percentage of sales contributed to a national marketing fund (in hundredths) | 0.50% | ' | ' |
Company-owned restaurants [Member] | ' | ' | ' |
Advertising costs [Line Items] | ' | ' | ' |
Percentage of sales contributed to a national marketing fund (in hundredths) | 1.00% | ' | ' |
Recovered_Sheet1
Organization and Summary of Significant Accounting Policies (Details 8) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 30, 2013 | Dec. 31, 2012 | Jan. 02, 2012 |
Segment | |||
Stock-Based Compensation [Abstract] | ' | ' | ' |
Stock-based compensation expense | $128 | $399 | $371 |
Segment Information [Abstract] | ' | ' | ' |
Number of reportable segments | 1 | ' | ' |
Unvested restricted shares [Member] | ' | ' | ' |
Net loss per share [Line Items] | ' | ' | ' |
Anti-dilutive securities not included in the computation of basic and diluted earnings per share (in shares) | 11,325 | 271,400 | 322,100 |
Stock options [Member] | ' | ' | ' |
Net loss per share [Line Items] | ' | ' | ' |
Anti-dilutive securities not included in the computation of basic and diluted earnings per share (in shares) | 53,514 | 38,552 | 41,071 |
Accounts_Receivable_Details
Accounts Receivable (Details) (USD $) | Dec. 30, 2013 | Dec. 31, 2012 | ||
Accounts receivable [ Line items] | ' | ' | ||
Total receivables | $938,000 | $1,538,000 | ||
Less: allowance for doubtful accounts | -344,000 | [1] | -303,000 | |
Accounts receivable, net | 594,000 | 1,235,000 | ||
Amount not included in reserve for doubtful debts | 450,000 | ' | ||
Due from franchisees [Member] | ' | ' | ||
Accounts receivable [ Line items] | ' | ' | ||
Total receivables | 473,000 | 724,000 | [2] | |
Less: allowance for doubtful accounts | -500,000 | ' | ||
Accounts receivable, trade [Member] | ' | ' | ||
Accounts receivable [ Line items] | ' | ' | ||
Total receivables | 342,000 | 359,000 | ||
Other [Member] | ' | ' | ||
Accounts receivable [ Line items] | ' | ' | ||
Total receivables | 123,000 | 116,000 | ||
Hurricane insurance-related [Member] | ' | ' | ||
Accounts receivable [ Line items] | ' | ' | ||
Total receivables | 0 | 193,000 | ||
Service vendor receivable [Member] | ' | ' | ||
Accounts receivable [ Line items] | ' | ' | ||
Total receivables | 0 | 146,000 | ||
Deferred franchise royalties and marketing funds [Member] | ' | ' | ||
Accounts receivable [ Line items] | ' | ' | ||
Total receivables | $300,000 | ' | ||
[1] | Does not include approximately $0.45 million in reserve on a note receivable from a franchisee presented in Note 5. Notes Receivable. | |||
[2] | Includes approximately $0.3 million in deferred franchise royalties and marketing funds paid during fiscal 2013 |
Accounts_Receivable_Details_2
Accounts Receivable (Details 2) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 30, 2013 | Dec. 31, 2012 | Jan. 02, 2012 | |||
Reserve for doubtful accounts [Roll Forward] | ' | ' | ' | |||
Amount included in reserve on note receivable | $344 | [1] | $303 | ' | ||
Due from franchisees [Member] | ' | ' | ' | |||
Reserve for doubtful accounts [Roll Forward] | ' | ' | ' | |||
Amount included in reserve on note receivable | 500 | ' | ' | |||
Doubtful accounts [Member] | ' | ' | ' | |||
Reserve for doubtful accounts [Roll Forward] | ' | ' | ' | |||
Balance at the beginning of the period | 303 | 254 | 145 | |||
Charged to costs and expenses | 491 | [2] | 46 | 117 | ||
Deductions | 0 | [3] | 3 | [3] | -8 | [3] |
Balance at the end of the period | $794 | $303 | $254 | |||
[1] | Does not include approximately $0.45 million in reserve on a note receivable from a franchisee presented in Note 5. Notes Receivable. | |||||
[2] | Includes approximately $0.5 million reserve on a note receivable from a franchisee | |||||
[3] | Recovery (write-off) of uncollectible accounts. |
Prepaid_Expenses_and_Other_Cur2
Prepaid Expenses and Other Current Assets (Details) (USD $) | Dec. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Prepaid Expenses and Other Current Assets [Abstract] | ' | ' |
Prepaid insurance | $1,263 | $1,468 |
Other | 85 | 152 |
Prepaid expenses and other current assets | $1,348 | $1,620 |
Furniture_and_Fixtures_Equipme2
Furniture and Fixtures, Equipment and Leasehold Improvements (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 30, 2013 | Dec. 31, 2012 | Jan. 02, 2012 |
Furniture and fixtures, equipment and leasehold improvements [Line Items] | ' | ' | ' |
Total furniture and fixtures, equipment and leasehold improvements | $69,445 | $70,737 | ' |
Less accumulated depreciation and amortization | -61,250 | -60,837 | ' |
Furniture and fixtures, equipment and leasehold improvements, net | 8,195 | 9,900 | ' |
Depreciation and amortization expense | 2,724 | 3,613 | 4,230 |
Leasehold improvements [Member] | ' | ' | ' |
Furniture and fixtures, equipment and leasehold improvements [Line Items] | ' | ' | ' |
Total furniture and fixtures, equipment and leasehold improvements | 31,361 | 32,061 | ' |
Furniture and fixtures [Member] | ' | ' | ' |
Furniture and fixtures, equipment and leasehold improvements [Line Items] | ' | ' | ' |
Total furniture and fixtures, equipment and leasehold improvements | 10,325 | 10,729 | ' |
Computer and telephone equipment [Member] | ' | ' | ' |
Furniture and fixtures, equipment and leasehold improvements [Line Items] | ' | ' | ' |
Total furniture and fixtures, equipment and leasehold improvements | 11,492 | 11,670 | ' |
Restaurant equipment [Member] | ' | ' | ' |
Furniture and fixtures, equipment and leasehold improvements [Line Items] | ' | ' | ' |
Total furniture and fixtures, equipment and leasehold improvements | 16,228 | 16,242 | ' |
Vehicles [Member] | ' | ' | ' |
Furniture and fixtures, equipment and leasehold improvements [Line Items] | ' | ' | ' |
Total furniture and fixtures, equipment and leasehold improvements | $39 | $35 | ' |
Notes_Receivable_Details
Notes Receivable (Details) (USD $) | Dec. 30, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Notes receivable [Line Items] | ' | ' | |
Total notes receivable | $1,001 | $1,035 | |
Less: allowance for doubtful accounts | -450 | [1] | 0 |
Total other assets | 551 | 1,035 | |
Sale of restaurants to a franchisee in 2010 [Member] | ' | ' | |
Notes receivable [Line Items] | ' | ' | |
Total notes receivable | 925 | 885 | |
Other [Member] | ' | ' | |
Notes receivable [Line Items] | ' | ' | |
Total notes receivable | $76 | $150 | |
[1] | Denotes a reserve on a note receivable from a franchisee included in the summary of the reserve for doubtful accounts in Note 2. Accounts Receivable. |
Other_Assets_Details
Other Assets (Details) (USD $) | Dec. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other Assets [Abstract] | ' | ' |
Security deposits | $788 | $725 |
Trademarks | 195 | 195 |
Liquor licenses | 85 | 92 |
Other | 47 | 81 |
Total other assets | $1,115 | $1,093 |
Accrued_Expenses_Details
Accrued Expenses (Details) (USD $) | Dec. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accrued Expenses [Abstract] | ' | ' |
Payroll and related benefits and taxes | $2,143 | $2,133 |
Unredeemed gift cards/certificates | 2,067 | 1,773 |
Insurance | 1,327 | 1,539 |
Utilities | 857 | 979 |
Rent | 516 | 532 |
Professional and legal | 497 | 397 |
Taxes other than income taxes | 383 | 665 |
Deferred credits | 323 | 370 |
Advertising | 103 | 179 |
Other | 872 | 880 |
Total accrued expenses | $9,088 | $9,447 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | Dec. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets [Abstract] | ' | ' |
Net operating loss carryforward | $89,488 | $84,296 |
Depreciation expense and impairment of long-lived assets | 14,215 | 14,829 |
Contractual lease increases | 885 | 1,040 |
Deferred franchise revenue | 1,244 | 1,250 |
Stock-based compensation | 1,161 | 1,163 |
Lease termination accrual | 60 | 85 |
Accrued expenses | -34 | 45 |
Allowance for doubtful accounts | 315 | 121 |
Total deferred tax assets | 107,334 | 102,829 |
Valuation allowance | -107,334 | -102,829 |
Net deferred taxes | $0 | $0 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 0 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 06, 2010 | Dec. 30, 2013 | Dec. 31, 2012 | Jan. 02, 2012 |
Income Taxes [Abstract] | ' | ' | ' | ' |
Net operating loss carryforwards for U.S. federal income tax purposes | ' | $226 | ' | ' |
Reconciliation of the statutory federal income tax rate to the effective tax rate as a percentage of income before income taxes [Abstract] | ' | ' | ' | ' |
Statutory federal income tax rate (in hundredths) | ' | 35.00% | 35.00% | 35.00% |
State income taxes (in hundredths) | ' | 4.60% | 4.60% | 4.60% |
Total (in hundredths) | ' | 39.60% | 39.60% | 39.60% |
Less valuation allowance (in hundredths) | ' | -39.60% | -39.60% | -39.60% |
Effective Tax Rate (in hundredths) | ' | 0.00% | 0.00% | 0.00% |
Minimum percentage of stock ownership required to effect ownership change (in hundredths) | 5.00% | 5.00% | ' | ' |
Minimum percentage points by which aggregate stock ownership of holders of at least 5% of stock must increase to effect ownership change (in hundredths) | 50.00% | 50.00% | ' | ' |
Period over which aggregate stock ownership of holders of at least 5% of stock must increase to effect ownership change | '3 years | '3 years | ' | ' |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 0 Months Ended | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | 8-May-13 | Jul. 09, 2012 | Jan. 06, 2010 | Dec. 30, 2013 | Dec. 31, 2012 |
Rights offering and private placement of common stock [Line Items] | ' | ' | ' | ' | ' |
Par value of common stock issued (in dollars per share) | $0.01 | ' | ' | $0.01 | $0.01 |
Net proceeds from the rights offering and private placement of common stock | ' | $12.60 | $4.90 | ' | ' |
Minimum percentage of stock ownership required to effect ownership change (in hundredths) | ' | ' | 5.00% | 5.00% | ' |
Minimum percentage points by which aggregate stock ownership of holders of at least 5% of stock must increase to effect ownership change (in hundredths) | ' | ' | 50.00% | 50.00% | ' |
Period over which aggregate stock ownership of holders of at least 5% of stock must increase to effect ownership change | ' | ' | '3 years | '3 years | ' |
Reverse split of its common stock | 'one-for-four | ' | ' | ' | ' |
Rights offering [Member] | ' | ' | ' | ' | ' |
Rights offering and private placement of common stock [Line Items] | ' | ' | ' | ' | ' |
Number of shares of common stock issued (in shares) | ' | 4,915,461 | 2,500,000 | ' | ' |
Par value of common stock issued (in dollars per share) | ' | $0.01 | $0.01 | ' | ' |
Subscription price (in dollars per share) | ' | $2.60 | $2 | ' | ' |
Private placement [Member] | ' | ' | ' | ' | ' |
Rights offering and private placement of common stock [Line Items] | ' | ' | ' | ' | ' |
Number of shares of common stock issued (in shares) | ' | 633,581 | 112,919 | ' | ' |
Par value of common stock issued (in dollars per share) | ' | $0.01 | $0.01 | ' | ' |
Subscription price (in dollars per share) | ' | $2.60 | $2 | ' | ' |
StockBased_Employee_Compensati2
Stock-Based Employee Compensation (Details) | 12 Months Ended | 12 Months Ended | |||
Dec. 31, 2012 | Dec. 30, 2013 | 2-May-05 | Dec. 30, 2013 | Dec. 30, 2013 | |
Minimum [Member] | Maximum [Member] | ||||
Stock-based compensation expense [Line Items] | ' | ' | ' | ' | ' |
Period over which awards vest | ' | ' | ' | '4 years | '5 years |
Number of shares authorized (in shares) | ' | ' | 925,000 | ' | ' |
Increase in number of shares available for issuance under the Plan (in shares) | 375,000 | ' | ' | ' | ' |
Number of shares reserved for issuance under the Omnibus Plan (in shares) | ' | 700,000 | ' | ' | ' |
StockBased_Employee_Compensati3
Stock-Based Employee Compensation (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 30, 2013 | Dec. 31, 2012 | Jan. 02, 2012 |
Stock-based compensation expense [Line Items] | ' | ' | ' |
Total non-cash, stock-based compensation expense, net of forfeitures | $128 | $399 | $371 |
Stock options [Member] | ' | ' | ' |
Stock-based compensation expense [Line Items] | ' | ' | ' |
Total non-cash, stock-based compensation expense, net of forfeitures | 7 | 0 | 0 |
Restricted stock and restricted stock units [Member] | ' | ' | ' |
Stock-based compensation expense [Line Items] | ' | ' | ' |
Total non-cash, stock-based compensation expense, net of forfeitures | $121 | $399 | $371 |
StockBased_Employee_Compensati4
Stock-Based Employee Compensation (Details 3) (Options [Member], USD $) | 12 Months Ended | |||
Dec. 30, 2013 | Dec. 31, 2012 | Jan. 02, 2012 | Dec. 27, 2010 | |
Options [Member] | ' | ' | ' | ' |
Number of Options [Roll Forward] | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | 38,552 | 41,071 | 135,744 | ' |
Granted (in shares) | 25,000 | 0 | 0 | ' |
Exercised (in shares) | 0 | 0 | 0 | ' |
Cancelled/Expired (in shares) | -10,038 | -2,518 | -94,674 | ' |
Outstanding at the end of the period (in shares) | 53,514 | 38,552 | 41,071 | 135,744 |
Exercisable at the end of the period (in shares) | 53,514 | ' | ' | ' |
Weighted Average Exercise Price [Roll Forward] | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $20.40 | $20 | $38.80 | ' |
Granted (in dollars per share) | $2.80 | $0 | $0 | ' |
Exercised (in dollars per share) | $0 | $0 | $0 | ' |
Cancelled/Expired (in dollars per share) | $21.02 | $13.88 | $46.96 | ' |
Outstanding at the end of the period (in dollars per share) | $12.05 | $20.40 | $20 | $38.80 |
Exercisable at the end of the period (in dollars per share) | $12.05 | ' | ' | ' |
Weighted Average Remaining Contractual Term [Abstract] | ' | ' | ' | ' |
Outstanding at the end of the period | '3 years 10 months 24 days | '1 year 8 months 12 days | '2 years 6 months | '1 year 7 months 6 days |
Exercisable at the end of the period | '3 years 10 months 24 days | ' | ' | ' |
Stock-based compensation expense, additional disclosures [Abstract] | ' | ' | ' | ' |
Aggregate fair value of options vested | $70,000 | ' | ' | ' |
Aggregate Intrinsic Value [Abstract] | ' | ' | ' | ' |
Outstanding at the end of the period | 0 | 0 | 0 | 0 |
Cancelled/Expired | 0 | 0 | 0 | ' |
Exercisable at the end of the period | $0 | ' | ' | ' |
StockBased_Employee_Compensati5
Stock-Based Employee Compensation (Details 4) (USD $) | 12 Months Ended |
Dec. 30, 2013 | |
Options Outstanding [Abstract] | ' |
Number of Options Outstanding (in shares) | 53,514 |
Weighted Average Remaining Contractual Life | '3 years 10 months 24 days |
Weighted Average Exercise Price (in dollars per share) | $12.05 |
Options Exercisable [Abstract] | ' |
Number of Options Exercisable (in shares) | 33,514 |
Weighted Average Exercise Price (in dollars per share) | $17.57 |
$2.80 - $10.80 [Member] | ' |
Stock-based compensation expense [Line Items] | ' |
Range of Exercise Prices, minimum (in dollars per share) | $2.80 |
Range of Exercise Prices, maximum (in dollars per share) | $10.80 |
Options Outstanding [Abstract] | ' |
Number of Options Outstanding (in shares) | 25,000 |
Weighted Average Remaining Contractual Life | '7 years 6 months |
Weighted Average Exercise Price (in dollars per share) | $2.80 |
Options Exercisable [Abstract] | ' |
Number of Options Exercisable (in shares) | 5,000 |
Weighted Average Exercise Price (in dollars per share) | $2.80 |
$10.81 - $18.92 [Member] | ' |
Stock-based compensation expense [Line Items] | ' |
Range of Exercise Prices, minimum (in dollars per share) | $10.81 |
Range of Exercise Prices, maximum (in dollars per share) | $18.92 |
Options Outstanding [Abstract] | ' |
Number of Options Outstanding (in shares) | 16,245 |
Weighted Average Remaining Contractual Life | '0 years 7 months 6 days |
Weighted Average Exercise Price (in dollars per share) | $18.80 |
Options Exercisable [Abstract] | ' |
Number of Options Exercisable (in shares) | 16,245 |
Weighted Average Exercise Price (in dollars per share) | $18.80 |
$18.93 - $20.72 [Member] | ' |
Stock-based compensation expense [Line Items] | ' |
Range of Exercise Prices, minimum (in dollars per share) | $18.93 |
Range of Exercise Prices, maximum (in dollars per share) | $20.72 |
Options Outstanding [Abstract] | ' |
Number of Options Outstanding (in shares) | 1,207 |
Weighted Average Remaining Contractual Life | '0 years 8 months 12 days |
Weighted Average Exercise Price (in dollars per share) | $20.50 |
Options Exercisable [Abstract] | ' |
Number of Options Exercisable (in shares) | 1,207 |
Weighted Average Exercise Price (in dollars per share) | $20.50 |
$20.73 - $20.98 [Member] | ' |
Stock-based compensation expense [Line Items] | ' |
Range of Exercise Prices, minimum (in dollars per share) | $20.73 |
Range of Exercise Prices, maximum (in dollars per share) | $20.98 |
Options Outstanding [Abstract] | ' |
Number of Options Outstanding (in shares) | 6,697 |
Weighted Average Remaining Contractual Life | '0 years 9 months 18 days |
Weighted Average Exercise Price (in dollars per share) | $20.80 |
Options Exercisable [Abstract] | ' |
Number of Options Exercisable (in shares) | 6,697 |
Weighted Average Exercise Price (in dollars per share) | $20.80 |
$20.99 - $27.76 [Member] | ' |
Stock-based compensation expense [Line Items] | ' |
Range of Exercise Prices, minimum (in dollars per share) | $20.99 |
Range of Exercise Prices, maximum (in dollars per share) | $27.76 |
Options Outstanding [Abstract] | ' |
Number of Options Outstanding (in shares) | 4,365 |
Weighted Average Remaining Contractual Life | '1 year |
Weighted Average Exercise Price (in dollars per share) | $24.20 |
Options Exercisable [Abstract] | ' |
Number of Options Exercisable (in shares) | 4,365 |
Weighted Average Exercise Price (in dollars per share) | $24.20 |
StockBased_Employee_Compensati6
Stock-Based Employee Compensation (Details 5) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 30, 2013 | Dec. 31, 2012 | Jan. 02, 2012 |
Key employees [Member] | ' | ' | ' |
Stock-based employee compensation [Line Items] | ' | ' | ' |
Restricted shares granted (in shares) | 30,000 | ' | ' |
Members of the Board of Directors [Member] | ' | ' | ' |
Stock-based employee compensation [Line Items] | ' | ' | ' |
Value of the shares for the grants made during period | $0.10 | $0.10 | $0.10 |
Number of Shares [Roll Forward] | ' | ' | ' |
Granted and issued (in shares) | 55,512 | 43,103 | 32,219 |
Restricted stock and restricted stock units [Member] | ' | ' | ' |
Stock-based employee compensation [Line Items] | ' | ' | ' |
Value of the shares for the grants made during period | 0.1 | ' | 0.9 |
Value of the forfeited shares | 0.7 | 0.05 | 0.3 |
Value of vested restricted shares | $0.30 | ' | ' |
Number of Shares [Roll Forward] | ' | ' | ' |
Forfeited / Canceled (in shares) | -256,725 | -13,463 | -60,600 |
Restricted stock shares [Member] | ' | ' | ' |
Stock-based employee compensation [Line Items] | ' | ' | ' |
Conversion of units into common stock (in shares) | 91,250 | ' | ' |
Number of Shares [Roll Forward] | ' | ' | ' |
Non-vested at the beginning of the period (in shares) | 271,400 | 322,100 | 51,263 |
Granted and issued (in shares) | 85,512 | 43,103 | 331,719 |
Vested (in shares) | 88,862 | 80,340 | 50,281 |
Forfeited / Canceled (in shares) | -256,725 | -13,463 | -10,600 |
Non-vested at the end of the period (in shares) | 11,325 | 271,400 | 322,100 |
Weighted Average Grant-Date Fair Value [Roll Forward] | ' | ' | ' |
Non-vested at the beginning of the period (in dollars per share) | $2.96 | $3.08 | $5.08 |
Granted (in dollars per share) | $2.91 | $3.48 | $3.20 |
Vested (in dollars per share) | $3 | $3.56 | $4.96 |
Forfeited / Canceled (in dollars per share) | $2.88 | $4.68 | $7.56 |
Non-vested at the end of the period (in dollars per share) | $4.08 | $2.96 | $3.08 |
Restricted stock shares [Member] | Key employees [Member] | ' | ' | ' |
Stock-based employee compensation [Line Items] | ' | ' | ' |
Vesting percentage on grant date (in hundredths) | ' | ' | 20.00% |
Additional vesting percentage on each anniversary of the grant date (in hundredths) | ' | ' | 20.00% |
Number of Shares [Roll Forward] | ' | ' | ' |
Granted and issued (in shares) | ' | ' | 299,500 |
Restricted stock units [Member] | ' | ' | ' |
Number of Shares [Roll Forward] | ' | ' | ' |
Non-vested at the beginning of the period (in shares) | 0 | 0 | 215,000 |
Granted and issued (in shares) | 0 | 0 | 100,000 |
Vested (in shares) | 0 | 0 | 115,000 |
Forfeited / Canceled (in shares) | 0 | 0 | -200,000 |
Non-vested at the end of the period (in shares) | 0 | 0 | 0 |
Weighted Average Grant-Date Fair Value [Roll Forward] | ' | ' | ' |
Non-vested at the beginning of the period (in dollars per share) | $0 | $0 | $1.51 |
Granted (in dollars per share) | $0 | $0 | $1.45 |
Vested (in dollars per share) | $0 | $0 | $2.12 |
Forfeited / Canceled (in dollars per share) | $0 | $0 | $1.13 |
Non-vested at the end of the period (in dollars per share) | $0 | $0 | $0 |
Restricted stock units [Member] | Key employees [Member] | ' | ' | ' |
Stock-based employee compensation [Line Items] | ' | ' | ' |
Vesting percentage on grant date (in hundredths) | ' | ' | 20.00% |
Additional vesting percentage on each anniversary of the grant date (in hundredths) | ' | ' | 20.00% |
Number of Shares [Roll Forward] | ' | ' | ' |
Granted and issued (in shares) | ' | ' | 25,000 |
Defined_Contribution_Plan_Deta
Defined Contribution Plan (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 30, 2013 | Dec. 31, 2012 | Jan. 02, 2012 |
Defined Contribution Plan [Abstract] | ' | ' | ' |
Matching employer contribution under 401(k) Plan (in hundredths) | 50.00% | ' | ' |
Percentage of eligible compensation matched by employer (in hundredths) | 4.00% | ' | ' |
Period for completion of employment for employer contribution made during the employee's first year of employment | '1 year | ' | ' |
Maximum deferred amount as a percentage of individual participant's compensation (in hundredths) | 20.00% | ' | ' |
Contributions to the Plan | $0.10 | $0.10 | $0.10 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
Dec. 30, 2013 | Dec. 31, 2012 | Jan. 02, 2012 | |
Minimum annual rentals [Abstract] | ' | ' | ' |
2014 | $11,831,000 | ' | ' |
2015 | 10,479,000 | ' | ' |
2016 | 7,686,000 | ' | ' |
2017 | 4,543,000 | ' | ' |
2018 | 2,957,000 | ' | ' |
Thereafter | 8,409,000 | ' | ' |
Total | 45,905,000 | ' | ' |
Sublease rental income | 200,000 | ' | ' |
Rental expense | 12,600,000 | 13,100,000 | 13,100,000 |
Amounts incurred under additional rent provisions and agreements | $200,000 | $200,000 | $200,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details 2) (Restaurant leaseholds [Member], USD $) | Dec. 30, 2013 | Dec. 31, 2012 | Jan. 02, 2012 | Dec. 30, 2013 | Dec. 30, 2013 | Dec. 30, 2013 | Dec. 30, 2013 | Dec. 30, 2013 | Dec. 30, 2013 |
In Millions, unless otherwise specified | Minimum [Member] | Maximum [Member] | Terminated operating leases [Member] | Terminated operating leases [Member] | Terminated operating leases [Member] | Standby letters of credit [Member] | |||
Minimum [Member] | Maximum [Member] | ||||||||
Commitments and contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Renewal option, period | ' | ' | ' | '3 years | '5 years | ' | ' | ' | ' |
Contractual obligation | $1.70 | $2.10 | $2.60 | ' | ' | $0.20 | ' | ' | ' |
Landlord allowances presented as a long-term liability in other liabilities | 0.2 | 0.5 | 0.7 | ' | ' | ' | ' | ' | ' |
Letters of credit provided as security deposits | ' | ' | ' | ' | ' | ' | ' | ' | 0.2 |
Future minimum lease payments | ' | ' | ' | ' | ' | 0.5 | ' | ' | ' |
Operating lease, remaining term | ' | ' | ' | ' | ' | ' | '1 year | '3 years | ' |
Contractual obligation, current | ' | ' | ' | ' | ' | $0.05 | ' | ' | ' |
Commitments_and_Contingencies_3
Commitments and Contingencies (Details 3) (USD $) | 12 Months Ended | ||
Dec. 30, 2013 | Dec. 31, 2012 | Jan. 02, 2012 | |
Self-Insurance [Abstract] | ' | ' | ' |
Self-insured group health insurance plan, maximum coverage per participant | $100,000 | ' | ' |
Self-insured group health insurance plan, maximum additional coverage per plan year | 50,000 | ' | ' |
Pre-determined dollar amount | 1,200,000 | ' | ' |
Health insurance expense | 1,500,000 | 1,400,000 | 1,300,000 |
Self-insurance reserve account | $200,000 | $100,000 | ' |
Cost of goods sold [Member] | Supplier concentration [Member] | Food and paper products [Member] | ' | ' | ' |
Purchase Commitments [Abstract] | ' | ' | ' |
Percentage of food and paper products to be supplied by independent distributors (in hundredths) | 76.00% | ' | ' |
Commitments_and_Contingencies_4
Commitments and Contingencies (Details 4) (USD $) | 0 Months Ended | |||
Aug. 20, 2013 | 8-May-13 | Dec. 30, 2013 | Dec. 31, 2012 | |
Commitments and Contingencies [Abstract] | ' | ' | ' | ' |
Reverse split of its common stock | ' | 'one-for-four | ' | ' |
Common stock, par value (in dollars per share) | ' | $0.01 | $0.01 | $0.01 |
Minimum market capitalization maintained for continued listing on the Nasdaq Global Market | $10,000,000 | ' | ' | ' |
Period within which compliance was not regained with minimum bid price requirement | '180 days | ' | ' | ' |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Event [Member], USD $) | 0 Months Ended | 1 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Mar. 18, 2014 | Mar. 17, 2014 | Apr. 30, 2014 | Mar. 17, 2014 |
Hearthstone Associates, LLC [Member] | Senior Secured Promissory Note [Member] | Warrant [Member] | ||
Restaurant | Payment | |||
Subsequent Event [Line Items] | ' | ' | ' | ' |
Face amount | ' | ' | $5 | ' |
Interest rate (in hundredths) | ' | ' | 9.00% | ' |
Number of initial semi-annual interest payments may be paid in kind | ' | ' | 2 | ' |
Paid-in-kind interest rate (in hundredths) | ' | ' | 11.00% | ' |
Maturity term | ' | ' | '3 years | ' |
Finance fee (in hundredths) | ' | ' | 3.50% | ' |
Shares shares issuable upon exercise of warrant (in shares) | ' | ' | ' | 1,100,000 |
Class of Warrant or Right, Exercise Price of Warrants or Rights | ' | ' | ' | $0.01 |
Ownership rate that may not be exceeded | ' | ' | ' | 19.90% |
Maximum amount of obligation | ' | ' | ' | $4 |
Restaurants operated | ' | 13 | ' | ' |
Common shares issuable in Hearthstone merger agreement (in shares) | 1,790,993 | ' | ' | ' |