Cosi (COSIQ) 10-Q 14 Aug 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Aug. 08, 2014
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'COSI INC	'
Entity Central Index Key	'0001171014	'
Current Fiscal Year End Date	'--12-29	'
Entity Well-known Seasoned Issuer	'No	'
Entity Voluntary Filers	'No	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	19,457,794
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q2	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Jun-14	'

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Jun. 30, 2014	Dec. 30, 2013
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$6,084	$6,021
Accounts receivable, net	641	594
Notes receivable, current portion	551	551
Inventories	793	779
Prepaid expenses and other current assets	744	1,348
Total current assets	8,813	9,293
Furniture and fixtures, equipment and leasehold improvements, net	7,143	8,195
Other assets	1,470	1,115
Total assets	17,426	18,603
Current liabilities:	'	'
Accounts payable	1,691	2,462
Accrued expenses	8,474	9,088
Deferred franchise revenue	18	18
Current portion of other long-term liabilities	998	196
Total current liabilities	11,181	11,764
Long-term debt	6,023	0
Deferred franchise revenue	1,931	1,931
Other long-term liabilities, net of current portion	1,642	2,189
Total liabilities	20,777	15,884
Stockholders' equity (deficit):	'	'
Common stock - $.01 par value; 100,000,000 shares authorized, 19,312,794 and 18,106,979 shares issued, respectively	193	181
Additional paid-in capital	299,039	297,181
Treasury stock, 59,886 shares at cost	-1,198	-1,198
Accumulated deficit	-301,385	-293,445
Total stockholders' deficit	-3,351	2,719
Total liabilities and stockholders' deficit	$17,426	$18,603

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 30, 2013
Stockholders' equity (deficit):	'	'
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)	19,312,794	18,106,979
Treasury stock, shares (in shares)	59,886	59,886

Consolidated_Statements_of_Ope

Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Jul. 01, 2013	Jun. 30, 2014	Jul. 01, 2013
Revenues:	'	'	'	'
Restaurant net sales	$20,007	$22,656	$37,735	$43,510
Franchise fees and royalties	663	752	1,310	1,459
Total revenues	20,670	23,408	39,045	44,969
Costs and expenses:	'	'	'	'
Cost of food and beverage	5,122	5,521	9,537	10,723
Restaurant labor and related benefits	7,432	8,198	14,526	16,308
Occupancy and other restaurant operating expenses	7,078	7,523	14,079	14,669
Total operating costs and expenses	19,632	21,242	38,142	41,700
General and administrative expenses	3,685	3,141	6,054	5,898
Depreciation and amortization	601	672	1,240	1,420
Restaurant pre-opening expenses	0	11	0	11
Provision for losses on asset impairments and disposals	120	355	120	694
Lease termination expense and closed store costs	1,269	126	1,255	147
Gain on sale of assets	-50	0	-50	0
Total costs and expenses	25,257	25,547	46,761	49,870
Operating loss	-4,587	-2,139	-7,716	-4,901
Interest expense	-239	0	-239	0
Other income	12	4	15	25
Net loss and comprehensive loss	($4,814)	($2,135)	($7,940)	($4,876)
Per Share Data:	'	'	'	'
Loss per share, basic and diluted (in dollars per share)	($0.27)	($0.12)	($0.44)	($0.27)
Weighted average shares outstanding (in shares)	18,148,966	17,988,624	18,101,773	17,969,198

Consolidated_Statement_of_Stoc

Consolidated Statement of Stockholders' Equity (unaudited) (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, beginning of period at Dec. 30, 2013		$181	$297,181	($1,198)	($293,445)	$2,719
Balance, beginning of period (in shares) at Dec. 30, 2013		18,106,979	'	59,886	'	'
Increase (Decrease) in Stockholders' Equity		'	'	'	'	'
Issuance of restricted stock		12	-12	'	'	0
Issuance of restricted stock (in shares)		1,204,064	'	'	'	'
Stock-based compensation		'	299	'	'	299
Stock-based compensation (in shares)		1,751	'	'	'	'
Issuance of stock warrants	[1]	'	1,571	'	'	1,571
Net loss		'	'	'	-7,940	-7,940
Balance, end of period at Jun. 30, 2014		$193	$299,039	($1,198)	($301,385)	($3,351)
Balance, end of period (in shares) at Jun. 30, 2014		19,312,794	'	59,886	'	'
[1]	Represents proceeds, from issuance of Senior Secured Promissory Notes and related stock warrants.

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jul. 01, 2013
Cash flows from operating activities:	'	'
Net loss	($7,940)	($4,876)
Adjustments to reconcile net loss to net cash used in operating activities	'	'
Depreciation and amortization	1,240	1,420
Non-cash portion of asset impairments and disposals	120	694
Provision for bad debts	-2	29
Stock-based compensation expense	299	-5
Changes in operating assets and liabilities:	'	'
Accounts receivable	-45	613
Notes receivable	0	24
Inventories	-14	21
Prepaid expenses and other current assets	604	755
Other assets	-2	3
Accounts payable and accrued expenses	-1,398	-1,134
Deferred franchise revenue	0	40
Lease termination accrual	814	128
Other liabilities	-453	-270
Net cash used in operating activities	-6,777	-2,558
Cash flows from investing activities:	'	'
Capital expenditures	-307	-896
Proceeds from sale of assets	50	0
Net cash used in investing activities	-257	-896
Cash flows from financing activities:	'	'
Proceeds from issuance of long-term debt	7,500	0
Issuance of long-term debt and stock warrants	-403	0
Net cash provided by financing activities	7,097	0
Net increase (decrease) in cash and cash equivalents	63	-3,454
Cash and cash equivalents, beginning of period	6,021	15,417
Cash and cash equivalents, end of period	6,084	11,963
Cash paid for:	'	'
Corporate franchise and income taxes	88	63
Non-cash financing activities:	'	'
Issuance of stock warrants	$1,570	$0

Basis_of_Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2014
Basis of Presentation [Abstract]	'
Basis of Presentation	'
	Note 1 – Basis of Presentation
	We have prepared the accompanying unaudited condensed consolidated financial statements in accordance with the requirements of Form 10-Q and, therefore, they do not include all information and footnotes necessary for a fair presentation of financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In our opinion, the financial statements reflect all adjustments that are necessary for a fair presentation of the results of operations for the periods shown. All such adjustments are of a normal recurring nature. In preparing financial statements in conformity with U.S. GAAP, we must make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosures at the date of the financial statements and during the reporting period. Actual results could differ from those estimates.
	As used in this quarterly report on Form 10-Q, unless the context requires otherwise, the terms “we,” “our,” “Company” or “Cosi” refer to Cosi, Inc. and its consolidated subsidiaries.
	The balance sheet at December 30, 2013 has been derived from audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements.
	The results for the three and six-month periods ended June 30, 2014 and July 1, 2013 are not indicative of the results for the full fiscal year.
	This report should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended December 30, 2013, as filed with the Securities and Exchange Commission (“SEC”).
	There have been no material changes to our significant accounting policies and estimates from the information provided in Note 1 of our consolidated financial statements included in our Form 10-K for the fiscal year ended December 30, 2013.

StockBased_Compensation_Expens

Stock-Based Compensation Expense	6 Months Ended
	Jun. 30, 2014
Stock-Based Compensation Expense [Abstract]	'
Stock-Based Compensation Expense	'
	Note 2 – Stock-Based Compensation Expense
	A summary of non-cash, stock-based compensation expense is as follows:
			For the Three Months Ended					For the Six Months Ended
			(in thousands)					(in thousands)
			June 30,		July 1,			June 30,		July 1,
			2014		2013			2014		2013
	Stock option compensation expense		$	-	$	1		$	-	$	6
	Restricted stock compensation expense (credit), net of forfeitures			131		(110	)		299		(11	)
	Total non-cash, stock-based compensation expense (credit), net of forfeitures		$	131	$	(109	)	$	299	$	(5	)
	As of June 30, 2014, the unrecognized compensation expense related to stock options and restricted shares of common stock granted under the Cosi, Inc. 2005 Omnibus Long-Term Incentive Plan, as amended, (the “2005 Plan”), is approximately $1.0 million and is being recognized on a straight-line basis over the remaining vesting period through fiscal 2018.
	Pursuant to the 2005 Plan and in accordance with the terms and conditions prescribed by the Compensation Committee of our Board of Directors, we granted 175,000 shares of restricted common stock to key employees during the second quarter of fiscal 2014, of which 87,500 shares are time-vested (“Time Vested Shares”) and 87,500 are performance-based (“Performance Shares”). During the six months ended June 30, 2014, we granted 1,204,164 shares of restricted common stock to key employees. The vesting of 200,000 of these shares occurs as follows: (i) 50% of the grant vested on the grant date and (ii) the remaining 50% vest in four equal quarterly installments through March 2015 provided that at each such date the employee continues to be employed by the Company. The rest of the shares granted during the six months of fiscal 2014 are subject to the following vesting schedules:
	(a)           The Time-Vested Shares vest in four equal installments, with 25% vesting on each of the first, second, third and fourth anniversaries of the date of grant, provided that the employee remains in the continuous employ of the Company through each such vesting date.
	(b)           The Performance Shares vest in four equal installments, provided that the employee remains in the continuous employment of the Company from and after the date of award and through the respective vesting dates set forth below and the specified price targets set forth below for the Company’s common stock are achieved:
		(i)	25% on the first day on which the closing price of the Company’s common stock shall have exceeded $2.00 for 30 consecutive trading days (as adjusted for stock splits, recapitalizations, reorganizations or similar events);
		(ii)	25% on the first day on which the closing price of the Company’s common stock shall have exceeded $2.50 for 30 consecutive trading days (as adjusted for stock splits, recapitalizations, reorganizations or similar events);
		(iii)	25% on the first day on which the closing price of the Company’s common stock shall have exceeded $3.00 for 30 consecutive trading days (as adjusted for stock splits, recapitalizations, reorganizations or similar events); and
		(iv)	25% on the first day on which the closing price of the Company’s common stock shall have exceeded $4.00 for 30 consecutive trading days (as adjusted for stock splits, recapitalizations, reorganizations or similar events).
	The value of the shares for the grants made during the second quarters of fiscal 2014, based on the closing price of our common stock on the date of the grants, was approximately $0.2 million.
	We did not grant any shares of common stock to employees in the three months ended July 1, 2013.
	In the three months ended June 30, 2014 and July 1, 2013, we issued 1,751 and 44,640 shares, respectively, of our restricted common stock to members of the Board of Directors under the 2005 Plan and pursuant to the Non-Employee Directors Stock Incentive Plan. These shares had immaterial aggregate value in 2014 and approximately $0.1 million in 2013, and vested upon issuance.
	During the three months ended June 30, 2014 and July 1, 2013, 100 and 250,000 shares, respectively, of previously issued restricted common stock were forfeited. The value of the forfeited shares, based on the closing price of our common stock on the date of the grants, was immaterial in the second quarter of fiscal 2014 and approximately $0.7 million during the second quarter of fiscal 2013.

Fair_Value_Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2014
Fair Value Measurements [Abstract]	'
Fair Value Measurements	'
	Note 3 –Fair Value Measurements
	The Company’s 1,650,000 stock warrants at June 30, 2014 were carried at their fair value of approximately $2.0 million based on the Black-Scholes model. Inputs into the warrant valuation include expected life of warrants, risk-free interest rates, and stock volatility. As all significant inputs are market-based and observable, warrants are categorized in Level 2 of the fair value hierarchy.

Earnings_Per_Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2014
Earnings Per Share [Abstract]	'
Earnings Per Share	'
	Note 4 – Earnings Per Share
		For the Three Months Ended						For the Six Months Ended
		(net loss in thousands)						(net loss in thousands)
		30-Jun-14			1-Jul-13			30-Jun-14			1-Jul-13
	Net loss and comprehensive loss	$	(4,814	)	$	(2,135	)	$	(7,940	)	$	(4,876	)
	Shares:
	Weighted average number of shares outstanding		18,148,966			17,988,624			18,101,773			17,969,198
	Basic and diluted loss per share	$	(0.27	)	$	(0.12	)	$	(0.44	)	$	(0.27	)
	Basic and diluted loss per common share is calculated by dividing the net loss by the weighted average common shares outstanding during the period. As of June 30, 2014 and July 1, 2013, there were, respectively, 1,082,539 and 25,825 unvested restricted shares of common stock outstanding and 7,500 in-the-money and 53,652 out-of-the-money stock options to purchase shares of common stock. In addition, as of June 30, 2014, there were 1,650,000 outstanding warrants to purchase shares of common stock. The unvested restricted shares and the outstanding stock options and warrants 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.

Asset_Impairments

Asset Impairments	6 Months Ended
	Jun. 30, 2014
Asset Impairments [Abstract]	'
Asset Impairments	'
	Note 5 – Asset Impairments
	In accordance with FASB Accounting Standards Codification Topic 360 (ASC Topic 360), Property, Plant & Equipment, we evaluate possible impairments at the individual restaurant level periodically and record an impairment loss whenever we determine impairment factors are present. We consider a 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 lease term, and then determine the impairment charge based on discounted cash flows for the same period. Restaurants are not considered for impairment during the period before they enter the comparable restaurant base, unless specific circumstances warrant otherwise.
	We did not record any impairment charges during the three and six months ended June 30, 2014. During the three and six months ended July 1, 2013, we recorded asset impairment charges of approximately $0.4 million and $0.7 million, respectively.

Lease_Termination_Costs

Lease Termination Costs	6 Months Ended
	Jun. 30, 2014
Lease Termination Costs [Abstract]	'
Lease Termination Costs	'
	Note 6 – Lease Termination Costs
	Future restaurant 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.
	The lease termination costs of approximately $1.2 million and $0.1 million that we recorded during the three months ended June 30, 2014 and July 1, 2013, respectively, relate to the closings of eight and three Company-owned restaurants, respectively.

Contingencies

Contingencies	6 Months Ended
	Jun. 30, 2014
Contingencies [Abstract]	'
Contingencies	'
	Note 7 – Contingencies
	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. We cannot predict with certainty the outcome of any litigation or the potential for future litigation. Regardless of the outcome of any particular litigation and the merits of any particular claim, litigation can have a material adverse impact on our company due to, among other reasons, any injunctive relief granted, which could inhibit our ability to operate our business, amounts paid as damages or in settlement of any such matter, diversion of management resources and defense costs.

Income_Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2014
Income Taxes [Abstract]	'
Income Taxes	'
	Note 8 – 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.

Debt

Debt	6 Months Ended
	Jun. 30, 2014
Debt [Abstract]	'
Debt	'
	Note 9 – Debt
	On April 14, 2014, the Company entered into a $5.0 million Senior Secured Promissory Note Agreement with MILFAM II L. P. ( the “MILFAM II Note” and the “MILFAM II Note Agreement”, respectively). The MILFAM II Note bears interest at nine percent (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 percent (11%) in kind in the form of additional promissory notes. The principal obligations under the MILFAM II Note are due three (3) years from the effective date of the MILFAM II Note. The MILFAM II Note Agreement provided for the payment of a finance fee of 3.5% of the principal amount of the MILFAM II Note at closing as well as providing a warrant exercisable to purchase up to 1.1 million shares of the Company’s common stock at an exercise price per share of $0.01. The warrant would not be exercisable to the extent that doing so resulted in the MILFAM II L. P. and any related parties, in the aggregate, owning more than 19.9% of the Company’s common stock. Further, until all of the obligations under the MILFAM II Note are paid in full, MILFAM II L. P. will have the right to participate in any future financing transactions consummated by the Company in an amount up to the greater of 1) the then-outstanding balance of obligations under the MILFAM II Note and 2) $4.0 million. The MILFAM II Note is guaranteed by the Company’s subsidiaries and secured by a lien on all assets of the Company and its subsidiaries. Mr. Lloyd I. Miller, III, is the manager of MILFAM LLC, which is the general partner of MILFAM II L. P. Mr. Miller is also a significant shareholder of the Company.
	On May 20, 2014, the Company entered into a $2.5 million Senior Secured Note Purchase Agreement with AB Opportunity Fund LLC and AB Value Partners, L.P. (the “AB Notes”, the “AB Note Purchase Agreement”, and the “Lenders”, respectively). The AB Notes are payable in full on the third anniversary from the effective date of the AB Notes. Interest will accrue at the rate of nine percent (9%), and will be paid in arrears semi-annually, provided that the Company may elect to pay the first two interest payments in kind at a rate of eleven percent (11%). As consideration for the AB Notes, the Company provided a fee of 3.5% of the principal amount of the AB Notes and warrants exercisable to purchase up to an aggregate, initially, of 550,000 shares of the common stock of the Company at an exercise price per share of $.01, provided that the Lenders shall not be permitted to exercise the warrants to the extent such exercise would result in any Lender or any of its affiliates owning in excess of 19.9% of the common stock of the Company. The warrants are exercisable by the Lenders at any time prior to the third anniversary from the effective date of the AB Notes, in whole or in part, by surrendering the warrants and a form of exercise to the Company.
	We are currently in compliance with all covenant requirements under the MILFAM Senior Secured Note Purchase Agreement and the AB Note Purchase Agreement.
	The Company’s 1,650,000 stock warrants at June 30, 2014 were carried at their fair value of approximately $2.0 million based on the Black-Scholes model using the following assumptions:
	Expected life (in years)	3
	Volatility	63.86	%
	Risk Free interest rate	81.8	%
	Divident yield (on comon stock)	-
	The relative value of the warrants was $1,570,146, which was the amount recorded as debt discount, with an offset to additional paid-in capital. The debt discount will be amortized over the life of the Notes, three years, and charged to interest expense using the effective interest rate calculation method.

Notice_of_Delisting_or_Failure

Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard	6 Months Ended
	Jun. 30, 2014
Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard [Abstract]	'
Notice of Delisting or Failure to Satisfy Continued Listing Rule or Standard	'
	Note 10 – Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard
	On May 16, 2014, the Company received notice from the Listing Qualifications Department of the Nasdaq Stock Market indicating that as of the date of the filing of our Form 10-Q for the period ended March 31, 2014, we had fallen below the $2,500,000 minimum level of stockholders equity required for continued listing on the Nasdaq Capital Market under Nasdaq Listing Rule 5550(b)(1). The notification letter stated that the Company would be afforded 45 calendar days, or until June 14, 2014, to submit a plan to regain compliance and that if the plan was accepted, the Company may be granted an extension of up to 180 calendar days from the date of notification, or until November 12, 2014 to evidence compliance.
	On July 25, 2014, the Listing Qualifications Department of the Nasdaq Stock Market notified the Company of its determination to grant the Company an extension of time to regain compliance with the Nasdaq Listing Rule 5550(b)(1) for a minimum level of stockholders equity based on review of a plan submitted by the Company. The plan consisted of raising capital through an equity transaction, such as a rights offering, private placement, public offering or other equity or debt transactions. The Company has until November 12, 2014 to evidence compliance with the Nasdaq continued listing requirements.

Subsequent_Events

Subsequent Events	6 Months Ended
	Jun. 30, 2014
Subsequent Events [Abstract]	'
Subsequent Events	'
	Note 11 – Subsequent Event
	Appointment of a new CFO
	On July 7, 2014, the Company appointed Scott Carlock as Chief Financial Officer, effective as of July 28, 2014.

StockBased_Compensation_Expens1

Stock-Based Compensation Expense (Tables)	6 Months Ended
	Jun. 30, 2014
Stock-Based Compensation Expense [Abstract]	'
Summary of non-cash, stock-based compensation expense	'
	A summary of non-cash, stock-based compensation expense is as follows:
		For the Three Months Ended					For the Six Months Ended
		(in thousands)					(in thousands)
		June 30,		July 1,			June 30,		July 1,
		2014		2013			2014		2013
	Stock option compensation expense	$	-	$	1		$	-	$	6
	Restricted stock compensation expense (credit), net of forfeitures		131		(110	)		299		(11	)
	Total non-cash, stock-based compensation expense (credit), net of forfeitures	$	131	$	(109	)	$	299	$	(5	)

Earnings_Per_Share_Tables

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2014
Earnings Per Share [Abstract]	'
Schedule of earnings per share	'
	Earnings Per Share
		For the Three Months Ended						For the Six Months Ended
		(net loss in thousands)						(net loss in thousands)
		30-Jun-14			1-Jul-13			30-Jun-14			1-Jul-13
	Net loss and comprehensive loss	$	(4,814	)	$	(2,135	)	$	(7,940	)	$	(4,876	)
	Shares:
	Weighted average number of shares outstanding		18,148,966			17,988,624			18,101,773			17,969,198
	Basic and diluted loss per share	$	(0.27	)	$	(0.12	)	$	(0.44	)	$	(0.27	)

Debt_Tables

Debt (Tables)	6 Months Ended
	Jun. 30, 2014
Debt [Abstract]	'
Black-Scholes model using the following assumptions	'
	The Company’s 1,650,000 stock warrants at June 30, 2014 were carried at their fair value of approximately $2.0 million based on the Black-Scholes model using the following assumptions:
	Expected life (in years)	3
	Volatility	63.86	%
	Risk Free interest rate	81.8	%
	Divident yield (on comon stock)	-

StockBased_Compensation_Expens2

Stock-Based Compensation Expense (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jul. 01, 2013	Jun. 30, 2014	Jul. 01, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Total non-cash, stock-based compensation expense (credit), net of forfeitures	$131	($109)	$299	($5)
Stock Options [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Total non-cash, stock-based compensation expense (credit), net of forfeitures	0	1	0	6
Restricted Stock and Restricted Stock Units [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Total non-cash, stock-based compensation expense (credit), net of forfeitures	$131	($110)	$299	($11)

StockBased_Compensation_Expens3

Stock-Based Compensation Expense (Details 2) (USD $)	3 Months Ended		6 Months Ended
In Millions, except Share data, unless otherwise specified	Jun. 30, 2014	Jul. 01, 2013	Jun. 30, 2014
	Installment
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'
Restricted shares granted with specified vesting schedule (in shares)	200,000	'	'
Vesting percentage on grant date (in hundredths)	50.00%	'	'
Restricted shares [Member]	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'
Unrecognized compensation expense related to stock options	1	'	1
Value of the shares for the grants made during period	0.2	0	'
Previously issued stock forfeited (in shares)	100	250,000	'
Value of the forfeited shares	0.7	0.7	'
Restricted shares [Member] | Key employees [Member]	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'
Restricted shares granted (in shares)	'	175,000	1,204,164
Additional vesting percentage on each anniversary of the grant date (in hundredths)	50.00%	'	'
Number of installments in which restricted common stock vest	4	'	'
Stock Options [Member]	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'
Unrecognized compensation expense related to stock options	1	'	1
Stock Options [Member] | Members of the Board of Directors [Member]	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'
Value of the shares for the grants made during period	0.1	0.1	'
Value of the shares for the grants made during period	1,751	44,640	'
Time Vested Shares [Member] | Chief Executive Officer and President [Member]	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'
Restricted shares granted (in shares)	'	'	87,500
Additional vesting percentage on each anniversary of the grant date (in hundredths)	'	'	25.00%
Number of installments in which restricted common stock vest	'	'	4
Performance Shares [Member] | Chief Executive Officer and President [Member]	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'
Restricted shares granted (in shares)	'	'	87,500
Number of installments in which restricted common stock vest	'	'	4
Performance Shares [Member] | Chief Executive Officer and President [Member] | Closing Price $2.00 [Member]	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'
Vesting percentage on each specified closing price (in hundredths)	'	'	25.00%
Closing price (in dollars per share)	2	'	2
Consecutive trading days	'	'	30
Performance Shares [Member] | Chief Executive Officer and President [Member] | Closing Price $2.50 [Member]	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'
Vesting percentage on each specified closing price (in hundredths)	'	'	25.00%
Closing price (in dollars per share)	2.5	'	2.5
Consecutive trading days	'	'	30
Performance Shares [Member] | Chief Executive Officer and President [Member] | Closing Price $3.00 [Member]	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'
Vesting percentage on each specified closing price (in hundredths)	'	'	25.00%
Closing price (in dollars per share)	3	'	3
Consecutive trading days	'	'	30
Performance Shares [Member] | Chief Executive Officer and President [Member] | Closing Price $4.00 [Member]	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'
Vesting percentage on each specified closing price (in hundredths)	'	'	25.00%
Closing price (in dollars per share)	4	'	4
Consecutive trading days	'	'	30

Fair_Value_Measurements_Detail

Fair Value Measurements (Details) (USD $)	Jun. 30, 2014
In Millions, except Share data, unless otherwise specified
Fair Value Measurements [Abstract]	'
Class of warrants outstanding (in shares)	1,650,000
Fair value of warrants	$2

Earnings_Per_Share_Details

Earnings Per Share (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Jul. 01, 2013	Jun. 30, 2014	Jul. 01, 2013
Earnings Per Share [Abstract]	'	'	'	'
Net loss and comprehensive loss	($4,814)	($2,135)	($7,940)	($4,876)
Shares:	'	'	'	'
Weighted average number of shares outstanding	18,148,966	17,988,624	18,101,773	17,969,198
Basic and diluted loss per share	($0.27)	($0.12)	($0.44)	($0.27)
Restricted shares [Member]	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'	'	'
Anti-dilutive securities not included in the computation of basic and diluted earnings per share (in shares)	'	'	1,082,539	25,825
Out-of-the-money Stock Options [Member]	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'	'	'
Anti-dilutive securities not included in the computation of basic and diluted earnings per share (in shares)	'	'	'	53,652
In-the-money Stock Option [Member]	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'	'	'
Anti-dilutive securities not included in the computation of basic and diluted earnings per share (in shares)	'	'	'	7,500
Warrants [Member]	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'	'	'
Anti-dilutive securities not included in the computation of basic and diluted earnings per share (in shares)	'	'	1,650,000	'

Asset_Impairments_Details

Asset Impairments (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jul. 01, 2013	Jun. 30, 2014	Jul. 01, 2013
Asset Impairments [Abstract]	'	'	'	'
Asset impairment charges	$0	$0.40	$0	$0.70

Lease_Termination_Costs_Detail

Lease Termination Costs (Details) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Jun. 30, 2014	Jul. 01, 2013
	Restaurant	Restaurant
Lease Termination Costs [Abstract]	'	'
Lease termination costs incurred	$1.20	$0.10
Number of restaurants closed	8	3

Income_Taxes_Details

Income Taxes (Details) (USD $)	6 Months Ended
In Millions, unless otherwise specified	Jun. 30, 2014	Dec. 30, 2013
Income Taxes [Abstract]	'	'
Net operating loss carryforwards for U.S. federal income tax purposes	'	$226
Minimum percentage of stock ownership required to effect ownership change (in hundredths)	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%	'
Period over which aggregate stock ownership of holders of at least 5% of stock must increase to effect ownership change	'3 years	'
Income tax examination, year under examination	'1996	'

Debt_Details

Debt (Details) (USD $)	6 Months Ended		0 Months Ended
	Jun. 30, 2014	Jul. 01, 2013	Apr. 14, 2014	20-May-14
			Senior Secured Promissory Note [Member]	AB Notes [Member]
			Payment	Payment
Debt Instrument [Line Items]	'	'	'	'
Face amount	'	'	$5,000,000	$2,500,000
Interest rate (in hundredths)	'	'	9.00%	9.00%
Number of initial semi-annual interest payments may be paid in kind	'	'	2	2
Paid-in-kind interest rate (in hundredths)	'	'	11.00%	11.00%
Maturity term	'	'	'3 years	'
Finance fee (in hundredths)	'	'	3.50%	3.50%
Shares issuable upon exercise of warrant (in shares)	'	'	1,100,000	550,000
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)	'	'	$0.01	$0.01
Ownership rate that may not be exceeded (in hundredths)	'	'	19.90%	19.90%
Maximum amount of obligation	'	'	4,000,000	'
Warrants outstanding (in shares)	1,650,000	'	'	'
Fair value of warrants	2,000,000	'	'	'
Black-Scholes model using the following assumptions [Abstract]	'	'	'	'
Expected life (in years)	'3 years	'	'	'
Volatility (in hundredths)	63.86%	'	'	'
Risk Free interest rate (in hundredths)	81.80%	'	'	'
Dividend yield (on common stock) (in hundredths)	0.00%	'	'	'
Issuance of stock warrants	$1,570,000	$0	'	'

Notice_of_Delisting_or_Failure1

Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard (Details) (USD $)	6 Months Ended
	Jun. 30, 2014
Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard [Abstract]	'
Minimum level of stockholders equity required for continued listing on Nasdaq Capital Market	$2,500,000
Number of days to submit a plan to regain compliance	'45 days
Maximum number of days granted for extension	'180 days