Flanigan's Enterprises (BDL) 10-Q 14 Mar 23 2023 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Dec. 31, 2022	Mar. 14, 2023
Document Information Line Items
Entity Registrant Name	FLANIGAN'S ENTERPRISES, INC.
Trading Symbol	BDL
Document Type	10-Q
Current Fiscal Year End Date	--10-01
Entity Common Stock, Shares Outstanding		1,858,647
Amendment Flag	false
Entity Central Index Key	0000012040
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Dec. 31, 2022
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	1-6836
Entity Incorporation, State or Country Code	FL
Entity Address, State or Province	FL
Entity Tax Identification Number	59-0877638
Entity Address, Address Line One	5059 N.E. 18th Avenue
Entity Address, City or Town	Fort Lauderdale
Entity Address, Postal Zip Code	33334
City Area Code	(954)
Local Phone Number	377-1961
Title of 12(b) Security	Common Stock, $.10 par value
Security Exchange Name	NYSE
Entity Interactive Data Current	Yes

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
REVENUES:
Restaurant food sales	$ 24,767	$ 22,205
Restaurant bar sales	6,988	6,007
Package store sales	9,403	8,511
Franchise related revenues	459	446
Rental income	213	199
Other operating income	31	35
Total	41,861	37,403
Cost of merchandise sold:
Restaurant and lounges	10,806	10,333
Package goods	6,984	6,340
Payroll and related costs	13,636	12,236
Occupancy costs	1,848	1,698
Selling, general and administrative expenses	7,390	6,031
Cost and expenses	40,664	36,638
Income from Operations	1,197	765
OTHER INCOME (EXPENSE):
Interest expense	(275)	(193)
Interest and other income	15	14
Gain on forgiveness of debt		3,488
Gain on sale of property and equipment		11
Total other income (expense)	(260)	3,320
Income before Provision for Income Taxes	937	4,085
Provision for Income Taxes	(63)	(147)
Net Income	874	3,938
Less: Net income attributable to noncontrolling interests	(250)	(2,374)
Net income attributable to Flanigan’s Enterprises, Inc. stockholders	$ 624	$ 1,564
Net Income Per Common Share:
Basic and Diluted (in Dollars per share)	$ 0.34	$ 0.84
Weighted Average Shares and Equivalent Shares Outstanding:
Basic and Diluted (in Shares)	1,858,647	1,858,647

UNAUDITED CONDENSED CONSOLIDA_2

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Parentheticals) - $ / shares	3 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Income Statement [Abstract]
Basic and Diluted	$ 0.34	$ 0.84
Basic and Diluted	1,858,647	1,858,647

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)	Dec. 31, 2022	Oct. 01, 2022
CURRENT ASSETS:
Cash and cash equivalents	$ 43,143,000	$ 42,138,000
Prepaid income taxes	298,000	235,000
Other receivables	639,000	456,000
Inventories	6,564,000	6,489,000
Prepaid expenses	730,000	1,575,000
Total Current Assets	51,374,000	50,893,000
Property and Equipment, Net	58,525,000	55,747,000
Construction in progress	5,408,000	7,517,000
Total Property, Equipment and Construction in Progress	63,933,000	63,264,000
Right-of-use assets, operating leases	28,907,000	29,517,000
Investment in Limited Partnership	283,000	294,000
OTHER ASSETS:
Liquor licenses	1,268,000	1,268,000
Leasehold interests, net	80,000	86,000
Deposits on property and equipment	3,057,000	1,860,000
Other	270,000	310,000
Total Other Assets	4,675,000	3,524,000
Total Assets	149,172,000	147,492,000
CURRENT LIABILITIES:
Accounts payable and accrued expenses	9,130,000	8,111,000
Accrued compensation	2,639,000	2,104,000
Due to franchisees	4,980,000	4,780,000
Current portion of long-term debt	1,249,000	2,299,000
Operating lease liability, current	2,289,000	2,253,000
Deferred revenue	4,412,000	2,629,000
Total Current Liabilities	24,699,000	22,176,000
Long Term Debt, Net of Current Portion	22,785,000	23,090,000
Operating lease liabilities, non-current	27,698,000	28,281,000
Deferred tax liabilities	605,000	605,000
Total Liabilities	75,787,000	74,152,000
Equity:
Common stock, $.10 par value, 5,000,000 shares authorized; 4,197,642 shares issued	420,000	420,000
Capital in excess of par value	6,240,000	6,240,000
Retained earnings	55,710,000	55,086,000
Treasury stock, at cost, 2,338,995 shares	(6,077,000)	(6,077,000)
Total Flanigan’s Enterprises, Inc. stockholders’ equity	56,293,000	55,669,000
Noncontrolling interests	17,092,000	17,671,000
Total equity	73,385,000	73,340,000
Total liabilities and equity	$ 149,172,000	$ 147,492,000

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parentheticals) - $ / shares	Dec. 31, 2022	Oct. 01, 2022
Statement of Financial Position [Abstract]
Common stock, par value (in Dollars per share)	$ 0.10	$ 0.10
Common stock, shares authorized	5,000,000	5,000,000
Common stock, shares issued	4,197,642	4,197,642
Treasury stock, shares, at cost	2,338,995	2,338,995

UNAUDITED CONDENSED CONSOLIDA_3

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock [Member]	Capital in Excess of Par Value [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Noncontrolling Interests [Member]	Total
Balance at Oct. 02, 2021	$ 420	$ 6,240	$ 50,632	$ (6,077)	$ 9,415	$ 60,630
Balance (in Shares) at Oct. 02, 2021	4,197,642			2,338,995
Net income			1,564		2,374	3,938
Distributions to noncontrolling interests					(757)	(757)
Balance at Jan. 01, 2022	$ 420	6,240	52,196	$ (6,077)	11,032	63,811
Balance (in Shares) at Jan. 01, 2022	4,197,642			2,338,995
Balance at Oct. 01, 2022	$ 420	6,240	55,086	$ (6,077)	17,671	73,340
Balance (in Shares) at Oct. 01, 2022	4,197,642			2,338,995
Net income			624		250	874
Distributions to noncontrolling interests					(829)	(829)
Balance at Dec. 31, 2022	$ 420	$ 6,240	$ 55,710	$ (6,077)	$ 17,092	$ 73,385
Balance (in Shares) at Dec. 31, 2022	4,197,642			2,338,995

UNAUDITED CONDENSED CONSOLIDA_4

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 874	$ 3,938
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities:
Depreciation and amortization	815	683
Amortization of leasehold interests	6	16
Amortization of operating lease right-of-use assets	610	586
Gain on forgiveness of debt		(3,488)
Gain on sale of property and equipment		(11)
Loss on abandonment of property and equipment	7	6
Amortization of deferred loan costs	10	8
Deferred income taxes		146
Loss from unconsolidated limited partnership	3	1
(Increase) decrease in:
Other receivables	(183)	(249)
Prepaid income taxes	(63)
Inventories	(75)	(341)
Prepaid expenses	845	681
Other assets	40	(3)
Increase (decrease) in:
Accounts payable and accrued expenses	1,554	1,127
Operating lease liabilities	(547)	(444)
Due to franchisees	200	(198)
Deferred revenue	1,783	1,771
Net cash and cash equivalents provided by operating activities	5,879	4,229
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(982)	(777)
Purchase of construction in progress	(452)	(668)
Deposits on property and equipment	(1,262)	(207)
Proceeds from sale of fixed assets	8	20
Distributions from unconsolidated limited partnership	8	8
Investment in limited partnership		(53)
Net cash and cash equivalents used in investing activities	(2,680)	(1,677)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of long term debt	(1,365)	(869)
Distributions to limited partnerships’ noncontrolling interests	(829)	(757)
Net cash and cash equivalents used in financing activities	(2,194)	(1,626)
Net Increase in Cash and Cash Equivalents	1,005	926
Beginning of Period	42,138	32,676
End of Period	43,143	33,602
Cash paid during period for:
Interest	275	193
Income taxes	126
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Financing of insurance contracts		1,861
Purchase deposits transferred to property and equipment	28	4
Purchase deposits transferred to CIP	37	140
CIP transferred to property and equipment	2,598	391
CIP in accounts payable and accrued expenses		$ 422

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
BASIS OF PRESENTATION	(1) BASIS OF PRESENTATION: The accompanying condensed consolidated financial information for the thirteen weeks ended December 31, 2022 and January 1, 2022 is unaudited. Financial information as of October 1, 2022 has been derived from the audited financial statements of Flanigan’s Enterprises, Inc., a Florida corporation, together with its subsidiaries, (the “Company”, “we”, “our”, “ours” and “us” as the context requires), but does not include all disclosures required by accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the financial information for the periods indicated have been included. For further information regarding the Company's accounting policies, refer to the Consolidated Financial Statements and related notes included in the Company's Annual Report on Form 10-K for the year ended October 1, 2022. Operating results for interim periods are not necessarily indicative of results to be expected for a full year. The condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and the accounts of the ten limited partnerships in which we act as general partner and have controlling interests. All intercompany balances and transactions have been eliminated. Non-controlling interest represents the limited partners’ proportionate share of the net assets and results of operations of the eight limited partnerships. The consolidated financial statements and related disclosures for condensed interim reporting are prepared in conformity with accounting principles generally accepted in the United States. We are required 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 revenue and expenses during the period reported. These estimates include assessing the estimated useful lives of tangible assets, the recognition of deferred tax assets and liabilities and estimates relating to the calculation of incremental borrowing rates and length of leases associated with right-of-use assets and corresponding liabilities and estimates relating to loyalty reward programs. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in our consolidated financial statements in the period they are determined to be necessary. Although these estimates are based on our knowledge of current events and actions we may undertake in the future, they may ultimately differ from actual results. Although these estimates are based on management’s knowledge of current events and actions it may take in the future, they may ultimately differ from actual results. Certain amounts presented in the financial statements previously issued for the thirteen weeks ended January 1, 2022 have been reclassified to conform to the presentation for the thirteen weeks ended December 31, 2022.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Dec. 31, 2022
Earnings Per Share [Abstract]
EARNINGS PER SHARE	(2) EARNINGS PER SHARE: We follow Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Section 260 - “ Earnings per Share

RECENTLY ADOPTED AND RECENTLY I

RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Dec. 31, 2022
Recent Adopted And Recent Issued Accounting Pronouncements
RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS	(3) RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS: Adopted There are no accounting pronouncements that we have recently adopted. Recently Issued The FASB issued guidance, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides an optional expedient and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In response to the concerns about structural risks of interbank offered rates (“IBORs”) and, particularly, the risk of cessation of the LIBOR, regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. This accounting standards update provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. LIBOR rates will be published until June 30, 2023. All principal and interest of the Term Loan was paid during the first quarter of our fiscal year 2023, so the discontinuance of LIBOR rates had no impact on us. There are no other recently issued accounting pronouncements that we have not yet adopted that we believe will have a material effect on our financial statements.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
INCOME TAXES	(4) INCOME TAXES: We account for our income taxes using FASB ASC Topic 740, “ Income Taxes

DEBT

DEBT	3 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
DEBT	(5) DEBT: Payoff of Term Loan During the first quarter of our fiscal year 2023, we satisfied the principal balance and all accrued interest due on our $5.5 million term loan to our unrelated lender. The outstanding principal balance ($367,000) and accrued interest ($-0-) was paid in full on December 28, 2022. In February 2023, we determined that as of December 31, 2022, we did not meet the required Post-Distribution Basic Fixed Charge Coverage Ratio (the “Post-Distribution/Fixed Charge Covenant”) contained in each of our six (6) loans (the “Institutional Loans”) with our unrelated third party institutional lender (the “Institutional Lender’). The Post-Distribution/Fixed Charge Covenant requires we maintain a ratio of at least 1.15 to 1.00 and for the twelve (12) months ended December 31, 2022 our ratio was calculated to be 1.13 to 1.00. On February 23, 2023, we received from the Institutional Lender, a written waiver of the non-compliance with the Post-Distribution/Fixed Charge Covenant (the “Covenant Non-Compliance”), pursuant to which, among other things, the Institutional Lender waived (1) the non-compliance as of December 31, 2022 and (2) their right to exercise certain remedies under the Institutional Loans, including the right to accelerate the indebtedness owed by us thereunder, resulting in the indebtedness under the Institutional Loans to be immediately due and payable, which would have a material adverse effect on the Company. We believe we will regain compliance with the Post-Distribution/Fixed Charge Covenant as of the end of our second fiscal quarter of our fiscal year ending September 30, 2023 and going forward. We have prepared projections for the next year, including estimated covenant calculations for the next four (4) fiscal quarters and we expect to be in compliance. As a result, our classification of debt is appropriate as of December 31, 2022. For further information regarding the Company's long-term debt, refer to the Consolidated Financial Statements and related notes included in the Company’s Annual Report on Form 10K for the year ended October 1, 2022.

INSURANCE PREMIUMS

INSURANCE PREMIUMS	3 Months Ended
	Dec. 31, 2022
Insurance [Abstract]
INSURANCE PREMIUMS	(6) INSURANCE PREMIUMS During the first quarter of our fiscal year 2023, for the policy year commencing December 30, 2022, we agreed on the following property, general liability, excess liability and terrorist policies, totaling approximately $3.281 million, for which the premiums were paid in full subsequent to December 31, 2022. The coverage described above includes coverage for our franchises (which is $658,000), which are not included in our consolidated financial statements: (i) For the policy year beginning December 30, 2022, our general liability insurance, excluding limited partnerships, is a one (1) year policy with our insurance carriers. The one (1) year general liability insurance premium is in the amount of $512,000; (ii) For the policy year beginning December 30, 2022, our general liability insurance for our limited partnerships is a one (1) year policy with our insurance carriers. The one (1) year general liability insurance premium is in the amount of $672,000; (iii) For the policy year beginning December 30, 2022, our automobile insurance is a one (1) year policy. The one (1) year automobile insurance premium is in the amount of $190,000; (iv) For the policy year beginning December 30, 2022, our property insurance is a one (1) year policy. The one (1) year property insurance premium is in the amount of $1,248,000; (v) For the policy year beginning December 30, 2022, our excess liability insurance is a one (1) year policy. The one (1) year excess liability insurance premium is in the amount of $634,000; (vi) For the policy year beginning December 30, 2022, our terrorist insurance is a one (1) year policy. The one (1) year terrorist insurance premium is in the amount of $14,000; and (vii) For the policy year beginning December 30, 2022, our equipment breakdown insurance is a one (1) year policy. The one (1) year equipment breakdown insurance premium is in the amount of $11,000. We paid the $3,281,000 annual premium amounts on January 9, 2023, which includes coverage for our franchises which are not included in our consolidated financial statements.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	(7) COMMITMENTS AND CONTINGENCIES: Construction Contracts (a) 7990 Davie Road Extension, Hollywood, Florida (Store #19 – “Big Daddy’s Wine & Liquors”) During the third quarter of our fiscal year 2019, we entered into an agreement with a third party unaffiliated general contractor for site work at this location totaling $1,618,000, (i) to connect the real property where this restaurant operated (Store #19) to city sewer and (ii) to construct a new building on the adjacent parcel of real property for the operation of a package liquor store. During our fiscal years 2020, 2021 and 2022, we agreed to change orders to the agreement for additional construction services increasing the total contract price by $624,000 to $2,242,000 and subsequent to the end of the first quarter of our fiscal year 2023 we agreed to change orders to the agreement for additional construction services increasing the total contract price by $71,000 to $2,313,000, of which $1,682,000 of the total amount obligated has been paid through December 31, 2022 and an additional $400,000 has been paid subsequent to the end of the first quarter of our fiscal year 2023 through the date of filing of this quarterly report. (b) 2505 N. University Drive, Hollywood, Florida (Store #19 – “Flanigan’s”) During the third quarter of our fiscal year 2019, we entered into an agreement with an unaffiliated third party architect for design and development services totaling $77,000 for the re-build of our restaurant located at 2505 N. University Drive, Hollywood, Florida (Store #19), which has been closed since October 2, 2018 due to damages caused by a fire, of which $62,000 has been paid. During the first quarter of our fiscal year 2022, we entered into an agreement with a third party unaffiliated general contractor to re-build our restaurant at this location totaling $2,515,000, of which none has been paid. (c) 14301 W. Sunrise Boulevard, Sunrise, Florida (Store #85 – “Flanigan’s”) During the second quarter of our fiscal year 2022, we entered into an agreement with a third party unaffiliated general contractor for exterior renovations at this location totaling $343,000 and through our fiscal year 2023 we agreed to change orders to the agreement for additional interior renovations increasing the total contract price by $74,000 to $417,000, of which $353,000 has been paid through December 31, 2022 and $64,000 has been paid subsequent to the end of the first quarter of our fiscal year 2023 through the date of filing of this quarterly report. (d) 11225 Miramar Parkway, #250, Miramar, Florida (“Flanigan’s”) During the second quarter of our fiscal year 2022, we entered into an agreement with a third party unaffiliated general contractor for interior renovations at this location totaling $1,421,000, and through the first quarter of our fiscal year 2023 we agreed to change orders to the agreement increasing the total contract price by $290,000 to $1,711,000 of which $1,159,000 has been paid through December 31, 2022 and $141,000, has been paid subsequent to the end of the first quarter of our fiscal year 2023 through the date of filing of this quarterly report. (e) 11225 Miramar Parkway, #245, Miramar, Florida (“Big Daddy’s Wine & Liquors”) During the first quarter of our fiscal year 2022, we entered into an agreement with a third party unaffiliated general contractor for interior renovations at this location totaling $317,000, and through the first quarter of our fiscal year 2023 we agreed to change orders to the agreement increasing the total contract price by $45,000 to $369,000 of which $316,000 has been paid through December 31, 2022 and $16,000 has been paid subsequent to the end of the first quarter of our fiscal year 2023 through the date of filing of this quarterly report. Leases To conduct certain of our operations, we lease restaurant and package liquor store space in South Florida from unrelated third parties. Our leases have remaining lease terms of up to 10 years, some of which include options to renew and extend the lease terms for up to an additional 30 years. We presently intend to renew some of the extension options available to us and for purposes of computing the right-of-use assets and lease liabilities required by ASC 842, we have incorporated into all lease terms which may be extended, an additional term of the lesser of (i) the amount of years the lease may be extended; or (ii) 15 years. Following adoption of ASC 842 during the year ended October 3, 2020, common area maintenance and property taxes are not considered to be lease components. The components of lease expense are as follows: 13 Weeks 13 Weeks Ended December 31, 2022 Ended January 1, 2022 Operating Lease Expense, which is included in occupancy costs $ 956,000 $ 1,244,000 Supplemental balance sheet information related to leases as follows: Classification on the Condensed Consolidated Balance Sheet December 31, 2022 October 1, 2022 Assets Operating lease assets $ 28,907,000 $ 29,517,000 Liabilities Operating current liabilities $ 2,289,000 $ 2,253,000 Operating lease non-current liabilities $ 27,698,000 $ 28,281,000 Weighted Average Remaining Lease Term: Operating leases 10.58 Years 10.82 Years Weighted Average Discount: Operating leases 4.75 % 4.66 % The following table outlines the minimum future lease payments for the next five years and thereafter: For fiscal year Operating 2023 (nine (9) months) $ 2,662,000 2024 3,622,000 2025 3,616,000 2026 3,450,000 2027 3,353,000 Thereafter 25,194,000 Total lease payments (Undiscounted cash flows) 41,897,000 Less imputed interest (11,910,000 ) Total $ 29,987,000 Litigation Our sale of alcoholic beverages subjects us to “dram shop” statutes, which allow an injured person to recover damages from an establishment that served alcoholic beverages to an intoxicated person. If we receive a judgment substantially in excess of our insurance coverage or if we fail to maintain our insurance coverage, our business, financial condition, operating results or cash flows could be materially and adversely affected. We currently have no “dram shop” claims. From time to time, we are a party to various other claims, legal actions and complaints arising in the ordinary course of our business, including claims resulting from “slip and fall” accidents, claims under federal and state laws governing access to public accommodations, employment-related claims and claims from guests alleging illness, injury or other food quality, health or operational concerns. It is our opinion, after consulting with legal counsel, that all such matters are without merit or involve such amounts that an unfavorable disposition, some of which is covered by insurance, would not have a material adverse effect on our financial position or results of operations.

CORONAVIRUS PANDEMIC

CORONAVIRUS PANDEMIC	3 Months Ended
	Dec. 31, 2022
Coronavirus Pandemic [Abstract]
CORONAVIRUS PANDEMIC	(8) CORONAVIRUS PANDEMIC: In March 2020, a novel strain of coronavirus was declared a global pandemic and a National Public Health Emergency. The novel coronavirus pandemic and related “shelter-in-place” orders and other governmental mandates relating thereto (collectively, “COVID-19”) adversely affected and will, in all likelihood continue to adversely affect, our restaurant operations and financial results for the foreseeable future. During the second quarter of our fiscal year 2021, certain of the entities owning the limited partnership stores (the “LP’s”), as well as the store we manage but do not own (the “Managed Store”), applied for and received loans from an unrelated third party lender pursuant to the Paycheck Protection Program (the “PPP”) under the United States Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) enacted March 27, 2020, in the aggregate principal amount of approximately $3.98 million, (the “2 nd nd nd COVID-19 has had a material adverse effect on our access to supplies or labor and there can be no assurance that there will not be a significant adverse impact on our supply chain or access to labor in the future. We are actively monitoring our food suppliers to assess how they are managing their operations to mitigate supply flow and food safety risks. To ensure we mitigate potential supply availability risk, we are building additional inventory back stock levels when appropriate and we have also identified alternative supply sources in key product categories including but not limited to food, sanitation and safety supplies.

BUSINESS SEGMENTS

BUSINESS SEGMENTS	3 Months Ended
	Dec. 31, 2022
Segment Reporting [Abstract]
BUSINESS SEGMENTS	(9) BUSINESS SEGMENTS: We operate in two reportable segments – package stores and restaurants. The operation of package stores consists of retail liquor sales and related items. The operation of restaurants consists of restaurant food and bar sales. Information concerning the revenues and operating income for the thirteen weeks ended December 31, 2022 and January 1, 2022, and identifiable assets for the two reportable segments in which we operate, are shown in the following table. Operating income is total revenue less cost of merchandise sold and operating expenses relative to each segment. In computing operating income, none of the following items have been included: interest expense, other non-operating income and expenses and income taxes. Identifiable assets by segment are those assets that are used in our operations in each segment. Corporate assets are principally cash and real property, improvements, furniture, equipment and vehicles used at our corporate headquarters. We do not have any operations outside of the United States and transactions between restaurants and package liquor stores are not material. (in thousands) Thirteen Weeks December 31, 2022 Thirteen Weeks January 1, 2022 Operating Revenues: Restaurants $ 31,755 $ 28,212 Package stores 9,403 8,511 Other revenues 703 680 Total operating revenues $ 41,861 $ 37,403 Income from Operations Reconciled to Income After Income Taxes and Net Income Attributable to Noncontrolling Interests Restaurants $ 779 $ 377 Package stores 799 682 1,578 1,059 Corporate expenses, net of other revenues (381 ) (294 ) Income from Operations 1,197 765 Interest expense (275 ) (193 ) Interest and Other income 15 14 Gain on forgiveness of debt — 3,488 Gain on sale of property and equipment — 11 Income Before Provision for Income Taxes $ 937 $ 4,085 Provision for Income Taxes (63 ) (147 ) Net Income 874 3,938 Net Income Attributable to Noncontrolling Interests (250 ) (2,374 ) Net Income Attributable to Flanigan’s Enterprises, Inc. Stockholders $ 624 $ 1,564 Depreciation and Amortization: Restaurants $ 626 $ 521 Package stores 90 79 716 600 Corporate 105 99 Total Depreciation and Amortization $ 821 $ 699 Capital Expenditures: Restaurants $ 947 $ 1,253 Package stores 350 521 1,297 1,774 Corporate 202 237 Total Capital Expenditures $ 1,499 $ 2,011 December 31, October 1, 2022 2022 Identifiable Assets: Restaurants $ 73,017 $ 73,596 Package store 20,100 $ 20,035 93,117 93,631 Corporate 56,055 53,861 Consolidated Totals $ 149,172 $ 147,492

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Dec. 31, 2022
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	(10) SUBSEQUENT EVENTS: Subsequent events have been evaluated through the date these consolidated financial statements were issued and no other events required disclosure.

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Schedule of Components of Lease Expense	13 Weeks 13 Weeks Ended December 31, 2022 Ended January 1, 2022 Operating Lease Expense, which is included in occupancy costs $ 956,000 $ 1,244,000
Schedule of Supplemental Balance Sheet Information Related to Leases	Classification on the Condensed Consolidated Balance Sheet December 31, 2022 October 1, 2022 Assets Operating lease assets $ 28,907,000 $ 29,517,000 Liabilities Operating current liabilities $ 2,289,000 $ 2,253,000 Operating lease non-current liabilities $ 27,698,000 $ 28,281,000 Weighted Average Remaining Lease Term: Operating leases 10.58 Years 10.82 Years Weighted Average Discount: Operating leases 4.75 % 4.66 %
Schedule of Minimum Future Lease Payments	For fiscal year Operating 2023 (nine (9) months) $ 2,662,000 2024 3,622,000 2025 3,616,000 2026 3,450,000 2027 3,353,000 Thereafter 25,194,000 Total lease payments (Undiscounted cash flows) 41,897,000 Less imputed interest (11,910,000 ) Total $ 29,987,000

BUSINESS SEGMENTS (Tables)

BUSINESS SEGMENTS (Tables)	3 Months Ended
	Dec. 31, 2022
Segment Reporting [Abstract]
Schedule of business segments	(in thousands) Thirteen Weeks December 31, 2022 Thirteen Weeks January 1, 2022 Operating Revenues: Restaurants $ 31,755 $ 28,212 Package stores 9,403 8,511 Other revenues 703 680 Total operating revenues $ 41,861 $ 37,403 Income from Operations Reconciled to Income After Income Taxes and Net Income Attributable to Noncontrolling Interests Restaurants $ 779 $ 377 Package stores 799 682 1,578 1,059 Corporate expenses, net of other revenues (381 ) (294 ) Income from Operations 1,197 765 Interest expense (275 ) (193 ) Interest and Other income 15 14 Gain on forgiveness of debt — 3,488 Gain on sale of property and equipment — 11 Income Before Provision for Income Taxes $ 937 $ 4,085 Provision for Income Taxes (63 ) (147 ) Net Income 874 3,938 Net Income Attributable to Noncontrolling Interests (250 ) (2,374 ) Net Income Attributable to Flanigan’s Enterprises, Inc. Stockholders $ 624 $ 1,564 Depreciation and Amortization: Restaurants $ 626 $ 521 Package stores 90 79 716 600 Corporate 105 99 Total Depreciation and Amortization $ 821 $ 699 Capital Expenditures: Restaurants $ 947 $ 1,253 Package stores 350 521 1,297 1,774 Corporate 202 237 Total Capital Expenditures $ 1,499 $ 2,011 December 31, October 1, 2022 2022 Identifiable Assets: Restaurants $ 73,017 $ 73,596 Package store 20,100 $ 20,035 93,117 93,631 Corporate 56,055 53,861 Consolidated Totals $ 149,172 $ 147,492

INCOME TAXES (Details)

INCOME TAXES (Details)	3 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Statutory federal rate	21%

DEBT (Details)

DEBT (Details)	3 Months Ended
	Dec. 31, 2022 USD ($)	Dec. 28, 2022 USD ($)
DEBT (Details) [Line Items]
Accrued interest (in Dollars)	$ 5,500,000	$ 0
Institutional loans (in Dollars)		$ (367,000)
Maximum [Member]
DEBT (Details) [Line Items]
Covenant requires	1.15
Calculated ratio	1.13
Minimum [Member]
DEBT (Details) [Line Items]
Covenant requires	1
Calculated ratio	1

INSURANCE PREMIUMS (Details)

INSURANCE PREMIUMS (Details) - USD ($)	1 Months Ended	3 Months Ended
	Dec. 30, 2022	Dec. 31, 2022
INSURANCE PREMIUMS (Details) [Line Items]
Franchises coverage amount		$ 658,000
Insurance Premiums [Member]
INSURANCE PREMIUMS (Details) [Line Items]
Amount of premium payable		$ 3,281,000
Insurance Premiums [Member] | Unaffiliated Third Party [Member]
INSURANCE PREMIUMS (Details) [Line Items]
Amount of premium payable	$ 3,281,000
Insurance Premiums [Member] | General Liability Insurance Excluding Limited Partnership Premium [Member]
INSURANCE PREMIUMS (Details) [Line Items]
Amount of premium payable	$ 512,000
Term of insurance premium	1 year
Insurance Premiums [Member] | General Liability Insurance for Limited Partnership Premium [Member]
INSURANCE PREMIUMS (Details) [Line Items]
Amount of premium payable	$ 672,000
Term of insurance premium	1 year
Insurance Premiums [Member] | Automobile Insurance Premium [Member]
INSURANCE PREMIUMS (Details) [Line Items]
Amount of premium payable	$ 190,000
Term of insurance premium	1 year
Insurance Premiums [Member] | Property Insurance Premium [Member]
INSURANCE PREMIUMS (Details) [Line Items]
Amount of premium payable	$ 1,248,000
Term of insurance premium	1 year
Insurance Premiums [Member] | Excess Liability Insurance Premium [Member]
INSURANCE PREMIUMS (Details) [Line Items]
Amount of premium payable	$ 634,000
Term of insurance premium	1 year
Insurance Premiums [Member] | Terrorist Insurance Premium [Member]
INSURANCE PREMIUMS (Details) [Line Items]
Amount of premium payable	$ 14,000
Term of insurance premium	1 year
Insurance Premiums [Member] | Equipment Breakdown Insurance Premium [Member]
INSURANCE PREMIUMS (Details) [Line Items]
Amount of premium payable	$ 11,000
Term of insurance premium	1 year

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)			3 Months Ended	12 Months Ended		18 Months Ended
	Oct. 06, 2022	Oct. 02, 2018	Dec. 31, 2022	Oct. 01, 2022	Oct. 02, 2021	Apr. 01, 2021	Apr. 02, 2022	Jun. 29, 2019
COMMITMENTS AND CONTINGENCIES (Details) [Line Items]
Total contract			$ 141,000
Total contract price			5,408,000	$ 7,517,000
Total amount paid			1,682,000
Additional paid			400,000
Minimum [Member]
COMMITMENTS AND CONTINGENCIES (Details) [Line Items]
Total contract price			71,000
Maximum [Member]
COMMITMENTS AND CONTINGENCIES (Details) [Line Items]
Total contract price			2,313,000
Third Party Agreement - Unaffiliated General Contractor [Member]
COMMITMENTS AND CONTINGENCIES (Details) [Line Items]
Total contract								$ 1,618,000
Additional amount for renovation of construction in process				$ 624,000	$ 2,242,000
Amount for renovation of construction in process	$ 317,000
Design and Development Services - 2505 N. University Drive, Hollywood, Florida [Member]
COMMITMENTS AND CONTINGENCIES (Details) [Line Items]
Total contract								$ 77,000
Amount for renovation of construction in process		$ 62,000
Subsequent Additional Change - 2505 N. University Drive, Hollywood, Florida [Member]
COMMITMENTS AND CONTINGENCIES (Details) [Line Items]
Total contract			2,515,000
Third Party Agreement - 11225 Miramar Parkway 250 Miramar Florida Flanigans [Member] | Third Party Agreement - Unaffiliated General Contractor [Member]
COMMITMENTS AND CONTINGENCIES (Details) [Line Items]
Cash paid			1,159,000
Third Party Agreement - 11225 Miramar Parkway 250 Miramar Florida Flanigans [Member] | Third Party Agreement - Unaffiliated General Contractor [Member]
COMMITMENTS AND CONTINGENCIES (Details) [Line Items]
Total contract							$ 1,421,000
Cash paid			0
Third Party Agreement - 11225 Miramar Parkway 250 Miramar Florida Flanigans [Member] | Third Party Agreement - Unaffiliated General Contractor [Member] | Minimum [Member]
COMMITMENTS AND CONTINGENCIES (Details) [Line Items]
Total contract			290,000
Third Party Agreement - 11225 Miramar Parkway 250 Miramar Florida Flanigans [Member] | Third Party Agreement - Unaffiliated General Contractor [Member] | Maximum [Member]
COMMITMENTS AND CONTINGENCIES (Details) [Line Items]
Total contract			1,711,000
Third Party Exterior Renovations Services - 14301 W. Sunrise Boulevard, Sunrise, Florida [Member]
COMMITMENTS AND CONTINGENCIES (Details) [Line Items]
Total contract						$ 353,000
Additional amount for renovation of construction in process						343,000
Third Party Exterior Renovations Services - 14301 W. Sunrise Boulevard, Sunrise, Florida [Member] | Minimum [Member]
COMMITMENTS AND CONTINGENCIES (Details) [Line Items]
Additional amount for renovation of construction in process						74,000
Third Party Exterior Renovations Services - 14301 W. Sunrise Boulevard, Sunrise, Florida [Member] | Maximum [Member]
COMMITMENTS AND CONTINGENCIES (Details) [Line Items]
Additional amount for renovation of construction in process						$ 417,000
Additional Third Party Interior Renovations Services - 14301 W. Sunrise Boulevard, Sunrise, Florida [Member]
COMMITMENTS AND CONTINGENCIES (Details) [Line Items]
Amount of obligation paid			64,000
Miramar Parkway Miramar Florida Big Daddy’s Wine & Liquors [Member] | Third Party Agreement - Unaffiliated General Contractor [Member]
COMMITMENTS AND CONTINGENCIES (Details) [Line Items]
Cash paid			316,000
Miramar Parkway Miramar Florida Big Daddy’s Wine & Liquors [Member] | Third Party Agreement - Unaffiliated General Contractor [Member] | Minimum [Member]
COMMITMENTS AND CONTINGENCIES (Details) [Line Items]
Total contract			45,000
Miramar Parkway Miramar Florida Big Daddy’s Wine & Liquors [Member] | Third Party Agreement - Unaffiliated General Contractor [Member] | Maximum [Member]
COMMITMENTS AND CONTINGENCIES (Details) [Line Items]
Total contract			$ 369,000
South Florida from unrelated third parties [Member] | Minimum [Member]
COMMITMENTS AND CONTINGENCIES (Details) [Line Items]
Lease term			10 years
South Florida from unrelated third parties [Member] | Maximum [Member]
COMMITMENTS AND CONTINGENCIES (Details) [Line Items]
Lease term			30 years

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES (Details) - SCHEDULE OF COMPONENTS OF LEASE EXPENSE - USD ($)	3 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Schedule of Components of Lease Expense [Abstract]
Operating Lease Expense, which is included in occupancy costs	$ 956,000	$ 1,244,000

COMMITMENTS AND CONTINGENCIES_4

COMMITMENTS AND CONTINGENCIES (Details) - SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES - USD ($)	Dec. 31, 2022	Oct. 01, 2022
Assets
Operating lease assets	$ 28,907,000	$ 29,517,000
Liabilities
Operating current liabilities	2,289,000	2,253,000
Operating lease non-current liabilities	$ 27,698,000	$ 28,281,000
Weighted Average Remaining Lease Term:
Operating leases	10 years 6 months 29 days	10 years 9 months 25 days
Weighted Average Discount:
Operating leases	4.75%	4.66%

COMMITMENTS AND CONTINGENCIES_5

COMMITMENTS AND CONTINGENCIES (Details) - SCHEDULE OF MINIMUM FUTURE LEASE PAYMENTS	Dec. 31, 2022 USD ($)
Schedule of Minimum Future Lease Payments [Abstract]
2023 (nine (9) months)	$ 2,662,000
2024	3,622,000
2025	3,616,000
2026	3,450,000
2027	3,353,000
Thereafter	25,194,000
Total lease payments
(Undiscounted cash flows)	41,897,000
Less imputed interest	(11,910,000)
Total	$ 29,987,000

CORONAVIRUS PANDEMIC (Details)

CORONAVIRUS PANDEMIC (Details) $ in Thousands	Mar. 27, 2020 USD ($)
LPs [Member]
CORONAVIRUS PANDEMIC (Details) [Line Items]
Loan aggregate principal amount	$ 3,350
Managed Store [Member]
CORONAVIRUS PANDEMIC (Details) [Line Items]
Loan aggregate principal amount	630
2nd PPP Loans Member]
CORONAVIRUS PANDEMIC (Details) [Line Items]
Loan aggregate principal amount	$ 3,980

BUSINESS SEGMENTS (Details) - S

BUSINESS SEGMENTS (Details) - SCHEDULE OF BUSINESS SEGMENTS - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Oct. 01, 2022
Operating Revenues:
Total operating revenues	$ 41,861	$ 37,403
Income from Operations Reconciled to Income After Income Taxes and Net Income Attributable to Noncontrolling Interests
Income from Operations	1,197	765
Interest expense	(275)	(193)
Interest and Other income	15	14
Gain on forgiveness of debt		3,488
Gain on sale of property and equipment		11
Income Before Provision for Income Taxes	937	4,085
Provision for Income Taxes	(63)	(147)
Net Income	874	3,938
Net Income Attributable to Noncontrolling Interests	(250)	(2,374)
Net Income Attributable to Flanigan’s Enterprises, Inc. Stockholders	624	1,564
Depreciation and Amortization:
Depreciation and Amortization	821	699
Capital Expenditures:
Capital Expenditures	1,499	2,011
Identifiable Assets:
Assets	149,172		$ 147,492
Operating Segments [Member]
Operating Revenues:
Total operating revenues	703	680
Income from Operations Reconciled to Income After Income Taxes and Net Income Attributable to Noncontrolling Interests
Income from Operations	1,578	1,059
Depreciation and Amortization:
Depreciation and Amortization	716	600
Capital Expenditures:
Capital Expenditures	1,297	1,774
Identifiable Assets:
Assets	93,117		93,631
Operating Segments [Member] | Restaurants [Member]
Operating Revenues:
Total operating revenues	31,755	28,212
Income from Operations Reconciled to Income After Income Taxes and Net Income Attributable to Noncontrolling Interests
Income from Operations	779	377
Depreciation and Amortization:
Depreciation and Amortization	626	521
Capital Expenditures:
Capital Expenditures	947	1,253
Identifiable Assets:
Assets	73,017		73,596
Operating Segments [Member] | Package stores [Member]
Operating Revenues:
Total operating revenues	9,403	8,511
Income from Operations Reconciled to Income After Income Taxes and Net Income Attributable to Noncontrolling Interests
Income from Operations	799	682
Depreciation and Amortization:
Depreciation and Amortization	90	79
Capital Expenditures:
Capital Expenditures	350	521
Identifiable Assets:
Assets	20,100		20,035
Corporate, Non-Segment [Member]
Income from Operations Reconciled to Income After Income Taxes and Net Income Attributable to Noncontrolling Interests
Income from Operations	(381)	(294)
Depreciation and Amortization:
Depreciation and Amortization	105	99
Capital Expenditures:
Capital Expenditures	202	$ 237
Identifiable Assets:
Assets	$ 56,055		$ 53,861