Cover
Cover - USD ($) | 12 Months Ended | ||
Oct. 02, 2021 | Dec. 17, 2021 | Apr. 03, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Oct. 2, 2021 | ||
Current Fiscal Year End Date | --10-02 | ||
Document Transition Report | false | ||
Entity File Number | 1-09453 | ||
Entity Registrant Name | ARK RESTAURANTS CORP. | ||
Entity Incorporation, State or Country Code | NY | ||
Entity Tax Identification Number | 13-3156768 | ||
Entity Address, Address Line One | 85 Fifth Avenue, | ||
Entity Address, City or Town | New York, | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10003 | ||
City Area Code | 212 | ||
Local Phone Number | 206-8800 | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | ||
Trading Symbol | ARKR | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 45,957,885 | ||
Entity Common Stock, Shares Outstanding | 3,551,556 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000779544 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE (1) In accordance with General Instruction G (3) of Form 10-K, certain information required by Part III hereof will either be incorporated into this Form 10-K by reference to the registrant’s definitive proxy statement for the registrant’s 2021 Annual Meeting of Stockholders filed within 120 days of October 2, 2021 or will be included in an amendment to this Form 10-K filed within 120 days of October 2, 2021. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Oct. 02, 2021 | Oct. 03, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents (includes $785 at October 2, 2021 and $567 at October 3, 2020 related to VIEs) | $ 19,171 | $ 16,886 |
Accounts receivable (includes $358 at October 2, 2021 and $162 at October 3, 2020 related to VIEs) | 4,113 | 1,738 |
Employee receivables | 380 | 385 |
Inventories (includes $35 at October 2, 2021 and $27 at October 3, 2020 related to VIEs) | 3,510 | 2,553 |
Prepaid and refundable income taxes (includes $278 at October 2, 2021 and $274 at October 3, 2020 related to VIEs) | 3,896 | 2,870 |
Prepaid expenses and other current assets (includes $277 at October 2, 2021 and $13 at October 3, 2020 related to VIEs) | 3,205 | 2,469 |
Total current assets | 34,275 | 26,901 |
FIXED ASSETS - Net (includes $218 at October 2, 2021 and $241 at October 3, 2020 related to VIEs) | 36,174 | 37,682 |
OPERATING LEASE RIGHT-OF-USE ASSETS - Net (includes $2,342 at October 2, 2021 and $2,658 at October 3, 2020 related to VIEs) | 56,336 | 54,191 |
INTANGIBLE ASSETS - Net | 376 | 49 |
GOODWILL | 17,440 | 15,570 |
TRADEMARKS | 4,220 | 3,720 |
DEFERRED INCOME TAXES | 3,700 | 5,897 |
INVESTMENT IN AND RECEIVABLE FROM NEW MEADOWLANDS RACETRACK | 6,425 | 6,874 |
OTHER ASSETS (includes $82 at October 2, 2021 and October 3, 2020 related to VIEs) | 2,270 | 2,432 |
TOTAL ASSETS | 161,216 | 153,316 |
CURRENT LIABILITIES: | ||
Accounts payable - trade (includes $213 at October 2, 2021 and $119 at October 3, 2020 related to VIEs) | 4,886 | 2,329 |
Accrued expenses and other current liabilities (includes $374 at October 2, 2021 and $331 at October 3, 2020 related to VIEs) | 13,679 | 12,688 |
Current portion of operating lease liabilities (includes $249 at October 2, 2021 and $226 at October 3, 2020 related to VIEs) | 6,165 | 6,117 |
Current portion of notes payable (includes $95 at October 2, 2021 related to VIEs) | 6,973 | 9,001 |
Total current liabilities | 31,703 | 30,135 |
OPERATING LEASE LIABILITIES, LESS CURRENT PORTION (includes $2,193 at October 2, 2021 and $2,442 at October 3, 2020 related to VIEs) | 52,552 | 49,960 |
NOTES PAYABLE, LESS CURRENT PORTION, net of deferred financing costs (includes $101 at October 2, 2021 and $723 at October 3, 2020 related to VIEs) | 25,509 | 36,068 |
TOTAL LIABILITIES | 109,764 | 116,163 |
COMMITMENTS AND CONTINGENCIES | ||
EQUITY: | ||
Common stock, par value $0.01 per share - authorized, 10,000 shares; issued and outstanding, 3,551 shares at October 2, 2021 and 3,502 shares at October 3, 2020 | 36 | 35 |
Additional paid-in capital | 14,492 | 13,503 |
Retained earnings | 35,884 | 22,989 |
Total Ark Restaurants Corp. shareholders’ equity | 50,412 | 36,527 |
NON-CONTROLLING INTERESTS | 1,040 | 626 |
TOTAL EQUITY | 51,452 | 37,153 |
TOTAL LIABILITIES AND EQUITY | $ 161,216 | $ 153,316 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) shares in Thousands, $ in Thousands | Oct. 02, 2021 | Oct. 03, 2020 |
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | $ 19,171 | $ 16,886 |
Accounts receivable | 4,113 | 1,738 |
Inventories | 3,510 | 2,553 |
Prepaid and refundable income taxes | 3,896 | 2,870 |
Prepaid expenses and other current assets | 3,205 | 2,469 |
Fixed assets - net | 36,174 | 37,682 |
Operating lease, right-of-use assets - net | 56,336 | 54,191 |
Other assets | 2,270 | 2,432 |
Accounts payable - trade | 4,886 | 2,329 |
Accrued expenses and other current liabilities | 13,679 | 12,688 |
Current portion of operating lease liabilities | 6,165 | 6,117 |
Current portion of notes payable | 6,973 | 9,001 |
Operating lease liabilities, less current portion | 52,552 | 49,960 |
Notes payable, less current portion | $ 25,509 | $ 36,068 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 10,000 | 10,000 |
Common stock, shares issued (in shares) | 3,551 | 3,502 |
Common stock, shares outstanding (in shares) | 3,551 | 3,502 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | $ 785 | $ 567 |
Accounts receivable | 358 | 162 |
Inventories | 35 | 27 |
Prepaid and refundable income taxes | 278 | 274 |
Prepaid expenses and other current assets | 277 | 13 |
Fixed assets - net | 218 | 241 |
Operating lease, right-of-use assets - net | 2,342 | 2,658 |
Other assets | 82 | 82 |
Accounts payable - trade | 213 | 119 |
Accrued expenses and other current liabilities | 374 | 331 |
Current portion of operating lease liabilities | 249 | 226 |
Current portion of notes payable | 95 | 0 |
Operating lease liabilities, less current portion | 2,193 | 2,442 |
Notes payable, less current portion | $ 101 | $ 723 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
REVENUES: | ||
Revenues | $ 131,870 | $ 106,490 |
COSTS AND EXPENSES: | ||
Payroll expenses | 42,579 | 40,975 |
Other operating costs and expenses | 16,044 | 14,757 |
General and administrative expenses | 10,523 | 10,160 |
(Gain) loss on lease termination | (810) | 364 |
Depreciation and amortization | 3,630 | 4,056 |
Total costs and expenses | 125,663 | 114,286 |
OPERATING INCOME (LOSS) | 6,207 | (7,796) |
OTHER (INCOME) EXPENSE: | ||
Interest expense | 1,230 | 1,421 |
Interest income | (51) | (126) |
Other Income | 0 | (88) |
Gain on forgiveness of PPP Loans | (10,400) | 0 |
Total other (income) expense, net | (9,221) | 1,207 |
INCOME (LOSS) BEFORE PROVISION (BENEFIT) FOR INCOME TAXES | 15,428 | (9,003) |
Provision (benefit) for income taxes | 1,181 | (4,385) |
CONSOLIDATED NET INCOME (LOSS) | 14,247 | (4,618) |
Net income attributable to non-controlling interests | (1,352) | (70) |
NET INCOME (LOSS) ATTRIBUTABLE TO ARK RESTAURANTS CORP. | $ 12,895 | $ (4,688) |
Earnings Per Share [Abstract] | ||
Basic (in dollars per share) | $ 3.67 | $ (1.34) |
Diluted (in dollars per share) | $ 3.58 | $ (1.34) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||
Basic (in shares) | 3,516 | 3,500 |
Diluted (in shares) | 3,604 | 3,500 |
Food and Beverage | ||
REVENUES: | ||
Revenues | $ 128,988 | $ 104,062 |
COSTS AND EXPENSES: | ||
Cost of goods and services sold | 38,950 | 28,583 |
Other revenue | ||
REVENUES: | ||
Revenues | 2,882 | 2,428 |
Occupancy | ||
COSTS AND EXPENSES: | ||
Cost of goods and services sold | $ 14,747 | $ 15,391 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Total Ark Restaurants Corp. Shareholders’Equity | Common Stock | Additional Paid-In Capital | Retained Earnings | Non- controlling Interests |
BEGINNING BALANCE (in hares) at Sep. 28, 2019 | 3,499,000 | |||||
BEGINNING BALANCE at Sep. 28, 2019 | $ 42,707 | $ 41,864 | $ 35 | $ 13,277 | $ 28,552 | $ 843 |
Net income (loss) | $ (4,618) | (4,688) | (4,688) | 70 | ||
Exercise of stock options (in shares) | 3,500 | 3,000 | ||||
Exercise of stock options | $ 50 | 50 | 50 | |||
Stock-based compensation | 176 | 176 | 176 | |||
Distributions to non-controlling interests | (287) | (287) | ||||
Dividends paid - $0.25 per share | (875) | (875) | (875) | |||
ENDING BALANCE (in shares) at Oct. 03, 2020 | 3,502,000 | |||||
ENDING BALANCE at Oct. 03, 2020 | 37,153 | 36,527 | $ 35 | 13,503 | 22,989 | 626 |
Net income (loss) | $ 14,247 | 12,895 | 12,895 | 1,352 | ||
Exercise of stock options (in shares) | 49,149 | 49,000 | ||||
Exercise of stock options | $ 710 | 710 | $ 1 | 709 | ||
Stock-based compensation | 280 | 280 | 280 | |||
Distributions to non-controlling interests | (938) | (938) | ||||
ENDING BALANCE (in shares) at Oct. 02, 2021 | 3,551,000 | |||||
ENDING BALANCE at Oct. 02, 2021 | $ 51,452 | $ 50,412 | $ 36 | $ 14,492 | $ 35,884 | $ 1,040 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parentheticals) | 12 Months Ended |
Oct. 03, 2020$ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Dividends paid (in Dollars per share) | $ 0.25 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Consolidated net income (loss) | $ 14,247 | $ (4,618) |
Adjustments to reconcile consolidated net income (loss) to net cash provided by (used in) operating activities: | ||
Stock-based compensation | 280 | 176 |
(Gain) loss on lease termination | (810) | 364 |
Gain on forgiveness of PPP Loans | (10,400) | 0 |
Deferred income taxes | 2,197 | (1,791) |
Accrued interest on note receivable from NMR | (51) | (53) |
Depreciation and amortization | 3,630 | 4,056 |
Amortization of operating lease assets | 1,808 | 584 |
Amortization of deferred financing costs | 60 | 51 |
Operating lease deferred credit | 0 | (197) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,375) | 883 |
Inventories | (918) | (331) |
Prepaid, refundable and accrued income taxes | (1,026) | (2,901) |
Prepaid expenses and other current assets | (736) | (1,448) |
Other assets | (69) | 111 |
Accounts payable - trade | 2,557 | (1,220) |
Accrued expenses and other current liabilities | 900 | 1,806 |
Net cash provided by (used in) operating activities | 9,294 | (4,528) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of fixed assets | (2,138) | (2,486) |
Loans and advances made to employees | (92) | (97) |
Payments received on employee receivables | 97 | 126 |
Principal and interest payments received from NMR | 500 | 0 |
Purchase of The Blue Moon Fish Company, net of cash acquired | (1,817) | 0 |
Net cash used in investing activities | (3,450) | (2,457) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Principal payments on notes payable | (3,442) | (2,701) |
Borrowings under credit facility | 0 | 6,300 |
Proceeds from PPP Loans | 111 | 14,995 |
Payment of debt financing costs | 0 | (63) |
Dividends paid | 0 | (1,750) |
Proceeds from issuance of stock upon exercise of stock options | 710 | 50 |
Distributions to non-controlling interests | (938) | (137) |
Net cash provided by (used in) financing activities | (3,559) | 16,694 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 2,285 | 9,709 |
CASH AND CASH EQUIVALENTS, Beginning of year | 16,886 | 7,177 |
CASH AND CASH EQUIVALENTS, End of year | 19,171 | 16,886 |
Cash paid during the year for: | ||
Interest | 1,067 | 1,397 |
Income taxes | 8 | 219 |
Non-cash financing activities: | ||
Note payable in connection with the purchase of The Blue Moon Fish Company | 1,000 | 0 |
Refinancing of credit facility borrowings to term notes | 9,666 | 0 |
Accrued distributions to non-controlling interests | $ 0 | $ 150 |
BUSINESS AND SUMMARY OF SIGNIFI
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Oct. 02, 2021 | |
Disclosure Text Block [Abstract] | |
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES As of October 2, 2021, Ark Restaurants Corp. and Subsidiaries (the “Company”) owned and operated 17 restaurants and bars, 17 fast food concepts and catering operations, exclusively in the United States, that have similar economic characteristics, nature of products and service, class of customers and distribution methods. The Company believes it meets the criteria for aggregating its operating segments into a single reporting segment in accordance with applicable accounting guidance. The Company operates four restaurants in New York City, one in Washington, D.C., five in Las Vegas, Nevada, one in Atlantic City, New Jersey, four in Florida and two on the gulf coast of Alabama. The Las Vegas operations include four restaurants within the New York-New York Hotel & Casino Resort and operation of the hotel’s room service, banquet facilities, employee dining room and six food court concepts and one restaurant within the Planet Hollywood Resort and Casino. In Atlantic City, New Jersey, the Company operates a restaurant in the Tropicana Hotel and Casino. The operation at the Foxwoods Resort Casino consists of one fast food concept. The Florida operations include The Rustic Inn in Dania Beach, Shuckers in Jensen Beach, JB's on the Beach in Deerfield Beach, The Blue Moon Fish Company in Fort Lauderdale and the operation of four fast food facilities in Tampa and six fast food facilities in Hollywood, each at a Hard Rock Hotel and Casino. In Alabama, the Company operates two Original Oyster Houses , one in Gulf Shores and one in Spanish Fort. COVID-19 PANDEMIC — We are subject to continued risks and uncertainties as a result of the outbreak of, and local, state and federal governmental responses to, the COVID-19 pandemic which was declared a National Public Health Emergency in March 2020. We experienced significant disruptions to our business as suggested and mandated social distancing and shelter-in-place orders led to the temporary closure of all of our restaurants. In the third quarter of fiscal 2020, certain jurisdictions began allowing the reopening of restaurant dining rooms, and we began to reopen dining rooms. While restrictions on the type of permitted operating model and occupancy capacity may continue to change, as of October 2, 2021, all of our restaurants were operating with no indoor dining restrictions. We cannot predict how long the COVID-19 pandemic will last, whether vaccines will be effective at eliminating or slowing the spread of the virus or variants, whether it will reoccur or whether variants will spike, what additional restrictions may be enacted, to what extent we can maintain sales volumes during or following any resumption of mandated social distancing protocols or vaccination or mask mandates and what long-lasting effects the COVID-19 pandemic may have on the restaurant industry as a whole. The ongoing effects of the COVID-19 pandemic, including, but not limited to, labor-related impacts, supply chain disruption and consumer behavior, will determine the continued significance of the impact of the COVID-19 pandemic to our operating results and financial position. Basis of Presentation — The accompanying consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and accounting principles generally accepted in the United States of America (“GAAP”). The Company’s reporting currency is the United States dollar. Accounting Period — The Company’s fiscal year ends on the Saturday nearest September 30. The fiscal years ended October 2, 2021 and October 3, 2020 included 52 and 53 weeks, respectively. Use of Estimates — The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The accounting estimates that require management’s most difficult and subjective judgments include projected cash flow, allowances for potential bad debts on receivables, assumptions regarding discount rates related to lease accounting, the useful lives and recoverability of its assets, such as property and intangibles, fair values of financial instruments and share-based compensation, the realizable value of its tax assets and determining when investment impairments are other-than-temporary. Because of the uncertainty in such estimates, actual results may differ from these estimates. Principles of Consolidation — The consolidated financial statements include the accounts of Ark Restaurants Corp. and all of its wholly-owned subsidiaries, partnerships and other entities in which it has a controlling interest. Also included in the consolidated financial statements are certain variable interest entities (“VIEs”). All significant intercompany balances and transactions have been eliminated in consolidation. Non-Controlling Interests — Non-controlling interests represent capital contributions, distributions and income and loss attributable to the shareholders of less than wholly-owned and consolidated entities. Seasonality — The Company has substantial fixed costs that do not decline proportionally with sales. Although our business is highly seasonal, our broader geographical reach as a result of recent acquisitions mitigates some of the risk. For instance, the second quarter of our fiscal year, consisting of the non-holiday portion of the cold weather season in New York and Washington (January, February and March), is the poorest performing quarter; however, in recent years this has been partially offset by our locations in Florida as they experience increased results in the winter months. We generally achieve our best results during the warm weather, attributable to our extensive outdoor dining availability, particularly at Bryant Park in New York and Sequoia in Washington, D.C. (our largest restaurants) and our outdoor cafes. However, even during summer months these facilities can be adversely affected by unusually cool or rainy weather conditions. Our facilities in Las Vegas are indoor and generally operate on a more consistent basis throughout the year. Fair Value of Financial Instruments — The carrying amount of cash and cash equivalents, receivables, accounts payable and accrued expenses approximate fair value due to the immediate or short-term maturity of these financial instruments. The fair values of notes receivable and payable are determined using current applicable rates for similar instruments as of the balance sheet date and approximate the carrying value of such debt instruments. Cash and Cash Equivalents — Cash and cash equivalents include cash on hand, deposits with banks and highly liquid investments with original maturities of three months or less. Outstanding checks in excess of account balances, typically vendor payments, payroll and other contractual obligations disbursed after the last day of a reporting period are reported as a current liability in the accompanying consolidated balance sheets. Concentrations of Credit Risk — Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company reduces credit risk by placing its cash and cash equivalents with major financial institutions with high credit ratings. At times, such amounts may exceed Federally insured limits. Accounts receivable are primarily comprised of normal business receivables, such as credit card receivables, that are collected in a short period of time and amounts due from the hotel operators where the Company has a location, and are recorded upon satisfaction of the performance obligation. The Company reviews the collectability of its receivables on an ongoing basis, and provides for an allowance when it considers the counterparty unable to meet its obligation. The concentration of credit risk with respect to accounts receivable is generally limited due to the short payment terms extended by the Company and the number of customers comprising the Company’s customer base. As of October 2, 2021, the Company had accounts receivable balances due from one hotel operator totaling 37% of total accounts receivable. As of October 3, 2020, the Company had accounts receivable balances due from two hotel operators totaling 46% of total accounts receivable. For the year ended October 2, 2021, the Company made purchases from two vendors that accounted for 21% of total purchases. For the year ended October 3, 2020, the Company made purchases from one vendor that accounted for 11% of total purchases. As of October 2, 2021, all debt outstanding, other than Paycheck Protection Program loans and the note payable to the sellers of The Blue Moon Fish Company , is with one lender (see Note 10 – Notes Payable). Inventories — Inventories are stated at the lower of cost (first-in, first-out) or net realizable value, and consist of food and beverages, merchandise for sale and other supplies. Fixed Assets — Fixed assets are stated at cost less accumulated depreciation and amortization. Depreciation is determined using the straight-line method over the estimated useful lives of the assets. Estimated lives range from three The Company includes in construction in progress, improvements to restaurants that are under construction or are undergoing substantial renovations. Once the projects have been completed, the Company begins depreciating and amortizing the assets. Start-up costs incurred during the construction period of restaurants, including rental of premises, training and payroll, are expensed as incurred. Long-Lived and Right-Of-Use Assets — Long-lived assets, such as property and plant and equipment subject to amortization, and right-of-use assets ("ROU assets") are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In the evaluation of the fair value and future benefits of long-lived assets, the Company performs an analysis of the anticipated undiscounted future net cash flows of the related long-lived assets. If the carrying value of the related asset exceeds the undiscounted cash flows, the carrying value is reduced to its fair value. Various factors including estimated future sales growth and estimated profit margins are included in this analysis. The Company considers a triggering event related to long-lived assets or ROU assets in a net asset position to have occurred related to a specific restaurant if the restaurant’s cash flows for the last 12 months are less than a minimum threshold or if consistent levels of undiscounted cash flows for the remaining lease period are less than the carrying value of the restaurant’s assets. Additionally, the Company considers a triggering event related to ROU assets to have occurred related to a specific lease if the location has been subleased and future estimated sublease income is less than current lease payments. If the Company concludes that the carrying value of certain long-lived and ROU assets will not be recovered based on expected undiscounted future cash flows, an impairment loss is recorded to reduce the long-lived or ROU assets to their estimated fair value. The fair value is measured on a nonrecurring basis using unobservable (Level 3) inputs. There is uncertainty in the projected undiscounted future cash flows used in the Company's impairment review analysis, which requires the use of estimates and assumptions. If actual performance does not achieve the projections, or if the assumptions used change in the future, the Company may be required to recognize impairment charges in future periods, and such charges could be material. The Company recognized impairment charges related to long-lived and ROU assets during the years ended October 2, 2021 and October 1, 2020 as described in Note 4 – Recent Restaurant Dispositions. Given the inherent uncertainty in projecting results of restaurants under the current circumstances, particularly taking into account the projected impact of the COVID-19 pandemic, the Company is monitoring the recoverability of the carrying value of the assets of several restaurants on an ongoing basis. For these restaurants, if expected performance is not realized, an impairment charge may be recognized in future periods, and such charge could be material. Intangible Assets — Intangible assets consist principally of purchased leasehold rights, operating rights and covenants not to compete. Costs associated with acquiring leases and subleases, principally purchased leasehold rights, and operating rights have been capitalized and are being amortized on the straight-line method based upon the initial terms of the applicable lease agreements. Covenants not to compete arising from restaurant acquisitions are amortized over the contractual period, typically five years. Goodwill and Trademarks — Goodwill and trademarks are not amortized, but are subject to impairment analysis. We assess the potential impairment of goodwill and trademarks annually (at the end of our fourth quarter) and on an interim basis whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If we determine through the impairment review process that goodwill or trademarks are impaired, we record an impairment charge in our consolidated statements of operations. Due to the recent impact of the COVID-19 pandemic to the global economy, including but not limited to, the volatility of the Company's stock price, temporary closure of the Company's restaurants and the challenging environment for the restaurant industry in general, the Company determined that there were indicators of potential impairment of its goodwill and trademarks during the years ended October 2, 2021 and October 3, 2020. As such, the Company performed a qualitative and quantitative assessment for both goodwill and its trademarks and concluded that the fair value of these assets exceeded their carrying values. Accordingly, the Company did not record any impairment to its goodwill or trademarks during the years ended October 2, 2021 and October 3, 2020. The ultimate severity and longevity of the COVID-19 pandemic is unknown, and therefore, it is possible that impairments could be identified in future periods, and such amounts could be material. Investments – Each reporting period, the Company reviews its investments in equity and debt securities, except for those classified as trading, to determine whether a significant event or change in circumstances has occurred that may have an adverse effect on the fair value of such investment. When such events or changes occur, the Company evaluates the fair value compared to cost basis in the investment. For investments in non-publicly traded companies, management’s assessment of fair value is based on valuation methodologies including discounted cash flows, estimates of sales proceeds, and appraisals, as appropriate. The Company considers the assumptions that it believes hypothetical marketplace participants would use in evaluating estimated future cash flows when employing the discounted cash flow or estimates of sales proceeds valuation methodologies. In the event the fair value of an investment declines below the Company’s cost basis, management is required to determine if the decline in fair value is other than temporary. If management determines the decline is other than temporary, an impairment charge is recorded. Management’s assessment as to the nature of a decline in fair value is based on, among other things, the length of time and the extent to which the market value has been less than the cost basis; the financial condition and near-term prospects of the issuer; and the Company’s intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in market value. Leases — We determine if an arrangement contains a lease at inception. An arrangement contains a lease if it implicitly or explicitly identifies an asset to be used and conveys the right to control the use of the identified asset in exchange for consideration. As a lessee, we include operating leases in Operating lease right-of-use assets and Operating lease liabilities in our consolidated balance sheet. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized upon commencement of the lease based on the present value of the lease payments over the lease term. As most of our leases do not provide an implicit interest rate, we use our incremental borrowing rate based on the information available at commencement date to determine the present value of lease payments. Our lease terms may include options to extend or terminate the lease. Options are included when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Amendments or modifications to lease terms are accounted for as variable lease payments. Leases with a lease term of 12 months or less are accounted for using the practical expedient which allows for straight-line rent expense over the remaining term of the lease. Revenue Recognition — The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a restaurant guest or other customer. Revenues from restaurant operations are presented net of discounts, coupons, employee meals and complimentary meals and recognized when food, beverage and retail products are sold. Sales tax collected from customers is excluded from sales and the obligation is included in sales tax payable until the taxes are remitted to the appropriate taxing authorities. Catering service revenue is generated through contracts with customers whereby the customer agrees to pay a contract rate for the service. Revenues from catered events are recognized in income upon satisfaction of the performance obligation (the date the event is held). All customer payments, including nonrefundable upfront deposits, are deferred as a liability until such time. The Company recognized $3,240,000 and $7,358,000 in catering services revenue for the years ended October 2, 2021 and October 3, 2020, respectively. Unearned revenue which is included in accrued expenses and other current liabilities on the consolidated balance sheets as of October 2, 2021 and October 3, 2020 was $4,988,000 and $3,661,000, respectively. Revenues from gift cards are deferred and recognized upon redemption. Deferrals are not reduced for potential non-use as we generally have a legal obligation to remit the value of unredeemed gift cards to the relevant jurisdictions in which they are sold. As of October 2, 2021 and October 3, 2020, the total liability for gift cards in the amounts of approximately $252,000 and $227,000, respectively, are included in accrued expenses and other current liabilities in the consolidated balance sheets. Other revenues include purchase service fees which represent commissions earned by a subsidiary of the Company for providing services to other restaurant groups, as well as license fees, property management fees and other rentals. Occupancy Expenses — Occupancy expenses include rent, rent taxes, real estate taxes, insurance and utility costs. Defined Contribution Plan — The Company offers a defined contribution savings plan (the “Plan”) to all of its full-time employees. Eligible employees may contribute pre-tax amounts to the Plan subject to the Internal Revenue Code limitations. Company contributions to the Plan are at the discretion of the Board of Directors. During the years ended October 2, 2021 and October 3, 2020, the Company did not make any contributions to the Plan. Income Taxes — Income taxes are accounted for under the asset and liability method whereby deferred tax assets and liabilities are recognized for future tax consequences attributable to the temporary differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company has recorded a liability for unrecognized tax benefits resulting from tax positions taken, or expected to be taken, in an income tax return. It is the Company’s policy to recognize interest and penalties related to uncertain tax positions as a component of income tax expense. Uncertain tax positions are evaluated and adjusted as appropriate, while taking into account the progress of audits of various taxing jurisdictions. Non-controlling interests relating to the income or loss of consolidated partnerships includes no provision for income taxes as any tax liability related thereto is the responsibility of the individual minority investors. Income Per Share of Common Stock — Basic net income per share is calculated on the basis of the weighted average number of common shares outstanding during each period. Diluted net income per share reflects the additional dilutive effect of potentially dilutive shares (principally those arising from the assumed exercise of stock options). The dilutive effect of stock options is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, if the average market price of a share of common stock increases above the option’s exercise price, the proceeds that would be assumed to be realized from the exercise of the option would be used to acquire outstanding shares of common stock. The dilutive effect of awards is directly correlated with the fair value of the shares of common stock. Stock-based Compensation — Stock-based compensation represents the cost related to stock-based awards granted to employees and non-employee directors. The Company measures stock-based compensation at the grant date based on the estimated fair value of the award and recognize the cost (net of estimated forfeitures) as compensation expense on a straight-line basis over the requisite service period. Upon exercise of options, all excess tax benefits and tax deficiencies resulting from the difference between the deduction for tax purposes and the stock-based compensation cost recognized for financial reporting purposes are included as a component of income tax expense. Recently Adopted Accounting Standards — In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2016-02, Leases (Topic 842), which amends the existing accounting standards for lease accounting, including requiring lessees to recognize assets and liabilities for leases with lease terms of more than 12 months. The new guidance also requires additional disclosures about leases. The Company adopted the new standard on September 29, 2019 (the first day of fiscal year 2020) using the modified retrospective approach, without restating comparative periods for those lease contracts for which we had taken possession of the property as of September 28, 2019. Accordingly, prior period amounts were not revised and continue to be reported in accordance with ASC Topic 840 (“ASC 840”), the accounting standard then in effect. As part of our adoption we elected the "package of practical expedients", as well as the hindsight practical expedient, permitted under the new guidance, which, among other things, allowed the Company to continue utilizing historical classifications of leases as well as allowing us to combine lease and non-lease components of our real estate leases. We also elected to adopt the short-term lease exception for all leases with terms of 12 months or less and account for them using straight-line rent expense over the remaining life of the lease. As a result of the adoption of this guidance, we recorded ROU assets of $62,330,000 and lease liabilities related to our real estate operating leases of $63,943,000. The adoption of this standard did not materially impact retained earnings or our consolidated statement of operations and had no impact on cash flows. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting, which simplifies the accounting for share-based payments granted to non-employees for goods and services. Under this ASU, the guidance on share-based payments to non-employees would be aligned with the requirements for share-based payments granted to employees, with certain exceptions. The Company adopted this guidance in the first quarter of fiscal 2020. Such adoption did not have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350)—Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 simplifies the accounting for goodwill impairments by eliminating the requirement to compare the implied fair value of goodwill with its carrying amount as part of step two of the goodwill impairment test referenced in Accounting Standards Codification (“ASC”) 350, Intangibles - Goodwill and Other (“ASC 350”). As a result, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. However, the impairment loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The Company adopted this guidance in the first quarter of fiscal 2021. Such adoption did not have a material impact on our consolidated financial statements. |
CONSOLIDATION OF VARIABLE INTER
CONSOLIDATION OF VARIABLE INTEREST ENTITIES | 12 Months Ended |
Oct. 02, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
CONSOLIDATION OF VARIABLE INTEREST ENTITIES | CONSOLIDATION OF VARIABLE INTEREST ENTITIES The Company consolidates any variable interest entities in which it holds a variable interest and is the primary beneficiary. Generally, a variable interest entity, or VIE, is an entity with one or more of the following characteristics: (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support; (b) as a group the holders of the equity investment at risk lack (i) the ability to make decisions about an entity’s activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests and substantially all of the entity’s activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights. The primary beneficiary of a VIE is generally the entity that has (a) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (b) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The Company has determined that it is the primary beneficiary of three VIEs and, accordingly, consolidates the financial results of these entities. Following are the required disclosures associated with the Company’s consolidated VIEs: October 2, October 3, (in thousands) Cash and cash equivalents $ 785 $ 567 Accounts receivable 358 162 Inventories 35 27 Prepaid and refundable income taxes 278 274 Prepaid expenses and other current assets 277 13 Due from Ark Restaurants Corp. and affiliates (1) 187 419 Fixed assets - net 218 241 Operating lease right-of-use assets - net 2,342 2,658 Other assets 82 82 Total assets $ 4,562 $ 4,443 Accounts payable - trade $ 213 $ 119 Accrued expenses and other current liabilities 374 331 Current portion of operating lease liabilities 249 226 Current portion of notes payable 95 — Operating lease liabilities, less current portion 2,193 2,442 Notes payable, less current portion 101 723 Total liabilities 3,225 3,841 Equity of variable interest entities 1,337 602 Total liabilities and equity $ 4,562 $ 4,443 (1) Amounts due from Ark Restaurants Corp. and affiliates are eliminated upon consolidation. The liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets; rather, they represent claims against the specific assets of the consolidated VIEs. Conversely, assets recognized as a result of consolidating these VIEs do not represent additional assets that could be used to satisfy claims against the Company’s general assets. |
RECENT RESTAURANT EXPANSION AND
RECENT RESTAURANT EXPANSION AND OTHER DEVELOPMENTS | 12 Months Ended |
Oct. 02, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
RECENT RESTAURANT EXPANSION AND OTHER DEVELOPMENTS | RECENT RESTAURANT EXPANSION AND OTHER DEVELOPMENTS On December 1, 2020, the Company, through a newly formed, wholly-owned subsidiary, acquired the assets of Bear Ice, Inc. and File Gumbo Inc., which collectively operated a restaurant and bar named Blue Moon Fish Company located in Lauderdale-by-the-Sea, FL. The total purchase price of $2,820,000, as set out below, was paid with cash in the amount of $1,820,000 and a four-year note held by the sellers in the amount of $1,000,000 payable monthly with 5% interest. The acquisition was accounted for as a business combination. Concurrent with the acquisition, the Company assumed the related lease which expires in 2026 and has four five-year extension options. Rent payments under the lease are approximately $360,000 per year and increase by 15% as each option is exercised. The fair values of the assets acquired were allocated as follows (amounts in thousands): Cash $ 3 Inventory 39 Security deposit 30 Trademarks 500 Non-compete agreement 380 Goodwill 1,870 Liabilities assumed (2) $ 2,820 Goodwill recognized in connection with this transaction represents the residual amount of the purchase price over separately identifiable intangible assets and is expected to be deductible for tax purposes. The consolidated statement of operations for the year ended October 2, 2021 includes revenues and net income of approximately $5,929,000 and $981,000, respectively, related to Blue Moon Fish Company . The unaudited pro forma financial information set forth below is based upon the Company’s historical consolidated statements of operations for the years ended October 2, 2021 and October 3, 2020 and includes the results of operations for Blue Moon Fish Company for the period prior to acquisition. The unaudited pro forma financial information (which is presented in thousands except per share and share data), which has been adjusted for interest expense on the above-mentioned note, is presented for informational purposes only and may not be indicative of what actual results of operations would have been had the acquisition of Blue Moon Fish Company occurred on the dates indicated, nor does it purport to represent the results of operations for future periods. Year Ended October 2, October 3, (unaudited) Total revenues $ 132,547 $ 110,700 Net income (loss) $ 12,926 $ (4,303) Net income (loss) per share - basic $ 3.68 $ (1.23) Net income (loss) per share - diluted $ 3.59 $ (1.23) Shares - Basic 3,516 3,500 Shares - Diluted 3,604 3,500 On January 26, 2021, the Company exercised its right-of-first-refusal to acquire the land, building and parking lot associated with JB’s on the Beach and immediately contributed such rights and interest to an unrelated entity ("Newco") that purchased the properties on March 22, 2021. In exchange, the Company received a 5% interest in Newco, which plans future development of the sites. In addition, all rights and privileges under the current lease were assigned to Newco, as landlord and the lease terms remain unchanged. Prior to the COVID-19 pandemic, the Company was in the process of developing three restaurants at a large outdoor mall in Easton, Ohio in partnership with the landlord. In connection therewith, the Company had capitalized costs of approximately $400,000, of which $200,000 was reimbursed by the landlord in October 2020. The Company does not expect this project to continue. Accordingly, the balance of the unreimbursed costs in the amount of $200,000 were written off and are included in general and administrative expenses for the year ended October 3, 2020. |
RECENT RESTAURANT DISPOSITIONS
RECENT RESTAURANT DISPOSITIONS | 12 Months Ended |
Oct. 02, 2021 | |
Recent Restaurant Dispositions [Abstract] | |
RECENT RESTAURANT DISPOSITIONS | RECENT RESTAURANT DISPOSITIONSOn April 2, 2020, the Company advised the landlord of a catering space in New York, NY that we would be terminating the lease. In connection with this notification, the Company recorded a loss of $364,000 during the year ended October 3, 2020 consisting of (i) rent accrued in accordance with the termination provisions of the lease, (ii) the write-off of the unamortized balance of purchased leasehold rights, (iii) the write-off of our security deposit, (iv) the write-off of ROU assets and related lease liabilities, and (v) the write-off of the net book value of fixed assets. On November 13, 2020, the Company was advised by the landlord that it would have to vacate Gallagher’s Steakhouse and Gallagher’s Burger Bar at the Resorts Casino Hotel located in Atlantic City, NJ which were on a month-to-month, no rent lease. The closure of these properties occurred on January 2, 2021 and did not result in a material charge to the Company’s operations. As of January 2, 2021, the Company determined that it would not reopen Thunder Grill in Washington, D.C. which had been closed since March 20, 2020. This closure did not result in a material charge to the Company’s operations. On September 1, 2021, the Company advised the landlord of Clyde Frazier's Wine and Dine |
INVESTMENT IN AND RECEIVABLE FR
INVESTMENT IN AND RECEIVABLE FROM NEW MEADOWLANDS RACETRACK | 12 Months Ended |
Oct. 02, 2021 | |
ASU 2016-01 Transition [Abstract] | |
INVESTMENT IN AND RECEIVABLE FROM NEW MEADOWLANDS RACETRACK | INVESTMENT IN AND RECEIVABLE FROM NEW MEADOWLANDS RACETRACK On March 12, 2013, the Company made a $4,200,000 investment in the New Meadowlands Racetrack LLC (“NMR”) through its purchase of a membership interest in Meadowlands Newmark, LLC, an existing member of NMR with a then 63.7% ownership interest. On November 19, 2013, the Company invested an additional $464,000 in NMR through a purchase of an additional membership interest in Meadowlands Newmark, LLC resulting in a total ownership of 11.6% of Meadowlands Newmark, LLC, and an effective ownership interest in NMR of 7.4%, subject to dilution. In 2015, the Company invested an additional $222,000 in NMR and on February 7, 2017, the Company invested an additional $222,000 in NMR, both as a result of capital calls, bringing its total investment to $5,108,000 with no change in ownership. The Company accounts for this investment at cost, less impairment, adjusted for subsequent observable price changes in accordance with ASU No. 2016-01. There are no observable prices for this investment. Due to the impacts of the COVID-19 pandemic on the global economy, the Company evaluated its investment in NMR for impairment and concluded that its fair value exceeds the carrying value. Accordingly, the Company did not record any impairment for the years ended October 2, 2021 and October 3, 2020. The ultimate severity and longevity of the COVID-19 pandemic is unknown, and therefore, it is possible that impairments could be identified in future periods, and such amounts could be material. Any future changes in the carrying value of our Investment in NMR will be reflected in earnings. In addition to the Company’s ownership interest in NMR through Meadowlands Newmark, LLC, if casino gaming is approved at the Meadowlands and NMR is granted the right to conduct said gaming, neither of which can be assured, the Company shall be granted the exclusive right to operate the food and beverage concessions in the gaming facility with the exception of one restaurant. In conjunction with this investment, the Company, through a 97% owned subsidiary, Ark Meadowlands LLC (“AM VIE”), also entered into a long-term agreement with NMR for the exclusive right to operate food and beverage concessions serving the new raceway facilities (the “Racing F&B Concessions”) located in the new raceway grandstand constructed at the Meadowlands Racetrack in northern New Jersey. Under the agreement, NMR is responsible to pay for the costs and expenses incurred in the operation of the Racing F&B Concessions, and all revenues and profits thereof inure to the benefit of NMR. AM VIE receives an annual fee equal to 5% of the net profits received by NMR from the Racing F&B Concessions during each calendar year. AM VIE is a variable interest entity; however, based on qualitative consideration of the contracts with AM VIE, the operating structure of AM VIE, the Company’s role with AM VIE, and that the Company is not obligated to absorb expected losses of AM VIE, the Company has concluded that it is not the primary beneficiary and not required to consolidate the operations of AM VIE. The Company’s maximum exposure to loss as a result of its involvement with AM VIE is limited to a receivable from AM VIE’s primary beneficiary (NMR, a related party). As of October 2, 2021 and October 3, 2020, no amounts were due AM VIE by NMR. On April 25, 2014, the Company loaned $1,500,000 to Meadowlands Newmark, LLC. The note bears interest at 3%, compounded monthly and added to the principal, and is due in its entirety on January 31, 2024. The note may be prepaid, in whole or in part, at any time without penalty or premium. On July 13, 2016, the Company made an additional loan to Meadowlands Newmark, LLC in the amount of $200,000. Such amount is subject to the same terms and conditions as the original loan discussed above. The principal and accrued interest related to this note, after a $500,000 payment made in July 2021, in the amounts of $1,317,000 and $1,766,000, are included in Investment In and Receivable From New Meadowlands Racetrack in the consolidated balance sheets at October 2, 2021 and October 3, 2020, respectively. |
FIXED ASSETS
FIXED ASSETS | 12 Months Ended |
Oct. 02, 2021 | |
Property, Plant and Equipment [Abstract] | |
FIXED ASSETS | FIXED ASSETS Fixed assets consist of the following: October 2, October 3, (in thousands) Land and building $ 18,033 $ 18,033 Leasehold improvements 42,200 40,777 Furniture, fixtures and equipment 36,143 39,085 Construction in progress 38 1,352 96,414 99,247 Less: accumulated depreciation and amortization 60,240 61,565 Fixed Assets - Net $ 36,174 $ 37,682 Depreciation and amortization expense related to fixed assets for the years ended October 2, 2021 and October 3, 2020 was $3,577,000 and $3,910,000, respectively. Management continually evaluates unfavorable cash flows, if any, related to underperforming restaurants. Periodically it is concluded that certain properties have become impaired based on their existing and anticipated future economic outlook in their respective markets. In such instances, we may impair assets to reduce their carrying values to fair values. Estimated fair values of impaired properties are based on comparable valuations, cash flows and/or management judgment. Included in the year ended October 2, 2021 is an impairment charge of $69,000 related to Clyde Frazier's Wine and Dine (see Note 4). |
INTANGIBLE ASSETS, GOODWILL AND
INTANGIBLE ASSETS, GOODWILL AND TRADEMARKS | 12 Months Ended |
Oct. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, GOODWILL AND TRADEMARKS | INTANGIBLE ASSETS, GOODWILL AND TRADEMARKS Intangible assets consist of the following: October 2, October 3, (in thousands) Purchased leasehold rights (a) $ 1,995 $ 1,995 Noncompete agreements and other 633 253 2,628 2,248 Less accumulated amortization 2,252 2,199 Intangible Assets - Net $ 376 $ 49 (a) Purchased leasehold rights arose from acquiring leases and subleases of various restaurants. Amortization expense related to intangible assets for the years ended October 2, 2021 and October 3, 2020 was $53,000 and $146,000, respectively, which includes the write-off of the unamortized balance of leasehold rights related to a catering space in New York in the amount of $137,000 for the year ended October 3, 2020. Amortization expense for each of the next five years is expected to be $85,000. Goodwill is the excess of cost over fair market value of tangible and intangible net assets acquired. Goodwill is not presently amortized but tested for impairment annually or when the facts or circumstances indicate a possible impairment of goodwill as a result of a continual decline in performance or as a result of fundamental changes in a market. Trademarks, which have indefinite lives, are not currently amortized and are tested for impairment annually or when facts or circumstances indicate a possible impairment as a result of a continual decline in performance or as a result of fundamental changes in a market. The changes in the carrying amount of goodwill and trademarks for the years ended October 2, 2021 and October 3, 2020 are as follows: Goodwill Trademarks (in thousands) Balance as of September 28, 2019 $ 15,570 $ 3,720 Acquired during the year — — Impairment losses — — Balance as of October 3, 2020 15,570 3,720 Acquired during the year 1,870 500 Impairment losses — — Balance as of October 2, 2021 $ 17,440 $ 4,220 |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Oct. 02, 2021 | |
Disclosure Text Block Supplement [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABIITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of the following: October 2, October 3, (in thousands) Sales tax payable $ 910 $ 477 Accrued wages and payroll related costs 4,758 3,302 Customer advance deposits 4,988 3,661 Accrued occupancy and other operating expenses 3,023 5,248 $ 13,679 $ 12,688 |
LEASES
LEASES | 12 Months Ended |
Oct. 02, 2021 | |
Leases [Abstract] | |
LEASES | LEASES Other than locations where we own the underlying property, we lease our restaurant locations as well as our corporate office under various non-cancelable real-estate lease agreements that expire on various dates through 2046. We evaluate whether we control the use of the asset, which is determined by assessing whether we obtain substantially all economic benefits from the use of the asset, and whether we have the right to direct the use of the asset. If these criteria are met and we have identified a lease, we account for the contract under the requirements of ASC 842. Upon taking possession of a leased asset, we determine its classification as an operating or finance lease. All of our real estate leases are classified as operating leases. We do not have any finance leases as of October 2, 2021 or October 3, 2020. Generally, our real estate leases have initial terms ranging from 10 to 25 years and typically include renewal options. Renewal options are recognized as part of the ROU assets and lease liabilities if it is reasonably certain at the date of adoption that we would exercise the options to extend the lease. Our real estate leases typically provide for fixed minimum rent payments and/or contingent rent payments based upon sales in excess of specified thresholds. When the achievement of such sales thresholds are deemed to be probable, variable lease expense is accrued in proportion to the sales recognized during the period. For operating leases that include rent holidays and rent escalation clauses, we recognize lease expense on a straight-line basis over the lease term from the date we take possession of the leased property. We record the straight-line lease expense and any contingent rent, if applicable, in occupancy expenses in the consolidated statements of operations. Many of our real estate leases also require us to pay real estate taxes, common area maintenance costs and other occupancy costs (“non-lease components”) which are included in occupancy related expenses in the consolidated statements of operations. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. As there were no explicit rates provided in our leases, we used our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. During the third quarter of 2020, the Company suspended the vast majority of lease payments while its restaurants were closed by government mandated shutdowns as a result of the COVID-19 pandemic. The Company was able to negotiate rent concessions, abatements and deferrals with landlords on many of our operating leases. In July 2020, the FASB issued a clarification to accounting for lease concessions in response to the COVID-19 pandemic to reduce the operational challenges and complexity of lease accounting. The Company used the relief provisions provided by FASB and made an election to account for the lease concessions as if they were part of the original lease agreement. As a result of the finalization of several concession agreements with landlords, the Company recognized a reduction of rent expense in the amount of $800,000 in the current year. The recognition of rent concessions did not have a material impact on the prior year. The components of lease expense in the consolidated statements of operations are as follows: October 2, 2021 October 3, 2020 (in thousands) Operating lease expense - occupancy expenses (1) $ 7,557 $ 9,449 Occupancy lease expense - general and administrative expenses 396 635 Variable lease expense 2,970 2,960 Total lease expense $ 10,923 $ 13,044 ____________________ (1) Includes short-term leases, which are immaterial. Supplemental cash flow information related leases: October 2, 2021 October 3, 2020 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows related to operating leases $ 10,485 $ 9,500 Non-cash investing activities: ROU assets obtained in exchange for new operating lease liabilities $ 8,712 $ 62,330 The weighted average remaining lease terms and discount rate as of October 2, 2021 are as follows: Weighted Average Remaining Lease Term Weighted Average Discount Rate Operating leases 13.5 years 5.2 % The annual maturities of our lease liabilities as of October 2, 2021 are as follows: Fiscal Year Ending Operating Leases (in thousands) October 1, 2022 $ 9,026 September 30, 2023 7,543 September 28, 2024 7,143 September 27, 2025 6,116 October 3, 2026 5,385 Thereafter 47,529 Total future lease payments 82,742 Less imputed interest (24,025) Present value of lease liabilities $ 58,717 |
NOTES PAYABLE
NOTES PAYABLE | 12 Months Ended |
Oct. 02, 2021 | |
Notes Payable [Abstract] | |
NOTES PAYABLE | NOTES PAYABLE Long-term debt consists of the following: October 2, October 3, (in thousands) Promissory Note - Rustic Inn purchase $ 3,473 $ 3,758 Promissory Note - Shuckers purchase 3,995 4,335 Promissory Note - Oyster House purchase 3,492 4,109 Promissory Note - JB's on the Beach purchase 4,750 5,750 Promissory Note - Sequoia renovation 2,171 2,629 Promissory Note - Revolving Facility 9,166 9,666 Promissory Note - Blue Moon Fish Company (see Note 3) 827 — Paycheck Protection Program Loans 4,722 14,995 32,596 45,242 Less: Current maturities (6,973) (9,001) Less: Unamortized deferred financing costs (114) (173) Long-term debt $ 25,509 $ 36,068 Notes Payable - Bank On June 1, 2018, the Company refinanced (the "Refinancing") its then existing indebtedness with its current lender, Bank Hapoalim B.M. (“BHBM”), by entering into an amended and restated credit agreement (the “Revolving Facility”), which was to mature on May 19, 2022 (as extended). The Revolving Facility provided for total availability of the lesser of (i) $10,000,000 and (ii) $35,000,000 less the then aggregate amount of all indebtedness and obligations to BHBM. On July 26, 2021, all outstanding Revolver Borrowings, in the amount of $9,666,000, were converted to a promissory note with quarterly principal payments of $500,000 commencing on September 1, 2021, with a balloon payment of $2,166,000 on June 1, 2025. Such note bears interest at LIBOR plus 3.5% per annum. We expect that the LIBOR rate will be discontinued at some point during 2022 and to work with BHBM to identify a suitable replacement rate and amend our debt agreements to reflect this new reference rate accordingly. We do not expect the discontinuation of LIBOR as a reference rate in our debt agreements to have a material adverse effect on our financial position or materially affect our interest expense. The Revolving Facility, which includes all of the promissory notes, also requires, among other things, that the Company meet minimum quarterly tangible net worth amounts, maintain a minimum fixed charge coverage ratio and meet minimum annual net income amounts. The Revolving Facility contains customary representations, warranties and affirmative covenants as well as customary negative covenants, subject to negotiated exceptions on liens, relating to other indebtedness, capital expenditures, liens, affiliate transactions, disposal of assets and certain changes in ownership. Borrowings under the Revolving Facility are secured by all tangible and intangible personal property (including accounts receivable, inventory, equipment, general intangibles, documents, chattel paper, instruments, letter-of-credit rights, investment property, intellectual property and deposit accounts) and fixtures of the Company. On June 12, 2020 and again on February 15, 2021, as a result of the impact of the COVID-19 pandemic on our business, BHBM agreed to modified financial covenants through fiscal Q2 2022. The Company was in compliance with all of its financial covenants under the Revolving Facility as of October 2, 2021. In connection with the Refinancing, the Company also amended the principal amounts and payment terms of its then outstanding term notes with BHBM as follows: • Promissory Note – Rustic Inn purchase – On February 25, 2013, the Company issued a promissory note to BHBM for $3,000,000. The note bore interest at LIBOR plus 3.5% per annum, and was payable in 36 equal monthly installments of $83,333, commencing on March 25, 2013. On February 24, 2014, in connection with the acquisition of The Rustic Inn , the Company borrowed an additional $6,000,000 from BHBM under the same terms and conditions as the original loan which was consolidated with the remaining principal balance from the original borrowing at that date. The new loan was payable in 60 equal monthly installments of $134,722, which commenced on March 25, 2014. In connection with the above refinancing, this note was amended and restated and increased by $2,783,333 of credit facility borrowings. The new principal amount of $4,400,000, which is secured by a mortgage on The Rustic Inn real estate, is payable in 27 equal quarterly installments of $71,333, which commenced on September 1, 2018, with a balloon payment of $2,474,000 on June 1, 2025 and bears interest at LIBOR plus 3.5% per annum. • Promissory Note – Shuckers purchase – On October 22, 2015, in connection with the acquisition of Shuckers , the Company issued a promissory note to BHBM for $5,000,000. The note bore interest at LIBOR plus 3.5% per annum, and was payable in 60 equal monthly installments of $83,333, commencing on November 22, 2015. In connection with the above refinancing, this note was amended and restated and increased by $2,433,324 of credit facility borrowings. The new principal amount of $5,100,000, which is secured by a mortgage on the Shuckers real estate, is payable in 27 equal quarterly installments of $85,000, which commenced on September 1, 2018, with a balloon payment of $2,805,000 on June 1, 2025 and bears interest at LIBOR plus 3.5% per annum. • Promissory Note – Oyster House purchase – On November 30, 2016, in connection with the acquisition of the Oyster House properties, the Company issued a promissory note under the Revolving Facility to BHBM for $8,000,000. The note bore interest at LIBOR plus 3.5% per annum, and was payable in 60 equal monthly installments of $133,273, commencing on January 1, 2017. In connection with the above refinancing, this note was amended and restated and separated into two notes. The first note, in the principal amount of $3,300,000, is secured by a mortgage on the Oyster House Gulf Shores real estate, is payable in 19 equal quarterly installments of $117,857, which commenced on September 1, 2018, with a balloon payment of $1,060,716 on June 1, 2023 and bears interest at LIBOR plus 3.5% per annum. The second note, in the principal amount of $2,200,000, is secured by a mortgage on the Oyster House Spanish Fort real estate, is payable in 27 equal quarterly installments of $36,667, which commenced on September 1, 2018, with a balloon payment of $1,210,000 on June 1, 2025 and bears interest at LIBOR plus 3.5% per annum. • Promissory Note - JB's on the Beach purchase – On May 15, 2019, in connection with the previously discussed acquisition of JB’s on the Beach , the Company issued a promissory note under the Revolving Facility to BHBM for $7,000,000 which is payable in 23 equal quarterly installments of $250,000, commencing on September 1, 2019, with a balloon payment of $1,250,000 on June 1, 2025 and bears interest at LIBOR plus 3.5% per annum. • Promissory Note - Sequoia renovation – Also on May 15, 2019, the Company converted $3,200,000 of Revolving Facility borrowings incurred in connection with the Sequoia renovation to a promissory note which is payable in 23 equal quarterly installments of $114,286, commencing on September 1, 2019, with a balloon payment of $571,429 on June 1, 2025 and bears interest at LIBOR plus 3.5% per annum. Paycheck Protection Program Loans During the year ended October 3, 2020, subsidiaries (the “Borrowers”) of the Company received loan proceeds from several banks (the “Lenders”) in the aggregate amount of $14,995,000 (the “PPP Loans”) under the Paycheck Protection Program (the “PPP”) of the CARES Act, which was enacted March 27, 2020. In addition, during the 13 weeks ended April 3, 2021, one of our consolidated VIEs received a second draw PPP Loan in the amount of $111,000. The PPP Loans are evidenced by individual promissory notes of each of the Borrowers (together, the “Notes”) in favor of the Lender, which Notes bear interest at the rate of 1.00% per annum. Funds from the PPP Loans may be used only for payroll and related costs, costs used to continue group health care benefits, mortgage payments, rent, utilities, and interest on other debt obligations that were incurred by a Borrower prior to February 15, 2020 (the “Qualifying Expenses”). Under the terms of the PPP Loans, some or all of the amounts thereunder, including accrued interest, may be forgiven if they are used for Qualifying Expenses as described in and in compliance with the CARES Act. Each Note may be prepaid by the respective Borrower at any time prior to maturity with no prepayment penalties. No payments of principal or interest are due under the Notes until the date on which the amount of loan forgiveness (if any) under the CARES Act for each respective Note is remitted to the Lender and a forgiveness decision is received by the Borrower. Forgiveness applications can be submitted up to 10 months after the end of the related notes covered period (which is defined as 24 weeks after the date of the loan) (the “Deferral Period”) and the ultimate forgiveness decisions can be made by the Lenders up to 60 days after submitting the applications and possibly longer if forgiveness is fully or partially denied and the Borrower appeals the decision. While the Company believes that it and each Borrower used the PPP Loan proceeds exclusively for Qualifying Expenses, it is unclear and uncertain whether the conditions for forgiveness of the PPP Loans outstanding at October 2, 2021 will be met under the current guidelines of the CARES Act. Therefore, we cannot make any assurances that the Company, or any of the Borrowers, will be eligible for forgiveness of the remaining PPP Loans, in whole or in part. Accordingly, based on the above, we have classified $2,032,000 of the PPP Loans as short-term in the consolidated balance sheet as of October 2, 2021. During the year ended October 2, 2021, $10,400,000 (including $84,000 of accrued interest) of PPP Loans were forgiven. To the extent, if any, that any of the remaining PPP Loans are not forgiven, beginning one month following expiration of the Deferral Period, and continuing monthly for 10 months (the “Maturity Date”), each respective Borrower is obligated to make monthly payments of principal and interest to the Lender with respect to any unforgiven portion of the Notes, in such equal amounts required to fully amortize the principal amount outstanding on such Notes as of the last day of the applicable Deferral Period by the applicable Maturity Date. Deferred Financing Costs Deferred financing costs incurred in the amount of $271,000 are being amortized over the life of the agreements using the effective interest rate method and included in interest expense. Amortization expense of $60,000 and $51,000 is included in interest expense for the years ended October 2, 2021 and October 3, 2020, respectively. Maturities As of October 2, 2021, the aggregate amounts of notes payable maturities (excluding borrowings under the Revolving Facility) are as follows: BHBM PPP Loans Blue Moon Note Total 2022 $ 4,701 $ 2,032 $ 240 $ 6,973 2023 5,526 1,917 253 7,696 2024 4,229 773 266 5,268 2025 12,591 — 68 12,659 $ 27,047 $ 4,722 $ 827 $ 32,596 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Oct. 02, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Leases — In connection with one of our leases, the Company obtained and delivered an irrevocable letter of credit in the amount of approximately $238,000 as a security deposit under such lease. Legal Proceedings — In the ordinary course its business, the Company is a party to various lawsuits arising from accidents at its restaurants and workers’ compensation claims, which are generally handled by the Company’s insurance carriers. The employment by the Company of management personnel, waiters, waitresses and kitchen staff at a number of different restaurants has resulted in the institution, from time to time, of litigation alleging violation by the Company of employment discrimination laws. Management believes, based in part on the advice of counsel, that the ultimate resolution of these matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. On May 1, 2018, two former tipped service workers (the “Plaintiffs”), individually and on behalf of all other similarly situated personnel, filed a putative class action lawsuit (the “Complaint”) against the Company and certain subsidiaries as well as certain officers of the Company (the “Defendants”). Plaintiffs alleged, on behalf of themselves and the putative class, that the Company violated certain of the New York State Labor Laws and related regulations. The Complaint sought unspecified money damages, together with interest, liquidated damages and attorney fees. In December 2020, the parties reached a settlement agreement resolving all issues alleged in the Complaint, which received preliminary approval by the New York State Supreme Court, for approximately the amount which was previously accrued. It is anticipated the parties will shortly submit a joint application to the New York State Supreme Court seeking final approval of the settlement. |
STOCK OPTIONS
STOCK OPTIONS | 12 Months Ended |
Oct. 02, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK OPTIONS | STOCK OPTIONS The Company has options outstanding under two stock option plans: the 2010 Stock Option Plan (the “2010 Plan”) and the 2016 Stock Option Plan (the “2016 Plan”). Options granted under both plans are exercisable at prices at least equal to the fair market value of such stock on the dates the options were granted and expire ten years after the date of grant. During the year ended October 2, 2021, options to purchase 110,500 shares of common stock at an exercise price of $10.65 per share were granted to employees and directors of the Company (the "2021 Grant"). Such options are exercisable as to 50% of the shares commencing on the second anniversary of the date of grant and as to 50% on the fourth anniversary of the date of grant. The grant date fair value of these stock options was $2.22 per share and totaled approximately $246,000. During the year ended October 3, 2020, options to purchase 266,500 shares of common stock at an exercise price of $21.90 per share were granted to employees, directors of the Company and other service providers. Such options are exercisable as to 50% of the shares commencing on the second anniversary of the date of grant and as to the remaining 50% commencing on the fourth anniversary of the date of grant. The grant date fair value of these stock options was $3.35 per share and totaled approximately $894,000. The Company generally issues new shares upon the exercise of employee stock options. The fair value of each of the Company’s stock options is estimated on the date of grant using a Black-Scholes option-pricing model that uses assumptions that relate to the expected volatility of the Company’s common stock, the expected dividend yield of the Company’s stock, the expected life of the options and the risk-free interest rate. The assumptions used for the 2021 Grant include a risk-free interest rate of 0.86%, volatility of 37.1%, a dividend yield of 3.0% and an expected life of 10 years. The assumptions used for the 2020 grants include a risk-free interest rate of 1.54%, volatility of 30.3%, a dividend yield of 5.2% and an expected life of 10 years. The following table summarizes stock option activity under all plans: 2021 2020 Shares Weighted Weighted Aggregate Shares Weighted Aggregate Outstanding, beginning of 626,500 $ 20.41 6.1 years 363,500 $ 19.25 Options: Granted 110,750 $ 10.65 266,500 $ 21.90 Exercised (49,149) $ 14.40 (3,500) $ 14.40 Canceled or expired (91,625) $ 19.64 — Outstanding and expected to 596,476 $ 19.21 6.3 years $ 583,000 626,500 $ 20.41 $ — Exercisable, end of period 246,976 $ 20.33 3.1 years $ 61,000 351,750 $ 19.28 $ — Shares available for future 63,750 174,500 Compensation cost charged to operations for the years ended October 2, 2021 and October 3, 2020 for share-based compensation programs was approximately $280,000 and $176,000, respectively. The compensation cost recognized is classified as a general and administrative expense in the consolidated statements of operations. As of October 2, 2021, there was approximately $737,000 of unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a period of three years. The following table summarizes information about stock options outstanding as of October 2, 2021: Options Outstanding Options Exercisable Range of Exercise Prices Number of Weighted Weighted Number of Weighted Weighted $10.65 107,500 $ 10.65 9.1 — $ 10.65 9.1 $14.40 55,851 $ 14.40 0.7 55,851 $ 14.40 0.7 $21.90 236,500 $ 21.90 8.4 — $ 21.90 8.4 $22.50 142,625 $ 22.50 2.7 142,625 $ 22.50 2.7 $19.61 - $22.30 54,000 $ 20.69 7.2 48,500 $ 20.81 7.2 596,476 $ 19.21 6.3 246,976 $ 20.33 3.1 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Oct. 02, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES On March 27, 2020, the CARES Act was enacted to provide economic relief to those impacted by the COVID-19 pandemic. In addition to the PPP loans, the CARES Act made various tax law changes including among other things (i) modifications to the federal net operating loss rules including permitting federal net operating losses incurred in 2018, 2019, and 2020 tax years to be carried back to the five preceding taxable years in order to generate a refund of previously paid income taxes, (ii) enhanced recoverability of AMT tax credit carryforwards, (iii) increased the limitation under Internal Revenue Code ("IRC") Section 163(j) for 2019 and 2020 to permit additional expensing of interest, and (iv) enacted a technical correction so that qualified improvement property can be immediately expensed under IRC Section 168(k). On December 27, 2020, the Consolidated Appropriations Act of 2021 (“CAA”) was enacted and provided clarification on the tax deductibility of expenses funded with PPP loans as fully deductible for tax purposes. During the year ended October 2, 2021, the Company recorded income of $10,400,000 (including $84,000 of accrued interest) for financial reporting purposes related to the forgiveness of its PPP loans. The forgiveness of these amounts is not taxable. . As a result of the CARES Act and the CAA, the Company carried back taxable losses from fiscal year 2020 and is expected to carryback taxable losses from fiscal 2021 to generate a refund of previously paid income taxes. As a result of these carrybacks, the Company recorded income tax benefits as the taxable losses from fiscal 2020 and fiscal 2021 are being carried back to tax years in which the Company was subject to a higher federal corporate income tax rate. Included in Prepaid and Refundable Income Taxes at October 2, 2021 is $3,766,000 related these carryback claims. The provision for income taxes consists of the following: Year Ended October 2, October 3, (in thousands) Current provision (benefit): Federal $ (1,093) $ (2,652) State and local 77 58 (1,016) (2,594) Deferred provision (benefit): Federal 946 (780) State and local 1,251 (1,011) 2,197 (1,791) $ 1,181 $ (4,385) The effective tax rate differs from the U.S. income tax rate as follows: Year Ended October 2, October 3, (in thousands) Provision at Federal statutory rate (21%) $ 3,240 $ (1,891) State and local income taxes, net of tax benefits 433 (919) Gain on forgiveness of PPP Loans (1,974) — Tax credits (741) (542) Income (loss) attributable to non-controlling interest (287) (15) Changes in tax rates 33 (65) Net operating loss carryback Federal rate benefit (159) (1,022) Change in valuation allowance 845 21 Other (209) 48 $ 1,181 $ (4,385) Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting and tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows: October 2, October 3, (in thousands) Deferred tax assets: State net operating loss carryforwards $ 5,595 $ 5,427 Lease liabilities 12,116 10,729 Deferred compensation 310 358 Tax credits 2,777 1,862 Partnership investments — 346 Other 492 550 Deferred tax assets, before valuation allowance 21,290 19,272 Valuation allowance (1,258) (413) Deferred tax assets, net of valuation allowance 20,032 18,859 Deferred tax liabilities: Depreciation and amortization (15,308) (12,440) Partnership investments (566) — Prepaid expenses (458) (522) Deferred tax liabilities (16,332) (12,962) Net deferred tax assets $ 3,700 $ 5,897 In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. In the assessment of the valuation allowance, appropriate consideration was given to all positive and negative evidence including forecasts of future earnings and the duration of statutory carryforward periods. The Company recorded a valuation allowance of $1,258,000 and $413,000 as of October 2, 2021 and October 3, 2020, respectively, attributable to state and local net operating loss carryforwards which are not realizable on a more-likely-than-not basis. During the years ended October 2, 2021 and October 3, 2020, the Company’s valuation allowance increased by approximately $845,000 and $81,000, respectively, as the Company determined that certain state net operating losses became unrealizable on a more-likely-than-not basis due to certain restaurant closures in the related period. As of October 2, 2021, the Company had General Business Credit carryforwards of approximately $2,777,000 which expire through fiscal 2041. In addition, as of October 2, 2021, the Company has New York State net operating loss carryforwards of approximately $28,039,000 and New York City net operating loss carryforwards of approximately $26,364,000 that expire through fiscal 2041. A reconciliation of the beginning and ending amount of unrecognized tax benefits excluding interest and penalties is as follows: October 2, October 3, (in thousands) Balance at beginning of year $ 102 $ 158 Additions based on tax positions taken in current and prior years 76 19 Settlements — — Lapse in statute of limitations — — Decreases based on tax positions taken in prior years — (75) Balance at end of year $ 178 $ 102 The entire amount of unrecognized tax benefits if recognized would reduce our annual effective tax rate. For the years ended October 2, 2021 and October 3, 2020, there are no amounts accrued for the payment of interest and penalties. The Company does not expect a significant change to its unrecognized tax benefits within the next 12 months. The Company files tax returns in the U.S. and various state and local jurisdictions with varying statutes of limitations. The 2018 through 2021 fiscal years remain subject to examination by the Internal Revenue Service and most state and local tax authorities. |
INCOME PER SHARE OF COMMON STOC
INCOME PER SHARE OF COMMON STOCK | 12 Months Ended |
Oct. 02, 2021 | |
Earnings Per Share [Abstract] | |
INCOME PER SHARE OF COMMON STOCK | INCOME PER SHARE OF COMMON STOCK Basic earnings per share is computed by dividing net income attributable to Ark Restaurants Corp. by the weighted-average number of common shares outstanding for the period. Diluted earnings per share is computed similarly to basic earnings per share, except that it reflects the effect of common shares issuable upon exercise of stock options, using the treasury stock method in periods in which they have a dilutive effect. A reconciliation of shares used in calculating earnings per basic and diluted share follows: Year Ended October 2, October 3, (in thousands) Basic 3,516 3,500 Effect of dilutive securities: Stock options 88 — Diluted 3,604 3,500 For the year ended October 3, 2020, all options were excluded from diluted earnings per share as their impact would have been anti-dilutive. For the year ended October 2, 2021, the dilutive effect of options to purchase 443,500 shares of common stock at exercise prices ranging from $21.90 per share to $22.50 per share were not included in diluted earnings per share as their impact would have been anti-dilutive. On November 26, 2019, the Board of Directors declared a quarterly dividend of $0.25 per share on the Company’s common stock which was paid on January 7, 2020, to shareholders of record at the close of business on December 16, 2019. On March 13, 2020, the Company announced that, in light of the unprecedented circumstances and rapidly changing situation with respect to COVID-19, as part of an overall plan to preserve cash flow, the Board of Directors determined that it was appropriate for the Company to defer payment of the dividend that was declared on March 2, 2020. Payment of such dividend, which was scheduled for April 6, 2020 to shareholders of record on March 16, 2020, was canceled on July 1, 2020. The payment of future dividends is at the discretion of the Company’s Board of Directors and is based on future earnings, cash flow, financial condition, capital requirements and other relevant factors. The Company does not expect to pay quarterly cash dividends for the foreseeable future as a result of the disruption to its operations from the COVID-19 pandemic. |
DIVIDENDS
DIVIDENDS | 12 Months Ended |
Oct. 02, 2021 | |
Earnings Per Share [Abstract] | |
DIVIDENDS | INCOME PER SHARE OF COMMON STOCK Basic earnings per share is computed by dividing net income attributable to Ark Restaurants Corp. by the weighted-average number of common shares outstanding for the period. Diluted earnings per share is computed similarly to basic earnings per share, except that it reflects the effect of common shares issuable upon exercise of stock options, using the treasury stock method in periods in which they have a dilutive effect. A reconciliation of shares used in calculating earnings per basic and diluted share follows: Year Ended October 2, October 3, (in thousands) Basic 3,516 3,500 Effect of dilutive securities: Stock options 88 — Diluted 3,604 3,500 For the year ended October 3, 2020, all options were excluded from diluted earnings per share as their impact would have been anti-dilutive. For the year ended October 2, 2021, the dilutive effect of options to purchase 443,500 shares of common stock at exercise prices ranging from $21.90 per share to $22.50 per share were not included in diluted earnings per share as their impact would have been anti-dilutive. On November 26, 2019, the Board of Directors declared a quarterly dividend of $0.25 per share on the Company’s common stock which was paid on January 7, 2020, to shareholders of record at the close of business on December 16, 2019. On March 13, 2020, the Company announced that, in light of the unprecedented circumstances and rapidly changing situation with respect to COVID-19, as part of an overall plan to preserve cash flow, the Board of Directors determined that it was appropriate for the Company to defer payment of the dividend that was declared on March 2, 2020. Payment of such dividend, which was scheduled for April 6, 2020 to shareholders of record on March 16, 2020, was canceled on July 1, 2020. The payment of future dividends is at the discretion of the Company’s Board of Directors and is based on future earnings, cash flow, financial condition, capital requirements and other relevant factors. The Company does not expect to pay quarterly cash dividends for the foreseeable future as a result of the disruption to its operations from the COVID-19 pandemic. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Oct. 02, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONSEmployee receivables totaled approximately $380,000 and $385,000 at October 2, 2021 and October 3, 2020, respectively. Such amounts consist of loans that are payable on demand, bear interest at the minimum statutory rate (0.17% at October 2, 2021 and 0.38% at October 3, 2020), and are net of reserves for collectability. |
BUSINESS AND SUMMARY OF SIGNI_2
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Oct. 02, 2021 | |
Disclosure Text Block [Abstract] | |
Basis of Presentation | Basis of Presentation — The accompanying consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and accounting principles generally accepted in the United States of America (“GAAP”). The Company’s reporting currency is the United States dollar. |
Accounting Period | Accounting Period — The Company’s fiscal year ends on the Saturday nearest September 30. The fiscal years ended October 2, 2021 and October 3, 2020 included 52 and 53 weeks, respectively. |
Use of Estimates | Use of Estimates — The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The accounting estimates that require management’s most difficult and subjective judgments include projected cash flow, allowances for potential bad debts on receivables, assumptions regarding discount rates related to lease accounting, the useful lives and recoverability of its assets, such as property and intangibles, fair values of financial instruments and share-based compensation, the realizable value of its tax assets and determining when investment impairments are other-than-temporary. Because of the uncertainty in such estimates, actual results may differ from these estimates. |
Principles of Consolidation | Principles of Consolidation — The consolidated financial statements include the accounts of Ark Restaurants Corp. and all of its wholly-owned subsidiaries, partnerships and other entities in which it has a controlling interest. Also included in the consolidated financial statements are certain variable interest entities (“VIEs”). All significant intercompany balances and transactions have been eliminated in consolidation. |
Non-Controlling Interests | Non-Controlling Interests — Non-controlling interests represent capital contributions, distributions and income and loss attributable to the shareholders of less than wholly-owned and consolidated entities. |
Seasonality | Seasonality — The Company has substantial fixed costs that do not decline proportionally with sales. Although our business is highly seasonal, our broader geographical reach as a result of recent acquisitions mitigates some of the risk. For instance, the second quarter of our fiscal year, consisting of the non-holiday portion of the cold weather season in New York and Washington (January, February and March), is the poorest performing quarter; however, in recent years this has been partially offset by our locations in Florida as they experience increased results in the winter months. We generally achieve our best results during the warm weather, attributable to our extensive outdoor dining availability, particularly at Bryant Park in New York and Sequoia |
Fair Value of Financial Instruments | Fair Value of Financial Instruments — The carrying amount of cash and cash equivalents, receivables, accounts payable and accrued expenses approximate fair value due to the immediate or short-term maturity of these financial instruments. The fair values of notes receivable and payable are determined using current applicable rates for similar instruments as of the balance sheet date and approximate the carrying value of such debt instruments. |
Cash and Cash Equivalents | Cash and Cash Equivalents — Cash and cash equivalents include cash on hand, deposits with banks and highly liquid investments with original maturities of three months or less. Outstanding checks in excess of account balances, typically vendor payments, payroll and other contractual obligations disbursed after the last day of a reporting period are reported as a current liability in the accompanying consolidated balance sheets. |
Concentrations of Credit Risk | Concentrations of Credit Risk — Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company reduces credit risk by placing its cash and cash equivalents with major financial institutions with high credit ratings. At times, such amounts may exceed Federally insured limits. Accounts receivable are primarily comprised of normal business receivables, such as credit card receivables, that are collected in a short period of time and amounts due from the hotel operators where the Company has a location, and are recorded upon satisfaction of the performance obligation. The Company reviews the collectability of its receivables on an ongoing basis, and provides for an allowance when it considers the counterparty unable to meet its obligation. The concentration of credit risk with respect to accounts receivable is generally limited due to the short payment terms extended by the Company and the number of customers comprising the Company’s customer base. As of October 2, 2021, the Company had accounts receivable balances due from one hotel operator totaling 37% of total accounts receivable. As of October 3, 2020, the Company had accounts receivable balances due from two hotel operators totaling 46% of total accounts receivable. For the year ended October 2, 2021, the Company made purchases from two vendors that accounted for 21% of total purchases. For the year ended October 3, 2020, the Company made purchases from one vendor that accounted for 11% of total purchases. As of October 2, 2021, all debt outstanding, other than Paycheck Protection Program loans and the note payable to the sellers of The Blue Moon Fish Company , is with one lender (see Note 10 – Notes Payable). |
Inventories | Inventories — Inventories are stated at the lower of cost (first-in, first-out) or net realizable value, and consist of food and beverages, merchandise for sale and other supplies. |
Fixed Assets | Fixed Assets — Fixed assets are stated at cost less accumulated depreciation and amortization. Depreciation is determined using the straight-line method over the estimated useful lives of the assets. Estimated lives range from three The Company includes in construction in progress, improvements to restaurants that are under construction or are undergoing substantial renovations. Once the projects have been completed, the Company begins depreciating and amortizing the assets. Start-up costs incurred during the construction period of restaurants, including rental of premises, training and payroll, are expensed as incurred. |
Long-Lived and Right-Of-Use Assets | Long-Lived and Right-Of-Use Assets — Long-lived assets, such as property and plant and equipment subject to amortization, and right-of-use assets ("ROU assets") are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In the evaluation of the fair value and future benefits of long-lived assets, the Company performs an analysis of the anticipated undiscounted future net cash flows of the related long-lived assets. If the carrying value of the related asset exceeds the undiscounted cash flows, the carrying value is reduced to its fair value. Various factors including estimated future sales growth and estimated profit margins are included in this analysis. The Company considers a triggering event related to long-lived assets or ROU assets in a net asset position to have occurred related to a specific restaurant if the restaurant’s cash flows for the last 12 months are less than a minimum threshold or if consistent levels of undiscounted cash flows for the remaining lease period are less than the carrying value of the restaurant’s assets. Additionally, the Company considers a triggering event related to ROU assets to have occurred related to a specific lease if the location has been subleased and future estimated sublease income is less than current lease payments. If the Company concludes that the carrying value of certain long-lived and ROU assets will not be recovered based on expected undiscounted future cash flows, an impairment loss is recorded to reduce the long-lived or ROU assets to their estimated fair value. The fair value is measured on a nonrecurring basis using unobservable (Level 3) inputs. There is uncertainty in the projected undiscounted future cash flows used in the Company's impairment review analysis, which requires the use of estimates and assumptions. If actual performance does not achieve the projections, or if the assumptions used change in the future, the Company may be required to recognize impairment charges in future periods, and such charges could be material. The Company recognized impairment charges related to long-lived and ROU assets during the years ended October 2, 2021 and October 1, 2020 as described in Note 4 – Recent Restaurant Dispositions. Given the inherent uncertainty in projecting results of restaurants under the current circumstances, particularly taking into account the projected impact of the COVID-19 pandemic, the Company is monitoring the recoverability of the carrying value of the assets of several restaurants on an ongoing basis. For these restaurants, if expected performance is not realized, an impairment charge may be recognized in future periods, and such charge could be material. |
Intangible Assets | Intangible Assets — Intangible assets consist principally of purchased leasehold rights, operating rights and covenants not to compete. Costs associated with acquiring leases and subleases, principally purchased leasehold rights, and operating rights have been capitalized and are being amortized on the straight-line method based upon the initial terms of the applicable lease agreements. Covenants not to compete arising from restaurant acquisitions are amortized over the contractual period, typically five years. |
Goodwill and Trademarks | Goodwill and Trademarks — Goodwill and trademarks are not amortized, but are subject to impairment analysis. We assess the potential impairment of goodwill and trademarks annually (at the end of our fourth quarter) and on an interim basis whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If we determine through the impairment review process that goodwill or trademarks are impaired, we record an impairment charge in our consolidated statements of operations. Due to the recent impact of the COVID-19 pandemic to the global economy, including but not limited to, the volatility of the Company's stock price, temporary closure of the Company's restaurants and the challenging environment for the restaurant industry in general, the Company determined that there were indicators of potential impairment of its goodwill and trademarks during the years ended October 2, 2021 and October 3, 2020. As such, the Company performed a qualitative and quantitative assessment for both goodwill and its trademarks and concluded that the fair value of these assets exceeded their carrying values. Accordingly, the Company did not record any impairment to its goodwill or trademarks during the years ended October 2, 2021 and October 3, 2020. The ultimate severity and longevity of the COVID-19 pandemic is unknown, and therefore, it is possible that impairments could be identified in future periods, and such amounts could be material. |
Investments | Investments – Each reporting period, the Company reviews its investments in equity and debt securities, except for those classified as trading, to determine whether a significant event or change in circumstances has occurred that may have an adverse effect on the fair value of such investment. When such events or changes occur, the Company evaluates the fair value compared to cost basis in the investment. For investments in non-publicly traded companies, management’s assessment of fair value is based on valuation methodologies including discounted cash flows, estimates of sales proceeds, and appraisals, as appropriate. The Company considers the assumptions that it believes hypothetical marketplace participants would use in evaluating estimated future cash flows when employing the discounted cash flow or estimates of sales proceeds valuation methodologies. In the event the fair value of an investment declines below the Company’s cost basis, management is required to determine if the decline in fair value is other than temporary. If management determines the decline is other than temporary, an impairment charge is recorded. Management’s assessment as to the nature of a decline in fair value is based on, among other |
Leases | Leases — We determine if an arrangement contains a lease at inception. An arrangement contains a lease if it implicitly or explicitly identifies an asset to be used and conveys the right to control the use of the identified asset in exchange for consideration. As a lessee, we include operating leases in Operating lease right-of-use assets and Operating lease liabilities in our consolidated balance sheet. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized upon commencement of the lease based on the present value of the lease payments over the lease term. As most of our leases do not provide an implicit interest rate, we use our incremental borrowing rate based on the information available at commencement date to determine the present value of lease payments. Our lease terms may include options to extend or terminate the lease. Options are included when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Amendments or modifications to lease terms are accounted for as variable lease payments. Leases with a lease term of 12 months or less are accounted for using the practical expedient which allows for straight-line rent expense over the remaining term of the lease. |
Revenue Recognition | Revenue Recognition — The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a restaurant guest or other customer. Revenues from restaurant operations are presented net of discounts, coupons, employee meals and complimentary meals and recognized when food, beverage and retail products are sold. Sales tax collected from customers is excluded from sales and the obligation is included in sales tax payable until the taxes are remitted to the appropriate taxing authorities. Catering service revenue is generated through contracts with customers whereby the customer agrees to pay a contract rate for the service. Revenues from catered events are recognized in income upon satisfaction of the performance obligation (the date the event is held). All customer payments, including nonrefundable upfront deposits, are deferred as a liability until such time. The Company recognized $3,240,000 and $7,358,000 in catering services revenue for the years ended October 2, 2021 and October 3, 2020, respectively. Unearned revenue which is included in accrued expenses and other current liabilities on the consolidated balance sheets as of October 2, 2021 and October 3, 2020 was $4,988,000 and $3,661,000, respectively. Revenues from gift cards are deferred and recognized upon redemption. Deferrals are not reduced for potential non-use as we generally have a legal obligation to remit the value of unredeemed gift cards to the relevant jurisdictions in which they are sold. As of October 2, 2021 and October 3, 2020, the total liability for gift cards in the amounts of approximately $252,000 and $227,000, respectively, are included in accrued expenses and other current liabilities in the consolidated balance sheets. Other revenues include purchase service fees which represent commissions earned by a subsidiary of the Company for providing services to other restaurant groups, as well as license fees, property management fees and other rentals. |
Occupancy Expenses | Occupancy Expenses — Occupancy expenses include rent, rent taxes, real estate taxes, insurance and utility costs. |
Defined Contribution Plan | Defined Contribution Plan — The Company offers a defined contribution savings plan (the “Plan”) to all of its full-time employees. Eligible employees may contribute pre-tax amounts to the Plan subject to the Internal Revenue Code limitations. Company contributions to the Plan are at the discretion of the Board of Directors. During the years ended October 2, 2021 and October 3, 2020, the Company did not make any contributions to the Plan. |
Income Taxes | Income Taxes — Income taxes are accounted for under the asset and liability method whereby deferred tax assets and liabilities are recognized for future tax consequences attributable to the temporary differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company has recorded a liability for unrecognized tax benefits resulting from tax positions taken, or expected to be taken, in an income tax return. It is the Company’s policy to recognize interest and penalties related to uncertain tax positions as a component of income tax expense. Uncertain tax positions are evaluated and adjusted as appropriate, while taking into account the progress of audits of various taxing jurisdictions. Non-controlling interests relating to the income or loss of consolidated partnerships includes no provision for income taxes as any tax liability related thereto is the responsibility of the individual minority investors. |
Income Per Share of Common Stock | Income Per Share of Common Stock — Basic net income per share is calculated on the basis of the weighted average number of common shares outstanding during each period. Diluted net income per share reflects the additional dilutive effect of potentially dilutive shares (principally those arising from the assumed exercise of stock options). The dilutive effect of stock options is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, if the average market price of a share of common stock increases above the option’s exercise price, the proceeds that would be assumed to be realized from the exercise of the option would be used to acquire outstanding shares of common stock. The dilutive effect of awards is directly correlated with the fair value of the shares of common stock. |
Stock-based Compensation | Stock-based Compensation — Stock-based compensation represents the cost related to stock-based awards granted to employees and non-employee directors. The Company measures stock-based compensation at the grant date based on the estimated fair value of the award and recognize the cost (net of estimated forfeitures) as compensation expense on a straight-line basis over the requisite service period. Upon exercise of options, all excess tax benefits and tax deficiencies resulting from the difference between the deduction for tax purposes and the stock-based compensation cost recognized for financial reporting purposes are included as a component of income tax expense. |
Recently Adopted Accounting Standards and New Accounting Standards Not Yet Adopted | Recently Adopted Accounting Standards — In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2016-02, Leases (Topic 842), which amends the existing accounting standards for lease accounting, including requiring lessees to recognize assets and liabilities for leases with lease terms of more than 12 months. The new guidance also requires additional disclosures about leases. The Company adopted the new standard on September 29, 2019 (the first day of fiscal year 2020) using the modified retrospective approach, without restating comparative periods for those lease contracts for which we had taken possession of the property as of September 28, 2019. Accordingly, prior period amounts were not revised and continue to be reported in accordance with ASC Topic 840 (“ASC 840”), the accounting standard then in effect. As part of our adoption we elected the "package of practical expedients", as well as the hindsight practical expedient, permitted under the new guidance, which, among other things, allowed the Company to continue utilizing historical classifications of leases as well as allowing us to combine lease and non-lease components of our real estate leases. We also elected to adopt the short-term lease exception for all leases with terms of 12 months or less and account for them using straight-line rent expense over the remaining life of the lease. As a result of the adoption of this guidance, we recorded ROU assets of $62,330,000 and lease liabilities related to our real estate operating leases of $63,943,000. The adoption of this standard did not materially impact retained earnings or our consolidated statement of operations and had no impact on cash flows. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting, which simplifies the accounting for share-based payments granted to non-employees for goods and services. Under this ASU, the guidance on share-based payments to non-employees would be aligned with the requirements for share-based payments granted to employees, with certain exceptions. The Company adopted this guidance in the first quarter of fiscal 2020. Such adoption did not have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350)—Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 simplifies the accounting for goodwill impairments by eliminating the requirement to compare the implied fair value of goodwill with its carrying amount as part of step two of the goodwill impairment test referenced in Accounting Standards Codification (“ASC”) 350, Intangibles - Goodwill and Other (“ASC 350”). As a result, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. However, the impairment loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The Company adopted this guidance in the first quarter of fiscal 2021. Such adoption did not have a material impact on our consolidated financial statements. |
CONSOLIDATION OF VARIABLE INT_2
CONSOLIDATION OF VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Oct. 02, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | Following are the required disclosures associated with the Company’s consolidated VIEs: October 2, October 3, (in thousands) Cash and cash equivalents $ 785 $ 567 Accounts receivable 358 162 Inventories 35 27 Prepaid and refundable income taxes 278 274 Prepaid expenses and other current assets 277 13 Due from Ark Restaurants Corp. and affiliates (1) 187 419 Fixed assets - net 218 241 Operating lease right-of-use assets - net 2,342 2,658 Other assets 82 82 Total assets $ 4,562 $ 4,443 Accounts payable - trade $ 213 $ 119 Accrued expenses and other current liabilities 374 331 Current portion of operating lease liabilities 249 226 Current portion of notes payable 95 — Operating lease liabilities, less current portion 2,193 2,442 Notes payable, less current portion 101 723 Total liabilities 3,225 3,841 Equity of variable interest entities 1,337 602 Total liabilities and equity $ 4,562 $ 4,443 (1) Amounts due from Ark Restaurants Corp. and affiliates are eliminated upon consolidation. |
RECENT RESTAURANT EXPANSION A_2
RECENT RESTAURANT EXPANSION AND OTHER DEVELOPMENTS (Tables) | 12 Months Ended |
Oct. 02, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The fair values of the assets acquired were allocated as follows (amounts in thousands): Cash $ 3 Inventory 39 Security deposit 30 Trademarks 500 Non-compete agreement 380 Goodwill 1,870 Liabilities assumed (2) $ 2,820 |
Business Acquisition, Pro Forma Information | The unaudited pro forma financial information (which is presented in thousands except per share and share data), which has been adjusted for interest expense on the above-mentioned note, is presented for informational purposes only and may not be indicative of what actual results of operations would have been had the acquisition of Blue Moon Fish Company occurred on the dates indicated, nor does it purport to represent the results of operations for future periods. Year Ended October 2, October 3, (unaudited) Total revenues $ 132,547 $ 110,700 Net income (loss) $ 12,926 $ (4,303) Net income (loss) per share - basic $ 3.68 $ (1.23) Net income (loss) per share - diluted $ 3.59 $ (1.23) Shares - Basic 3,516 3,500 Shares - Diluted 3,604 3,500 |
FIXED ASSETS (Tables)
FIXED ASSETS (Tables) | 12 Months Ended |
Oct. 02, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Fixed Assets | Fixed assets consist of the following: October 2, October 3, (in thousands) Land and building $ 18,033 $ 18,033 Leasehold improvements 42,200 40,777 Furniture, fixtures and equipment 36,143 39,085 Construction in progress 38 1,352 96,414 99,247 Less: accumulated depreciation and amortization 60,240 61,565 Fixed Assets - Net $ 36,174 $ 37,682 |
INTANGIBLE ASSETS, GOODWILL A_2
INTANGIBLE ASSETS, GOODWILL AND TRADEMARKS (Tables) | 12 Months Ended |
Oct. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consist of the following: October 2, October 3, (in thousands) Purchased leasehold rights (a) $ 1,995 $ 1,995 Noncompete agreements and other 633 253 2,628 2,248 Less accumulated amortization 2,252 2,199 Intangible Assets - Net $ 376 $ 49 (a) Purchased leasehold rights arose from acquiring leases and subleases of various restaurants. |
Schedule of Changes in Carrying Amount of Goodwill and Trademarks | The changes in the carrying amount of goodwill and trademarks for the years ended October 2, 2021 and October 3, 2020 are as follows: Goodwill Trademarks (in thousands) Balance as of September 28, 2019 $ 15,570 $ 3,720 Acquired during the year — — Impairment losses — — Balance as of October 3, 2020 15,570 3,720 Acquired during the year 1,870 500 Impairment losses — — Balance as of October 2, 2021 $ 17,440 $ 4,220 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Oct. 02, 2021 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Accrued Expenses And Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: October 2, October 3, (in thousands) Sales tax payable $ 910 $ 477 Accrued wages and payroll related costs 4,758 3,302 Customer advance deposits 4,988 3,661 Accrued occupancy and other operating expenses 3,023 5,248 $ 13,679 $ 12,688 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Oct. 02, 2021 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense in the consolidated statements of operations are as follows: October 2, 2021 October 3, 2020 (in thousands) Operating lease expense - occupancy expenses (1) $ 7,557 $ 9,449 Occupancy lease expense - general and administrative expenses 396 635 Variable lease expense 2,970 2,960 Total lease expense $ 10,923 $ 13,044 ____________________ (1) Includes short-term leases, which are immaterial. Supplemental cash flow information related leases: October 2, 2021 October 3, 2020 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows related to operating leases $ 10,485 $ 9,500 Non-cash investing activities: ROU assets obtained in exchange for new operating lease liabilities $ 8,712 $ 62,330 The weighted average remaining lease terms and discount rate as of October 2, 2021 are as follows: Weighted Average Remaining Lease Term Weighted Average Discount Rate Operating leases 13.5 years 5.2 % |
Annual Maturities of Lease Liabilities | The annual maturities of our lease liabilities as of October 2, 2021 are as follows: Fiscal Year Ending Operating Leases (in thousands) October 1, 2022 $ 9,026 September 30, 2023 7,543 September 28, 2024 7,143 September 27, 2025 6,116 October 3, 2026 5,385 Thereafter 47,529 Total future lease payments 82,742 Less imputed interest (24,025) Present value of lease liabilities $ 58,717 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 12 Months Ended |
Oct. 02, 2021 | |
Notes Payable [Abstract] | |
Schedule of Long-term Debt | Long-term debt consists of the following: October 2, October 3, (in thousands) Promissory Note - Rustic Inn purchase $ 3,473 $ 3,758 Promissory Note - Shuckers purchase 3,995 4,335 Promissory Note - Oyster House purchase 3,492 4,109 Promissory Note - JB's on the Beach purchase 4,750 5,750 Promissory Note - Sequoia renovation 2,171 2,629 Promissory Note - Revolving Facility 9,166 9,666 Promissory Note - Blue Moon Fish Company (see Note 3) 827 — Paycheck Protection Program Loans 4,722 14,995 32,596 45,242 Less: Current maturities (6,973) (9,001) Less: Unamortized deferred financing costs (114) (173) Long-term debt $ 25,509 $ 36,068 |
Schedule of Maturities of Long-term Debt | As of October 2, 2021, the aggregate amounts of notes payable maturities (excluding borrowings under the Revolving Facility) are as follows: BHBM PPP Loans Blue Moon Note Total 2022 $ 4,701 $ 2,032 $ 240 $ 6,973 2023 5,526 1,917 253 7,696 2024 4,229 773 266 5,268 2025 12,591 — 68 12,659 $ 27,047 $ 4,722 $ 827 $ 32,596 |
STOCK OPTIONS (Tables)
STOCK OPTIONS (Tables) | 12 Months Ended |
Oct. 02, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following table summarizes stock option activity under all plans: 2021 2020 Shares Weighted Weighted Aggregate Shares Weighted Aggregate Outstanding, beginning of 626,500 $ 20.41 6.1 years 363,500 $ 19.25 Options: Granted 110,750 $ 10.65 266,500 $ 21.90 Exercised (49,149) $ 14.40 (3,500) $ 14.40 Canceled or expired (91,625) $ 19.64 — Outstanding and expected to 596,476 $ 19.21 6.3 years $ 583,000 626,500 $ 20.41 $ — Exercisable, end of period 246,976 $ 20.33 3.1 years $ 61,000 351,750 $ 19.28 $ — Shares available for future 63,750 174,500 |
Schedule of Stock Options Outstanding | The following table summarizes information about stock options outstanding as of October 2, 2021: Options Outstanding Options Exercisable Range of Exercise Prices Number of Weighted Weighted Number of Weighted Weighted $10.65 107,500 $ 10.65 9.1 — $ 10.65 9.1 $14.40 55,851 $ 14.40 0.7 55,851 $ 14.40 0.7 $21.90 236,500 $ 21.90 8.4 — $ 21.90 8.4 $22.50 142,625 $ 22.50 2.7 142,625 $ 22.50 2.7 $19.61 - $22.30 54,000 $ 20.69 7.2 48,500 $ 20.81 7.2 596,476 $ 19.21 6.3 246,976 $ 20.33 3.1 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Oct. 02, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision for income taxes consists of the following: Year Ended October 2, October 3, (in thousands) Current provision (benefit): Federal $ (1,093) $ (2,652) State and local 77 58 (1,016) (2,594) Deferred provision (benefit): Federal 946 (780) State and local 1,251 (1,011) 2,197 (1,791) $ 1,181 $ (4,385) |
Schedule of Effective Tax Rate Reconciliation | The effective tax rate differs from the U.S. income tax rate as follows: Year Ended October 2, October 3, (in thousands) Provision at Federal statutory rate (21%) $ 3,240 $ (1,891) State and local income taxes, net of tax benefits 433 (919) Gain on forgiveness of PPP Loans (1,974) — Tax credits (741) (542) Income (loss) attributable to non-controlling interest (287) (15) Changes in tax rates 33 (65) Net operating loss carryback Federal rate benefit (159) (1,022) Change in valuation allowance 845 21 Other (209) 48 $ 1,181 $ (4,385) |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows: October 2, October 3, (in thousands) Deferred tax assets: State net operating loss carryforwards $ 5,595 $ 5,427 Lease liabilities 12,116 10,729 Deferred compensation 310 358 Tax credits 2,777 1,862 Partnership investments — 346 Other 492 550 Deferred tax assets, before valuation allowance 21,290 19,272 Valuation allowance (1,258) (413) Deferred tax assets, net of valuation allowance 20,032 18,859 Deferred tax liabilities: Depreciation and amortization (15,308) (12,440) Partnership investments (566) — Prepaid expenses (458) (522) Deferred tax liabilities (16,332) (12,962) Net deferred tax assets $ 3,700 $ 5,897 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits excluding interest and penalties is as follows: October 2, October 3, (in thousands) Balance at beginning of year $ 102 $ 158 Additions based on tax positions taken in current and prior years 76 19 Settlements — — Lapse in statute of limitations — — Decreases based on tax positions taken in prior years — (75) Balance at end of year $ 178 $ 102 |
INCOME PER SHARE OF COMMON ST_2
INCOME PER SHARE OF COMMON STOCK (Tables) | 12 Months Ended |
Oct. 02, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation of Shares | A reconciliation of shares used in calculating earnings per basic and diluted share follows: Year Ended October 2, October 3, (in thousands) Basic 3,516 3,500 Effect of dilutive securities: Stock options 88 — Diluted 3,604 3,500 |
BUSINESS AND SUMMARY OF SIGNI_3
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2021USD ($)restaurantsegment | Oct. 03, 2020USD ($) | Sep. 29, 2019USD ($) | |
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Number of operating segments | segment | 1 | ||
Number of reportable segments | segment | 1 | ||
Revenues | $ | $ 131,870 | $ 106,490 | |
Unearned revenue | $ | 4,988 | 3,661 | |
Liability for gift cards | $ | 252 | 227 | |
Operating lease right-of-use assets - net | $ | 56,336 | 54,191 | |
Present value of lease liabilities | $ | 58,717 | ||
Catering Services | |||
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Revenues | $ | 3,240 | 7,358 | |
Unearned revenue | $ | $ 4,988 | $ 3,661 | |
Building and Building Improvements | |||
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Property and equipment, useful life | 40 years | ||
New York City | |||
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Number of restaurants | 4 | ||
Washington D.C. | |||
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Number of restaurants | 1 | ||
Las Vegas Nevada | |||
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Number of restaurants | 5 | ||
Atlantic City | |||
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Number of restaurants | 1 | ||
Florida | |||
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Number of restaurants | 4 | ||
Alabama | |||
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Number of restaurants | 2 | ||
Las Vegas | New York New York Hotel and Casino Resort | |||
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Number of restaurants | 4 | ||
Minimum | Furniture and Fixtures | |||
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Property and equipment, useful life | 3 years | ||
Minimum | Leasehold Improvements | |||
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Property and equipment, useful life | 5 years | ||
Maximum | Furniture and Fixtures | |||
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Property and equipment, useful life | 7 years | ||
Maximum | Leasehold Improvements | |||
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Property and equipment, useful life | 30 years | ||
Noncompete agreements and other | |||
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Intangible asset, useful life | 5 years | ||
Accounts Receivable | Two Hotel Operators | Customer Concentration Risk | |||
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Concentration risk | 46.00% | ||
Accounts Receivable | One Hotel Operator | Customer Concentration Risk | |||
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Concentration risk | 37.00% | ||
Cost of Goods and Service Benchmark | Top Vendor | Supplier Concentration Risk | |||
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Concentration risk | 11.00% | ||
Cost of Goods and Service Benchmark | Two Vendors | Supplier Concentration Risk | |||
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Concentration risk | 21.00% | ||
Accounting Standards Update 2016-02 | |||
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Operating lease right-of-use assets - net | $ | $ 62,330 | ||
Present value of lease liabilities | $ | $ 63,943 | ||
Restaurants and Bars | |||
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Number of restaurants | 17 | ||
Fast Food Concepts and Catering Operations | |||
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Number of restaurants | 17 | ||
Food Court | Las Vegas | New York New York Hotel and Casino Resort | |||
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Number of restaurants | 6 | ||
Planet Hollywood Resort and Casino | Las Vegas | |||
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Number of restaurants | 1 | ||
Fast Food Concept | Ledyard | Foxwoods Resort Casino | |||
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Number of restaurants | 1 | ||
Fast Food Concept | Tampa | Foxwoods Resort Casino | |||
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Number of restaurants | 4 | ||
Fast Food Concept | Hollywood | Hard Rock Hotel and Casino | |||
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Number of restaurants | 6 | ||
Oyster House | Alabama | |||
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Number of restaurants | 2 | ||
Oyster House | Gulf Shores Alabama | |||
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Number of restaurants | 1 | ||
Oyster House | Spanish Fort Alabama | |||
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Number of restaurants | 1 |
CONSOLIDATION OF VARIABLE INT_3
CONSOLIDATION OF VARIABLE INTEREST ENTITIES - Narrative (Details) | Oct. 02, 2021variableInterestEntity |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of VIEs with primary benefits | 3 |
CONSOLIDATION OF VARIABLE INT_4
CONSOLIDATION OF VARIABLE INTEREST ENTITIES - Schedule of Variable Interest Entities (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Oct. 03, 2020 |
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | $ 19,171 | $ 16,886 |
Accounts receivable | 4,113 | 1,738 |
Inventories | 3,510 | 2,553 |
Prepaid and refundable income taxes | 3,896 | 2,870 |
Prepaid expenses and other current assets | 3,205 | 2,469 |
Fixed assets - net | 36,174 | 37,682 |
Operating lease right-of-use assets - net | 56,336 | 54,191 |
Other assets | 2,270 | 2,432 |
TOTAL ASSETS | 161,216 | 153,316 |
Accounts payable - trade | 4,886 | 2,329 |
Accrued expenses and other current liabilities | 13,679 | 12,688 |
Current portion of operating lease liabilities | 6,165 | 6,117 |
Current portion of notes payable | 6,973 | 9,001 |
Operating lease liabilities, less current portion | 52,552 | 49,960 |
Notes payable, less current portion | 25,509 | 36,068 |
TOTAL LIABILITIES | 109,764 | 116,163 |
Equity of variable interest entities | 1,040 | 626 |
TOTAL LIABILITIES AND EQUITY | 161,216 | 153,316 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | 785 | 567 |
Accounts receivable | 358 | 162 |
Inventories | 35 | 27 |
Prepaid and refundable income taxes | 278 | 274 |
Prepaid expenses and other current assets | 277 | 13 |
Due from Ark Restaurants Corp. and affiliates | 187 | 419 |
Fixed assets - net | 218 | 241 |
Operating lease right-of-use assets - net | 2,342 | 2,658 |
Other assets | 82 | 82 |
TOTAL ASSETS | 4,562 | 4,443 |
Accounts payable - trade | 213 | 119 |
Accrued expenses and other current liabilities | 374 | 331 |
Current portion of operating lease liabilities | 249 | 226 |
Current portion of notes payable | 95 | 0 |
Operating lease liabilities, less current portion | 2,193 | 2,442 |
Notes payable, less current portion | 101 | 723 |
TOTAL LIABILITIES | 3,225 | 3,841 |
Equity of variable interest entities | 1,337 | 602 |
TOTAL LIABILITIES AND EQUITY | $ 4,562 | $ 4,443 |
RECENT RESTAURANT EXPANSION A_3
RECENT RESTAURANT EXPANSION AND OTHER DEVELOPMENTS - Narrative (Details) $ in Thousands | Dec. 01, 2020USD ($)extensionOption | Oct. 31, 2020USD ($) | Oct. 02, 2021USD ($)restaurant | Oct. 03, 2020USD ($) | Jan. 26, 2021 |
Business Acquisition [Line Items] | |||||
Notes payable | $ 32,596 | $ 45,242 | |||
Cost method investment, ownership percent | 5.00% | ||||
Outdoor Mall, Easton, Ohio | |||||
Business Acquisition [Line Items] | |||||
Number of restaurants, in process of development | restaurant | 3 | ||||
Capitalized costs | $ 400 | ||||
Reimbursements of capitalized costs | $ 200 | ||||
Unreimbursed costs written off | 200 | ||||
Blue Moon Fish Company | |||||
Business Acquisition [Line Items] | |||||
Consideration | $ 2,820 | ||||
Cash paid for acquisition | $ 1,820 | ||||
Debt instrument term | 4 years | ||||
Notes payable | $ 1,000 | 827 | $ 0 | ||
Interest rate | 5.00% | ||||
Number of renewal terms | extensionOption | 4 | ||||
Lease renewal term | 5 years | ||||
Annual rent payments | $ 360 | ||||
Increase in rent | 15.00% | ||||
Revenues of acquiree since acquisition | 5,929 | ||||
Income of acquiree since acquisition | $ 981 |
RECENT RESTAURANT EXPANSION A_4
RECENT RESTAURANT EXPANSION AND OTHER DEVELOPMENTS - Schedule of Assets Acquired (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Dec. 01, 2020 | Oct. 03, 2020 | Sep. 28, 2019 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 17,440 | $ 15,570 | $ 15,570 | |
Blue Moon Fish Company | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 3 | |||
Inventory | 39 | |||
Security deposit | 30 | |||
Trademarks | 500 | |||
Non-compete agreement | 380 | |||
Goodwill | 1,870 | |||
Liabilities assumed | (2) | |||
Fair value of assets acquired | $ 2,820 |
RECENT RESTAURANT EXPANSION A_5
RECENT RESTAURANT EXPANSION AND OTHER DEVELOPMENTS - Pro Forma Financial Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Business Acquisition [Line Items] | ||
Shares - Basic (in shares) | 3,516 | 3,500 |
Shares - Diluted (in shares) | 3,604 | 3,500 |
Blue Moon Fish Company | ||
Business Acquisition [Line Items] | ||
Total revenues | $ 132,547 | $ 110,700 |
Net income (loss) | $ 12,926 | $ (4,303) |
Net income (loss) per share - basic (in dollars per share) | $ 3.68 | $ (1.23) |
Net income (loss) per share - diluted (in dollars per share) | $ 3.59 | $ (1.23) |
Shares - Basic (in shares) | 3,516 | 3,500 |
Shares - Diluted (in shares) | 3,604 | 3,500 |
RECENT RESTAURANT DISPOSITIONS
RECENT RESTAURANT DISPOSITIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
RECENT RESTAURANT DISPOSITIONS (Details) [Line Items] | ||
(Gain) loss on lease termination | $ (810) | $ 364 |
Clyde Frazier's Wine and Dine | ||
RECENT RESTAURANT DISPOSITIONS (Details) [Line Items] | ||
Gain on closure of Clyde Frazier's Wine and Dine | 810 | |
Lease cost | 318 | |
Impairment of intangible assets | 69 | |
Security deposit | 121 | |
Right-of-use asset | 1,318 | |
Operating lease liability | $ 1,318 |
INVESTMENT IN AND RECEIVABLE _2
INVESTMENT IN AND RECEIVABLE FROM NEW MEADOWLANDS RACETRACK (Details) - USD ($) $ in Thousands | Feb. 07, 2017 | Apr. 25, 2014 | Nov. 19, 2013 | Mar. 12, 2013 | Jul. 31, 2021 | Oct. 02, 2021 | Oct. 03, 2020 | Oct. 03, 2015 | Jul. 13, 2016 |
INVESTMENT IN AND RECEIVABLE FROM NEW MEADOWLANDS RACETRACK (Details) [Line Items] | |||||||||
Payments to acquire business | $ 1,817 | $ 0 | |||||||
Ark Meadowlands LLC | |||||||||
INVESTMENT IN AND RECEIVABLE FROM NEW MEADOWLANDS RACETRACK (Details) [Line Items] | |||||||||
Ownership percentage by parent | 97.00% | ||||||||
Profit participation percentage | 5.00% | ||||||||
New Meadowlands Racetrack LLC | |||||||||
INVESTMENT IN AND RECEIVABLE FROM NEW MEADOWLANDS RACETRACK (Details) [Line Items] | |||||||||
Payments to acquire business | $ 4,200 | ||||||||
Ownership percentage | 7.40% | ||||||||
Payments to acquire additional interest in subsidiaries | $ 222 | $ 464 | $ 222 | ||||||
Long-term investments | $ 5,108 | ||||||||
Meadowlands Newmark LLC | |||||||||
INVESTMENT IN AND RECEIVABLE FROM NEW MEADOWLANDS RACETRACK (Details) [Line Items] | |||||||||
Ownership percentage | 11.60% | 63.70% | |||||||
Maximum loss | $ 1,500 | ||||||||
Interest rate | 3.00% | ||||||||
Additional loan | $ 200 | ||||||||
Periodic payment | $ 500 | ||||||||
Principal and accrued interest | $ 1,317 | $ 1,766 |
FIXED ASSETS - Property, plant
FIXED ASSETS - Property, plant and equipment (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Oct. 03, 2020 |
Property, Plant and Equipment [Abstract] | ||
Land and building | $ 18,033 | $ 18,033 |
Leasehold improvements | 42,200 | 40,777 |
Furniture, fixtures and equipment | 36,143 | 39,085 |
Construction in progress | 38 | 1,352 |
Fixed Assets - Gross | 96,414 | 99,247 |
Less: accumulated depreciation and amortization | 60,240 | 61,565 |
Fixed Assets - Net | $ 36,174 | $ 37,682 |
FIXED ASSETS (Details)
FIXED ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization expense | $ 3,577 | $ 3,910 |
Clyde Frazier's Wine and Dine | ||
Property, Plant and Equipment [Line Items] | ||
Asset impairment charges | $ 69 |
INTANGIBLE ASSETS, GOODWILL A_3
INTANGIBLE ASSETS, GOODWILL AND TRADEMARKS - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Oct. 03, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets - Gross | $ 2,628 | $ 2,248 |
Less accumulated amortization | 2,252 | 2,199 |
Intangible Assets - Net | 376 | 49 |
Purchased leasehold rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets - Gross | 1,995 | 1,995 |
Noncompete agreements and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets - Gross | $ 633 | $ 253 |
INTANGIBLE ASSETS, GOODWILL A_4
INTANGIBLE ASSETS, GOODWILL AND TRADEMARKS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 53 | $ 146 |
Write-off of leasehold rights | $ 137 | |
Amortization expense, 2022 | 85 | |
Amortization expense, 2023 | 85 | |
Amortization expense, 2024 | 85 | |
Amortization expense, 2025 | 85 | |
Amortization expense, 2026 | $ 85 |
INTANGIBLE ASSETS, GOODWILL A_5
INTANGIBLE ASSETS, GOODWILL AND TRADEMARKS - Schedule of Changes in the Carrying Amount of Goodwill and Trademarks (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Goodwill [Abstract] | ||
Beginning balance | $ 15,570 | $ 15,570 |
Acquired during the year | 1,870 | 0 |
Impairment losses | 0 | 0 |
Ending balance | 17,440 | 15,570 |
Trademarks | ||
Trademarks [Abstract] | ||
Beginning balance | 3,720 | 3,720 |
Acquired during the year | 500 | 0 |
Impairment losses | 0 | 0 |
Ending balance | $ 4,220 | $ 3,720 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Schedule of accrued expenses and other current liabilities (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Oct. 03, 2020 |
Disclosure Text Block Supplement [Abstract] | ||
Sales tax payable | $ 910 | $ 477 |
Accrued wages and payroll related costs | 4,758 | 3,302 |
Customer advance deposits | 4,988 | 3,661 |
Accrued occupancy and other operating expenses | 3,023 | 5,248 |
Accrued expenses and other current liabilities | $ 13,679 | $ 12,688 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Thousands | 12 Months Ended |
Oct. 02, 2021USD ($) | |
Lessee, Lease, Description [Line Items] | |
Operating lease, reductions in rent expense | $ 800 |
Minimum | |
Leases [Abstract] | |
Lease term | 10 years |
Lessee, Lease, Description [Line Items] | |
Lease term | 10 years |
Maximum | |
Leases [Abstract] | |
Lease term | 25 years |
Lessee, Lease, Description [Line Items] | |
Lease term | 25 years |
LEASES - Lease Expenses (Detail
LEASES - Lease Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Lease, Lease Expenses [Abstract] | ||
Operating lease expense - occupancy expense | $ 7,557 | $ 9,449 |
Occupancy lease expense - general and administrative expenses | 396 | 635 |
Variable lease expense | 2,970 | 2,960 |
Total lease expense | 10,923 | 13,044 |
Lease, Supplemental Cash Flow [Abstract] | ||
Operating cash flows related to operating leases | 10,485 | 9,500 |
ROU assets obtained in exchange for new operating lease liabilities | $ 8,712 | $ 62,330 |
Lease, Weighted Average Remaining Lease Term And Discount Rate [Abstract] | ||
Weighted Average Remaining Lease Term | 13 years 6 months | |
Weighted Average Discount Rate | 5.20% |
LEASES - Maturities of Lease Li
LEASES - Maturities of Lease Liabilities (Details) $ in Thousands | Oct. 02, 2021USD ($) |
Leases [Abstract] | |
October 1, 2022 | $ 9,026 |
September 30, 2023 | 7,543 |
September 28, 2024 | 7,143 |
September 27, 2025 | 6,116 |
October 3, 2026 | 5,385 |
Thereafter | 47,529 |
Total future lease payments | 82,742 |
Less imputed interest | (24,025) |
Present value of lease liabilities | $ 58,717 |
NOTES PAYABLE - Schedule of Lon
NOTES PAYABLE - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Dec. 01, 2020 | Oct. 03, 2020 |
NOTES PAYABLE - BANK (Details) - Schedule of Long-term debt [Line Items] | |||
Notes payable | $ 32,596 | $ 45,242 | |
Less: Current maturities | (6,973) | (9,001) | |
Less: Unamortized deferred financing costs | (114) | (173) | |
Long-term debt | 25,509 | 36,068 | |
Revolving Credit Facility | |||
NOTES PAYABLE - BANK (Details) - Schedule of Long-term debt [Line Items] | |||
Notes payable | 9,166 | 9,666 | |
The Rustic Inn | |||
NOTES PAYABLE - BANK (Details) - Schedule of Long-term debt [Line Items] | |||
Notes payable | 3,473 | 3,758 | |
Shuckers Inc | |||
NOTES PAYABLE - BANK (Details) - Schedule of Long-term debt [Line Items] | |||
Notes payable | 3,995 | 4,335 | |
Oyster House | |||
NOTES PAYABLE - BANK (Details) - Schedule of Long-term debt [Line Items] | |||
Notes payable | 3,492 | 4,109 | |
JB's On The Beach | |||
NOTES PAYABLE - BANK (Details) - Schedule of Long-term debt [Line Items] | |||
Notes payable | 4,750 | 5,750 | |
Sequoia Renovation | |||
NOTES PAYABLE - BANK (Details) - Schedule of Long-term debt [Line Items] | |||
Notes payable | 2,171 | 2,629 | |
Blue Moon Fish Company | |||
NOTES PAYABLE - BANK (Details) - Schedule of Long-term debt [Line Items] | |||
Notes payable | 827 | $ 1,000 | 0 |
Paycheck Protection Program Loan | |||
NOTES PAYABLE - BANK (Details) - Schedule of Long-term debt [Line Items] | |||
Notes payable | $ 4,722 | $ 14,995 |
NOTES PAYABLE - Narrative (Deta
NOTES PAYABLE - Narrative (Details) | Jul. 26, 2021USD ($) | Feb. 15, 2021USD ($)notesPayableinstallment | May 15, 2019USD ($)installment | Nov. 30, 2016USD ($)installment | Oct. 22, 2015USD ($)installment | Feb. 24, 2014USD ($)installment | Feb. 25, 2013USD ($)installment | Oct. 02, 2021USD ($)installment | Oct. 03, 2020USD ($) | Jun. 01, 2018USD ($) |
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||
Notes payable | $ 32,596,000 | $ 45,242,000 | ||||||||
Forgiveness of PPP loans | 10,400,000 | 0 | ||||||||
PPP loans, interest forgiven | 84,000 | |||||||||
Debt issuance costs | 271,000 | |||||||||
Amortization | 60,000 | 51,000 | ||||||||
The Rustic Inn | ||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||
Notes payable | 3,473,000 | 3,758,000 | ||||||||
Shuckers Inc | ||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||
Notes payable | 3,995,000 | 4,335,000 | ||||||||
Oyster House | ||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||
Notes payable | 3,492,000 | 4,109,000 | ||||||||
JB's On The Beach | ||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||
Notes payable | 4,750,000 | 5,750,000 | ||||||||
Sequoia Renovation | ||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||
Notes payable | 2,171,000 | $ 2,629,000 | ||||||||
Paycheck Protection Program Loan | ||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||
Basis spread on variable rate | 1.00% | |||||||||
Notes payable | 4,722,000 | $ 14,995,000 | ||||||||
Paycheck protection program loan | 14,995,000 | |||||||||
Long-term debt, current | 2,032,000 | |||||||||
Paycheck Protection Program Loan | Variable Interest Entity, Primary Beneficiary | ||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||
Paycheck protection program loan | 111,000 | |||||||||
Bank Hapoalim B.M. | The Rustic Inn | ||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||
Periodic payment | $ 71,333 | $ 134,722 | $ 83,333 | |||||||
Basis spread on variable rate | 3.50% | |||||||||
Face amount | $ 3,000,000 | |||||||||
Number of installments | installment | 60 | 36 | ||||||||
Frequency of periodic payment | monthly | monthly | ||||||||
Date of first required payment | Mar. 25, 2014 | Mar. 25, 2013 | ||||||||
Bank loan related to acquisition | $ 6,000,000 | |||||||||
Bank Hapoalim B.M. | Shuckers Inc | ||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||
Periodic payment | $ 83,333 | |||||||||
Basis spread on variable rate | 3.50% | |||||||||
Face amount | $ 5,000,000 | |||||||||
Number of installments | installment | 60 | |||||||||
Frequency of periodic payment | monthly | |||||||||
Date of first required payment | Nov. 22, 2015 | |||||||||
Revolving Credit Facility | ||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||
Notes payable | $ 9,166,000 | $ 9,666,000 | ||||||||
Revolving Credit Facility | Bank Hapoalim B.M. | ||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||
Current borrowing capacity | $ 10,000,000 | |||||||||
Maximum borrowing capacity | $ 35,000,000 | |||||||||
Borrowings under credit facility | $ 9,666,000 | |||||||||
Periodic payment | 500,000 | |||||||||
Balloon payment to be paid | $ 2,166,000 | |||||||||
Basis spread on variable rate | 3.50% | |||||||||
Revolving Credit Facility | Bank Hapoalim B.M. | Oyster House | ||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||
Periodic payment | $ 133,273 | |||||||||
Basis spread on variable rate | 3.50% | |||||||||
Face amount | $ 8,000,000 | |||||||||
Number of installments | installment | 60 | |||||||||
Frequency of periodic payment | monthly | |||||||||
Date of first required payment | Jan. 1, 2017 | |||||||||
Revolving Credit Facility | Bank Hapoalim B.M. | JB's On The Beach | ||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||
Periodic payment | $ 250,000 | |||||||||
Balloon payment to be paid | $ 1,250,000 | |||||||||
Basis spread on variable rate | 3.50% | |||||||||
Face amount | $ 7,000,000 | |||||||||
Number of installments | installment | 23 | |||||||||
Date of first required payment | Sep. 1, 2019 | |||||||||
Revolving Credit Facility | Bank Hapoalim B.M. | Sequoia Renovation | ||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||
Periodic payment | $ 114,286 | |||||||||
Balloon payment to be paid | $ 571,429 | |||||||||
Basis spread on variable rate | 3.50% | |||||||||
Face amount | $ 3,200,000 | |||||||||
Number of installments | installment | 23 | |||||||||
Date of first required payment | Sep. 1, 2019 | |||||||||
Revolving Credit Facility | Amendment | Bank Hapoalim B.M. | The Rustic Inn | ||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||
Balloon payment to be paid | $ 2,474,000 | |||||||||
Basis spread on variable rate | 3.50% | |||||||||
Face amount | $ 4,400,000 | |||||||||
Number of installments | installment | 27 | |||||||||
Frequency of periodic payment | quarterly | |||||||||
Date of first required payment | Sep. 1, 2018 | |||||||||
Additional borrowing capacity | $ 2,783,333 | |||||||||
Revolving Credit Facility | Amendment | Bank Hapoalim B.M. | Shuckers Inc | ||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||
Periodic payment | 85,000 | |||||||||
Balloon payment to be paid | $ 2,805,000 | |||||||||
Basis spread on variable rate | 3.50% | |||||||||
Face amount | $ 5,100,000 | |||||||||
Number of installments | installment | 27 | |||||||||
Frequency of periodic payment | quarterly | |||||||||
Date of first required payment | Sep. 1, 2018 | |||||||||
Additional borrowing capacity | $ 2,433,324 | |||||||||
Revolving Credit Facility | Amendment | Bank Hapoalim B.M. | Oyster House Gulf Shores | ||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||
Periodic payment | 117,857 | |||||||||
Balloon payment to be paid | $ 1,060,716 | |||||||||
Basis spread on variable rate | 3.50% | |||||||||
Face amount | $ 3,300,000 | |||||||||
Number of installments | installment | 19 | |||||||||
Frequency of periodic payment | quarterly | |||||||||
Date of first required payment | Sep. 1, 2018 | |||||||||
Number of notes | notesPayable | 2 | |||||||||
Revolving Credit Facility | Amendment | Bank Hapoalim B.M. | Oyster House Spanish Fort | ||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||
Periodic payment | $ 36,667 | |||||||||
Balloon payment to be paid | $ 1,210,000 | |||||||||
Basis spread on variable rate | 3.50% | |||||||||
Face amount | $ 2,200,000 | |||||||||
Number of installments | installment | 27 | |||||||||
Date of first required payment | Sep. 1, 2018 |
NOTES PAYABLE - Notes Payable M
NOTES PAYABLE - Notes Payable Maturities Schedule (Details) - Notes Payable $ in Thousands | Oct. 02, 2021USD ($) |
NOTES PAYABLE - BANK (Details) - Schedule of Long-term debt [Line Items] | |
2022 | $ 6,973 |
2023 | 7,696 |
2024 | 5,268 |
2025 | 12,659 |
Long-term debt | 32,596 |
BHBM | |
NOTES PAYABLE - BANK (Details) - Schedule of Long-term debt [Line Items] | |
2022 | 4,701 |
2023 | 5,526 |
2024 | 4,229 |
2025 | 12,591 |
Long-term debt | 27,047 |
PPP Loans | |
NOTES PAYABLE - BANK (Details) - Schedule of Long-term debt [Line Items] | |
2022 | 2,032 |
2023 | 1,917 |
2024 | 773 |
2025 | 0 |
Long-term debt | 4,722 |
Blue Moon Note | |
NOTES PAYABLE - BANK (Details) - Schedule of Long-term debt [Line Items] | |
2022 | 240 |
2023 | 253 |
2024 | 266 |
2025 | 68 |
Long-term debt | $ 827 |
COMMITMENT AND CONTINGENCIES (D
COMMITMENT AND CONTINGENCIES (Details) $ in Thousands | May 01, 2018plaintiff | Oct. 02, 2021USD ($)lease |
Commitments and Contingencies Disclosure [Abstract] | ||
Number of lease with irrevocable Letter of credit | lease | 1 | |
Letters of credit | $ | $ 238 | |
Number of plaintiffs | plaintiff | 2 |
STOCK OPTIONS - Narrative (Deta
STOCK OPTIONS - Narrative (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Oct. 02, 2021USD ($)plan$ / sharesshares | Oct. 03, 2020USD ($)$ / sharesshares | |
STOCK OPTIONS (Details) [Line Items] | ||
Number of stock option plans | plan | 2 | |
Grants in period, gross (in shares) | shares | 110,750 | 266,500 |
Exercise price (in dollars per share) | $ / shares | $ 10.65 | $ 21.90 |
Risk free interest rate, maximum | 0.86% | |
Volatility rate | 37.10% | 30.30% |
Dividend yield | 3.00% | 5.20% |
Risk free interest rate, minimum | 1.54% | |
Expected term | 10 years | 10 years |
Stock-based compensation | $ | $ 280 | $ 176 |
Unrecognized compensation cost | $ | $ 737 | |
Unrecognized compensation recognition period | 3 years | |
Maximum amount of compensation paid under cash bonus plan | $ | $ 1,000 | |
Employee Stock Option | ||
STOCK OPTIONS (Details) [Line Items] | ||
Grants in period, gross (in shares) | shares | 110,500 | |
Exercise price (in dollars per share) | $ / shares | $ 10.65 | |
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 2.22 | |
Grant date fair value | $ | $ 246 | |
Employee Stock Option | Exercise Price, One | ||
STOCK OPTIONS (Details) [Line Items] | ||
Grants in period, gross (in shares) | shares | 266,500 | |
Exercise price (in dollars per share) | $ / shares | $ 21.90 | |
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 3.35 | |
Grant date fair value | $ | $ 894 | |
Tranche One | Employee Stock Option | ||
STOCK OPTIONS (Details) [Line Items] | ||
Exercisable percentage, grant date | 50.00% | |
Tranche One | Employee Stock Option | Exercise Price, One | ||
STOCK OPTIONS (Details) [Line Items] | ||
Exercisable percentage, grant date | 50.00% | |
Tranche Two | Employee Stock Option | ||
STOCK OPTIONS (Details) [Line Items] | ||
Exercisable percentage, grant date | 50.00% | |
Tranche Two | Employee Stock Option | Exercise Price, One | ||
STOCK OPTIONS (Details) [Line Items] | ||
Exercisable percentage, grant date | 50.00% | |
2010 Plan | ||
STOCK OPTIONS (Details) [Line Items] | ||
Expiration period | 10 years | |
2016 Plan | ||
STOCK OPTIONS (Details) [Line Items] | ||
Expiration period | 10 years |
STOCK OPTIONS - Schedule of sto
STOCK OPTIONS - Schedule of stock options, activity (Details) - USD ($) | 12 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Shares | ||
Outstanding, beginning of period (in shares) | 626,500 | 363,500 |
Granted (in shares) | 110,750 | 266,500 |
Exercised (in shares) | (49,149) | (3,500) |
Canceled or expired (in shares) | (91,625) | 0 |
Outstanding and expected to vest, end of period (in shares) | 596,476 | 626,500 |
Outstanding and expected to vest, end of period (in shares) | 246,976 | 351,750 |
Shares available for future grant (in shares) | 63,750 | 174,500 |
Weighted Average Exercise Price | ||
Outstanding, beginning of period (in dollars per share) | $ 20.41 | $ 19.25 |
Granted (in dollars per share) | 10.65 | 21.90 |
Exercised (in dollars per share) | 14.40 | 14.40 |
Canceled or expired (in dollars per share) | 19.64 | |
Outstanding and expected to vest, end of period (in dollars per share) | 19.21 | 20.41 |
Exercisable, end of period (in dollars per share) | $ 20.33 | $ 19.28 |
Weighted Average Contractual Term | ||
Outstanding | 6 years 3 months 18 days | 6 years 1 month 6 days |
Exercisable | 3 years 1 month 6 days | |
Aggregate Intrinsic Value | ||
Outstanding and expected to vest, end of period | $ 583,000 | $ 0 |
Exercisable, end of period | $ 61,000 | $ 0 |
STOCK OPTIONS - Schedule of s_2
STOCK OPTIONS - Schedule of stock options, outstanding (Details) - $ / shares | 12 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Sep. 28, 2019 | |
Options Outstanding | |||
Number of Shares (in shares) | 596,476 | 626,500 | 363,500 |
Weighted Average Exercise Price (in dollars per share) | $ 19.21 | $ 20.41 | $ 19.25 |
Weighted Average Remaining Contractual Life | 6 years 3 months 18 days | ||
Options Exercisable | |||
Number of Shares (in shares) | 246,976 | 351,750 | |
Weighted Average Exercise Price (in dollars per share) | $ 20.33 | $ 19.28 | |
Weighted Average Remaining contractual Life | 3 years 1 month 6 days | ||
Range of Exercise Prices - $10.65 | |||
Options Outstanding | |||
Number of Shares (in shares) | 107,500 | ||
Weighted Average Exercise Price (in dollars per share) | $ 10.65 | ||
Weighted Average Remaining Contractual Life | 9 years 1 month 6 days | ||
Options Exercisable | |||
Number of Shares (in shares) | 0 | ||
Weighted Average Exercise Price (in dollars per share) | $ 10.65 | ||
Weighted Average Remaining contractual Life | 9 years 1 month 6 days | ||
Range of Exercise Prices - $14.40 | |||
Options Outstanding | |||
Number of Shares (in shares) | 55,851 | ||
Weighted Average Exercise Price (in dollars per share) | $ 14.40 | ||
Weighted Average Remaining Contractual Life | 8 months 12 days | ||
Options Exercisable | |||
Number of Shares (in shares) | 55,851 | ||
Weighted Average Exercise Price (in dollars per share) | $ 14.40 | ||
Weighted Average Remaining contractual Life | 8 months 12 days | ||
Range of Exercise Prices - $21.90 | |||
Options Outstanding | |||
Number of Shares (in shares) | 236,500 | ||
Weighted Average Exercise Price (in dollars per share) | $ 21.90 | ||
Weighted Average Remaining Contractual Life | 8 years 4 months 24 days | ||
Options Exercisable | |||
Number of Shares (in shares) | 0 | ||
Weighted Average Exercise Price (in dollars per share) | $ 21.90 | ||
Weighted Average Remaining contractual Life | 8 years 4 months 24 days | ||
Range of Exercise Prices - $22.50 | |||
Options Outstanding | |||
Number of Shares (in shares) | 142,625 | ||
Weighted Average Exercise Price (in dollars per share) | $ 22.50 | ||
Weighted Average Remaining Contractual Life | 2 years 8 months 12 days | ||
Options Exercisable | |||
Number of Shares (in shares) | 142,625 | ||
Weighted Average Exercise Price (in dollars per share) | $ 22.50 | ||
Weighted Average Remaining contractual Life | 2 years 8 months 12 days | ||
Range of Exercise Prices - $19.61 - $22.30 | |||
STOCK OPTIONS (Details) - Schedule of stock options, outstanding [Line Items] | |||
Range of exercise price, lower limit (in dollars per share) | $ 19.61 | ||
Range of exercise price, upper limit (in dollars per share) | $ 22.3 | ||
Options Outstanding | |||
Number of Shares (in shares) | 54,000 | ||
Weighted Average Exercise Price (in dollars per share) | $ 20.69 | ||
Weighted Average Remaining Contractual Life | 7 years 2 months 12 days | ||
Options Exercisable | |||
Number of Shares (in shares) | 48,500 | ||
Weighted Average Exercise Price (in dollars per share) | $ 20.81 | ||
Weighted Average Remaining contractual Life | 7 years 2 months 12 days |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | 12 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
INCOME TAXES (Details) [Line Items] | ||
Forgiveness of PPP loans | $ 10,400,000 | $ 0 |
PPP loans, interest forgiven | 84,000 | |
Income tax benefit | 3,766,000 | |
Valuation allowance | 1,258,000 | 413,000 |
Valuation allowance increase | 845,000 | 81,000 |
Accrued interest and penalties | 0 | $ 0 |
General Business Credit carryforwards | ||
INCOME TAXES (Details) [Line Items] | ||
Tax credit carryforward | 2,777,000 | |
New York State Division of Taxation and Finance | ||
INCOME TAXES (Details) [Line Items] | ||
Operating loss carryforwards | 28,039,000 | |
New York City | ||
INCOME TAXES (Details) [Line Items] | ||
Operating loss carryforwards | $ 26,364,000 |
INCOME TAXES - Schedule of Prov
INCOME TAXES - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Current provision (benefit): | ||
Federal | $ (1,093) | $ (2,652) |
State and local | 77 | 58 |
Current provision (benefit) | (1,016) | (2,594) |
Deferred provision (benefit): | ||
Federal | 946 | (780) |
State and local | 1,251 | (1,011) |
Deferred provision (benefit) | 2,197 | (1,791) |
Income tax provision (benefit) | $ 1,181 | $ (4,385) |
INCOME TAXES - Schedule of Effe
INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Income Tax Disclosure [Abstract] | ||
Provision at Federal statutory rate (21%) | $ 3,240 | $ (1,891) |
State and local income taxes, net of tax benefits | 433 | (919) |
Gain on forgiveness of PPP Loans | (1,974) | 0 |
Tax credits | (741) | (542) |
Income (loss) attributable to non-controlling interest | (287) | (15) |
Changes in tax rates | 33 | (65) |
Net operating loss carryback Federal rate benefit | (159) | (1,022) |
Change in valuation allowance | 845 | 21 |
Other | (209) | 48 |
Income tax provision (benefit) | $ 1,181 | $ (4,385) |
INCOME TAXES - Schedule of Defe
INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Oct. 03, 2020 |
Deferred tax assets: | ||
State net operating loss carryforwards | $ 5,595 | $ 5,427 |
Lease liabilities | 12,116 | 10,729 |
Deferred compensation | 310 | 358 |
Tax credits | 2,777 | 1,862 |
Partnership investments | 0 | 346 |
Other | 492 | 550 |
Deferred tax assets, before valuation allowance | 21,290 | 19,272 |
Valuation allowance | (1,258) | (413) |
Deferred tax assets, net of valuation allowance | 20,032 | 18,859 |
Deferred tax liabilities: | ||
Depreciation and amortization | (15,308) | (12,440) |
Partnership investments | (566) | 0 |
Prepaid expenses | (458) | (522) |
Deferred tax liabilities | (16,332) | (12,962) |
Net deferred tax assets | $ 3,700 | $ 5,897 |
INCOME TAXES - Summary of Incom
INCOME TAXES - Summary of Income Tax Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Balance at beginning of year | $ 102 | $ 158 |
Additions based on tax positions taken in current and prior years | 76 | 19 |
Settlements | 0 | 0 |
Lapse in statute of limitations | 0 | 0 |
Decreases based on tax positions taken in prior years | 0 | (75) |
Balance at end of year | $ 178 | $ 102 |
INCOME PER SHARE OF COMMON ST_3
INCOME PER SHARE OF COMMON STOCK - Schedule of calculation of numerator and denominator in earnings per share (Details) - shares shares in Thousands | 12 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Earnings Per Share [Abstract] | ||
Basic (in shares) | 3,516 | 3,500 |
Effect of dilutive securities: | ||
Stock options (in Shares) | 88 | 0 |
Diluted (in Shares) | 3,604 | 3,500 |
INCOME PER SHARE OF COMMON ST_4
INCOME PER SHARE OF COMMON STOCK - Narrative (Details) | 12 Months Ended |
Oct. 02, 2021$ / sharesshares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Shares excluded from computation of earnings per share (in shares) | shares | 443,500 |
Minimum | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Exercise price of shares excluded from computation of earning per share (in dollars per share) | $ 21.90 |
Maximum | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Exercise price of shares excluded from computation of earning per share (in dollars per share) | $ 22.50 |
DIVIDENDS (Details)
DIVIDENDS (Details) | Nov. 26, 2019$ / shares |
Earnings Per Share [Abstract] | |
Dividends (in dollars per share) | $ 0.25 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Oct. 03, 2020 |
RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||
Due from employees | $ 380 | $ 385 |
Minimum | ||
RELATED PARTY TRANSACTIONS (Details) [Line Items] | ||
Effective interest rate | 0.17% | 0.38% |