Hudson's Grill Announces Settlement
        
        Thursday, January 9, 1997
        
        
        Dallas, TX - Hudson's Grill of America, Inc., announced today
        from its corporate offices, based in Dallas, Texas, that it
        had settled its case with Jordano's, Inc., a liquor
        distributor in California.  The Company announced that the
        case would be settled with a down payment and a payout over
        several months with no interest.  Neither party admitted any
        liability to the other.  The suit had alleged that the Company
        owed Jordano's for a debt incurred by one of the Company's
        former franchisees that operated the Pomona, California
        Hudson's Grill.  The Company had denied any obligation to
        Jordano's.  Each party bore its own costs and attorney's fees.
        
        
        
        Hudson's Grill of America, Inc., is celebrating it's 10th year
        of operation, and is publicly traded on NASDAQ under the
        symbol HDSG.
   
        
        
                              Exhibit 2