1
                                                                   Exhibit 99.1

          SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES
                        Shoney's, Inc. and Subsidiaries





                                                           Charged          
                                         Balance at        to Costs         Charged                          Balance at
                                         Beginning           and            to Other                           End of
                                         of Period         Expenses         Accounts        Deductions         Period
                                         ---------         --------         --------        ----------         ------
                                                                                                     
Fiscal year ended                                                       
 October 27, 1996:                                                      
   Reserves and                                                         
    allowances deducted                                                 
    from asset accounts:                                                
     Allowance for                                                      
       doubtful accounts                 $1,645,000       $  481,000     $  282,000(B)      $  904,000(A)    $1,504,000
                                         ==========       ==========     ==========         ==========       ==========
                                                                        
   Valuation allowance                                                        
      for deferred tax                                                      
      assets                             $        0       $        0     $4,902,000(C)      $ (153,000)(D)   $4,749,000
                                         ==========       ==========     ==========         ==========       ==========
                                                                        
Fiscal year ended                                                       
 October 29, 1995:                                                      
   Reserves and                                                         
    allowances deducted                                                 
    from asset accounts:                                                
     Allowance for                                                      
      doubtful accounts                  $1,193,000       $1,045,000     $  274,000(B)      $  867,000(A)    $1,645,000
                                         ==========       ==========     ==========         ==========       ==========
                                                                        
Fiscal year ended                                                       
 October 30, 1994:                                                      
   Reserves and                                                         
    allowances deducted                                                 
    from asset accounts:                                                
     Allowance for                                                      
       doubtful accounts                 $1,846,000       $1,349,000     $   59,000(B)      $2,061,000(A)    $1,193,000
                                         ==========       ==========     ==========         ==========       ==========



(A)      Account written off.

(B)      Recoveries from accounts written off in prior year.

(C)      Deferred tax valuation allowance established as part of the purchase
         price allocation for the Company's acquisition of TPI.

(D)      Expiration of tax credit carryforwards.