CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS





Reported financial results may not be indicative of the financial results of
future periods. All non-historical information contained in the following
discussion constitutes forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. Words such as "anticipates, appears, expects, trends, intends, hopes,
plans, believes, seeks, estimates, may, will," and variations of these words or
similar expressions are intended to identify forward-looking statements. These
statements are not guarantees of future performance and involve a number of
risks and uncertainties, including but not limited to the effect of the novel
coronavirus pandemic and related "shelter-in-place" orders and other
governmental mandates ("COVID 19"), customer demand and competitive conditions.
Factors that could cause actual results to differ materially are included in,
but not limited to, those identified in the "Management's Discussion and
Analysis of Financial Condition and Results of Operations," in our periodic
reports, including our Annual Report on Form 10-K for the fiscal year ended
September 28, 2019. We undertake no obligation to publicly release the results
of any revisions to these forward-looking statements that may reflect events or
circumstances after the date of this report.



OVERVIEW



As of June 27, 2020, Flanigan's Enterprises, Inc., a Florida corporation,
together with its subsidiaries ("we", "our", "ours" and "us" as the context
requires), (i) operates 27 units, consisting of restaurants, package liquor
stores and combination restaurants/package liquor stores that we either own or
have operational control over and partial ownership in; and (ii) franchises an
additional five units, consisting of two restaurants (one of which we operate)
and three combination restaurants/package liquor stores. The table below
provides information concerning the type (i.e. restaurant, package liquor store
or combination restaurant/package liquor store) and ownership of the units (i.e.
whether (i) we own 100% of the unit; (ii) the unit is owned by a limited
partnership of which we are the sole general partner and/or have invested in; or
(iii) the unit is franchised by us), as of June 27, 2020 and as compared to June
29, 2019. With the exception of "The Whale's Rib", a restaurant we operate but
do not own, all of the restaurants operate under our service mark "Flanigan's
Seafood Bar and Grill" and all of the package liquor stores operate under our
service marks "Big Daddy's Liquors" or "Big Daddy's Wine & Liquors".



Types of Units                         June 27, 2020 September 28, 2019 June 29, 2019
Company Owned:

Combination package and restaurant           3                3            

  3       (1)
Restaurant only                              7               7                7
Package store only                           7               6                6       (2)

Company Operated Restaurants Only:
Limited Partnerships                         8               8                8
Franchise                                    1               1                1
Unrelated Third Party                        1               1                1


Total Company Owned/Operated Units          27               26            

 27
Franchised Units                             5               5                5       (3)


Notes:

(1) During the first quarter of our fiscal year 2019, our combination package
liquor store and restaurant located at 2505 N. University Drive, Hollywood,
Florida (Store #19) was damaged by a fire which has caused it to be closed since
the first quarter of our fiscal year 2019. Revenues and expenses from Store #19
for the time Store #19 was open during the first quarter of our fiscal year 2019
(two (2) days) are immaterial, with the exception of payroll. Store #19 remains
closed.

(2) During the first quarter of our fiscal year 2020, our new package liquor
store located at 12776 N. Kendal Drive, Miami, Florida (Store #45) opened for
business.

(3) We operate a restaurant for one (1) franchisee. This unit is included in the table both as a franchised restaurant, as well as a restaurant operated by us.



                                      20

  Index

The novel coronavirus pandemic and related "shelter-in-place" orders and other
governmental mandates ("COVID 19") has adversely affected and will, in all
likelihood continue to adversely affect our restaurant operations and financial
results for the foreseeable future. Due to COVID-19, from mid-March 2020 through
mid-May 2020, we ceased dine-in service at all of our restaurants, limiting
service to take-out and delivery only, ceased the sale of alcoholic beverages at
our restaurants and implemented reduced hours at our retail package liquor
stores. From mid-May 2020 through the beginning of July, 2020, there was a
gradual elimination of restrictions on our restaurant operations, permitting us
to, among other things, operate at up to 50% capacity (depending on the location
of the restaurant), but with no bar service and increased operating hours at our
package liquor stores. Since the beginning of July, 2020, we ceased dine-in
service at all of our Miami-Dade County, Florida restaurants, except for outdoor
seating, (2 Company owned and 6 limited partnership owned restaurants), and
continue to operate at up to 50% capacity at all other of our restaurants,

but
with no bar service.




Due to COVID 19, we implemented (i) certain cost cutting measures including
material layoffs at our restaurants and reduced corporate personnel salaries;
and (ii) a number of changes to our operations such as the establishment of an
in-house delivery service and an adjustment to our traditional staffing model to
meet customer demand. We have been in regular contact with our suppliers and
while to date we have not experienced significant disruptions in our supply
chain, we could see future disruptions should the impacts of COVID 19 extend for
a considerable amount of time. To support our employees, we have implemented
work from home support, increased sanitization of high touch, high traffic areas
in our restaurants, retail package liquor stores and corporate offices, provided
personal protective equipment for our employees and increased the frequency of
personal hygiene practices. From the end of March, 2020 through mid-May, 2020,
525 restaurant personnel were laid off, representing total annualized salary
savings of approximately $1.04 million. In addition, the salaries of all our
non-executive corporate office personnel were reduced by 20%, the base salaries
of our Chief Operating Officer and Chief Financial Officer were each reduced by
50% and our Chief Executive Officer has waived his base salary. During the third
quarter of our fiscal year 2020 and due to our receipt of the PPP Loans, we
reversed most cost cutting measures, including reinstating employees laid off at
our restaurants in anticipation of resuming dine-in service and restoring
corporate personnel and executive salaries.



                                      21

  Index




We do not believe COVID-19 has had a material adverse effect on our access to
supplies or labor, although there can be no assurance that there will not be a
significant adverse impact on our supply chain or access to labor in the future.
We are actively monitoring our food suppliers to determine how they are managing
their operations to mitigate supply flow and food safety risks. To ensure we
mitigate potential supply availability risk, we are building additional
inventory back stock levels when appropriate and we have also identified
alternative supply sources in key product categories including but not limited
to food, sanitation and safety supplies.



                                      22

  Index

Franchise Financial Arrangement: In exchange for our providing management and
related services to our franchisees and granting them the right to use our
service marks "Flanigan's Seafood Bar and Grill" and "Big Daddy's Liquors", our
franchisees (four of which are franchised to members of the family of our
Chairman of the Board, officers and/or directors), are required to (i) pay to us
a royalty equal to 1% of gross package store sales and 3% of gross restaurant
sales; and (ii) make advertising expenditures equal to between 1.5% to 3% of all
gross sales based upon our actual advertising costs allocated between stores,
pro-rata, based upon gross sales.



Limited Partnership Financial Arrangement: We manage and control the operations
of all restaurants owned by limited partnerships, except the Fort Lauderdale,
Florida restaurant which is owned by a related franchisee. Accordingly, the
results of operations of all limited partnership owned restaurants, except the
Fort Lauderdale, Florida restaurant are consolidated into our operations for
accounting purposes. The results of operations of the Fort Lauderdale, Florida
restaurant are accounted for by us utilizing the equity method of accounting. In
general, until the investors' cash investment in a limited partnership
(including any cash invested by us and our affiliates) is returned in full, the
limited partnership distributes to the investors annually out of available cash
from the operation of the restaurant up to 25% of the cash invested in the
limited partnership, with no management fee paid to us. Any available cash in
excess of the 25% of the cash invested in the limited partnership distributed to
the investors annually, is paid one-half (½) to us as a management fee, with the
balance distributed to the investors. Once the investors in the limited
partnership have received, in full, amounts equal to their cash invested, an
annual management fee is payable to us equal to one-half (½) of cash available
to the limited partnership, with the other one half (½) of available cash
distributed to the investors (including us and our affiliates). As of June 27,
2020, all limited partnerships have returned all cash invested and we receive an
annual management fee equal to one-half (½) of the cash available for
distribution by the limited partnership. In addition to receipt of distributable
amounts from the limited partnerships, we receive a fee equal to 3% of gross
sales for use of the service mark "Flanigan's Seafood Bar and Grill".

                                      23

  Index

RESULTS OF OPERATIONS

-----------------------Thirteen Weeks Ended-----------------------


                                                    June 27, 2020                               June 29, 2019
                                            Amount                                      Amount
                                        (In thousands)            Percent           (In thousands)            Percent
Restaurant food sales                   $        14,514                 62.44       $        18,447                 63.94
Restaurant bar sales                              1,630                  7.01                 5,652                 19.59
Package store sales                               7,099                 30.55                 4,752                 16.47

.                                       $        23,243                100.00       $        28,851                100.00

Franchise related revenues                          278                                         414
Rental income                                       151                                         186
Other operating income (Loss)                        (9 )                                        61

Total Revenue                           $        23,663                             $        29,512




                                              ----------------------Thirty

Nine Weeks Ended-----------------------


                                                    June 27, 2020                               June 29, 2019
                                            Amount                                      Amount
                                        (In thousands)            Percent           (In thousands)            Percent
Restaurant food sales                   $        51,469                 61.91       $        53,494                 62.79
Restaurant bar sales                             12,836                 15.44                16,720                 19.63
Package store sales                              18,833                 22.65                14,979                 17.58

Total Sales                             $        83,138                100.00       $        85,193                100.00

Franchise related revenues                          945                                       1,210
Rental income                                       554                                         576
Other operating income                               95                                         163

Total Revenue                           $        84,732                             $        87,142

Comparison of Thirteen Weeks Ended June 27, 2020 and June 29, 2019.


Revenues.Total revenue for the thirteen weeks ended June 27, 2020 decreased
$5,849,000 or 19.82% to $23,663,000 from $29,512,000 for the thirteen weeks
ended June 29, 2019. The decrease in total revenue was due primarily to the
negative impact of COVID 19 on operations. Due to COVID-19, from mid-March 2020
through mid-May 2020, we ceased dine-in service at all of our restaurants,
limiting service to take-out and delivery only, ceased the sale of alcoholic
beverages at our restaurants and implemented reduced hours at our retail package
liquor stores. From mid-May 2020 through the beginning of July, 2020, there was
a gradual elimination of restrictions on our restaurant operations, permitting
us to, among other things, operate at up to 50% capacity (depending on the
location of the restaurant), but with no bar service and increased operating
hours at our package liquor stores. Since the beginning of July, 2020, we ceased
dine-in service at all of our Miami-Dade County, Florida restaurants, except for
outdoor seating and continue to operate at up to 50% capacity at all other of
our restaurants, but with no bar service. The negative effects of COVID 19 on
our operations was partially offset by the 2019 Price Increases (defined below)
and increased package liquor store sales. Effective June 16, 2019 we increased
certain menu prices for our bar offerings to target an increase to our total bar
revenues of approximately 6.2% annually and effective June 23, 2019 we increased
certain menu prices for our food offerings to target an increase to our total
food revenues of approximately 3.4% annually, (the "2019 Price Increases"). We
expect that total revenue for the balance of our fiscal year 2020 will decrease
due to our operations being adversely impacted by COVID 19. We expect that Store
#19 will remain closed during the balance of our fiscal year 2020 and
accordingly do not expect to generate any revenue from it.



                                      24

  Index


Restaurant Food Sales. Restaurant revenue generated from the sale of food,
including non-alcoholic beverages, at restaurants (food sales) totaled
$14,514,000 for the thirteen weeks ended June 27, 2020 as compared to
$18,447,000 for the thirteen weeks ended June 29, 2019. The decrease in
restaurant food sales for the thirteen weeks ended June 27, 2020 as compared to
restaurant food sales during the thirteen weeks ended June 29, 2019 is
attributable to the negative effects of COVID 19 on our operations. Comparable
weekly restaurant food sales (for restaurants open for all of the third quarter
of our fiscal year 2020 and the third quarter of our fiscal year 2019, which
consists of nine restaurants owned by us, (excluding Store #19 which was closed
for the thirteen weeks ended June 27, 2020 and June 29, 2019 due to a fire on
October 2, 2018) and eight restaurants owned by affiliated limited partnerships)
was $1,112,000 and $1,415,000 for the thirteen weeks ended June 27, 2020 and
June 29, 2019, respectively, a decrease of 21.41%. Comparable weekly restaurant
food sales for Company owned restaurants only was $547,000 and $717,000 for the
third quarter of our fiscal year 2020 and the third quarter of our fiscal year
2019, respectively, a decrease of 23.71%. Comparable weekly restaurant food
sales for affiliated limited partnership owned restaurants only was $565,000 and
$698,000 for the third quarter of our fiscal year 2020 and the third quarter of
our fiscal year 2019, respectively, a decrease of 19.05%. We expect that
restaurant food sales, including non-alcoholic beverages, for the balance of our
fiscal year 2020 will decrease due to the negative effects of COVID 19 on our
operations.



Restaurant Bar Sales. Restaurant revenue generated from the sale of alcoholic
beverages, (bar sales), at restaurants totaled $1,630,000 for the thirteen weeks
ended June 27, 2020 as compared to $5,652,000 for the thirteen weeks ended June
29, 2019. The decrease in restaurant bar sales during the thirteen weeks ended
June 27, 2020 as compared to restaurant bar sales during the thirteen weeks
ended June 29, 2019 is attributable to the negative effects of COVID 19 on our
operations. Comparable weekly restaurant bar sales (for restaurants open for all
of the third quarter of our fiscal year 2020 and the third quarter of our fiscal
year 2019, which consists of nine restaurants owned by us, (excluding Store #19
which was closed for the thirteen weeks ended June 27, 2020 and June 29, 2019
due to a fire on October 2, 2018), and eight restaurants owned by affiliated
limited partnerships) was $125,000 for the thirteen weeks ended June 27, 2020
and $435,000 for the thirteen weeks ended June 29, 2019, a decrease of 71.26%.
Comparable weekly restaurant bar sales for Company owned restaurants only was
$50,000 and $200,000 for the third quarter of our fiscal year 2020 and the third
quarter of our fiscal year 2019, respectively, a decrease of 75.00%. Comparable
weekly restaurant bar sales for affiliated limited partnership owned restaurants
only was $75,000 and $235,000 for the third quarter of our fiscal year 2020 and
the third quarter of our fiscal year 2019, respectively, a decrease of 68.09%.
We expect that restaurant bar sales for the balance of our fiscal year 2020 will
decrease due to the negative effects of COVID 19 on our operations, including
temporary closure of restaurant bars, except for dine-in service and minimal
sales with take-out service.



                                      25

  Index

Package Store Sales. Revenue generated from sales of liquor and related items at
package liquor stores totaled $7,099,000 for the thirteen weeks ended June 27,
2020 as compared to $4,752,000 for the thirteen weeks ended June 29, 2019, an
increase of $2,347,000. This increase was primarily due to increased package
liquor store traffic despite COVID-19 and because of the opening of our new
retail package liquor store (Store #45) located in Kendall, Florida during the
first quarter of our fiscal year 2020. The weekly average of same store package
liquor store sales, which includes eight (8) Company owned package liquor
stores, (excluding Store #19, which was closed for the thirteen weeks ended June
27, 2020 and June 29, 2019 due to a fire on October 2, 2018 and also excluding
Store #45, which opened for business on October 10, 2019), was $504,000 for the
thirteen weeks ended June 27, 2020 as compared to $366,000 for the thirteen
weeks ended June 29, 2019, an increase of 37.70%. We expect package liquor store
sales to continue to increase throughout the balance of our fiscal year 2020 as
compared to 2019 due to what appears to be an increased demand for package
liquor store products resulting from COVID 19 and the opening of our new package
liquor store located in Kendall, Florida during the first quarter of our fiscal
year 2020.



Operating Costs and Expenses.Operating costs and expenses, (consisting of cost
of merchandise sold, payroll and related costs, occupancy costs and selling,
general and administrative expenses), for the thirteen weeks ended June 27, 2020
decreased $3,173,000 or 11.51% to $24,395,000 from $27,568,000 for the thirteen
weeks ended June 29, 2019. The decrease was primarily due to cost cutting
measures we have implemented since mid-March 2020 to reduce and/or control costs
because of the negative effects of COVID 19 on our operations. We expect our
operating costs and expenses will decrease for the balance of our fiscal year
2020 due to the cost cutting measures. Operating costs and expenses increased as
a percentage of total sales to approximately 103.09% in the third quarter of our
fiscal year 2020 from 93.41% in the third quarter of our fiscal year 2019.

Gross Profit. Gross profit is calculated by subtracting the cost of merchandise sold from sales.





Restaurant Food Sales and Bar Sales. Gross profit for food and bar sales for the
thirteen weeks ended June 27, 2020 decreased to $10,756,000 from $15,718,000 for
the thirteen weeks ended June 29, 2019. Our gross profit margin for restaurant
food and bar sales (calculated as gross profit reflected as a percentage of
restaurant food and bar sales), was 66.63% for the thirteen weeks ended June 27,
2020 and 65.22% for the thirteen weeks ended June 29, 2019. Gross profit margin
for restaurant food and bar sales increased during the thirteen weeks ended June
27, 2020 when compared to the thirteen weeks ended June 29, 2019 due to the
inclusion of a 10% take-out charge in restaurant food sales, offset by the
negative effects of COVID 19 on our restaurant bar operations, the higher gross
profit margin item and higher food costs. We expect that our gross profit margin
for restaurant food and bar sales will increase during the balance of our fiscal
year 2020 for the same reasons.



Package Store Sales. Gross profit for package liquor store sales for the
thirteen weeks ended June 27, 2020 increased to $1,856,000 from $1,333,000 for
the thirteen weeks ended June 29, 2019, due primarily to increased package
liquor store traffic which we believe has been caused by COVID-19, as well as
the opening of our new Store #45 during the first quarter of our fiscal year
2020. Our gross profit margin, (calculated as gross profit reflected as a
percentage of package liquor store sales), for package store sales was 26.14%
for the thirteen weeks ended June 27, 2020 and 28.05% for the thirteen weeks
ended June 29, 2019. We anticipate that the gross profit margin for package
liquor store merchandise will decrease during our fiscal year 2020 due to higher
costs and a reduction in pricing of certain package store merchandise to be

more
competitive.




Payroll and Related Costs. Payroll and related costs for the thirteen weeks
ended June 27, 2020 decreased $1,192,000 or 13.09% to $7,913,000 from $9,105,000
for the thirteen weeks ended June 29, 2019. Lower payroll and related costs for
the thirteen weeks ended June 27, 2020 were due to certain cost cutting measures
including material layoffs at our restaurants and reduced corporate personnel
salaries from mid-March 2020 through mid-May, 2020 and thereafter due to an
adjustment to our traditional staffing model to meet customer demand, increased
by payroll for our package liquor store in Kendall, Florida which opened for
business during the first quarter of our fiscal year 2020. We anticipate that
until our restaurant operations are restored to pre-COVID 19 levels, of which
there can be no assurance, payroll and related costs will be less than our costs
from 2019. Payroll and related costs as a percentage of total sales was 33.44%
in the third quarter of our fiscal year 2020 and 30.85% of total sales in the
third quarter of our fiscal year 2019.



                                      26

  Index

Occupancy Costs. Occupancy costs (consisting of percentage rent, common area
maintenance, repairs, real property taxes, amortization of leasehold purchases
and rent expense associated with operating lease liabilities under ASC 842) for
the thirteen weeks ended June 27, 2020 increased $112,000 or 7.31% to $1,645,000
from $1,533,000 for the thirteen weeks ended June 29, 2019 due primarily to our
adoption of ASC 842. We anticipate that our occupancy costs will increase
throughout our fiscal year 2020 as compared to 2019 due primarily to our
adoption of ASC 842.



Selling, General and Administrative Expenses. Selling, general and
administrative expenses (consisting of general corporate expenses, including but
not limited to advertising, insurance, professional costs, clerical and
administrative overhead) for the thirteen weeks ended June 27, 2020 decreased
$924,000 or 18.01% to $4,206,000 from $5,130,000 for the thirteen weeks ended
June 29, 2019. Selling, general and administrative expenses increased as a
percentage of total sales in the third quarter of our fiscal year 2020 to 17.77%
as compared to 17.38% in the third quarter of our fiscal year 2019. We
anticipate that until our operations are restored to pre-COVID 19 levels, of
which there can be no assurance, our selling, general and administrative
expenses will be less than our expenses from 2019, offset by increases in
expenses across all categories.



Depreciation and Amortization. Depreciation and amortization expense for the
thirteen weeks ended June 27, 2020 increased $27,000 or 3.46% to $808,000 from
$781,000 from the thirteen weeks ended June 29, 2019. As a percentage of total
revenue, depreciation and amortization expense was 3.41% of revenue in the
thirteen weeks ended June 27, 2020 and 2.65% of revenue in the thirteen weeks
ended June 29, 2019.



Interest Expense, Net.Interest expense, net, for the thirteen weeks ended June
27, 2020 increased $21,000 to $196,000 from $175,000 for the thirteen weeks
ended June 29, 2019. Interest expense, net, will increase for the balance of our
fiscal year 2020 due to our borrowing of an additional $4.5 million during the
first quarter of our fiscal year 2020 on the re-financing by our wholly owned
subsidiary, Flanigan's Calusa Center, LLC, of its mortgage loan with an
unrelated third party lender, increasing the principal amount borrowed from
$2.72 million to $7.21 million and our borrowing of an additional $10.0 million
during the third quarter of our fiscal year 2020 on the PPP Loans.



Income Taxes. Income tax expense for the thirteen weeks ended June 27, 2020 was
a benefit of $53,000, as compared to an expense of $309,000 for the thirteen
weeks ended June 29, 2019. The income tax expense for the thirteen weeks ended
June 27, 2020 is based upon a revised COVID-19 estimated annual net income

for
our fiscal year 2020.



Net Income (Loss). Net income for the thirteen weeks ended June 27, 2020
decreased to a loss of $863,000 from net income of $1,476,000 for the thirteen
weeks ended June 29, 2019. Net income for the thirteen weeks ended June 27, 2020
decreased when compared to the thirteen weeks ended June 29, 2019 due to the
negative effects of COVID 19 on our operations, our adoption of ASC 842, higher
food costs and overall expenses, offset by our implementation of the cost
cutting measures and the 2019 Price Increases. As a percentage of sales, net
income for the third quarter of our fiscal year 2020 is (3.65%), as compared to
5.00% in the third quarter of our fiscal year 2019.



                                      27

  Index


Net Income (Loss) Attributable to Stockholders. Net income attributable to
stockholders for the thirteen weeks ended June 27, 2020 decreased to a loss of
$455,000 from net income of $968,000 for the thirteen weeks ended June 29, 2019.
Net income attributable to stockholders for the thirteen weeks ended June 27,
2020 decreased when compared to the thirteen weeks ended June 29, 2019 primarily
due to the negative effects of COVID 19 on our operations, our adoption of ASC
842, higher food costs and overall expenses, offset by our implementation of the
cost cutting measures and the 2019 Price Increases. As a percentage of sales,
net income for the third quarter of our fiscal year 2020 is (1.92%), as compared
to 3.28% in the third quarter of our fiscal year 2019.

Comparison of Thirty Nine Weeks Ended June 27, 2020 and June 29, 2019.





Revenues. Total revenue for the thirty-nine weeks ended June 27, 2020 decreased
$2,410,000 or 2.77% to $84,732,000 from $87,142,000 for the thirty-nine weeks
ended June 29, 2019. The decrease in total revenue for the thirty-nine weeks
ended June 27, 2020 as compared to the thirty-nine weeks ended June 29, 2019 was
primarily due to the negative effects of COVID-19 on our operations, offset by
increased restaurant traffic prior to mid-March, 2020 and the 2019 Price
Increases. From mid-March 2020 through mid-May 2020, we ceased dine-in service
at all of our restaurants, limiting service to take-out and delivery only,
ceased the sale of alcoholic beverages at our restaurants and implemented
reduced hours at our retail package liquor stores. From mid-May 2020 through the
beginning of July, 2020, there was a gradual elimination of restrictions on our
restaurant operations, permitting us to, among other things, operate at up to
50% capacity (depending on the location of the restaurant), but with no bar
service and increased operating hours at our package liquor stores. Since the
beginning of July, 2020, we ceased dine-in service at all of our Miami-Dade
County, Florida restaurants, except for outdoor seating and continue to operate
at up to 50% capacity at all other of our restaurants, but with no bar service.
We expect that total revenue for the balance of our fiscal year 2020 will
decrease due to the negative effects of COVID 19 on our operations. We expect
that Store #19 will remain closed during the balance of our fiscal year 2020 and
accordingly do not expect to generate any revenue from it.



Restaurant Food Sales. Restaurant revenue generated from the sale of food,
including non-alcoholic beverages, at restaurants (food sales) totaled
$51,469,000 for the thirty-nine weeks ended June 27, 2020 as compared to
$53,494,000 for the thirty-nine weeks ended June 29, 2019. The decrease in
restaurant food sales for the thirty-nine weeks ended June 29, 2020 as compared
to restaurant food sales during the thirty-nine weeks ended June 29, 2019 is
primarily due the negative effects of COVID 19 on our operations, offset by
increased restaurant traffic prior to mid-March 2020 and the 2019 Price
Increases. Comparable weekly restaurant food sales (for restaurants open for all
thirty-nine weeks of our fiscal years 2020 and 2019, which consists of nine
restaurants owned by us, (excluding Store #19 which was closed for the
thirty-nine weeks ended June 27, 2020 and June 29, 2019 due to a fire on October
2, 2018) and eight restaurants owned by affiliated limited partnerships) was
$1,310,000 and $1,370,000 for the thirty-nine weeks ended June 27, 2020 and June
30, 2019, respectively, a decrease of 4.38%. Comparable weekly restaurant food
sales for Company owned restaurants only was $660,000 and $693,000 for the
thirty-nine weeks of our fiscal years 2020 and 2019, respectively, a decrease of
4.76%. Comparable weekly restaurant food sales for affiliated limited
partnership owned restaurants only was $650,000 and $677,000 for the thirty-nine
weeks of our fiscal years 2020 and 2019, respectively, a decrease of 3.40%. We
expect that restaurant food sales, including non-alcoholic beverages, for the
balance of our fiscal year 2020 will decrease when compared to our fiscal year
2019 due to the negative effects of COVID 19 on our operations.



                                      28

  Index

Restaurant Bar Sales. Restaurant revenue generated from the sale of alcoholic
beverages, (bar sales), at restaurants totaled $12,836,000 for the thirty-nine
weeks ended June 27, 2020 as compared to $16,720,000 for the thirty-nine weeks
ended June 29, 2019. The decrease in restaurant bar sales for the thirty-nine
weeks ended June 29, 2020 as compared to restaurant bar sales during the
thirty-nine weeks ended June 29, 2019 is primarily due the negative effects of
COVID 19 on our operations, offset by increased restaurant traffic prior to
mid-March 2020 and the 2019 Price Increases. Comparable weekly restaurant bar
sales (for restaurants open for all thirty-nine weeks of our fiscal years 2020
and 2019, which consists of nine restaurants owned by us, (excluding Store #19
which was closed for the thirty-nine weeks ended June 27, 2020 and June 29, 2019
due to a fire on October 2, 2018) and eight restaurants owned by affiliated
limited partnerships) was $329,000 and $429,000 for the thirty-nine weeks ended
June 27, 2020 and June 30, 2019, respectively, a decrease of 23.31%. Comparable
weekly restaurant bar sales for Company owned restaurants only was $149,000 and
$196,000 for the thirty-nine weeks of our fiscal years 2020 and 2019,
respectively, a decrease of 23.98%. Comparable weekly restaurant bar sales for
affiliated limited partnership owned restaurants only was $180,000 and $233,000
for the thirty-nine weeks of our fiscal years 2020 and 2019, respectively, a
decrease of 22.75%. We expect that restaurant bar sales for the balance of our
fiscal year 2020 will decrease significantly due to the negative effects of
COVID 19 on our operations.



Package Store Sales. Revenue generated from sales of liquor and related items at
package liquor stores totaled $18,833,000 for the thirty-nine weeks ended June
27, 2020 as compared to $14,979,000 for the thirty-nine weeks ended June 29,
2019, an increase of $3,854,000. This increase was primarily due to increased
package liquor store traffic despite COVID-19 and because of the opening of our
new retail package liquor store (Store #45) located in Kendall, Florida during
the first quarter of our fiscal year 2020. The weekly average of same store
package liquor store sales, which includes eight (8) Company owned package
liquor stores, (excluding Store #19, which was closed for the thirty-nine weeks
ended June 27, 2020 and June 29, 2019 due to a fire on October 2, 2018 and also
excluding Store #45, which opened for business on October 10, 2019), was
$452,000 for the thirty-nine weeks ended June 27, 2020 as compared to $384,000
for the thirty-nine weeks ended June 29, 2019, an increase of 17.71%. We expect
package liquor store sales to continue to increase throughout the balance of our
fiscal year 2020 as compared to 2019 due to what appears to be an increased
demand for package liquor store products resulting from COVID 19 and the opening
of our new package liquor store located in Kendall, Florida during the first
quarter of our fiscal year 2020.



Operating Costs and Expenses. Operating costs and expenses, (consisting of cost
of merchandise sold, payroll and related costs, occupancy costs and selling,
general and administrative expenses), for the thirty-nine weeks ended June 27,
2020 increased $63,000 or 0.08% to $82,716,000 from $82,653,000 for the
thirty-nine weeks ended June 29, 2019. The minimal increase was primarily due to
cost cutting measures we have implemented since mid-March 2020 to reduce and/or
control costs because of the negative effects of COVID 19 on our operations. We
expect our operating costs and expenses will decrease for the balance of our
fiscal year 2020 due to the cost cutting measures. Operating costs and expenses
increased as a percentage of total sales to approximately 97.62% in the
thirty-nine weeks of our fiscal year 2020 from 94.85% for the thirty-nine weeks
of our fiscal year 2019.

Gross Profit. Gross profit is calculated by subtracting the cost of merchandise sold from sales.





Restaurant Food Sales and Bar Sales. Gross profit for food and bar sales for the
thirty-nine weeks ended June 27, 2020 decreased to $42,593,000 from $45,791,000
for the thirty-nine weeks ended June 29, 2019. Our gross profit margin for
restaurant food and bar sales (calculated as gross profit reflected as a
percentage of restaurant food and bar sales), was 66.24% for the thirty-nine
weeks ended June 27, 2020 and 65.22% for the thirty-nine weeks ended June 29,
2019. Gross profit margin for restaurant food and bar sales increased during the
thirty-nine weeks ended June 27, 2020 when compared to the thirty-nine weeks
ended June 29, 2019 due to the inclusion of a 10% take-out charge in restaurant
food sales, offset by the negative effects of COVID 19 on our restaurant bar
operations, the higher gross profit margin item and higher food costs. We expect
that our gross profit margin for restaurant food and bar sales will increase
during the balance of our fiscal year 2020 for the same reasons.



Package Store Sales. Gross profit for package liquor store sales for the
thirty-nine weeks ended June 27, 2020 increased to $5,125,000 from $4,073,000
for the thirty-nine weeks ended June 29, 2019, due primarily to increased
package liquor store traffic which we believe has been caused by COVID-19, as
well as the opening of our new Store #45 during the first quarter of our fiscal
year 2020. Our gross profit margin, (calculated as gross profit reflected as a
percentage of package liquor store sales), for package store sales was 27.21%
for the thirty-nine weeks ended June 27, 2020 and 27.19% for the thirty-nine
weeks ended June 29, 2019. We anticipate that the gross profit margin for
package liquor store merchandise will decrease during our fiscal year 2020 due
to higher costs and a reduction in pricing of certain package store merchandise
to be more competitive.



                                      29

  Index

Payroll and Related Costs. Payroll and related costs for the thirty-nine weeks
ended June 27, 2020 decreased $188,000 or 0.70% to $26,582,000 from $26,770,000
for the thirty-nine weeks ended June 29, 2019. Lower payroll and related costs
for the thirty-nine weeks ended June 27, 2020 were due to certain cost cutting
measures including material layoffs at our restaurants and reduced corporate
personnel salaries from mid-March 2020 through mid-May, 2020 and thereafter due
to an adjustment to our traditional staffing model to meet customer demand,
increased by payroll for our new package liquor store in Kendall, Florida. We
anticipate that until our restaurant operations are restored to pre-COVID 19
levels, of which there can be no assurance, payroll and related costs will be
less than our costs from 2019. Payroll and related costs as a percentage of
total sales was 31.37% in the thirty-nine weeks of our fiscal year 2020 and
30.72% of total sales in the thirty-nine weeks of our fiscal year 2020.



Occupancy Costs. Occupancy costs (consisting of percentage rent, common area
maintenance, repairs, real property taxes, amortization of leasehold purchases
and rent expense associated with operating lease liabilities under ASC 842) for
the thirty-nine weeks ended June 27, 2020 increased $808,000 or 17.77% to
$5,355,000 from $4,547,000 for the thirty-nine weeks ended June 29, 2019 due
primarily to our adoption of ASC 842. We anticipate that our occupancy costs
will increase throughout our fiscal year 2020 as compared to 2019 due primarily
to our adoption of ASC 842.



Selling, General and Administrative Expenses. Selling, general and
administrative expenses (consisting of general corporate expenses, including but
not limited to advertising, insurance, professional costs, clerical and
administrative overhead) for the thirty-nine weeks ended June 27, 2020 decreased
$648,000 or 4.05% to $15,359,000 from $16,007,000 for the thirty-nine weeks
ended June 29, 2019. Selling, general and administrative expenses decreased as a
percentage of total sales in the thirty-nine weeks of our fiscal year 2020 to
18.12% as compared to 18.37% in the thirty-nine weeks of our fiscal year 2019
due to a decrease of total sales caused by COVID 19 during the thirty-nine weeks
of our fiscal year 2020. We anticipate that until our operations are restored to
pre-COVID 19 levels, of which there can be no assurance, our selling, general
and administrative expenses will be less than our expenses from 2019, offset by
increases in expenses across all categories.



Depreciation and Amortization. Depreciation and amortization expense for the
thirty-nine weeks ended June 27, 2020 increased $196,000 or 8.73% to $2,441,000
from $2,245,000 from the thirty-nine weeks ended June 29, 2019. As a percentage
of total revenue, depreciation and amortization expense was 2.88% of revenue in
the thirty-nine weeks ended June 27, 2020 and 2.58% of revenue in the
thirty-nine weeks ended June 29, 2019.



Interest Expense, Net.Interest expense, net, for the thirty-nine weeks ended
June 27, 2020 increased $57,000 to $598,000 from $541,000 for the thirty-nine
weeks ended June 29, 2019. Interest expense, net, will increase for the balance
of our fiscal year 2020 due to our borrowing of an additional $4.5 million
during the first quarter of our fiscal year 2020 on the re-financing by our
wholly owned subsidiary, Flanigan's Calusa Center, LLC, of its mortgage loan
with an unrelated third party lender, increasing the principal amount borrowed
from $2.72 million to $7.21 million and our borrowing of an additional $10.0
million during the third quarter of our fiscal year 2020 on the PPP Loans.



Income Taxes. Income tax expense for the thirty-nine weeks ended June 27, 2020
was a benefit of $23,000, as compared to an expense of $653,000 for the
thirty-nine weeks ended June 29, 2019. The income tax expense for the
thirty-nine weeks ended June 27, 2020 is based upon a COVID-19 estimated annual
net income for our fiscal year 2020.



                                      30

  Index

Net Income. Net income for the thirty-nine weeks ended June 27, 2020 decreased
$2,461,000 or 62.48% to $1,478,000 from $3,939,000 for the thirty-nine weeks
ended June 29, 2019. Net income for the thirty-nine weeks ended June 27, 2020
decreased when compared to the thirty-nine weeks ended June 29, 2019 due to the
negative effects of COVID 19 on our operations, our adoption of ASC 842, higher
food costs and overall expenses, offset by our implementation of the cost
cutting measures and the 2019 Price Increases. As a percentage of sales, net
income for the thirty-nine weeks of our fiscal year 2020 is 1.74%, as compared
to 4.52% in the thirty-nine weeks of our fiscal year 2019.



Net Income Attributable to Stockholders.Net income attributable to stockholders
for the thirty-nine weeks ended June 27, 2020 decreased $2,045,000 or 74.85% to
$687,000 from $2,732,000 for the thirty-nine weeks ended June 29, 2019. Net
income attributable to stockholders for the thirty-nine weeks ended June 27,
2020 decreased when compared to the thirty-nine weeks ended June 29, 2019
primarily due to the negative effects of COVID 19 on our operations, our
adoption of ASC 842, higher food costs and overall expenses, offset by our
implementation of the cost cutting measures and the 2019 Price Increases. As a
percentage of sales, net income for the thirty-nine weeks of our fiscal year
2020 is 0.81%, as compared to 3.14% in the thirty-nine weeks of our fiscal

year
2019.

New Limited Partnership Restaurants





As new restaurants open, our income from operations will be adversely affected
due to our obligation to advance pre-opening costs, including but not limited to
pre-opening rent for the new locations. During the thirteen weeks ended June 27,
2020, we had one new restaurant location in Sunrise, Florida in the development
stage and have advanced $716,000 through June 27, 2020. During the fourth
quarter of our fiscal year 2019, we entered leases for two spaces adjacent to
each other, to house a new "Flanigan's Seafood Bar and Grill" as well as a "Big
Daddy's Wine and Liquors" in a shopping center in Miramar, Florida, which
shopping center is currently under construction.

Menu Price Increases and Trends





Effective June 16, 2019 we increased menu prices for our bar offerings to target
an increase to our bar revenues of approximately 6.2% annually and effective
June 23, 2019 we increased menu prices for our food offerings to target an
increase to our food revenues of approximately 3.4% annually to offset higher
food costs and higher overall expenses. Prior to these increases, we previously
raised menu prices in the fourth quarter of our fiscal year 2017.

COVID-19 has and will continue to materially and adversely affect our restaurant
business for what may be a prolonged period of time. This damage and disruption
has resulted from events and factors that were impossible for us to predict and
are beyond our control. As a result, and despite experiencing increased sales
and traffic at certain of our package liquor stores, COVID-19 has materially
adversely affected our results of operations for the thirteen weeks ended June
27, 2020, and will, in all likelihood, impact our results of operations,
liquidity and/or financial condition for the remainder of fiscal year 2020 and
into our fiscal year 2021. The extent to which our restaurant business may be
adversely impacted and its effect on our operations, liquidity and/or financial
condition cannot be accurately predicted.

We are not actively searching for locations for the operation of new package
liquor stores, but when our attempt to expand "The Whale's Rib" restaurant
concept in Miami, Florida was abandoned, we decided that the space we had
targeted for the "The Whales Rib" would be ideal for the operation of a package
liquor store and during the fourth quarter of our fiscal year 2018, we received
governmental approval to operate a package liquor store at that location. The
new package liquor store (Store #45) located in Kendall, Florida opened for
business in October, 2019. During the fourth quarter of our fiscal year 2019, we
entered a lease to house a new "Big Daddy's Wine & Liquors" package liquor store
in space adjacent to where we are planning a new "Flanigan's Seafood Bar and
Grill", restaurant in a shopping center in Miramar, Florida, which shopping
center is currently under construction.



                                      31

  Index

Liquidity and Capital Resources





We fund our operations through cash from operations. As of June 27, 2020, we had
cash of approximately $30,482,000, an increase of $16,810,000 from our cash
balance of $13,672,000 as of September 28, 2019. During the third quarter of our
fiscal year 2020, we, certain of the entities owning the limited partnership
stores (the "LP's"), franchised stores (the "Franchisees") as well as the store
we manage but do not own (the "Managed Store") (collectively, the "Borrowers"),
applied for and received loans from an unrelated third party lender (the
"Lender") pursuant to the Paycheck Protection Program (the "PPP") under the
Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") enacted
March 27, 2020, in the aggregate principal amount of approximately $13.1 million
(the "PPP Loans"), of which approximately: (i) $5.9 million was loaned to us ;
(ii) $4.1 million was loaned to 8 of the LP's ; (iii) $2.6 million was loaned to
5 of the Franchisees; and (iv) $0.5 million was loaned to the Managed Store. The
PPP Loans to the Franchisees and the Managed Store are not included in our
consolidated financial statements. During the first quarter of our fiscal year
2020, our wholly owned subsidiary, Flanigan's Calusa Center, LLC, re-financed
its mortgage loan with an unrelated third party lender, increasing the principal
amount borrowed from $2.72 million to $7.21 million.

The PPP Loans, which are in the form of Notes issued by each of the Borrowers,
mature five years from the date of funding (dates ranging from May 5, 2025 to
May 11, 2025) and bear interest at a rate of 1.00% per annum, payable monthly
commencing approximately six months from the date of issuance of the Notes
(issuance dates ranging from April 30, 2020 to May 6, 2020). The Notes may be
prepaid by the applicable Borrower at any time prior to maturity with no
prepayment penalties. Proceeds from the PPP Loans are available to the
respective Borrower to fund designated expenses, including certain payroll
costs, group health care benefits and other permitted expenses, including rent
and interest on mortgages and other debt obligations incurred before February
15, 2020. Under the terms of the PPP, up to the entire amount of principal and
accrued interest may be forgiven to the extent the proceeds of the PPP Loans are
used for qualifying expenses as described in the CARES Act and applicable
implementing guidance issued by the U.S. Small Business Administration under the
PPP. No assurance can be given that the Borrowers will obtain forgiveness of the
PPP Loan in whole or in part.

With respect to any portion of any of the PPP Loans that is not forgiven under
the terms of the PPP, such amounts will be subject to customary provisions for a
loan of this type, including customary events of default relating to, among
other things, payment defaults, breaches of the provisions of the applicable PPP
Note and cross-defaults on any other loan with the Lender or other creditors.



                                      32

  Index


Prior to obtaining the PPP Loans, we were in compliance with the financial
covenants contained in our five (5) loans with our unrelated third party
institutional lender (the "Institutional Lender") under which as of June 27,
2020, we owe in the aggregate approximately $12,600,000 (the "Institutional
Loans"). We have determined that as of June 27, 2020, we are not in compliance
with our financial covenants contained in each of the Institutional Loans
related to the Rent Adjusted Funded Debt to EBITDA Ratio because our
consolidated debt as of June 27, 2020 increased due to the repayment obligations
caused by our repayment obligations under the PPP Loans (the "Covenant Breach').
The Institutional Loans each contain a cross-default provision. Under these
cross-default provisions, a default under an Institutional Loan may constitute a
'default' under all Institutional Loans. Pursuant to the terms of the
Institutional Loans, a default, including but not limited to the Covenant
Breach, grants the Institutional Lender the right to exercise certain remedies
under the Institutional Loans, including the right to accelerate the
indebtedness owed by us to the Institutional Lender thereunder. On August 10,
2020, we received a written waiver of the Covenant Breach from the Institutional
Lender, which, among other things, waives the Covenant Breach through June 30,
2021.

There can be no assurances that we will be in compliance with our financial
covenants thereafter due to, among other things, that our results of operations
will likely continue to be materially impacted by the COVID-19 pandemic. Absent
a waiver, failure to be in compliance with our financial covenants would
constitute a default under the Institutional Loans with our Institutional Lender
when reported. Such a default, if not cured or waived, would allow the
Institutional Lender to accelerate the maturity of the indebtedness we owe under
the Institutional Loans, making it due and payable at the time. If maturity of
the Institutional Loans were accelerated, it would have a material adverse
impact on our consolidated financial statements and results of operations.

Notwithstanding the negative effects of COVID 19 on our operations, we believe
that our current cash availability from our cash on hand, positive cash flow
from operations and borrowed funds will be sufficient to fund our operations and
planned capital expenditures for at least the next twelve months.

                                      33

  Index

Cash Flows

The following table is a summary of our cash flows for the thirty-nine weeks ended June 27, 2020 and June 29, 2019.





                                      34

  Index

                                                         ---------Thirty Nine Weeks Ended--------
                                                         June 27, 2020               June 29, 2019
                                                                      (in Thousands)


Net cash provided by operating activities             $             7,437         $             6,193
Net cash used in investing activities                              (2,448 )                    (3,470 )
Net cash provided by (used in) financing activities                11,821                      (3,604 )

Net increase (decrease) in Cash and Cash
Equivalents                                                        16,810                        (881 )

Cash and Cash Equivalents, Beginning                               13,672                      13,414

Cash and Cash Equivalents, Ending                     $            30,482  

      $            12,533




On March 24, 2020, due to the negative effects of COVID 19 on our operations,
our Board of Directors cancelled a previously declared cash dividend of $.30 per
share to shareholders of record on March 20, 2020 and payable on April 3, 2020.
During the thirty-nine weeks ended June 29, 2019, our Board of Directors
declared and paid a cash dividend of 28 cents per share to shareholders of
record on March 15, 2019. Any future determination to pay cash dividends will be
at our Board's discretion and will depend upon our financial condition,
operating results, capital requirements and such other factors as our Board

deems relevant.



Capital Expenditures



In addition to using cash for our operating expenses, we use cash to fund the
development and construction of new restaurants and to fund capitalized property
improvements for our existing restaurants. During the thirty nine weeks ended
June 27, 2020, we acquired property and equipment and construction in progress
of $2,171,000, (of which $96,000 was deposits recorded in other assets and
$2,000 was purchase deposits transferred to construction in process as of
September 28, 2019), which amount included $263,000 for the renovation to two
(2) existing limited partnership restaurants and $429,000 for renovations to
five (5) Company owned restaurants. During the thirty nine weeks ended June 29,
2019, we acquired property and equipment and construction in progress of
$5,244,000, (of which $1,300,000 was for the purchase of vacant real property in
Pompano Beach, Florida; $236,000 was for construction in process; and $548,000
was deposits recorded in other assets as of September 29, 2018), which amount
included $73,000 for renovations to one (1) existing limited partnership
restaurant and $385,000 for renovations to three (3) Company owned restaurants.



All of our owned units require periodic refurbishing in order to remain
competitive. We anticipate the cost of this refurbishment in our fiscal year
2020 to be approximately $750,000, excluding construction/renovations to Store
#19 (our combination package liquor store and restaurant which is being rebuilt
due to damages caused by a fire) and Store #85 (our Sunrise, Florida restaurant
location in development), $692,000 of which has been spent through June 27,

2020.



Long Term Debt



As of June 27, 2020, we had long term debt of $27,157,000, as compared to
$13,828,000 as of June 29, 2019, and $13,080,000 as of September 28, 2019. Our
long term debt increased as of June 27, 2020 as compared to September 28, 2019
due to (i) the PPP Loan to us of $5.9 million; (ii) the PPP Loans to our eight
limited partnerships of $4.1 million; (iii) the re-financing of its mortgage
loan by our wholly owned subsidiary, Flanigan's Calusa Center, LLC, increasing
the principal amount borrowed from $2.72 million to $7.21 million; and (iv)
$1,281,000 for financed insurance premiums, less any payments made on account
thereof.

                                      35

  Index




Prior to obtaining the PPP Loans, we were in compliance with the financial
covenants contained in our five (5) loans with our unrelated third party
institutional lender (the "Institutional Lender") under which as of June 27,
2020, we owe in the aggregate approximately $12,600,000 (the "Institutional
Loans"). We have determined that as of June 27, 2020, we are not in compliance
with our financial covenants contained in each of the Institutional Loans
related to the Rent Adjusted Funded Debt to EBITDA Ratio because our
consolidated debt as of June 27, 2020 increased due to the repayment obligations
caused by our repayment obligations under the PPP Loans (the "Covenant Breach').
The Institutional Loans each contain a cross-default provision. Under these
cross-default provisions, a default under an Institutional Loan may constitute a
'default' under all Institutional Loans. Pursuant to the terms of the
Institutional Loans, a default, including but not limited to the Covenant
Breach, grants the Institutional Lender the right to exercise certain remedies
under the Institutional Loans, including the right to accelerate the
indebtedness owed by us to the Institutional Lender thereunder. On August 10,
2020, we received a written waiver of the Covenant Breach from the Institutional
Lender, which, among other things, waives the Covenant Breach through June 30,
2021.

There can be no assurances that we will be in compliance with our financial
covenants thereafter due to, among other things, that our results of operations
will likely continue to be materially impacted by the COVID-19 pandemic. Absent
a waiver, failure to be in compliance with our financial covenants would
constitute a default under the Institutional Loans with our Institutional Lender
when reported. Such a default, if not cured or waived, would allow the
Institutional Lender to accelerate the maturity of the indebtedness we owe under
the Institutional Loans, making it due and payable at the time. If maturity of
the Institutional Loans were accelerated, it would have a material adverse
impact on our consolidated financial statements and results of operations.




                                      36

  Index

As of June 27, 2020, the aggregate principal balance owed from the financing of
our property, general liability, boiler and directors and officers liability
insurance policies is $729,000.



Construction Contracts

a. 2505 N. University Drive, Hollywood, Florida (Store #19)





During our fiscal year 2018 and prior to it being closed in the first quarter of
our fiscal year 2019 due to damages caused by a fire, we entered into an
agreement with a third party unaffiliated general contractor for design and
development services for the construction of a new building (the "New Building")
on a parcel of real property which we own and which is adjacent to the real
property where our combination package liquor store and restaurant located at
2505 N. University Drive, Hollywood, Florida, (Store #19) operated until it was
closed in October, 2018 due to damages caused by a fire for a total contract
price of $127,000 (the "$127,000 Contract"). We plan to re-locate our package
liquor store at the property to the New Building. During the term of the
$127,000 Contract, we agreed to change orders which had the effect of increasing
the total contract price of the same to $138,000, and during the second quarter
of our fiscal year 2019, we paid the balance of the total contract price of the
$127,000 Contract, in the amount of $25,000. During the first quarter of our
fiscal year 2020, we agreed upon changes to the $127,000 Contract for additional
design and development services for the construction of the New Building which
had the effect of increasing the total contract price of the same by $10,000 to
$148,000, of which $6,000 has been paid through June 27, 2020.



During the third quarter of our fiscal year 2019, we entered into an agreement
with a third party unaffiliated architect for design and development services
totaling $77,000 for the re-build of our restaurant located at 2505 N.
University Drive, Hollywood, Florida (Store #19) which has been closed since
October 2018 due to damages caused by a fire, of which $62,000 has been paid.
Additionally, during the third quarter of our fiscal year 2019, we entered into
an agreement with a third party unaffiliated general contractor for site work at
this location totaling $1,618,000, (i) to connect the real property where this
restaurant operated (Store #19) to city sewer and (ii) to construct a new
building on the adjacent parcel of real property for the operation of a package
liquor store, of which $-0- has been paid through June 27, 2020.

b. 14301 W. Sunrise Boulevard, Sunrise, Florida (Store #85)





During the third quarter of our fiscal year 2019, we also entered into an
agreement with a third party unaffiliated design group for design and
development services of our new location at 14301 W. Sunrise Boulevard, Sunrise,
Florida 33323 (Store #85) for a total contract price of $122,000. During the
first quarter of our fiscal year 2020, we agreed upon amendments to the $122,000
Contract for additional design and development services which had the effect of
increasing the total contract price by $18,000 to $140,000, of which $97,000 has
been paid through June 27, 2020.



Purchase Commitments / Supply



In order to fix the cost and ensure adequate supply of baby back ribs for our
restaurants, on November 5, 2019, we entered into a purchase agreement with our
current rib supplier, whereby we agreed to purchase approximately $5,314,000 of
baby back ribs during calendar year 2020 from this vendor at a fixed cost.




                                      37

  Index

While we anticipate purchasing all of our rib supply from this vendor, we believe there are several other alternative vendors available, if needed.

Purchase of Limited Partnership Interest





During the thirty-nine weeks ended June 27, 2020, we did not purchase any
limited partnership interests. During the thirty-nine weeks ended June 29, 2019,
we purchased from one limited partner (who is not an officer, director or family
member of officers or directors) a limited partnership interest of 0.63% in a
limited partnership which owns a restaurant, for a purchase price of $4,800.



Working Capital

The table below summarizes the current assets, current liabilities, and working capital for our fiscal quarters ended June 27, 2020, June 29, 2019 and our fiscal year ended September 28, 2019.





Item                   June 27, 2020       June 29, 2019       Sept 28, 2019
                                          (in thousands)

Current Assets        $        37,288     $        18,817     $        19,593
Current Liabilities            21,164              15,529              13,129
Working Capital       $        16,124     $         3,288     $         6,464





Our working capital increased during our fiscal quarter ended June 27, 2020 from
our working capital for our fiscal quarter ended June 29, 2019 and our fiscal
year ended September 28, 2019 due to the cash received from (i) the PPP Loan to
us of $5.9 million; (ii) the PPP Loans to our eight limited partnerships of $4.1
million; and (iii) the re-financing of its mortgage loan by our wholly owned
subsidiary, Flanigan's Calusa Center, LLC, increasing the principal amount
borrowed from $2.72 million to $7.21 million, offset by $967,000 due to our
adoption of ASC 842.



While there can be no assurance due to, among other things, unanticipated
expenses or unanticipated decline in revenues, or both, we believe that our cash
on hand, cash flow from operations and funds available from our borrowings will
adequately fund operations, debt reductions and planned capital expenditures
throughout our fiscal year 2020.

Off-Balance Sheet Arrangements

We do not have off-balance sheet arrangements.





Inflation



The primary inflationary factors affecting our operations are food, beverage and
labor costs. A large number of restaurant personnel are paid at rates based upon
applicable minimum wage and increases in minimum wage directly affect labor
costs. To date, inflation has not had a material impact on our operating
results, but this circumstance may change in the future if food and fuel costs
rise.

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