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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Mar. 29, 2025

Commitments and Contingencies [Abstract]

COMMITMENTS AND CONTINGENCIES

(7) COMMITMENTS AND CONTINGENCIES:

Master Service Agreement

During the first quarter of our fiscal year 2025, we entered into a new Master Services Agreement with our current major vendor for a period of one (1) year effective January 1, 2025, with Company options for four (4) one (1) year renewal options to extend the term of the same. In this new Master Service Agreement, as in our prior Master Service Agreements, we commit to purchase specific products through our current major vendor but are free to purchase other products through other vendors, provided no less than 80% of our overall product needs are purchased through our current major vendor.

ERP Contract

In the third quarter of our fiscal year 2024, we entered into an agreement with Oracle, an unrelated third-party vendor for the licensing and support of NetSuite, a cloud-based Oracle ERP solution to replace our general ledger. The agreement is for a period of five years at a fixed rate of approximately $40,000 annually, with a cap on the percentage increase to our fees for our options to extend the term of the agreement for years six and seven. We expect the implementation of NetSuite to be complete and functional during the third quarter of our fiscal year 2025.

In the third quarter of our fiscal year 2024, we also entered into an agreement with an unrelated third-party implementation partner for the implementation of NetSuite. The fee for its implementation services will be approximately $237,000, payable as hourly services are performed and billed. As of the end of the second quarter of our fiscal year 2025 we have paid this implementation partner $230,000.

Leases

To conduct certain of our operations, we lease restaurant and package liquor store space in South Florida from unrelated third parties. Our leases have remaining lease terms of up to 47 years, some of which include options to renew and extend the lease terms for up to an additional 24 years. We presently intend to renew some of the extension options available to us and for purposes of computing the right-of-use assets and lease liabilities required by ASC 842, we have incorporated into all lease terms which may be extended, an additional term of the lesser of (i) the amount of years the lease may be extended; or (ii) 15 years.

Common area maintenance and property taxes are not considered to be lease components.

The components of lease expense are as follows:

		(in thousands)
		13 Weeks				13 Weeks
		Ended March 29, 2025				Ended March 30, 2024
Operating Lease Expense, which is included in occupancy costs		$	991			$	949

Variable Lease Expense, which is included in occupancy costs		$	219			$	246

		(in thousands)
		26 Weeks				26 Weeks
		Ended March 29, 2025				Ended March 30, 2024
Operating Lease Expense, which is included in occupancy costs		$	1,982			$	1,949

Variable Lease Expense, which is included in occupancy costs		$	461			$	480

		(in thousands)
Classification on the Condensed Consolidated Balance Sheets		March 29, 2025				September 28, 2024

Assets
Operating lease assets		$	25,766			$	26,828

Liabilities
Operating lease current liabilities		$	2,545			$	2,467
Operating lease non-current liabilities		$	24,825			$	25,847

Weighted Average Remaining Lease Term:
Operating leases			9.92 Years				10.17 Years

Weighted Average Discount:
Operating leases			5.11%				5.02%

The following table outlines the minimum future lease payments for the next five years and thereafter:

		(in thousands)
For fiscal year		Operating
2025 (26 weeks remaining)		$	1,911
2026			3,860
2027			3,765
2028			3,780
2029			3,800
Thereafter			20,960

Total lease payments (undiscounted cash flows)			38,076
Less imputed interest			(10,706	)
Total operating lease liabilities		$	27,370

Litigation

Our sale of alcoholic beverages subjects us to “dram shop” statutes, which allow an injured person to recover damages from an establishment that served alcoholic beverages to an intoxicated person. If we receive a judgment substantially in excess of our insurance coverage or if we fail to maintain our insurance coverage, our business, financial condition, operating results or cash flows could be materially and adversely affected. We currently have no “dram shop” claims.

From time to time, we are a party to various other claims, legal actions and complaints arising in the ordinary course of our business, including claims resulting from “slip and fall” accidents, claims under federal and state laws governing access to public accommodations, employment-related claims and claims from guests alleging illness, injury or other food quality, health or operational concerns. It is our opinion, after consulting with legal counsel, that all such matters are without merit or involve such amounts that an unfavorable disposition, some of which is covered by insurance, would not have a material adverse effect on our financial position or results of operations.