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COMMITMENTS AND CONTINGENCIES

9 Months Ended

Jun. 27, 2026

Commitments and Contingencies [Abstract]

COMMITMENTS AND CONTINGENCIES

(9) COMMITMENTS AND CONTINGENCIES:

Master Service Agreement

During the first quarter of our fiscal year 2025, we entered into a Master Services Agreement with our current major vendor for a period of one year effective January 1, 2025, with Company options for four one-year renewal options to extend the term of the same. In this 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. During the fourth quarter of our fiscal year 2025, we exercised the first one-year renewal option and extended the term of the Master Services Agreement for a period of one year effective January 1, 2026. Subsequent to the end of the third quarter of our fiscal year 2026, we exercised the second one-year renewal option and extended the term of the Master Services Agreement for a period of one year effective January 1, 2027.

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 46 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.

During the second quarter of our fiscal year 2026, we amended the lease for our limited partnership-owned restaurant in Surfside, Florida (Store #60). Effective January 1, 2026, we extended the term of our lease to ten years through December 31, 2035, which would otherwise have expired on December 31, 2026, with no renewal options. The amended lease is at a fixed base rent with annual increases based upon the consumer price increase, with both a minimum and maximum cap. The increase to our lease liability and right-of-use asset is approximately $2.05 million.

During the third quarter of our fiscal year 2026, we amended the lease for our limited partnership-owned restaurant located at 17185 Pines Boulevard, Pembroke Pines, Florida (Store #50) to add two five-year renewal options to the term of our lease which would otherwise have expired on October 31, 2031, upon the same terms and conditions. The increase to our lease liability and right-of-use asset is approximately $490,000.

Common area maintenance and property taxes are not considered to be lease components. Variable lease costs include amounts based on a percentage of gross sales in excess of specified levels. They are recognized when probable and are not included in determining the present value of our operating lease liability.

The components of lease expense are as follows:

		(in thousands)
		13 Weeks				13 Weeks
		Ended June 27, 2026				Ended June 28, 2025
Operating Lease Expense, which is included in occupancy costs		$	996			$	994

Variable Lease Expense, which is included in occupancy costs		$	258			$	227

		(in thousands)
		39 Weeks				39 Weeks
		Ended June 27, 2026				Ended June 28, 2025
Operating Lease Expense, which is included in occupancy costs		$	3,033			$	2,975

Variable Lease Expense, which is included in occupancy costs		$	733			$	692

		(in thousands)
Classification on the Condensed Consolidated Balance Sheets		June 27, 2026				September 27, 2025

Assets
Operating lease assets		$	24,613			$	24,817

Liabilities
Operating lease current liabilities		$	2,615			$	2,704
Operating lease non-current liabilities		$	23,679			$	23,793

Weighted Average Remaining Lease Term:
Operating leases			9.68 Years				9.53 Years

Weighted Average Discount:
Operating leases			5.21%				5.13%

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

		(in thousands)
For fiscal year		Operating
2026 (14 weeks remaining)		$	958
2027			3,886
2028			3,922
2029			3,942
2030			3,580
Thereafter			20,099

Total lease payments (undiscounted cash flows)			36,387
Less imputed interest			(10,093	)
Total operating lease liabilities		$	26,294

Litigation

On March 31, 2025, a lawsuit was filed against the Company, one of its five franchisees and three of its controlled limited partnerships alleging violations of the Fair Labor Standards Act ("FLSA"), including failure to pay overtime and improper use of the tip credit. During the second quarter of fiscal year 2026, the Court conditionally certified a FLSA collective action. The opt-in period expired on July 23, 2026, with approximately fifty current and former non-exempt servers and bartenders comprising the collective. There is no insurance coverage for this action. The Company, the franchisee and limited partnerships vigorously deny the allegations. Following discovery, a full evidentiary hearing will be held for the Court to determine whether the lawsuit will continue as a collective action; that hearing has not yet occurred.

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.