-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 WWKiZLAxm+moxOCn7OJ/iGCZEnPC0JMCo5B1EhdndH1V6tW/LQT1kYD9bouvV3wU
 OGIKywMAXUx4Gwynedf0Fw==

<SEC-DOCUMENT>0000825324-08-000017.txt : 20080811
<SEC-HEADER>0000825324-08-000017.hdr.sgml : 20080811
<ACCEPTANCE-DATETIME>20080811152510
ACCESSION NUMBER:		0000825324-08-000017
CONFORMED SUBMISSION TYPE:	10QSB
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20080630
FILED AS OF DATE:		20080811
DATE AS OF CHANGE:		20080811

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			GOOD TIMES RESTAURANTS INC
		CENTRAL INDEX KEY:			0000825324
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-EATING PLACES [5812]
		IRS NUMBER:				841133368
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		10QSB
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-18590
		FILM NUMBER:		081005925

	BUSINESS ADDRESS:	
		STREET 1:		601 CORPORATE CIRCLE
		CITY:			GOLDEN
		STATE:			CO
		ZIP:			80401
		BUSINESS PHONE:		3033841400

	MAIL ADDRESS:	
		STREET 1:		601 CORPORATE CIRCLE
		CITY:			GOLDEN
		STATE:			CO
		ZIP:			80401

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PARAMOUNT VENTURES INC
		DATE OF NAME CHANGE:	19900205
</SEC-HEADER>
<DOCUMENT>
<TYPE>10QSB
<SEQUENCE>1
<FILENAME>qsb11.htm
<TEXT>
<html>

<head>
<!-- Document Prepared With E-Services, LLC HTML Software-->
<!-- Copyright 2006 E-Services, LLC.-->
<!-- All rights reserved EDGAR2.com -->



<title>UNITED STATES</title>



</head>

<body lang=EN-US vlink=purple>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>


  <p class=MsoTitle>UNITED STATES</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoSubtitle style='margin-right:4.5pt'>SECURITIES
  AND EXCHANGE COMMISSION</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoSubtitle style='margin-right:4.5pt'>Washington, D.C. 20549</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <h3>FORM
  10-QSB</h3>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'>QUARTERLY REPORT
  UNDER SECTION 13 OR 15(d) OF</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'>THE SECURITIES
  EXCHANGE ACT OF 1934</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'>For quarterly
  period ended: <u>June 30, 2008</u></p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'>Commission file
  number: <u>0-18590</u></p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><u>GOOD TIMES
  RESTAURANTS INC.</u></p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'>(Exact name of
  registrant as specified in its charter)</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><u>NEVADA</u></p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'>(State or other
  jurisdiction of incorporation or organization)</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><u>84-1133368</u></p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'>(I.R.S. Employer
  Identification No.)</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><u>601 CORPORATE
  CIRCLE, GOLDEN, CO&nbsp;&nbsp; 80401</u></p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'>(Address of
  principal executive offices)</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><u>(303) 384-1400 </u></p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'>(Issuer's telephone
  number)</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=center style='margin-right:4.5pt;text-align:center'>(Former name, former
  address and former fiscal year, since last report.)</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=center style='margin-right:4.5pt;text-align:center'>Check whether the
  issuer (1) filed all reports required to be filed by Section 13 or 15(d) of
  the Exchange Act during the past 12 months (or for such shorter period that
  the registrant was required to file such reports), and (2) has been subject
  to such filing requirements for the past 90 days.</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=center style='margin-right:4.5pt;text-align:center'>[X]&nbsp;&nbsp; Yes&nbsp;&nbsp;&nbsp; [&nbsp; ]&nbsp;&nbsp;
  No</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <h3>APPLICABLE
  ONLY TO CORPORATE ISSUERS </h3>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=center style='margin-right:4.5pt;text-align:center'>Total number of
  shares of stock outstanding at August 11, 2008.</p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'><u>3,898,559 SHARES OF
  COMMON STOCK, .001 PAR VALUE</u></p>
  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=638 valign=top style='width:6.65in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:4.5pt;text-align:center'>Transitional Small
  Business Disclosure Format (check one):&nbsp; [&nbsp; ]&nbsp;&nbsp; Yes&nbsp;&nbsp;&nbsp; [X ]&nbsp; No</p>
  </td>
 </tr>
</table>



<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br clear=all style='page-break-before:always'>










<p class=MsoNormal><b>Form
10-QSB</b></p>

<p class=MsoNormal><b>Quarter
Ended June 30, 2008</b></p>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>&nbsp;</b></p>
  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b><u>INDEX</u></b></p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><b><u>PAGE</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>PART
  I - FINANCIAL INFORMATION</b></p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  1.</p>
  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>Financial Statements</p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>Condensed Consolidated Balance Sheets -</p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent style='margin:0in;margin-bottom:.0001pt'>June 30, 2008 and September 30, 2007</p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  8.1pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'>3 - 4</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent style='margin:0in;margin-bottom:.0001pt'>Condensed
  Consolidated Statements of Operations - </p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoList2 style='margin-left:0in;text-indent:0in'>For the three and nine
  months ended June 30, 2008 and 2007</p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoList2 align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
  text-indent:0in'>5</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoList2 style='margin-left:0in;text-indent:0in'>Condensed
  Consolidated Statements of Cash Flow -</p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoList2 style='margin-left:0in;text-indent:0in'>For the nine months
  ended June 30, 2008 and 2007</p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoList2 align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
  text-indent:0in'>6</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Notes
  to Financial Statements</p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>7 - 10</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  2.</p>
  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Management's
  Discussion and Analysis</p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>11 - 17</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  3.</p>
  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Quantitative
  and Qualitative Disclosures About Market Risk</p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>17</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  4.</p>
  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Controls
  and Procedures</p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>18</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>PART
  II - OTHER INFORMATION</b></p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  1.</p>
  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Legal
  Proceedings</p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>18</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  2.</p>
  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Changes
  in Securities and Use of Proceeds</p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>18</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  3.</p>
  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Defaults
  Upon Senior Securities</p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>18</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  4.</p>
  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Submission
  of Matters to a Vote of Security Holders</p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>18</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  5.</p>
  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Other
  Information.</p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>18</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Item
  6.</p>
  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Exhibits
  and Reports on Form 8-K</p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>18</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>SIGNATURES</b></p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>19</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>&nbsp;</b></p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>CERTIFICATIONS</b></p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>Exhibit 31.1</p>
  </td>
 </tr>
 <tr>
  <td width=67 valign=top style='width:.7in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=425 valign=top style='width:318.6pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>&nbsp;</b></p>
  </td>
  <td width=127 valign=top style='width:95.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>Exhibit 32.1</p>
  </td>
 </tr>
</table>



<p class=MsoFooter align=center style='text-align:center'>2</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>





<br clear=all style='page-break-before:always'>












<p class=MsoNormal><b>PART
I - FINANCIAL INFORMATION</b></p>

<p class=MsoNormal><b>ITEM
1.&nbsp;&nbsp;&nbsp; FINANCIAL STATEMENTS</b></p>



<p class=MsoNormal align=center style='text-align:center'><b>GOOD TIMES
RESTAURANTS INC. AND SUBSIDIARIES</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>CONDENSED
CONSOLIDATED BALANCE SHEETS</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>ASSETS</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>(Unaudited)</b></p>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:-.9pt;
  margin-bottom:0in;margin-left:17.1pt;margin-bottom:.0001pt;text-align:center'>June 30,</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right'>September 30,</p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:-.9pt;
  margin-bottom:0in;margin-left:12.1pt;margin-bottom:.0001pt;text-align:center'><u>2008</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:-.9pt;
  margin-bottom:0in;margin-left:12.1pt;margin-bottom:.0001pt;text-align:center'><u>2007</u></p>
  </td>
 </tr>
 <tr style='height:16.65pt'>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:16.65pt'>
  <p class=MsoNormal>CURRENT
  ASSETS:</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt;
  height:16.65pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:16.65pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:16.65pt'>

  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash
  and cash equivalents</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>$1,627,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>$2,465,000</p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivables,
  net of allowance for doubtful</p>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; accounts
  of $0</p>
  </td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>249,000</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>187,000</p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid
  expenses and other</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>119,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>39,000</p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>225,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>191,000</p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes
  receivable</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp; 52,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'><u>&nbsp;</u></p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp; 88,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
  current assets</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>2,272,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>2,970,000</p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>PROPERTY
  AND EQUIPMENT, at cost:</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land
  and building</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>5,663,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>5,252,000</p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leasehold
  improvements</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>3,901,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>3,737,000</p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixtures
  and equipment</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>&nbsp;8,112,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'><u>&nbsp;</u></p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>&nbsp; 7,798,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>17,676,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>16,787,000</p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  8.1pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'><u>&nbsp;</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  8.1pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'><u>&nbsp;</u></p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent style='margin:0in;margin-bottom:.0001pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less
  accumulated depreciation and amortization</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  .05in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'><u>(10,275,000)</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  .05in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'><u>(9,371,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>7,401,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>7,416,000</p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Assets held for sale</h3>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>231,000</h3>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>779,000</h3>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>OTHER
  ASSETS:</h3>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes
  receivable, net of current portion</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>27,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>300,000</p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits
  and other assets</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;65,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>&nbsp;&nbsp;&nbsp;&nbsp; 79,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;92,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>&nbsp;&nbsp; 379,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=361 valign=top style='width:270.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>TOTAL
  ASSETS</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>$9,996,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>$11,544,000</u></p>
  </td>
 </tr>
</table>

<h3>&nbsp;</h3>

<h3>LIABILITIES AND STOCKHOLDERS' EQUITY</h3>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr>
  <td width=367 valign=top style='width:275.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:0in;text-align:left;
  line-height:normal'>CURRENT
  LIABILITIES:</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=367 valign=top style='width:275.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent style='margin:0in;margin-bottom:.0001pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current
  maturities of long-term debt</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  12.6pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'>$&nbsp; 122,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  12.6pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'>$ 870,000</p>
  </td>
 </tr>
 <tr>
  <td width=367 valign=top style='width:275.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts
  payable</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'>451,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'>387,000</p>
  </td>
 </tr>
 <tr>
  <td width=367 valign=top style='width:275.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred
  income</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'>193,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'>119,000</p>
  </td>
 </tr>
 <tr>
  <td width=367 valign=top style='width:275.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other
  accrued liabilities</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'><u>&nbsp; &nbsp;&nbsp;939,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'><u>&nbsp;&nbsp; 1,062,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=367 valign=top style='width:275.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
  current liabilities</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'>1,705,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'>2,438,000</p>
  </td>
 </tr>
 <tr>
  <td width=367 valign=top style='width:275.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=367 valign=top style='width:275.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>LONG-TERM
  LIABILITIES:</h3>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:12.6pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 style='margin:0in;margin-bottom:.0001pt'>&nbsp;</h3>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</h3>
  </td>
 </tr>
 <tr>
  <td width=367 valign=top style='width:275.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent style='margin:0in;margin-bottom:.0001pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt, net of
  current portion</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  12.6pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'>879,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  12.6pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:
  right'>970,000</p>
  </td>
 </tr>
 <tr>
  <td width=367 valign=top style='width:275.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred
  liabilities</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'><u>1,055,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'><u>1,052,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=367 valign=top style='width:275.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
  long-term liabilities</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'>1,934,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right'>2,022,000</p>
  </td>
 </tr>
 <tr>
  <td width=367 valign=top style='width:275.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr style='height:4.0pt'>
  <td width=367 valign=top style='width:275.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p class=MsoNormal style='page-break-after:avoid'>MINORITY INTERESTS IN PARTNERSHIPS</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right;
  page-break-after:avoid'>627,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>

  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt;
  height:4.0pt'>
  <p class=MsoNormal align=right style='margin-right:12.6pt;text-align:right;
  page-break-after:avoid'>751,000</p>
  </td>
 </tr>
</table>

<p class=MsoFooter align=center style='text-align:center'>See accompanying notes
to condensed consolidated financial statements</p>

<p class=MsoFooter align=center style='text-align:center'>3</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br clear=all style='page-break-before:always'>










<p class=MsoNormal align=center style='text-align:center'><b>GOOD TIMES
RESTAURANTS INC. AND SUBSIDIARIES</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>CONDENSED
CONSOLIDATED BALANCE SHEETS (Continued)</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>&nbsp;</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>(Unaudited)</b></p>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=666
 style='margin-left:-8.1pt;border-collapse:collapse; text-align:center' height="342" align="left">
 <tr>
  <td valign=top style='width:523;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <h3 style='margin:0in;margin-bottom:.0001pt' align="left">&nbsp;</h3>
  </td>
  <td valign=top style='width:121;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <h3 align=center style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:8.1pt;margin-bottom:.0001pt;'>June 30,</h3>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <h3 align=right style='margin-bottom:.0001pt;text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</h3>
  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt' height="18">
  <h3 align=center style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:12.6pt;margin-bottom:.0001pt;text-align:left'>September 30,</h3>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:523;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <h3 style='margin:0in;margin-bottom:.0001pt' align="left">&nbsp;</h3>
  </td>
  <td valign=top style='width:121;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <h3 align=center style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:8.1pt;margin-bottom:.0001pt;'><u>2008</u></h3>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <h3 align=right style='margin-bottom:.0001pt;text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</h3>
  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt' height="18">
  <h3 align=center style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:12.6pt;margin-bottom:.0001pt;'><u>2007</u></h3>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:523;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <h3 style='margin:0in;margin-bottom:.0001pt' align="left">&nbsp;&nbsp;&nbsp; STOCKHOLDERS'
  EQUITY:</h3>
  </td>
  <td valign=top style='width:121;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:-.9pt;margin-bottom:.0001pt;text-align:left'>&nbsp;</h3>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <h3 align=right style='margin-bottom:.0001pt;text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</h3>
  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt' height="18">
  <h3 align=right style='margin-top:0in;margin-right:.05in;margin-bottom:0in;
  margin-left:12.6pt;margin-bottom:.0001pt;text-align:left'>&nbsp;</h3>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:523;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <p class=MsoNormal align="left">&nbsp;&nbsp;&nbsp; Preferred
  stock, $.01 par value;</p>
  </td>
  <td valign=top style='width:121;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">

  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">

  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt' height="18">

  </td>
 </tr>
 <tr>
  <td valign=top style='width:523;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <p class=MsoNormal align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5,000,000
  shares authorized, none issued</p>
  </td>
  <td valign=top style='width:121;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">

  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">

  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt' height="18">

  </td>
 </tr>
 <tr>
  <td valign=top style='width:523;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <p class=MsoNormal align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and
  outstanding as of September 30, 2007 and</p>
  </td>
  <td valign=top style='width:121;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">

  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">

  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt' height="18">

  </td>
 </tr>
 <tr>
  <td valign=top style='width:523;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <p class=MsoNormal align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; June 30, 2008</p>
  </td>
  <td valign=top style='width:121;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:-.9pt;margin-bottom:.0001pt;text-align:left'>-</p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">

  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt' height="18">
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;'>-</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:523;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">

  </td>
  <td valign=top style='width:121;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">

  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">

  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt' height="18">

  </td>
 </tr>
 <tr>
  <td valign=top style='width:523;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <p class=MsoNormal align="left">&nbsp;&nbsp;&nbsp; Common
  stock, $.001 par value; 50,000,000 shares</p>
  </td>
  <td valign=top style='width:121;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">

  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">

  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt' height="18">

  </td>
 </tr>
 <tr>
  <td valign=top style='width:523;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <p class=MsoNormal align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Authorized,
  3,898,559 shares issued and</p>
  </td>
  <td valign=top style='width:121;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">

  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">

  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt' height="18">

  </td>
 </tr>
 <tr>
  <td valign=top style='width:523;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <p class=MsoNormal align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Outstanding
  as of June 30, 2008 and</p>
  </td>
  <td valign=top style='width:121;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">

  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">

  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt' height="18">

  </td>
 </tr>
 <tr>
  <td valign=top style='width:523;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <p class=MsoNormal align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3,866,896
  shares issued and outstanding as</p>
  </td>
  <td valign=top style='width:121;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">

  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">

  </td>
  <td width=144 valign=top style='width:1.5in;padding:0in 5.4pt 0in 5.4pt' height="18">

  </td>
 </tr>
 <tr>
  <td valign=top style='width:523;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <p class=MsoNormal align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of
  September 30, 2007</p>
  </td>
  <td valign=top style='width:121;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:-.9pt;margin-bottom:.0001pt;'>4,000</p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">

  </td>
  <td width=144 valign=top style='width:1.5in;text-align:right; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;'>4,000</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:523;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <p class=MsoNormal align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated
  other comprehensive loss</p>
  </td>
  <td valign=top style='width:121;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:-.9pt;margin-bottom:.0001pt;'>(55,000)</p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">

  </td>
  <td width=144 valign=top style='width:1.5in;text-align:right; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;'>(26,000)</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:523;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <p class=MsoBodyTextIndent style='margin:0in;margin-bottom:.0001pt' align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital
  contributed in excess of par value</p>
  </td>
  <td valign=top style='width:121;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  8.1pt;margin-bottom:0in;margin-left:-.9pt;margin-bottom:.0001pt;'>17,611,000</p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">

  </td>
  <td width=144 valign=top style='width:1.5in;text-align:right; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  8.1pt;margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;'>17,439,000</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:523;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <p class=MsoBodyTextIndent style='margin:0in;margin-bottom:.0001pt' align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated
  deficit</p>
  </td>
  <td valign=top style='width:121;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  .05in;margin-bottom:0in;margin-left:-.9pt;margin-bottom:.0001pt;'><u>(11,830,000)</u></p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">

  </td>
  <td width=144 valign=top style='width:1.5in;text-align:right; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <p class=MsoBodyTextIndent align=right style='margin-top:0in;margin-right:
  .05in;margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;'><u>(11,084,000)</u></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:523;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <p class=MsoNormal align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
  stockholders' equity</p>
  </td>
  <td valign=top style='width:121;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:-.9pt;margin-bottom:.0001pt;'><u>&nbsp;&nbsp; 5,730,000</u></p>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">

  </td>
  <td width=144 valign=top style='width:1.5in;text-align:right; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <p class=MsoNormal align=right style='margin-top:0in;margin-right:8.1pt;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;'><u>&nbsp;&nbsp; 6,333,000</u></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:523;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">

  </td>
  <td valign=top style='width:121;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">

  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">

  </td>
  <td width=144 valign=top style='width:1.5in;text-align:right; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">

  </td>
 </tr>
 <tr>
  <td valign=top style='width:523;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <h3 style='margin:0in;margin-bottom:.0001pt' align="left">&nbsp;&nbsp;&nbsp; TOTAL
  LIABILITIES AND STOCKHOLDERS' EQUITY</h3>
  </td>
  <td valign=top style='width:121;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:-.9pt;margin-bottom:.0001pt;'><u>$ &nbsp;9,996,000</u></h3>
  </td>
  <td valign=top style='width:10;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <h3 align=right style='margin-bottom:.0001pt;text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</h3>
  </td>
  <td width=144 valign=top style='width:1.5in;text-align:right; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
  <h3 align=right style='margin-top:0in;margin-right:8.1pt;margin-bottom:0in;
  margin-left:12.6pt;margin-bottom:.0001pt;'><u>$11,544.000</u></h3>
  </td>
 </tr>
</table>





































<p class=MsoFooter align=center style='text-align:center'>See accompanying notes
to condensed consolidated financial statements</p>

<p class=MsoFooter align=center style='text-align:center'>4</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>





<p>

<br clear=all style='page-break-before:always'>


</p>












<p class=MsoNormal align=center style='text-align:center'><b>GOOD TIMES
RESTAURANTS INC. AND SUBSIDIARIES</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>(Unaudited)</b></p>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='margin-left:9.9pt;border-collapse:collapse'>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</h3>
  </td>
  <td width=234 colspan=3 valign=top style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>Three Months Ended June 30,</b></h3>
  </td>
  <td width=245 colspan=4 valign=top style='width:183.7pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3 align=center style='margin-top:0in;margin-right:0in;margin-bottom:0in;
  margin-left:8.1pt;margin-bottom:.0001pt;text-align:center'><b>Nine months Ended June 30,</b></h3>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=109 valign=top style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:8.65pt;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:center;
  line-height:94%'><b><u>2008</u></b></p>
  </td>
  <td width=19 valign=top style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-right:-.9pt;text-align:center;
  line-height:94%'><b>&nbsp;</b></p>
  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:8.65pt;
  margin-bottom:0in;margin-left:12.6pt;margin-bottom:.0001pt;text-align:center;
  line-height:94%'><b><u>2007</u></b></p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:3.75pt;
  margin-bottom:0in;margin-left:7.55pt;margin-bottom:.0001pt;text-align:center;
  line-height:94%'><b><u>2008</u></b></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><b>&nbsp;</b></p>
  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:3.75pt;
  margin-bottom:0in;margin-left:7.55pt;margin-bottom:.0001pt;text-align:center;
  line-height:94%'><b><u>2007</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>NET
  REVENUES:</p>
  </td>
  <td width=109 valign=top style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=19 valign=top style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;
  Restaurant sales, net</p>
  </td>
  <td width=109 valign=top style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.35pt;line-height:94%' align="right">$6,827,000</p>
  </td>
  <td width=19 valign=top style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">$6,640,000</p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">$18,745,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">$17,172,000</p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;
  Franchise revenues</p>
  </td>
  <td width=109 valign=top style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.35pt;line-height:94%' align="right"><u>&nbsp;&nbsp;&nbsp;
  169,000</u></p>
  </td>
  <td width=19 valign=top style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right"><u>&nbsp;&nbsp;&nbsp; 215,000</u></p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right"><u>&nbsp;&nbsp;&nbsp;&nbsp; 491,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right"><u>&nbsp;&nbsp;&nbsp;&nbsp; 552,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Total revenues</p>
  </td>
  <td width=109 valign=top style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.35pt;line-height:94%' align="right">6,996,000</p>
  </td>
  <td width=19 valign=top style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">6,855,000</p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">19,236,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">17,724,000</p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=109 valign=top style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=19 valign=top style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>RESTAURANT
  OPERATING COSTS:</p>
  </td>
  <td width=109 valign=top style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=19 valign=top style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr style='height:.1in'>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:.1in'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;
  Food and packaging costs</p>
  </td>
  <td width=109 valign=top style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt;
  height:.1in'>
  <p class=MsoNormal style='margin-right:-.35pt;line-height:94%' align="right">2,156,000</p>
  </td>
  <td width=19 valign=top style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt;
  height:.1in'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt;
  height:.1in'>
  <p class=MsoNormal style='line-height:94%' align="right">2,150,000</p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt;
  height:.1in'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt;
  height:.1in'>
  <p class=MsoNormal style='line-height:94%' align="right">5,832,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt;
  height:.1in'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt;
  height:.1in'>
  <p class=MsoNormal style='line-height:94%' align="right">5,361,000</p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;
  Payroll and other employee benefit costs</p>
  </td>
  <td width=109 valign=top style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.35pt;line-height:94%' align="right">2,266,000</p>
  </td>
  <td width=19 valign=top style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">2,132,000</p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">6,543,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">5,838,000</p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;
  Occupancy and other operating costs</p>
  </td>
  <td width=109 valign=top style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.35pt;line-height:94%' align="right">1,261,000</p>
  </td>
  <td width=19 valign=top style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">1,100,000</p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">3,558,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-left:14.6pt;text-indent:-14.6pt;line-height:
  94%' align="right">3,190,000</p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;
  Accretion of deferred rent</p>
  </td>
  <td width=109 valign=top style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.35pt;line-height:94%' align="right">9,000</p>
  </td>
  <td width=19 valign=top style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">7,000</p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">24,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">27,000</p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;
  Opening costs</p>
  </td>
  <td width=109 valign=top style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.35pt;line-height:94%' align="right">7,000</p>
  </td>
  <td width=19 valign=top style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">80,000</p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">7,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">82,000</p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;
  Depreciation and amortization</p>
  </td>
  <td width=109 valign=top style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.35pt;line-height:94%' align="right"><u>&nbsp;&nbsp;&nbsp;
  332,000</u></p>
  </td>
  <td width=19 valign=top style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right"><u>&nbsp;&nbsp; 308,000</u></p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right"><u>&nbsp;&nbsp;&nbsp;&nbsp; 955,000</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right"><u>&nbsp;&nbsp;&nbsp;&nbsp; 903,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Total restaurant operating costs</p>
  </td>
  <td width=109 valign=top style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.35pt;line-height:94%' align="right">6,031,000</p>
  </td>
  <td width=19 valign=top style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">5,777,000</p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">16,919,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">15,401,000</p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=109 valign=top style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=19 valign=top style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;
  General and administrative costs</p>
  </td>
  <td width=109 valign=top style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.35pt;line-height:94%' align="right">540,000</p>
  </td>
  <td width=19 valign=top style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">450,000</p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">1,580,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">1,349,000</p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;
  Advertising costs</p>
  </td>
  <td width=109 valign=top style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.35pt;line-height:94%' align="right">403,000</p>
  </td>
  <td width=19 valign=top style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">416,000</p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">1,134,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">1,088,000</p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;
  Franchise costs</p>
  </td>
  <td width=109 valign=top style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.35pt;line-height:94%' align="right">88,000</p>
  </td>
  <td width=19 valign=top style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">36,000</p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">275,000</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">128,000</p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;
  (Gain) loss on sale of restaurant building and equipment</p>
  </td>
  <td width=109 valign=top style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.35pt;line-height:94%' align="right"><a
  name="OLE_LINK3"><u>&nbsp; &nbsp;&nbsp;&nbsp;(9,000)</u></a></p>
  </td>
  <td width=19 valign=top style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right"><u>&nbsp;&nbsp;22,000 </u></p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right"><u>&nbsp;&nbsp; (28,000)</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right"><u>&nbsp;&nbsp;&nbsp;&nbsp; 7,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=109 valign=top style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=19 valign=top style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>INCOME
  (LOSS) FROM OPERATIONS</p>
  </td>
  <td width=109 valign=top style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.35pt;line-height:94%' align="right">(57,000)</p>
  </td>
  <td width=19 valign=top style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">154,000</p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">(644,000)</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">(249,000)</p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=109 valign=top style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=19 valign=top style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>OTHER
  INCOME AND (EXPENSES):</p>
  </td>
  <td width=109 valign=top style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=19 valign=top style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;
  Minority income (expense), net</p>
  </td>
  <td width=109 valign=top style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.35pt;line-height:94%' align="right">(56,000)</p>
  </td>
  <td width=19 valign=top style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">(81,000)</p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">(97,000)</p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">(111,000)</p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;
  Interest, net</p>
  </td>
  <td width=109 valign=top style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.35pt;line-height:94%' align="right"><u>(8,000)</u></p>
  </td>
  <td width=19 valign=top style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right"><u>&nbsp;&nbsp; 6,000</u></p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right"><u>&nbsp;&nbsp; &nbsp;(5,000)</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right"><u>35,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Total other income and (expenses)</p>
  </td>
  <td width=109 valign=top style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.35pt;line-height:94%' align="right"><u>&nbsp;&nbsp;&nbsp;
  (64,000)</u></p>
  </td>
  <td width=19 valign=top style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right"><u>(75,000)</u></p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right"><u>(102,000)</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right"><u>&nbsp;&nbsp; (76,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=109 valign=top style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.35pt;line-height:94%' align="right"><u>
  &nbsp;</u></p>
  </td>
  <td width=19 valign=top style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right"><u>
  &nbsp;</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right"><u>
  &nbsp;</u></p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>NET INCOME
  (LOSS)</p>
  </td>
  <td width=109 valign=top style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.35pt;line-height:94%' align="right"><u>($121,000)</u></p>
  </td>
  <td width=19 valign=top style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right"><u>$79,000</u></p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right"><u>(746,000)</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right"><u>&nbsp;(325,000)</u></p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=109 valign=top style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.35pt;line-height:94%' align="right"><u>
  &nbsp;</u></p>
  </td>
  <td width=19 valign=top style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right"><u>
  &nbsp;</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right"><u>
  &nbsp;</u></p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>BASIC
  AND DILUTED NET INCOME (LOSS) PER COMMON SHARE</p>
  </td>
  <td width=109 valign=top style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.35pt;line-height:94%' align="right"><u>&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;($.03)</u></p>
  </td>
  <td width=19 valign=top style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $.02</u></p>
  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ($.19)</u></p>
  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:-.9pt;text-align:right;
  line-height:94%'><u>&nbsp;</u></p>
  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ($.08)</u></p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=109 valign=top style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=19 valign=top style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=16 valign=top style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=top style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>WEIGHTED
  AVERAGE COMMON SHARES AND EQUIVALENTS</p>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>USED
  IN PER SHARE CALCULATION</p>
  </td>
  <td width=109 valign=bottom style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=19 valign=bottom style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=bottom style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=16 valign=bottom style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=bottom style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=bottom style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;
  BASIC</p>
  </td>
  <td width=109 valign=bottom style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.35pt;line-height:94%' align="right">3,895,745</p>
  </td>
  <td width=19 valign=bottom style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">3,841,494</p>
  </td>
  <td width=16 valign=bottom style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=bottom style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">3,882,758</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">3,833,514</p>
  </td>
 </tr>
 <tr>
  <td width=450 valign=top style='width:337.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.9pt;line-height:94%'>&nbsp;&nbsp;&nbsp;&nbsp;
  DILUTED</p>
  </td>
  <td width=109 valign=bottom style='width:81.55pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:-.35pt;line-height:94%' align="right">3,895,745</p>
  </td>
  <td width=19 valign=bottom style='width:14.05pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=107 valign=top style='width:79.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">3,975,483</p>
  </td>
  <td width=16 valign=bottom style='width:11.8pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=bottom style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">3,882,758</p>
  </td>
  <td width=18 valign=bottom style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:1.1in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='line-height:94%' align="right">3,833,514</p>
  </td>
 </tr>
</table>

<p class=MsoFooter align=center style='text-align:center'>See accompanying notes
to condensed consolidated financial statements</p>

<p class=MsoFooter align=center style='text-align:center'>5</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>





<br clear=all style='page-break-before:always'>












<p class=MsoList2 align=center style='margin-left:0in;text-align:center;
text-indent:0in'><b>GOOD
TIMES RESTAURANTS INC. AND SUBSIDIARIES</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>(Unaudited)</b></p>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=765
 style='margin-left:-.55in;border-collapse:collapse'>
 <tr>
  <td valign=top style='width:509;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td colspan=4 valign=top style='width:228;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=center style='text-align:center'>For the Nine months
  Ended</p>
  <p class=MsoNormal align=center style='text-align:center'>June 30,</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:509;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:86;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:8.1pt;margin-bottom:.0001pt;text-align:center'><u>2008</u></p>
  </td>
  <td valign=top style='width:8;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:78;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=center style='margin-top:0in;margin-right:.05in;
  margin-bottom:0in;margin-left:8.1pt;margin-bottom:.0001pt;text-align:center'><u>2007</u></p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=28><p class='MsoNormal'>&nbsp;</td>
 </tr>
</table>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=743
 style='margin-left:-.3in;border-collapse:collapse'>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; CASH FLOWS FROM
  OPERATING ACTIVITIES:</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Net
  loss</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:6.6pt;text-align:right'>($746,000)</p>
  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:7.75pt;text-align:right;
  line-height:94%'>($325,000)</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Adjustments
  to reconcile net loss to net cash</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;
  provided by operating activities:</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation
  and amortization</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:6.6pt;text-align:right'>955,000</p>
  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:7.75pt;text-align:right;
  line-height:94%'>903,000</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock
  based compensation expense</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:6.6pt;text-align:right'>69,000</p>
  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:7.75pt;text-align:right;
  line-height:94%'>62,000</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accretion
  of deferred rent</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:6.6pt;text-align:right'>24,000</p>
  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:7.75pt;text-align:right;
  line-height:94%'>27,000</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Minority
  interest</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:6.6pt;text-align:right'>97,000</p>
  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:7.75pt;text-align:right;
  line-height:94%'>111,000</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses
  associated with exit activity</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:6.6pt;text-align:right'>95,000</p>
  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:7.75pt;text-align:right;
  line-height:94%'>-</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Recognition
  of deferred (gain) on sale of restaurant building</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:6.6pt;text-align:right'>(23,000)</p>
  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:7.75pt;text-align:right;
  line-height:94%'>(22,000)</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss
  (gain) on sale of assets</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:6.6pt;text-align:right'>(5,000)</p>
  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:7.75pt;text-align:right;
  line-height:94%'>29,000</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes
  in operating assets and liabilities:</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Increase)
  decrease in:</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivables
  and other</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:6.6pt;text-align:right'>(127,000)</p>
  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:7.75pt;text-align:right;
  line-height:94%'>(95,000)</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:6.6pt;text-align:right'>&nbsp;(20,000)</p>
  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:7.75pt;text-align:right;
  line-height:94%'>(10,000)</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits
  and other</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:6.6pt;text-align:right'>(3,000)</p>
  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:7.75pt;text-align:right;
  line-height:94%'>3,000</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Decrease)
  increase in:</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts
  payable</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:6.6pt;text-align:right'>55,000</p>
  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:7.75pt;text-align:right;
  line-height:94%'>105,000</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued
  liabilities and deferred income</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:6.6pt;text-align:right'><u>&nbsp; (58,000)</u></p>
  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:7.75pt;text-align:right;
  line-height:94%'><u>&nbsp;&nbsp; 236,000</u></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net
  cash provided by operating activities</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:6.6pt;text-align:right'>313,000</p>
  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:7.75pt;text-align:right;
  line-height:94%'>1,024,000</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; CASH FLOWS USED IN
  INVESTING ACTIVITIES</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Payments
  for the purchase of property and equipment</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:6.6pt;text-align:right'>(729,000)</p>
  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:7.75pt;text-align:right;
  line-height:94%'>(2,900,000)</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Proceeds
  from sale of fixed assets</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:6.6pt;text-align:right'>747,000</p>
  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:7.75pt;text-align:right;
  line-height:94%'>-</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Purchase
  of franchisee assets</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:6.6pt;text-align:right'>(273,000)</p>
  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:7.75pt;text-align:right;
  line-height:94%'>-</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Payments
  received on loans to franchisees and to others</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:6.6pt;text-align:right'><u>&nbsp;&nbsp;&nbsp; 59,000</u></p>
  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:7.75pt;text-align:right;
  line-height:94%'><u>&nbsp;&nbsp;&nbsp;&nbsp; 77,000</u></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net
  cash used in investing activities</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:6.6pt;text-align:right'>(196,000)</p>
  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:7.75pt;text-align:right;
  line-height:94%'>(2,823,000)</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; CASH FLOWS FROM
  FINANCING ACTIVITIES:</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Principal
  payments on notes payable, capital leases, and long-term debt</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:6.6pt;text-align:right'>(89,000)</p>
  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:7.75pt;text-align:right;
  line-height:94%'>(529,000)</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Proceeds
  from long-term debt</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:7.75pt;text-align:right;
  line-height:94%'>1,100,000</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Net
  proceeds (repayments) on revolving lines of credit</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:6.6pt;text-align:right'>(750,000)</p>
  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:7.75pt;text-align:right;
  line-height:94%'>250,000</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Proceeds
  from exercise of options</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:6.6pt;text-align:right'>103,000</p>
  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:7.75pt;text-align:right;
  line-height:94%'>98,000</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;
  Distributions, net of contributions paid to minority interests in</p>
  <p class=MsoNormal>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;partnerships</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:6.6pt;text-align:right'><u>(219,000)</u></p>
  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:7.75pt;text-align:right;
  line-height:94%'><u>(207,000)</u></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net
  cash provided by (used in) financing activities</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:6.6pt;text-align:right'><u>(955,000)</u></p>
  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:7.75pt;text-align:right;
  line-height:94%'><u>712,000</u></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; NET CHANGE IN CASH AND CASH EQUIVALENTS</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:6.6pt;text-align:right'>(838,000)</p>
  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:7.75pt;text-align:right;
  line-height:94%'>($1,087,000)</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; CASH AND CASH EQUIVALENTS, beginning of period</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:6.6pt;text-align:right'><u>$2,465,000</u></p>
  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:7.75pt;text-align:right'><u>$2,613,000</u></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; CASH AND CASH EQUIVALENTS, end of period</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:6.6pt;text-align:right'><u>$1,627,000</u></p>
  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:7.75pt;text-align:right'><u>$1,526,000</u></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; SUPPLEMENTAL
  DISCLOSURES OF CASH FLOW INFORMATION:</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp; Cash
  paid for interest</p>
  </td>
  <td valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:6.6pt;text-align:right'><u>$ &nbsp;&nbsp;&nbsp;64,000</u></p>
  </td>
  <td valign=top style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=top style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:7.75pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp;&nbsp; 38,000</u></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:539;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;
  Non-Cash - Acquisition price of franchise stores for forgiveness of</p>
  <p class=MsoNormal>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;notes
  receivable</p>
  </td>
  <td valign=bottom style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoNormal align=right style='margin-right:6.6pt;text-align:right'><u>$&nbsp; 250,000 </u></p>
  </td>
  <td valign=bottom style='width:4;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td width=112 valign=bottom style='width:83.85pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:7.75pt;text-align:right'><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0</u></p>
  </td>
 </tr>
</table>

<p class=MsoFooter align=center style='text-align:center'>See accompanying notes
to condensed consolidated financial statements</p>

<p class=MsoFooter align=center style='text-align:center'>6</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>





<br clear=all style='page-break-before:always'>












<p class=MsoNormal align=center style='text-align:center'><b>GOOD TIMES
RESTAURANTS INC. AND SUBSIDIARIES</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS</b></p>

<p class=MsoNormal align=center style='margin-bottom:12.0pt;text-align:center'><b>(Unaudited)</b></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'><b>Note 1. Basis of Presentation</b></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>In
the opinion of management, the accompanying unaudited condensed consolidated
financial statements contain all of the normal recurring adjustments necessary
to present fairly the financial position of the Company as of June 30, 2008, the results of its operations and its cash flows for the three and nine
month periods ended June 30, 2008.&nbsp; Operating results for the three and nine
month periods ended June 30, 2008 are not necessarily indicative of the results
that may be expected for the year ending September 30, 2008.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>The
condensed consolidated balance sheet as of September 30, 2007 is derived from the audited financial statements, but does not include all disclosures
required by generally accepted accounting principles.&nbsp; As a result, these
financial statements should be read in conjunction with the Company's Form
10-KSB for the fiscal year ended September 30, 2007.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;line-height:normal'>Certain
prior year balances have been reclassified to conform to the current year's
presentation. Such reclassifications had no effect on the net loss.</p>

<p class=MsoNormal style='margin-bottom:6.0pt'><strong>Note 2. Recent Developments</strong></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>On
 December 3, 2007, we entered into a development agreement with Zen Partners
LLC that is comprised of a Development Agreement, a Management Agreement and a
Site Selection, Construction Management and Pre-Opening Services Agreement.&nbsp;
The agreements provide for the development of up to twenty five restaurants
with a five year development schedule for up to ten of the restaurants with an
option to develop an additional fifteen restaurants, exercisable any time
during the initial five year period.&nbsp;&nbsp; We will manage and operate the
restaurants utilizing our employees on the same basis as we would company-owned
restaurants; however the Zen Partners LLC will provide all development and
operating capital.&nbsp; We will receive a fixed fee for the development of each
restaurant and a recurring management fee based on a percentage of sales for
the operation of the restaurants.&nbsp;&nbsp; We may provide a limited lease guarantee on
the initial three restaurants developed, for which we will receive an
additional recurring guarantee fee.&nbsp; We will also participate in the ongoing
profitability of the restaurants after Zen Partners LLC has received a priority
return on its invested capital.&nbsp; A member of our Board of Directors and
significant shareholder, David Grissen, is an owner of Zen Partners LLC.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>On June 25, 2008, GTDT and Zen agreed in principle to modify the Development Agreement to transfer
development rights for up to three restaurants from the Omaha and Des Moines areas to Colorado.&nbsp; The Company currently anticipates developing one restaurant
in Colorado under the Development Agreement in 2008 and two restaurants in
2009.&nbsp; The Company also currently anticipates opening one company-owned
restaurant in Colorado and one dual branded franchised restaurant in Sheridan, Wyoming in 2008.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>The Company has
indefinitely suspended the proposed development of company-owned restaurants
and restaurants to be developed under the Development Agreement in the Omaha
area due to a lack of availability of acceptable debt financing, lack of
acceptable sites that can be developed quickly enough to support media
advertising, current conditions in the commodity markets and the resulting
increases in food costs for the Company, and concerns over general
macro-economic trends, including consumer spending.</p>

<p class=MsoNormal style='margin-bottom:12.0pt;text-align:justify'>On June 25, 2008, Good Times Restaurants Inc. (the &quot;Company&quot;) reported the resignation of James A.
DeBolt as Vice President of Franchise Development effective as of June 30, 2008.&nbsp; The Company also reported that Robert D. Turrill, a named executive
officer for purposes of compensation disclosures in the Company's most recent
proxy statement dated December 6, 2007, will be retiring from the Company to
pursue other personal interests and will retire as Vice President of Marketing
effective as of October 31, 2008.&nbsp; Mr. Turrill, age 60, has served as Vice
President of Marketing since 1994.&nbsp; Mr. Turrill will not receive any
post-retirement compensation or benefits from the Company.</p>

<p class=MsoFooter align=center style='text-align:center'>7</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br clear=all style='page-break-before:always'>










<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;line-height:normal'>In
conjunction with the above exit activity, which was concluded in July 2008, and
in accordance with the provisions of Statement of Financial Accounting Standard
(&quot;SFAS&quot;) No. 146, <i>Accounting for Costs Associated with Exit or Disposal
Activities</i> we have incurred a total of $95,000 of costs associated with the
activity, of which $21,000 will be paid out subsequent to June 30, 2008. We
incurred one-time termination benefits of $14,000 which are reported in the Franchise
costs line item of the Condensed Consolidated Statement of Operations, and
$81,000 of preliminary site costs associated with terminated contracts which
are included in the General and Administrative costs line item. We do not
anticipate any future costs to be incurred involving this activity.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;line-height:normal'><a name="OLE_LINK5">On </a>March 1, 2008, we purchased two restaurants from an
existing franchisee for total consideration of $1,330,000. We then
simultaneously sold the land, building and improvements related to one of the
restaurants in a sale-leaseback transaction, proceeds of which were used for
the purchase of the restaurants. Net cash used in the purchase transaction was
$273,000. After accounting for both the acquisition and the sale-leaseback assets
of $490,000, a deferred gain of $26,000 was recognized as a cost of the
consideration and notes receivable due from the franchisee of $250,000 were
forgiven. We believe the $1,330,000 represents the fair value of the franchisee
acquired.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'><strong>Note 3. Stock-Based
Compensation</strong></p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>Effective October 1, 2006, the Company adopted <a name="OLE_LINK7">the provisions of Statement of
Financial Accounting Standard (&quot;SFAS&quot;) No. 123(R), <i>Share-Based Payment</i></a>,
using the modified prospective application transition method. Under the
provisions of SFAS 123(R), stock-based compensation is measured at the grant
date, based on the calculated fair value of the award, and is recognized as an
expense over the requisite employee service period (generally the vesting
period of the grant).</p>

<p class=MsoBodyText2 style='margin-bottom:6.0pt;text-align:justify'>The Company measures the compensation
cost associated with share-based payments by estimating the fair value of stock
options as of the grant date using the Black-Scholes option pricing model. The
Company believes that the valuation technique and the approach utilized to
develop the underlying assumptions are appropriate in calculating the fair
values of the Company's stock options granted during all years presented.
Estimates of fair value are not intended to predict actual future events or the
value ultimately realized by the employees who receive equity awards.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>Our net loss for the nine
months ended June 30, 2008 and June 30, 2007 includes $69,000 and $62,000,
respectively, of compensation costs related to our stock-based compensation
arrangements.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>During the nine
months ended June 30, 2008, we granted 12,000 non-statutory stock options and 16,700
incentive stock options both with exercise prices of $5.75. The per share
weighted average fair values were $3.26 for non-statutory stock option grants
and $3.10 for incentive stock option grants.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>In addition to the
exercise and grant date prices of the awards, certain weighted average
assumptions that were used to estimate the fair value of stock option grants
are listed in the following table:</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr>
  <td width=168 valign=top style='width:1.75in;padding:0in 0in 0in 0in'>

  </td>
  <td width=192 valign=top style='width:2.0in;border:none;border-bottom:solid black 1.0pt;
  padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'><strong>Incentive Stock
  Options</strong></p>
  </td>
  <td width=228 valign=top style='width:171.0pt;border:none;border-bottom:solid black 1.0pt;
  padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'><strong>Non-Statutory Stock
  Options</strong></p>
  </td>
 </tr>
 <tr>
  <td width=168 valign=top style='width:1.75in;background:silver;padding:0in 0in 0in 0in'>
  <p class=MsoNormal>Expected
  term (years)</p>
  </td>
  <td width=192 valign=top style='width:2.0in;background:silver;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'><strong>6.0&nbsp;</strong></p>
  </td>
  <td width=228 valign=top style='width:171.0pt;background:silver;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'><b>6.7&nbsp;</b></p>
  </td>
 </tr>
 <tr>
  <td width=168 valign=top style='width:1.75in;background:white;padding:0in 0in 0in 0in'>
  <p class=MsoNormal>Expected
  volatility</p>
  </td>
  <td width=192 valign=top style='width:2.0in;background:white;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'><strong>51%</strong></p>
  </td>
  <td width=228 valign=top style='width:171.0pt;background:white;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'><b>51%</b></p>
  </td>
 </tr>
 <tr>
  <td width=168 valign=top style='width:1.75in;background:silver;padding:0in 0in 0in 0in'>
  <p class=MsoNormal>Risk-free
  interest rate</p>
  </td>
  <td width=192 valign=top style='width:2.0in;background:silver;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'><strong>4.4%</strong></p>
  </td>
  <td width=228 valign=top style='width:171.0pt;background:silver;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'><b>4.4%</b></p>
  </td>
 </tr>
 <tr>
  <td width=168 valign=top style='width:1.75in;background:white;padding:0in 0in 0in 0in'>
  <p class=MsoNormal>Expected
  dividends</p>
  </td>
  <td width=192 valign=top style='width:2.0in;background:white;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'><strong>0</strong></p>
  </td>
  <td width=228 valign=top style='width:171.0pt;background:white;padding:0in 0in 0in 0in'>
  <p class=MsoNormal align=center style='text-align:center'><b>0</b></p>
  </td>
 </tr>
</table>

<p class=MsoNormal style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;text-align:justify'>We estimate expected volatility based on historical
weekly price changes of our common stock for a period equal to the current
expected term of the options. The risk-free interest rate is based on the United States treasury yields in effect at the time of grant corresponding with the
expected term of the options. The expected option term is the number of years
we estimate that options will be outstanding prior to exercise considering
vesting schedules and our historical exercise patterns.</p>

<p class=MsoBodyText2 style='margin-bottom:6.0pt;text-align:justify'>SFAS 123(R) requires the cash flows
resulting from the tax benefits for tax deductions in excess of the
compensation expense recorded for those options (excess tax benefits) to be
classified as financing cash flows. These excess tax benefits were $0 for the
quarter ended June 30, 2008.</p>

<p class=MsoFooter align=center style='text-align:center'>8</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br clear=all style='page-break-before:always'>










<p class=MsoBodyText2 style='margin-bottom:6.0pt;text-align:justify'>A summary of stock option activity
under our share-based compensation plan for the nine months ended June 30, 2008 is presented in the following table:</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr>
  <td width=193 valign=top style='width:144.4pt;padding:0in 5.4pt 0in 5.4pt'><a
  name="OLE_LINK1"></a>
  <p class=MsoNormal><b>&nbsp;</b></p>
  </td>
  <td width=91 valign=bottom style='width:68.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b><u>Options</u></b></p>
  </td>
  <td width=126 valign=bottom style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>Weighted Average</b></p>
  <p class=MsoNormal align=center style='text-align:center'><b> <u>Exercise
  Price</u></b></p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>Weighted Average
  Remaining Contractual</b></p>
  <p class=MsoNormal align=center style='text-align:center'><b><u>Life (Yrs.)</u></b></p>
  </td>
  <td width=97 valign=bottom style='width:72.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>Aggregate Intrinsic
  <u>Value</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=193 valign=top style='width:144.4pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Outstanding-beg
  of year</p>
  </td>
  <td width=91 valign=top style='width:68.0pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>&nbsp;366,905</p>
  </td>
  <td width=126 valign=top style='width:94.5pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:12.6pt' align="right">$3.89</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=97 valign=top style='width:72.9pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=193 valign=top style='width:144.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Granted</p>
  </td>
  <td width=91 valign=top style='width:68.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>&nbsp;28,700</p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:12.6pt' align="right">$5.75</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=97 valign=top style='width:72.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=193 valign=top style='width:144.4pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Exercised</p>
  </td>
  <td width=91 valign=top style='width:68.0pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>(31,663)</p>
  </td>
  <td width=126 valign=top style='width:94.5pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:12.6pt' align="right">$3.26</p>
  </td>
  <td width=132 valign=top style='width:99.0pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=97 valign=top style='width:72.9pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=193 valign=top style='width:144.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Forfeited
  or expired</p>
  </td>
  <td width=91 valign=top style='width:68.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'>&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</u></p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  ___<u>-</u></td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=97 valign=top style='width:72.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=193 valign=top style='width:144.4pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Outstanding
  June 30, 2008</p>
  </td>
  <td width=91 valign=top style='width:68.0pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>363,942</u></p>
  </td>
  <td width=126 valign=top style='width:94.5pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:12.6pt' align="right"><u>$4.09</u></p>
  </td>
  <td width=132 valign=top style='width:99.0pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center><u>5.4</u></p>
  </td>
  <td width=97 valign=top style='width:72.9pt;background:silver;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><u>$23,000</u></p>
  </td>
 </tr>
 <tr>
  <td width=193 valign=top style='width:144.4pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=91 valign=top style='width:68.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=97 valign=top style='width:72.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=193 valign=top style='width:144.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Exercisable
  June 30, 2008</p>
  </td>
  <td width=91 valign=top style='width:68.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='margin-right:8.1pt;text-align:right'><u>299,744</u></p>
  </td>
  <td width=126 valign=top style='width:94.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-right:12.6pt' align="right"><u>$3.64</u></p>
  </td>
  <td width=132 valign=top style='width:99.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><u>4.7</u></p>
  </td>
  <td width=97 valign=top style='width:72.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><u>$23,000</u></p>
  </td>
 </tr>
</table>

<p class=MsoBodyText2 style='margin-top:12.0pt;margin-right:-27.35pt;
margin-bottom:6.0pt;margin-left:0in;text-align:justify'>As of June 30, 2008, the total remaining unrecognized
compensation cost related to unvested stock-based arrangements was $174,000 and
is expected to be recognized over a period of 3.0 years.</p>

<p class=MsoBodyText2 style='margin-top:0in;margin-right:-27.35pt;margin-bottom:
12.0pt;margin-left:0in;text-align:justify'>The
total intrinsic value of stock options exercised during the nine months ended June 30, 2008, was $71,000. Cash received from stock option exercises for the nine months
ended June 30, 2008 was $103,000.</p>

<p class=MsoBodyText2 style='margin-top:0in;margin-right:-27.0pt;margin-bottom:
6.0pt;margin-left:0in;text-align:justify'><strong>Note 4. Comprehensive Income (Loss)</strong></p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>Comprehensive income
includes net income or loss, changes in certain assets and liabilities that are
reported directly in equity such as adjustments resulting from unrealized gains
or losses on held-to-maturity investments and certain hedging transactions.</p>

<p class=MsoNormal style='margin-bottom:12.0pt;text-align:justify'>In May 2007, the
Company entered into an interest rate swap agreement, designated as a cash flow
hedge, which hedges the Company's exposure to interest rate fluctuations on the
Company's floating rate $1,100,000 term loan. The Company records the fair
value of these contracts in the balance sheet, with the offset to other
comprehensive loss. The contract requires monthly settlements of the difference
between the amounts to be received and paid under the agreement, the amount of
which is recognized in current earnings as interest expense.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'><b>Note
5. Contingent Liabilities</b></p>

<p class=MsoNormal style='margin-bottom:12.0pt;text-align:justify'>We remain
contingently liable on various restaurant leases that were previously sold.&nbsp; We
have never experienced any losses nor do we anticipate any future losses from
these contingent liabilities.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'><b>Note 6. Assets Held
for Sale</b></p>

<p class=MsoNormal style='margin-bottom:12.0pt;text-align:justify'>We have classified $231,000
as assets held for sale in the accompanying condensed consolidated balance
sheet.&nbsp; These costs are related to two sites for new construction, both of
which are under development and are expected to be marketed in the sale-lease back
market.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'><b>Note 7. Accounting
Policies</b></p>

<p class=MsoNormal style='margin-bottom:12.0pt;text-align:justify'>In June 2006, the
FASB issued FIN 48, &quot;Accounting for Uncertainty in Income Taxes - an
interpretation of FASB Statement 109,&quot; which clarifies the accounting for
uncertainty in income taxes recognized in an enterprise's financial statements
in accordance with FAS 109, &quot;Accounting for Income Taxes.&quot;&nbsp; FIN
48 provides interpretive guidance for the financial statement recognition and
measurement of a tax position taken, or expected to be taken, in a tax return.
FIN 48 requires the affirmative evaluation that it is more-likely-than-not,
based on the technical merits of a tax position, that an enterprise is entitled
to economic benefits resulting from positions taken in income tax returns. If a
tax position does not meet the &quot;more-likely-than-not&quot; recognition threshold,
the benefit of that position is not recognized in the financial statements.&nbsp;
FIN 48 was effective for the fiscal year beginning October&nbsp;1, 2007 and there is no cumulative effect of applying FIN 48.</p>

<p class=MsoFooter align=center style='text-align:center'>9</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br clear=all style='page-break-before:always'>










<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'><b>Note 8. Income Taxes</b></p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>On October 1, 2007, the Company adopted the provisions of FIN 48. There were no material tax
positions not meeting the &quot;more-likely-than-not&quot; recognition threshold and
therefore there is no cumulative effect of applying FIN 48.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>Although the Company
has not incurred interest and penalties associated with unrecognized tax
benefits; future interest and penalties associated with unrecognized tax
benefits, if any, will be recognized in income tax expense in the Consolidated
Statements of Operations and the corresponding liability in&nbsp;income taxes
payable or income taxes receivable, net on the Consolidated Balance Sheets. </p>

<p class=MsoNormal style='margin-bottom:12.0pt;text-align:justify'>The Company is
currently not undergoing any examinations by any taxing jurisdictions, with the
tax years for the Fiscal Years Ending September 30, 2003 through 2007 remaining open to examination.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'><b>Note 9. New
Accounting Pronouncements</b></p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>In
September&nbsp;2006, the Financial Accounting Standards Board (&quot;FASB&quot;) issued
Statement of Financial Accounting Standards No.157 (&quot;SFAS 157&quot;). The Statement
defines fair value, establishes a framework for measuring fair value in
generally accepted accounting principles (&quot;GAAP&quot;), and expands disclosures
about fair value measurements.&nbsp; This Statement is effective for financial
statements issued for fiscal years beginning after November&nbsp;15, 2007, and interim periods within those fiscal years. The adoption of SFAS 157 is not
expected to have a material effect on the Company's financial position, results
of operations or cash flows.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>In February 2007, the
FASB issued SFAS No. 159, &quot;The Fair Value Option for Financial Assets and
Financial Liabilities - including an amendment of FASB Statement No. 115&quot;
(&quot;SFAS 159&quot;). SFAS 159 provides companies with an option to report selected
financial assets and financial liabilities at fair value. Unrealized gains and
losses on items for which the fair value option has been elected are reported
in earnings at each subsequent reporting date. SFAS 159 is effective for fiscal
years beginning after November&nbsp;15, 2007 which will be effective for our
fiscal year beginning October 1, 2008. The adoption of this statement is not
expected to have a material impact on the Company's financial position or
results of operations.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>In December 2007, the
FASB issued FASB Statement No. 141 (revised 2007), &quot;Business Combinations&quot;
(&quot;FAS 141(R)&quot;), which establishes accounting principles and disclosure
requirements for all transactions in which a company obtains control over
another business.&nbsp;&nbsp;This accounting pronouncement is effective for
fiscal years beginning after December 15, 2008, which will be effective for our
fiscal year beginning October 1, 2009. We are currently evaluating the
requirements of FAS 141 and have not yet determined the impact on our financial
statements.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'>In December 2007, the
FASB issued FASB Statement No. 160, &quot;Noncontrolling Interests in Consolidated
Financial Statements and amendment to ARB No. 51&quot; (&quot;FAS 160&quot;).&nbsp;&nbsp;This
standard prescribes the accounting by a parent company for minority interests
held by other parties in a subsidiary of the parent company.&nbsp;&nbsp;FAS 160
is effective for fiscal years beginning after December 15, 2008, which will be effective for our fiscal year beginning October 1, 2009.&nbsp;&nbsp;We are currently evaluating the requirements of FAS 160 and have not yet
determined the impact on our financial statements.</p>

<p class=MsoNormal style='margin-bottom:12.0pt;text-align:justify'>In March 2008, the
FASB issued SFAS No. 161, &quot;Disclosures about Derivative Instruments and Hedging
Activities&quot; (&quot;SFAS 161&quot;).&nbsp;&nbsp;SFAS 161 amends and expands the
disclosure requirements in SFAS 133, &quot;Accounting for Derivative Instruments and
Hedging Activities&quot;.&nbsp;&nbsp;SFAS 161 is effective for fiscal years and interim periods
beginning after November 15, 2008, which will be effective for our interim
period beginning January 1, 2009.&nbsp;We are currently evaluating the
requirements of FAS 161 and have not yet determined the impact on our financial
statements.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'><b>Note 10. Stock
Transactions</b></p>

<p class=MsoBodyText2 style='margin-bottom:12.0pt;text-align:justify'>None.</p>

<p class=MsoFooter align=center style='text-align:center'>10</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br clear=all style='page-break-before:always'>










<p class=MsoBodyText2 style='text-align:justify'><b>ITEM 2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION</b></p>

<p class=MsoNormal style='margin-bottom:12.0pt;text-align:justify'><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AND RESULTS OF OPERATIONS FOR THE COMPANY</b></p>

<h3><u>General</u></h3>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>This
Form 10-QSB contains or incorporates by reference forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended and
the disclosure of risk factors in the Company's form 10-KSB for the fiscal year
ended September 30, 2007.&nbsp; Also, documents subsequently filed by us with the
SEC and incorporated herein by reference may contain forward-looking
statements.&nbsp; We caution investors that any forward-looking statements made by
us are not guarantees of future performance and actual results could differ
materially from those in the forward-looking statements as a result of various
factors, including but not limited to the following:</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>(I)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; We
compete with numerous well established competitors who have substantially
greater financial resources and longer operating histories than we do.&nbsp;
Competitors have increasingly offered selected food items and combination
meals, including hamburgers, at discounted prices, and continued discounting by
competitors may adversely affect revenues and profitability of Company
restaurants.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>(II)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; We
may be negatively impacted if we experience consistent same store sales
declines.&nbsp; Same store sales comparisons will be dependent, among other things,
on the success of our advertising and promotion of new and existing menu
items.&nbsp; No assurances can be given that such advertising and promotions will in
fact be successful.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;line-height:normal'>We
may also be negatively impacted by other factors common to the restaurant
industry such as: changes in consumer tastes away from red meat and fried
foods; increases in the cost of food, paper, labor, health care, workers'
compensation or energy; inadequate number of hourly paid employees; and/or
decreases in the availability of affordable capital resources.&nbsp; We caution the
reader that such risk factors are not exhaustive, particularly with respect to
future filings.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:97%'><i>Restaurant Locations</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;line-height:normal'>We
currently operate and franchise a total of fifty-two Good Times restaurants, of
which forty-seven are in Colorado, with forty-two in the Denver greater
metropolitan area, three in Colorado Springs, one in Grand Junction and one in
Silverthorne. Eight of these restaurants are &quot;dual brand&quot;, operated pursuant to
a Dual Brand Test Agreement with Taco John's International, of which there is one
in North Dakota, two in Wyoming, and five in Colorado.</p>

<table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0 width=636
 style='margin-left:5.4pt;border-collapse:collapse;border:none'>
 <tr>
  <td width=247 valign=top style='width:185.25pt;border:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><b>&nbsp;</b></p>

  </td>
  <td width=53 valign=bottom style='width:39.75pt;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>Total</b></p>
  </td>
  <td width=102 valign=top style='width:76.5pt;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>Denver</b><b>, CO</b></p>
  <p class=MsoNormal align=center style='text-align:center'><b>Greater Metro</b></p>
  </td>
  <td width=78 valign=bottom style='width:58.5pt;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>CO, Other</b></p>
  </td>
  <td width=48 valign=bottom style='width:.5in;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>ID</b></p>
  </td>
  <td width=54 valign=bottom style='width:40.5pt;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>WY</b></p>
  </td>
  <td width=54 valign=bottom style='width:40.5pt;border:solid windowtext 1.0pt;
  border-left:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>ND</b></p>
  </td>
 </tr>
 <tr>
  <td width=247 valign=top style='width:185.25pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Good
  Times co-owned &amp; co-developed</p>
  </td>
  <td width=53 valign=top style='width:39.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>26</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>23</p>
  </td>
  <td width=78 valign=top style='width:58.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>3</p>
  </td>
  <td width=48 valign=top style='width:.5in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=54 valign=top style='width:40.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=54 valign=top style='width:40.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=247 valign=top style='width:185.25pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Good
  Times franchised</p>
  </td>
  <td width=53 valign=top style='width:39.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>17</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>14</p>
  </td>
  <td width=78 valign=top style='width:58.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>2</p>
  </td>
  <td width=48 valign=top style='width:.5in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>1</p>
  </td>
  <td width=54 valign=top style='width:40.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=54 valign=top style='width:40.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=247 valign=top style='width:185.25pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Dual
  brand co-owned</p>
  </td>
  <td width=53 valign=top style='width:39.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>3</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>3</p>
  </td>
  <td width=78 valign=top style='width:58.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=48 valign=top style='width:.5in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=54 valign=top style='width:40.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=54 valign=top style='width:40.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=247 valign=top style='width:185.25pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Dual
  brand franchised</p>
  </td>
  <td width=53 valign=top style='width:39.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>5</p>
  </td>
  <td width=102 valign=top style='width:76.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>2</p>
  </td>
  <td width=78 valign=top style='width:58.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=48 valign=top style='width:.5in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=54 valign=top style='width:40.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>2</p>
  </td>
  <td width=54 valign=top style='width:40.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>1</p>
  </td>
 </tr>
 <tr>
  <td width=247 valign=top style='width:185.25pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'><b>Total</b></p>
  </td>
  <td width=53 valign=top style='width:39.75pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>51</b></p>
  </td>
  <td width=102 valign=top style='width:76.5pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>42</b></p>
  </td>
  <td width=78 valign=top style='width:58.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>5</b></p>
  </td>
  <td width=48 valign=top style='width:.5in;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>1</b></p>
  </td>
  <td width=54 valign=top style='width:40.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><font size="2"><b>
  2</b></font></p>
  </td>
  <td width=54 valign=top style='width:40.5pt;border-top:none;border-left:none;
  border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>1</b></p>
  </td>
 </tr>
</table>

<p class=MsoNormal align=center style='margin-top:12.0pt;margin-right:175.5pt;
margin-bottom:0in;margin-left:189.0pt;margin-bottom:.0001pt;text-align:left'><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; June</b></p>

<table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0
 style='border-collapse:collapse;border:none'>
 <tr>
  <td width=220 valign=top style='width:165.3pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=106 valign=top style='width:79.8pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>2007</b></p>
  </td>
  <td width=106 valign=top style='width:79.8pt;border:none;border-bottom:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>2008</b></p>
  </td>
 </tr>
 <tr>
  <td width=220 valign=top style='width:165.3pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>Company-owned restaurants</p>
  </td>
  <td width=106 valign=top style='width:79.8pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>17</p>
  </td>
  <td width=106 valign=top style='width:79.8pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>20</p>
  </td>
 </tr>
 <tr>
  <td width=220 valign=top style='width:165.3pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>Joint venture restaurants</p>
  </td>
  <td width=106 valign=top style='width:79.8pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>9</p>
  </td>
  <td width=106 valign=top style='width:79.8pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>9</p>
  </td>
 </tr>
 <tr>
  <td width=220 valign=top style='width:165.3pt;border-top:none;border-left:
  solid windowtext 1.0pt;border-bottom:solid windowtext 1.5pt;border-right:
  solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='text-align:justify'>Franchise operated restaurants</p>
  </td>
  <td width=106 valign=top style='width:79.8pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>27</p>
  </td>
  <td width=106 valign=top style='width:79.8pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.5pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'>22</p>
  </td>
 </tr>
 <tr>
  <td width=220 valign=top style='width:165.3pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=right style='text-align:right'><b>Total restaurants</b></p>
  </td>
  <td width=106 valign=top style='width:79.8pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>53</b></p>
  </td>
  <td width=106 valign=top style='width:79.8pt;border-top:none;border-left:
  none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>51</b></p>
  </td>
 </tr>
</table>



<p class=MsoFooter align=center style='text-align:center'>11</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br clear=all style='page-break-before:always'>










<p class=MsoBodyText style='margin-top:12.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;line-height:normal'>In
fiscal 2007 we opened one new company-owned restaurant in Littleton, Colorado in May 2007 and one new company-owned restaurant in Colorado Springs, Colorado in August 2007.&nbsp; In May 2007 we sold one existing company-owned restaurant to a
new franchisee.&nbsp; One new franchised Good Times restaurant opened in Longmont, Colorado in March 2007, and two new franchised dual brand restaurants opened in
February 2007, one in Gillette, Wyoming and one in Dickinson, North Dakota.&nbsp; Three
additional Good Times restaurants are under various stages of development and
entitlement in Colorado and one additional dual brand restaurant is under
development in Sheridan, Wyoming.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>In
January 2008 a North Dakota franchisee terminated their Good Times franchise
agreement in the dual brand concept and has stopped selling Good Times products
in their two locations. In March 2008 we purchased two Good Times restaurants
from an existing franchisee. In June 2008 the Good Times franchisee operating
at the University of Wyoming Food Court ceased operations when the contract to
operate in the food court expired. There are no plans for this franchisee to
operate in another location.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;line-height:normal'>The
following presents certain historical financial information of our operations.&nbsp;
This financial information includes results for the three and nine months ended
 June 30, 2008 and results for the three and nine months ended June 30, 2007.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'><b><u>Results
of Operations</u></b></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'><i>Net
Revenues</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>Net
revenues for the three months ended June 30, 2008 increased $141,000 (2.1%) to $6,996,000 from $6,855,000 for the three months ended June 30, 2007.&nbsp; Same store restaurant sales decreased $313,000 (5.7%) during the three months ended June 30, 2008 for the restaurants that were open for the full three month periods ending June 30, 2008 and June 30, 2007.&nbsp; Restaurants are included in same store sales after they
have been open a full fifteen months and only Good Times restaurants are
included with dual branded restaurants excluded.&nbsp; Restaurant sales increased $236,000
due to five company-owned restaurants not included in same store sales. Two
were opened in late fiscal 2007 and three are dual branded restaurants. Restaurant
sales increased $334,000 due to two restaurants purchased from a franchisee in
March 2008. Restaurant sales decreased $3,000 due to one non-traditional
company-owned restaurant not included in same store sales. Restaurant sales also
decreased $65,000 due to one company-owned restaurant sold to a franchisee in
May 2007.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>Net
revenues for the nine months ended June 30, 2008 increased $1,512,000 (8.5%) to $19,236,000 from $17,724,000 for the nine months ended June 30, 2007.&nbsp; Same store restaurant sales increased $318,000 (2.3%) during the nine months ended June 30, 2008 for the restaurants that were open for the full nine month periods ending June 30, 2008 and June 30, 2007.&nbsp; Restaurants are included in same store sales after they
have been open a full fifteen months and only Good Times restaurants are
included with dual branded restaurants excluded.&nbsp; Restaurant sales increased $1,051,000
due to six company-owned restaurants not included in same store sales. Three
were opened beginning in late fiscal 2006 through fiscal 2007 and three are
dual branded restaurants. Restaurant sales increased $442,000 due to two
restaurants purchased from a franchisee in March 2008. Restaurant sales also
increased $153,000 due to one non-traditional company-owned restaurant not
included in same store sales. &nbsp;Restaurant sales decreased $391,000 due to one
company-owned restaurant sold to a franchisee in May 2007.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>Our
third quarter same store restaurant sales reflected the adverse impact the
macroeconomic environment is having on consumers' discretionary spending and
the proliferation of heavy promotion of $1 value menus and discounting by
competitors. Additionally we are comparing to a same store sales increase of
10.0% in the same quarter of fiscal 2007 when we introduced Bambino Burgers. We
have shown same store sales growth in sixteen consecutive quarters leading into
the third quarter of this fiscal year. &nbsp;Our outlook for the balance of this
fiscal year remains cautious as the economic pressures of high energy and food
costs may continue to impact consumer spending and we will continue to face increased
competitive pricing pressure.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;line-height:normal'>Franchise
revenues for the three months ended June 30, 2008 decreased $46,000 to $169,000 from $215,000 for the three months ended June 30, 2007 due to a decrease in franchise royalties and fee income. Same store Good Times franchise
restaurant sales decreased 6.3% during the three months ended June 30, 2008 for the franchise restaurants that were open for the full three month periods
ending June 30, 2008 and June 30, 2007.&nbsp; Franchise royalties increased slightly
during the three months ended June 30, 2008 from one Good Times restaurant that
opened in March 2007 and dual branded franchise restaurant royalties decreased
during the three months ended June 30, 2008 due to the closing of two restaurants
in January 2008.</p>

<p class=MsoFooter align=center style='text-align:center'>12</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br clear=all style='page-break-before:always'>










<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;line-height:normal'>Franchise
revenues for the nine months ended June 30, 2008 decreased $61,000 to $491,000 from $552,000 for the nine months ended June 30, 2007 due to an increase in franchise royalties offset by a $70,000 decrease in franchise fee income.
Same store Good Times franchise restaurant sales increased 1.2% during the nine
months ended June 30, 2008 for the franchise restaurants that were open for the
full nine month periods ending June 30, 2008 and June 30, 2007.&nbsp; Franchise royalties increased during the nine months ended June 30, 2008 from one Good Times restaurant that opened in March 2007 and dual branded franchise restaurant royalties
decreased during the nine months ended June 30, 2008 due to the closing of two restaurants in January 2008.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'><i>Restaurant
Operating Costs</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>Restaurant
operating costs as a percent of restaurant sales were 88.3% during the three
months ended June 30, 2008 compared to 87% in the same prior year period and
were 90.3% during the nine months ended June 30, 2008 compared to 89.7% in the same prior year period.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>The
changes in restaurant-level costs are explained as follows:</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=643
 style='border-collapse:collapse'>
 <tr>
  <td valign=top style='width:404;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>

  </td>
  <td valign=top style='width:119;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoBodyText align=center style='margin-right:.05in;text-align:center;
  line-height:normal'>Three
  Months Ended</p>
  <p class=MsoBodyText align=center style='margin-right:.05in;text-align:center;
  line-height:normal'><u>June
   30, 2008</u></p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=center style='margin-right:.05in;text-align:center;
  line-height:normal'>Nine
  months Ended</p>
  <p class=MsoBodyText align=center style='margin-right:.05in;text-align:center;
  line-height:normal'><u>June
   30, 2008</u></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:404;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoBodyText align=left style='margin-right:0in;text-align:left;
  line-height:normal'>Restaurant-level
  costs for the period ended June 30, 2007</p>
  </td>
  <td valign=top style='width:119;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:right;
  line-height:normal'>87.0%</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:right;
  line-height:normal'>89.7%</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:404;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoBodyText align=left style='margin-right:0in;text-align:left;
  line-height:normal'>Decrease
  in food and packaging costs</p>
  </td>
  <td valign=top style='width:119;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:right;
  line-height:normal'>(.8%)</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:right;
  line-height:normal'>(.1%)</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:404;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoBodyText align=left style='margin-right:0in;text-align:left;
  line-height:normal'>Increase
  in payroll and other employee benefit costs</p>
  </td>
  <td valign=top style='width:119;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:right;
  line-height:normal'>1.1%</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:right;
  line-height:normal'>.9%</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:404;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoBodyText align=left style='margin-right:0in;text-align:left;
  line-height:normal'>Increase &nbsp;in
  occupancy and other operating costs</p>
  </td>
  <td valign=top style='width:119;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:right;
  line-height:normal'>1.9%</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:right;
  line-height:normal'>.4%</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:404;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoBodyText align=left style='margin-right:0in;text-align:left;
  line-height:normal'>Increase
  (decrease) in depreciation and amortization</p>
  </td>
  <td valign=top style='width:119;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:right;
  line-height:normal'>.2%</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:right;
  line-height:normal'>(.2%)</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:404;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoBodyText align=left style='margin-right:0in;text-align:left;
  line-height:normal'>Decrease
  in opening costs and deferred rent</p>
  </td>
  <td valign=top style='width:119;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:right;
  line-height:normal'>(1.1%)</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:right;
  line-height:normal'>(.4%)</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:404;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoBodyText align=left style='margin-right:0in;text-align:left;
  line-height:normal'>Restaurant-level
  costs for the period ended June 30, 2008</p>
  </td>
  <td valign=top style='width:119;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:right;
  line-height:normal'>88.3%</p>
  </td>
  <td width=120 valign=top style='width:1.25in;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyText align=left style='margin-right:.05in;text-align:right;
  line-height:normal'>90.3%</p>
  </td>
 </tr>
</table>

<p class=MsoBodyText style='margin-top:12.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;line-height:normal'><i>Food
and Packaging Costs</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>For
the three months ended June 30, 2008 our food and <a name="OLE_LINK8">packaging</a>
costs, increased $6,000 to $2,156,000 (31.6% of restaurant sales) from $2,150,000
(32.4% of restaurant sales) compared to the same prior year period.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>For
the nine month ended June 30, 2008 our food and packaging costs increased $471,000
to $5,832,000 (31.1% of restaurant sales) from $5,361,000 (31.2% of restaurant
sales) for the same prior year period.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;line-height:normal'>Our
weighted food and packaging costs increased approximately 7% during fiscal 2007
and have increased approximately 9% in fiscal 2008. We have taken weighted menu
price increases of 1.8% in January 2007, 2.3% in July 2007, 3.3% in October
2007 and 1.5% in April 2008 to offset the food and packaging cost increases. We
anticipate moderate increases to food and packaging costs as a percentage of
sales and moderate menu price increases for the balance of fiscal 2008.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'><i>Payroll</i><i> and Other Employee Benefit Costs</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>For
the three months ended June 30, 2008 our payroll and other employee benefit
costs increased $134,000 to $2,266,000 (33.2% of restaurant sales) from $2,132,000
(32.1% of restaurant sales) compared to the same prior year period.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>For
the nine months ended June 30, 2008 our payroll and other employee benefit
costs increased $705,000 to $6,543,000 (34.9% of restaurant sales) from $5,838,000
(34.0% of restaurant sales) compared to the same prior year period.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>The
increase in payroll and other employee benefit expenses as a percent of
restaurant sales is primarily the result of mandated increases in the minimum
wage paid to hourly employees in the state of Colorado which increased from
$5.15 to $6.85 beginning January 1, 2007, and then increased to $7.02 beginning
January 1, 2008, as well as additional labor required to execute sales of the
new &quot;Bambino&quot; burger added in May 2007. Because payroll costs are semi-variable
in nature, they also increase as a percentage of restaurant sales due to a
decrease in same store sales. Additionally, the dual branded restaurants have a
higher labor cost as a percent of sales. </p>

<p class=MsoFooter align=center style='text-align:center'>13</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br clear=all style='page-break-before:always'>










<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;line-height:normal'>The
current three and nine month periods ending June 30, 2008 include two
additional company-owned restaurants opened in fiscal 2007 and two restaurants
purchased from a franchisee in March 2008 that represent $196,000 and $533,000,
respectively, of the increase compared to the same prior year periods.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'><i>Occupancy
and Other Operating Costs</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>For
the three months ended June 30, 2008 our occupancy and other operating costs
increased $161,000 to $1,261,000 (18.5% of restaurant sales) from $1,100,000 (16.6%
of restaurant sales) compared to the same prior year period.&nbsp; The current three
month period ending June 30, 2008 includes two new company-owned restaurants opened
in fiscal 2007 and two restaurants purchased from a franchisee in March 2008 that
represent $146,000 of the increase compared to the same prior year period. </p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>For
the nine months ended June 30, 2008 our occupancy and other operating costs
increased $368,000 to $3,558,000 (19.0% of restaurant sales) from $3,190,000 (18.6%
of restaurant sales) compared to the same prior year period.&nbsp; The current nine
month period ending June 30, 2008 includes two new company-owned restaurants
opened in fiscal 2007 and two restaurants purchased from a franchisee in March
2008 that represent $349,000 of the increase compared to the same prior year
period.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;line-height:normal'>For
the three and nine months ended June 30, 2008 we also experienced an increase
in property taxes and common area costs related to our newest restaurants
opened in fiscal 2006 and fiscal 2007 compared to the same prior year period.
Occupancy and other operating costs may increase as a percent of sales as new
company-owned restaurants are developed due to higher rent associated with
sale-leaseback operating leases, as well as higher property taxes at those
locations.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'><i>Opening
Costs</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>For
the three months ended June 30, 2008 our new store opening costs <a
name="OLE_LINK9">decreased $73,000 to $7,000 from $80,000 compared to the same
prior year period.</a> </p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>For
the nine months ended June 30, 2008 our new store opening costs decreased
$75,000 to $7,000 from $82,000 compared to the same prior year period.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;line-height:normal'>The
prior year three and nine month periods include opening costs for two new
company owned restaurants that opened in May and August 2007. Each new
company-owned restaurant developed in fiscal 2008 will have approximately
$50,000 to $60,000 of new store opening costs.</p>

<p class=MsoHeader style='margin-bottom:6.0pt;text-align:justify'><i>Depreciation and
Amortization</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>For
the three months ended June 30, 2008 depreciation and amortization increased $24,000
to $332,000 (4.9% of restaurant sales) from $308,000 (4.6% of restaurant sales)
compared to the same prior year period. The increase in depreciation and
amortization for the three months ended June 30, 2008 is primarily due to the addition of two new company-owned restaurants opened in fiscal 2007 and two
restaurants purchased from a franchisee in March 2008.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;line-height:normal'>For
the nine months ended June 30, 2008 depreciation and amortization increased $52,000
to $955,000 (5.1% of restaurant sales) from $903,000 (5.3% of restaurant sales)
compared to the same prior year period.&nbsp; The increase in depreciation and
amortization for the nine months ended June 30, 2008 is primarily due to the addition of two new company-owned restaurants opened in fiscal 2007 and two
restaurants purchased from a franchisee in March 2008.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'><i>General
and Administrative Costs</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>For
the three months ended June 30, 2008, general and administrative costs
increased $90,000 to $540,000 (7.7% of total revenues) from $450,000 (6.6% of
total revenues) for the same prior year period.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>For
the nine months ended June 30, 2008 general and administrative costs increased
$231,000 to $1,580,000 (8.2% of total revenues) from $1,349,000 (7.6% of total
revenues) for the same prior year period.</p>

<p class=MsoFooter align=center style='text-align:center'>14</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br clear=all style='page-break-before:always'>










<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;line-height:normal'>The
increases in general and administrative costs compared to the same prior year
periods is primarily attributable to increases in payroll and employee benefit
costs, professional services and $95,000 in costs associated with the exit from
the Omaha planned expansion. Professional services increased $97,000 for the nine
month period ending June 30, 2008 primarily attributable to legal fees relating
to the joint venture agreement for the Omaha expansion, legal fees relating to
the Company's Omnibus Equity Compensation Plan and consulting fees related to
our mandated Sarbanes Oxley compliance project.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'><i>Advertising
Costs</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>For
the three months ended June 30, 2008 advertising costs decreased $13,000 to $403,000
(5.9% of restaurant sales) from $416,000 (6.3% of restaurant sales) for the
same prior year period. The decrease is primarily attributable to a reduction
in the accrual for year end marketing personnel bonuses.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>For
the nine months ended June 30, 2008 advertising costs increased $46,000 to $1,134,000
(6.0% of restaurant sales) from $1,088,000 (6.3% of restaurant sales) for the
same prior year period. The increase in advertising costs is primarily due to
the increase in restaurant sales offset by a reduction in the accrual for year
end marketing personnel bonuses.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;line-height:normal'>Contributions
are made to the advertising materials fund and regional advertising cooperative
based on a percentage of sales.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'><i>Franchise
Costs</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>For
the three months ended June 30, 2008, franchise costs increased $52,000 to $88,000
(1.3% of total revenues) from $36,000 (.5% of total revenues) for the same
prior year period.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>For
the nine months ended June 30, 2008, franchise costs increased $147,000 to $275,000
(1.4% of total revenues) from $128,000 (.7% of total revenues) for the same
prior year period.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;line-height:normal'>The
increase in franchise costs for both the three and nine month periods ending June 30, 2008 is primarily attributable to the addition of a Vice President of Franchise
Development hired on October 1, 2007. &nbsp;This position was eliminated in
conjunction with the exit from the planned Omaha expansion. At June 30, 2008 we had a $14,000 accrued liability for termination benefits associated with
the elimination of this position. We also incurred $13,000 in legal costs in
the nine months ended June 30, 2008 related to franchise registration filings in
connection with our planned expansion.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'><i>Loss
from Operations</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>We
had a loss from operations of ($57,000) in the three months ended June 30, 2008 compared to income from operations of $154,000 for the same prior year period.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>We
had a loss from operations of ($644,000) in the nine months ended June 30, 2008 compared to a loss from operations of ($249,000) for the same prior year
period.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;line-height:normal'>The
increase in loss from operations for both the three and nine month periods is
due primarily to the increase in net revenues offset by other matters discussed
in the &quot;Restaurant Operating Costs&quot;, &quot;General and Administrative
Costs&quot; and &quot;Franchise Costs&quot; sections of Item 2.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'><i>Net
Loss</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>The
net loss was ($121,000) for the three months ended June 30, 2008 compared to net income of $79,000 for the same prior year period. The change from the three
month period ended June 30, 2007 to June 30, 2008 was primarily attributable to
the increase in loss from operations for the three months ended June 30, 2008,
as well as: 1) a decrease in net interest income of $14,000 compared to the
same prior year period; and, 2) a decrease in minority interest expense of $25,000
compared to the same prior year period.</p>

<p class=MsoFooter align=center style='text-align:center'>15</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br clear=all style='page-break-before:always'>










<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;line-height:97%'>The
net loss was ($746,000) for the nine months ended June 30, 2008 compared to a net loss of ($325,000) for the same prior year period. The change from the nine
month period ended June 30, 2007 to June 30, 2008 was primarily attributable to
the increase in loss from operations for the nine months ended June 30, 2008,
as well as: 1) a decrease in net interest income of $40,000 compared to the
same prior year period; and, 2) an decrease in minority interest expense of $14,000
compared to the same prior year period.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'><b><u>Liquidity
and Capital Resources</u></b></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'><i>Cash
and Working Capital</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>As
of June 30, 2008, we had $1,627,000 cash and cash equivalents on hand. We
currently plan to use the cash balance and cash generated from operations for
increasing our working capital reserves and, along with additional debt and
equity financing, for the development of new company-owned restaurants.&nbsp; We
believe that the current cash on hand and additional cash expected from
operations in fiscal 2008 will be sufficient to cover our working capital
requirements for fiscal 2008.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>As
of June 30, 2008, we had working capital of $567,000.&nbsp; Because restaurant sales
are collected in cash and accounts payable for food and paper products are paid
two to four weeks later, restaurant companies often operate with working
capital deficits.&nbsp; We anticipate that working capital deficits will be incurred
in the future as new restaurants are opened.</p>

<p class=MsoBodyText style='margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;line-height:97%'><i>Financing Activities</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>In
January 2008 the board of directors approved an increase in the existing line
of credit with PFGI II from the current $2,000,000 to $2,500,000. The new
agreement was entered into in July 2008. The funds of the line of credit will
be used for new store construction on sites which will then be sold in the
sale-leaseback market.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;line-height:normal'>In
May 2007 we borrowed $1,100,000 from Wells Fargo Bank under a note payable with
an eight year term with a floating interest rate at .50% below prime.&nbsp; We
simultaneously entered into an interest rate swap transaction with Wells Fargo
Bank for the full $1,100,000 with a fixed interest rate of 7.77% for the full
eight year term coinciding with the note payable, see note 4 in item one above.
Partial proceeds from the loan were used to: 1) payoff our existing GE Capital
notes payable of $398,000; and, 2) fund new store construction. The balance of
the proceeds was used to partially fund the purchase of two existing
restaurants from a franchisee.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'><i>Capital
Expenditures</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>On
 March 1, 2008, we purchased two restaurants from an existing franchisee for
total consideration of $1,330,000. We then simultaneously sold the land,
building and improvements related to one of the restaurants in a sale-leaseback
transaction, proceeds of which were used for the purchase of the restaurants.
Net cash used in the purchase transaction was $273,000. After accounting for
both the acquisition and the sale-leaseback assets of $490,000, a deferred gain
of $26,000 was recognized as a cost of the consideration and notes receivable
due from the franchisee of $250,000 were forgiven. We believe the $1,330,000
represents the fair value of the franchisee acquired.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;line-height:normal'>We
are currently negotiating purchase and lease agreements for additional
company-owned and joint venture restaurants and are negotiating debt and
sale-leaseback financing for the development of those restaurants. We also
anticipate investing approximately $100,000 during the balance of fiscal 2008
in existing company-owned and joint venture restaurants to upgrade the exterior
building finishes as well as to improve the patios.</p>

<p class=MsoNormal style='margin-bottom:6.0pt;text-align:justify'><i>Cash Flows</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>Net
cash provided by operating activities was $313,000 for the nine months ended June 30, 2008.&nbsp; The net cash provided by operating activities for the nine months ended June
30, 2008 was the result of a net loss of ($746,000) and non-cash reconciling
items totaling $1,059,000 (comprised of depreciation and amortization of $955,000,
minority interest of $97,000, stock based compensation expense of $69,000,
$95,000 in costs associated with the Omaha exit activity and a net decrease in
other operating assets and liabilities of $157,000).</p>

<p class=MsoFooter align=center style='text-align:center'>16</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br clear=all style='page-break-before:always'>










<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>Net
cash provided by operating activities was $1,024,000 for the nine months ended June 30, 2007. The net cash provided by operating activities for the nine months ended June
30, 2007 was the result of a net loss of ($325,000) and non-cash reconciling
items totaling $1,349,000 (comprised of depreciation and amortization of $903,000,
minority interest of $111,000, an increase in accrued liabilities and accounts
payable of $341,000 and a net decrease in other operating assets and
liabilities of $6,000).</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>Net
cash used in investing activities for the nine months ended June 30, 2008 was $196,000
which reflects payments of $729,000 for the purchase of property and equipment
(including $302,000 for new store development, $289,000 for restaurant
remodeling costs and $138,000 for miscellaneous restaurant related capital
expenditures), $273,000 for the purchase of two existing franchise restaurants,
$747,000 from the sale of fixed assets and $59,000 in principal payments
received on loans to franchisees.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>Net
cash used in investing activities for the nine months ended June 30, 2007 was $2,823,000
which reflects payments of $2,900,000 for the purchase of property and
equipment (including $2,399,000 for new store development and $501,000 for existing
store equipment, patio and building upgrades and miscellaneous restaurant
related capital expenditures) and $77,000 in principal payments received on
loans to franchisees.&nbsp; Included in the $2,399,000 new store development costs were
$1,805,000 of costs related to three new company-owned restaurants which were
sold in sale lease-back transactions.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'>Net
cash used in financing activities for the nine months ended June 30, 2008 was $955,000,
which includes principal payments on notes payable and long term debt of $89,000,
a repayment on our revolving line of credit of $750,000, distributions to
minority interests in partnerships of $219,000 and paid in capital activity of
$103,000 related to the exercise of stock options.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;line-height:normal'>Net
cash provided by financing activities for the nine months ended June 30, 2007
was $712,000, which includes principal payments on notes payable and long term
debt of $529,000, proceeds from long-term debt of $1,100,000, net proceeds from
our revolving line of credit of $250,000, net distributions to minority
interests in partnerships of $207,000 and paid in capital activity of $98,000
related to the exercise of stock options.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:normal'><i>Contingencies</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;line-height:97%'>We
are contingently liable on several ground leases that have been subleased or
assigned to franchisees.&nbsp; We have never experienced any losses nor do we
anticipate any future losses from these contingent lease liabilities.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;line-height:97%'><i>Subsequent Events</i></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;line-height:97%'>In
July 2008 we purchased the land for a Good Times restaurant which is under
construction in Firestone, Colorado. The cost was approximately $750,000, the
restaurant is expected to open in October 2008. We are currently marketing the
site in the sale-lease back market.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:97%'><b><u>Impact of Inflation</u></b></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;line-height:normal'>We
experienced moderation in commodity costs during fiscal 2005 and 2006 and significant
increases in fiscal 2007 and fiscal 2008.&nbsp; State increases in the minimum wage resulted
in an increase in our average hourly wage of $.60 per employee hour during
fiscal 2007 and approximately $.23 per employee hour in fiscal 2008. It is
anticipated that we will take moderate price increases during fiscal 2008, which
may or may not be sufficient to recover increased commodity costs or increases
in other operating expenses.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:0in;text-align:left;line-height:normal'><b><u>Seasonality</u></b></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:0in;text-align:left;line-height:normal'>Revenues of the Company are subject to
seasonal fluctuation based primarily on weather conditions adversely affecting
restaurant sales in December, January, February and March.</p>

<p class=MsoNormal style='margin-bottom:6.0pt'><b>ITEM 3.&nbsp;&nbsp; QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</b></p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:0in;text-align:left;line-height:97%'>There were no material
changes in our exposure to market risk for the quarter ended June 30, 2008.</p>

<p class=MsoFooter align=center style='text-align:center'>17</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br clear=all style='page-break-before:always'>










<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:0in;text-align:left;line-height:97%'><b>ITEM 4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CONTROLS
 AND PROCEDURES</b></p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:97%'>We
maintain a system of disclosure controls and procedures that are designed for
the purposes of ensuring that information required to be disclosed in our SEC
reports is recorded, processed, summarized and reported within the time periods
specified in the SEC's rules and forms, and that such information is
accumulated and communicated to our management, including the Chief Executive
Officer and the Controller, who currently performs the functions of principal
financial officer for the Company, as appropriate to allow timely decisions
regarding required disclosures.</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:0in;line-height:97%'>We
have carried out an evaluation, under the supervision and with the
participation of our management, including the Chief Executive Officer and the
Controller, of the effectiveness of the design and operation of our disclosure
controls and procedures.&nbsp; Based upon that evaluation, the Chief Executive
Officer and the Controller concluded that our disclosure controls and
procedures are effective for the purposes discussed above as of the end of the
period covered by this report.&nbsp; There have been no significant changes in our
internal controls or in other factors that could significantly affect these
controls during the quarter ended June 30, 2008.</p>

<p class=MsoBodyText align=center style='margin-top:.25in;margin-right:0in;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
line-height:normal'><b>GOOD
TIMES RESTAURANTS INC. AND SUBSIDIARIES</b></p>

<p class=MsoHeader align=center style='margin-bottom:12.0pt;text-align:center'><b>PART II - OTHER INFORMATION</b></p>

<p class=MsoHeader style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:45.35pt;text-indent:-45.35pt'>Item 1.&nbsp;&nbsp;&nbsp; Legal Proceedings</p>

<p class=MsoBodyText style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;line-height:normal'>Good
Times Restaurants is subject to legal proceedings which are incidental to its
business.&nbsp; These legal proceedings are not expected to have a material impact
on the Company.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:45.35pt;text-align:left;text-indent:-45.35pt;
line-height:normal'>Item 2.&nbsp;&nbsp;&nbsp; Changes
in Securities and Use of Proceeds</p>

<p class=MsoBodyTextIndent style='margin-left:.5in;text-indent:-.25in'>None.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:45.35pt;text-align:left;text-indent:-45.35pt;
line-height:normal'>Item 3.&nbsp;&nbsp;&nbsp; Defaults
upon Senior Securities</p>

<p class=MsoBodyTextIndent style='margin-left:.5in;text-indent:-.25in'>None.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:45.35pt;text-align:left;text-indent:-45.35pt;
line-height:normal'>Item 4.&nbsp;&nbsp;&nbsp; Submission
of Matters to a Vote of Security Holders</p>

<p class=MsoBodyTextIndent style='margin-left:.5in;text-indent:-.25in'>None.</p>

<p class=MsoBodyText align=left style='margin-top:0in;margin-right:0in;
margin-bottom:6.0pt;margin-left:45.35pt;text-align:left;text-indent:-45.35pt;
line-height:normal'>Item 5.&nbsp;&nbsp;&nbsp; Other
Information</p>

<p class=MsoList2 style='margin-bottom:6.0pt'>None.</p>

<p class=MsoHeader style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:45.35pt;text-indent:-45.35pt'>Item 6.&nbsp;&nbsp;&nbsp; Exhibits and Reports on Form 8-K</p>

<p class=MsoNormal style='margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:.5in'>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibits.&nbsp;
The following exhibits are furnished as part of this report:</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr>
  <td width=97 valign=top style='width:72.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-bottom:6.0pt'><u>Exhibit No.</u></p>
  </td>
  <td width=541 valign=top style='width:405.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal style='margin-bottom:6.0pt'><u>Description</u></p>
  </td>
 </tr>
 <tr>
  <td width=97 valign=top style='width:72.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoHeader>*31.1</p>
  </td>
  <td width=541 valign=top style='width:405.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoHeader>Certification
  of Chief Executive Officer pursuant to 18 U.S.C. Section 1350</p>
  </td>
 </tr>
 <tr>
  <td width=97 valign=top style='width:72.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoHeader>*32.1</p>
  </td>
  <td width=541 valign=top style='width:405.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoHeader>Certification
  of Controller pursuant to 18 U.S.C. Section 1350</p>
  </td>
 </tr>
 <tr>
  <td width=97 valign=top style='width:72.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>*32.1</p>
  </td>
  <td width=541 valign=top style='width:405.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>Certification
  of Chief Executive Officer and Controller pursuant to Section 906</p>
  </td>
 </tr>
</table>

<p class=MsoNormal style='margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt'>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <a
name="FIS_EXHIBITS_REPORTS">Reports of Form 8-K</a></p>



<p class=MsoNormal>On June 26, 2008 the Company filed a Form 8-K pursuant
to the departure of certain officers and other events related to the company's
suspended development in the Midwest market.</p>



<p class=MsoNormal>On July 2, 2008 the Company filed a Form 8-K pursuant to
the entry into a material definitive agreement.</p>



<p class=MsoNormal>*filed
herewith</p>

<p class=MsoFooter align=center style='text-align:center'>18</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>



<br clear=all style='page-break-before:always'>










<p class=MsoNormal style='margin-bottom:12.0pt'><b>SIGNATURES</b></p>

<p class=MsoBodyText align=left style='margin-right:0in;text-align:left;
line-height:normal'>In
accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.</p>



<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr>
  <td width=241 valign=top style='width:180.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3>&nbsp;</h3>
  </td>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <h3><b>GOOD TIMES RESTAURANTS INC.</b></h3>
  </td>
 </tr>
 <tr>
  <td width=241 valign=top style='width:180.9pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal>DATE:
  August 11, 2008</p>
  </td>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=241 valign=top style='width:180.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=Byline align=left style='margin-top:0in;margin-right:0in;margin-bottom:
  0in;margin-left:.3in;margin-bottom:.0001pt;text-align:left;line-height:normal'><u>/s/ Boyd E. Hoback</u></p>
  </td>
 </tr>
 <tr>
  <td width=241 valign=top style='width:180.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoHeader style='margin-left:.3in'>Boyd E. Hoback</p>
  <p class=MsoHeader style='margin-left:.3in'>President and Chief Executive Officer</p>
  </td>
 </tr>
 <tr>
  <td width=241 valign=top style='width:180.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoHeader style='margin-left:.3in'><i>&nbsp;</i></p>
  </td>
 </tr>
 <tr>
  <td width=241 valign=top style='width:180.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=Byline align=left style='margin-top:0in;margin-right:0in;margin-bottom:
  0in;margin-left:.3in;margin-bottom:.0001pt;text-align:left;line-height:normal'><u>/s/ Susan M. Knutson</u></p>
  </td>
 </tr>
 <tr>
  <td width=241 valign=top style='width:180.9pt;padding:0in 5.4pt 0in 5.4pt'>

  </td>
  <td width=378 valign=top style='width:283.5pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoBodyTextIndent style='margin-top:0in;margin-right:0in;margin-bottom:
  0in;margin-left:.3in;margin-bottom:.0001pt'>&nbsp;Susan M. Knutson</p>
  <p class=MsoBodyTextIndent style='margin-top:0in;margin-right:0in;margin-bottom:
  0in;margin-left:.3in;margin-bottom:.0001pt'>Controller</p>
  </td>
 </tr>
</table>

<p class=MsoFooter align=center style='text-align:center'>19</p>

<div class=MsoNormal align=center style='text-align:center'>

<hr size=2 width="100%" noshade style='color:navy' align=center>

</div>







</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.CERT
<SEQUENCE>2
<FILENAME>ex311ceo1.htm
<TEXT>
<html>

<head>
<!-- Document Prepared With E-Services, LLC HTML Software-->
<!-- Copyright 2006 E-Services, LLC.-->
<!-- All rights reserved EDGAR2.com -->



<title>Exhibit 31</title>


</head>

<body lang=EN-US>



<p class=MsoNormal><u><font size=2 face=Arial>&nbsp;</font></u></p>

<p class=MsoNormal><u><font size=2 face=Arial>&nbsp;</font></u></p>

<p class=MsoNormal style='line-height:1.0pt'><font size=3 face="Times New Roman">&nbsp;</font></p>

<p class=MsoNormal style='line-height:1.0pt'><font size=3 face="Times New Roman">&nbsp;</font></p>

<p class=MsoHeader><font size=3 face="Times New Roman">&nbsp;</font></p>

<p class=MsoNormal style='line-height:1.0pt'><font size=3 face="Times New Roman">&nbsp;</font></p>

<p class=MsoNormal><u><font size=2 face=Arial>Exhibit 31.1</font></u></p>

<p class=MsoNormal align=center style='text-align:center'><b><font size=2
face=Arial>CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER</font></b></p>

<p class=MsoNormal style='margin-left:22.5pt;text-indent:-22.5pt'><font size=2
face=Arial>&nbsp;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face=Arial>I, Boyd E. Hoback, certify that:</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face=Arial>&nbsp;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face=Arial>1.&nbsp;&nbsp;&nbsp;&nbsp; I have reviewed this quarterly report on Form
10-QSB of Good Times Restaurants Inc.;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face=Arial>&nbsp;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face=Arial>2.&nbsp;&nbsp;&nbsp;&nbsp; Based on my knowledge, this quarterly report does
not contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements made, in light of the circumstances under
which such statements were made, not misleading with respect to the period
covered by this quarterly report;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face=Arial>&nbsp;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face=Arial>3.&nbsp;&nbsp;&nbsp;&nbsp; Based on my knowledge, the financial statements,
and other financial information included in this quarterly report, fairly
present in all material respects the financial condition, results of operations
and cash flows of the registrant as of, and for, the periods presented in this
quarterly report;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face=Arial>&nbsp;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face=Arial>4.&nbsp;&nbsp;&nbsp;&nbsp; The registrant's other certifying officer and I
are responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-15e and 15d-15e) for the
registrant and have:</font></p>

<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'><font
size=2 face=Arial>&nbsp;</font></p>

<p class=MsoNormal style='margin-left:49.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face=Arial>a)&nbsp;&nbsp;&nbsp;&nbsp; Designed such disclosure controls and procedures,
or caused such disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the registrant,
including its consolidated subsidiaries, is made known to us by others within
those entities, particularly during the period in which this report is being
prepared;</font></p>

<p class=MsoNormal style='margin-left:49.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face=Arial>b)&nbsp;&nbsp;&nbsp;&nbsp; Evaluated the effectiveness of the registrant's
disclosure controls and procedures and presented in this report our conclusions
about the effectiveness of the disclosure controls and procedures, as of the
end of the period covered by this report based on such evaluation; and</font></p>

<p class=MsoNormal style='margin-left:49.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face=Arial>c)&nbsp;&nbsp;&nbsp;&nbsp; Disclosed in this report any change in the
registrant's internal control over financial reporting that occurred during the
registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter
in the case of an annual report) that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over financial
reporting.</font></p>

<p class=MsoNormal style='text-align:justify'><font size=2 face=Arial>&nbsp;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face=Arial>5.&nbsp;&nbsp;&nbsp;&nbsp; The registrant's other certifying officer and I
have disclosed, based on our most recent evaluation, to the registrant's
auditors and the audit committee of registrant's board of directors (or persons
performing the equivalent functions):</font></p>

<p class=MsoNormal style='text-align:justify'><font size=2 face=Arial>&nbsp;</font></p>

<p class=MsoNormal style='margin-left:49.5pt;text-align:justify;text-indent:
- -22.5pt'><a name="OLE_LINK1"><font size=2 face=Arial>a)&nbsp;&nbsp;&nbsp;&nbsp; All significant deficiencies in
the design or operation of internal controls which are reasonably likely to
adversely affect the registrant's ability to record, process, summarize and
report financial information; and</font></a></p>

<p class=MsoNormal style='margin-left:49.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face=Arial>b)&nbsp;&nbsp;&nbsp;&nbsp; Any fraud, whether or not material, that involves
management or other employees who have a significant role in the registrant's
internal controls over financial reporting.</font></p>

<p class=MsoNormal style='text-align:justify'><font size=2 face=Arial>&nbsp;</font></p>

<p class=MsoNormal style='text-align:justify'><font size=2 face=Arial>&nbsp;</font></p>

<p class=MsoNormal style='text-align:justify'><font size=2 face=Arial>&nbsp;</font></p>

<p class=MsoNormal><i><u><font size=2 face=Arial>/s/ Boyd E. Hoback</font></u></i></p>

<p class=MsoNormal><font size=2 face=Arial>Boyd E. Hoback</font></p>

<p class=MsoNormal><i><font size=2 face=Arial>President and Chief
Executive Officer</font></i></p>

<p class=MsoFooter><font size=2 face=Arial>August 11, 2008</font></p>

<div class=MsoNormal align=center style='text-align:center'><font size=3
face="Times New Roman">

<hr size=2 width="100%" noshade style='color:navy' align=center>

</font></div>

<p class=MsoNormal style='line-height:1.0pt'><font size=3 face="Times New Roman">&nbsp;</font></p>

<p class=MsoNormal><font face=Arial>&nbsp;</font></p>



</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.CERT
<SEQUENCE>3
<FILENAME>ex311controller1.htm
<TEXT>
<html>

<head>
<!-- Document Prepared With E-Services, LLC HTML Software-->
<!-- Copyright 2006 E-Services, LLC.-->
<!-- All rights reserved EDGAR2.com -->



<title>Exhibit 31</title>


</head>

<body lang=EN-US>



<p class=MsoNormal><u><font size=2 face="Microsoft Sans Serif">&nbsp;</font></u></p>

<p class=MsoNormal><u><font size=2 face="Microsoft Sans Serif">&nbsp;</font></u></p>

<p class=MsoNormal style='line-height:1.0pt'><font size=3 face="Times New Roman">&nbsp;</font></p>

<p class=MsoNormal style='line-height:1.0pt'><font size=3 face="Times New Roman">&nbsp;</font></p>

<p class=MsoHeader><font size=3 face="Times New Roman">&nbsp;</font></p>

<p class=MsoNormal style='line-height:1.0pt'><font size=3 face="Times New Roman">&nbsp;</font></p>

<p class=MsoNormal><u><font size=2 face="Microsoft Sans Serif">Exhibit
31.1</font></u></p>

<p class=MsoNormal align=center style='text-align:center'><b><font size=2
face="Microsoft Sans Serif">CERTIFICATION OF THE CONTROLLER</font></b></p>

<p class=MsoNormal><font size=2 face="Microsoft Sans Serif">&nbsp;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face="Microsoft Sans Serif">I, Susan M. Knutson, certify
that:</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face="Microsoft Sans Serif">&nbsp;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face="Microsoft Sans Serif">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I have reviewed this
quarterly report on Form 10-QSB of Good Times Restaurants Inc.;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face="Microsoft Sans Serif">&nbsp;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face="Microsoft Sans Serif">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my knowledge,
this quarterly report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in
light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this quarterly report;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face="Microsoft Sans Serif">&nbsp;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face="Microsoft Sans Serif">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my knowledge,
the financial statements, and other financial information included in this
quarterly report, fairly present in all material respects the financial
condition, results of operations and cash flows of the registrant as of, and
for, the periods presented in this quarterly report;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face="Microsoft Sans Serif">&nbsp;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face="Microsoft Sans Serif">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The registrant's other
certifying officer and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Exchange Act Rules 13a-15e
and 15d-15e) for the registrant and have:</font></p>

<p class=MsoNormal style='margin-left:.5in;text-align:justify;text-indent:-.5in'><font
size=2 face="Microsoft Sans Serif">&nbsp;</font></p>

<p class=MsoNormal style='margin-left:49.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face="Microsoft Sans Serif">a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Designed such
disclosure controls and procedures, or caused such disclosure controls and
procedures to be designed under our supervision, to ensure that material
information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared;</font></p>

<p class=MsoNormal style='margin-left:49.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face="Microsoft Sans Serif">b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Evaluated the
effectiveness of the registrant's disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of the end of the period covered by this
report based on such evaluation; and</font></p>

<p class=MsoNormal style='margin-left:49.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face="Microsoft Sans Serif">c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disclosed in this
report any change in the registrant's internal control over financial reporting
that occurred during the registrant's most recent fiscal quarter (the
registrant's fourth fiscal quarter in the case of an annual report) that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.</font></p>

<p class=MsoNormal style='text-align:justify'><font size=2
face="Microsoft Sans Serif">&nbsp;</font></p>

<p class=MsoNormal style='margin-left:22.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face="Microsoft Sans Serif">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The registrant's other
certifying officer and I have disclosed, based on our most recent evaluation,
to the registrant's auditors and the audit committee of registrant's board of
directors (or persons performing the equivalent functions):</font></p>

<p class=MsoNormal style='text-align:justify'><font size=2
face="Microsoft Sans Serif">&nbsp;</font></p>

<p class=MsoNormal style='margin-left:49.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face="Microsoft Sans Serif">a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All significant
deficiencies in the design or operation of internal controls which are
reasonably likely to adversely affect the registrant's ability to record,
process, summarize and report financial information; and</font></p>

<p class=MsoNormal style='margin-left:49.5pt;text-align:justify;text-indent:
- -22.5pt'><font size=2 face="Microsoft Sans Serif">b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any fraud, whether or
not material, that involves management or other employees who have a
significant role in the registrant's internal controls over financial
reporting.</font></p>

<p class=MsoNormal style='text-align:justify'><font size=2
face="Microsoft Sans Serif">&nbsp;</font></p>

<p class=MsoNormal><font size=2 face="Microsoft Sans Serif">&nbsp;</font></p>

<p class=MsoNormal><i><font size=2 face="Microsoft Sans Serif">/s/ Susan M. Knutson</font></i></p>

<p class=MsoNormal><font size=2 face="Microsoft Sans Serif">Susan
M. Knutson</font></p>

<p class=MsoNormal><i><font size=2 face="Microsoft Sans Serif">Controller</font></i></p>

<p class=MsoFooter><font size=2 face="Microsoft Sans Serif">August
11, 2008</font></p>

<div class=MsoNormal align=center style='text-align:center'><font size=3
face="Times New Roman">

<hr size=2 width="100%" noshade style='color:navy' align=center>

</font></div>

<p class=MsoNormal style='line-height:1.0pt'><font size=3 face="Times New Roman">&nbsp;</font></p>

<p class=MsoNormal><font face="Microsoft Sans Serif">&nbsp;</font></p>



</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.906 CERT
<SEQUENCE>4
<FILENAME>ex321ceoandcontroller1.htm
<TEXT>
<html>

<head>
<!-- Document Prepared With E-Services, LLC HTML Software-->
<!-- Copyright 2006 E-Services, LLC.-->
<!-- All rights reserved EDGAR2.com -->



<title>Exhibit 32</title>


</head>

<body lang=EN-US>



<p class=MsoNormal><u><font size=2 face="Microsoft Sans Serif">&nbsp;</font></u></p>

<p class=MsoNormal><u><font size=2 face="Microsoft Sans Serif">&nbsp;</font></u></p>

<p class=MsoNormal style='line-height:1.0pt'><font size=3 face="Times New Roman">&nbsp;</font></p>

<p class=MsoNormal style='line-height:1.0pt'><font size=3 face="Times New Roman">&nbsp;</font></p>

<p class=MsoHeader><font size=3 face="Times New Roman">&nbsp;</font></p>

<p class=MsoNormal style='line-height:1.0pt'><font size=3 face="Times New Roman">&nbsp;</font></p>

<p class=MsoNormal><u><font size=2 face="Microsoft Sans Serif">Exhibit
32.1</font></u></p>

<p class=TitleC><b><font size=2 face="Microsoft Sans Serif">CERTIFICATION
PURSUANT TO 18 U.S.C. SECTION 1350, </font></b></p>

<p class=TitleC><b><font size=2 face="Microsoft Sans Serif">AS
ADOPTED PURSUANT TO</font></b></p>

<p class=TitleC><b><font size=2 face="Microsoft Sans Serif">SECTION
906 OF THE SARBANES-OXLEY ACT OF 2002</font></b></p>

<p class=MsoNormal><font size=2 face="Microsoft Sans Serif">&nbsp;</font></p>

<p class=BodyText5 style='text-align:justify'><font size=2
face="Microsoft Sans Serif">In
connection with the Quarterly Report on Form 10-QSB of Good Times Restaurants
Inc. (the &quot;Company&quot;) for the period ended June 30, 2008 as filed with the
Securities and Exchange Commission on the date hereof (the &quot;Report&quot;), I, Boyd
E. Hoback, Chief Executive Officer and Susan M. Knutson, Controller of the
Company, hereby certifies, pursuant to and solely for the purpose of 18 U.S.C.
&sect;&nbsp;1350, as adopted pursuant to &sect;&nbsp;906 of the Sarbanes-Oxley Act of
2002, that to the best of my knowledge and belief:</font></p>

<p class=BodyText5 style='text-align:justify'><font size=2
face="Microsoft Sans Serif">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Report fully complies with the requirements of section 13(a) or 15(d) of the
Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and</font></p>

<p class=BodyText5 style='text-align:justify'><font size=2
face="Microsoft Sans Serif">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
information contained in the Report fairly presents, in all material respects,
the financial condition and results of operations of the Company.</font></p>

<p class=MsoNormal><font size=2 face="Microsoft Sans Serif">&nbsp;</font></p>

<p class=MsoNormal><font size=2 face="Microsoft Sans Serif">&nbsp;</font></p>

<p class=MsoNormal><font size=2 face="Microsoft Sans Serif">&nbsp;</font></p>

<p class=MsoNormal><font size=2 face="Microsoft Sans Serif">&nbsp;</font></p>

<p class=MsoNormal><u><font size=2 face="Microsoft Sans Serif">&nbsp;</font></u></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr>
  <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><u><font size=2 face="Microsoft Sans Serif">/s/
  Boyd E. Hoback</font></u></p>
  </td>
  <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><u><font size=2 face="Microsoft Sans Serif">/s/Susan
  M. Knutson</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><font size=2 face="Microsoft Sans Serif">Boyd
  E. Hoback</font></p>
  </td>
  <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><font size=2 face="Microsoft Sans Serif">Susan
  M. Knutson</font></p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><font size=2 face="Microsoft Sans Serif">Chief
  Executive Officer</font></p>
  </td>
  <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><font size=2 face="Microsoft Sans Serif">Controller
  (principal financial officer)</font></p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><font size=2 face="Microsoft Sans Serif">August
  11, 2008</font></p>
  </td>
  <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p class=MsoNormal><font size=2 face="Microsoft Sans Serif">August
  11, 2008</font></p>
  </td>
 </tr>
</table>

<p class=MsoFooter><font size=3 face="Times New Roman">&nbsp;</font></p>

<div class=MsoNormal align=center style='text-align:center'><font size=3
face="Times New Roman">

<hr size=2 width="100%" noshade style='color:navy' align=center>

</font></div>

<p class=MsoNormal style='line-height:1.0pt'><font size=3 face="Times New Roman">&nbsp;</font></p>

<p class=MsoNormal><font face="Microsoft Sans Serif">&nbsp;</font></p>



</body>

</html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
