CAUTIONARY NOTE REGARDING LOOKING FORWARD STATEMENTS





Reported financial results may not be indicative of the financial results of
future periods. All non-historical information contained in the following
discussion constitutes forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. Words such as "anticipates, appears, expects, trends, intends, hopes,
plans, believes, seeks, estimates, may, will," and variations of these words or
similar expressions are intended to identify forward-looking statements. These
statements are not guarantees of future performance and involve a number of
risks and uncertainties, including but not limited to the effect of the novel
coronavirus pandemic and related "shelter-in-place" orders and other
governmental mandates ("COVID 19"), customer demand and competitive conditions.
Factors that could cause actual results to differ materially are included in,
but not limited to, those identified in the "Management's Discussion and
Analysis of Financial Condition and Results of Operations," in our periodic
reports, including our Annual Report on Form 10-K for the fiscal year ended
October 3, 2020. We undertake no obligation to publicly release the results of
any revisions to these forward-looking statements that may reflect events or
circumstances after the date of this report.



OVERVIEW



As of April 3, 2021, Flanigan's Enterprises, Inc., a Florida corporation,
together with its subsidiaries ("we", "our", "ours" and "us" as the context
requires), (i) operates 27 units, consisting of restaurants, package liquor
stores and combination restaurants/package liquor stores that we either own or
have operational control over and partial ownership in; and (ii) franchises an
additional five units, consisting of two restaurants (one of which we operate)
and three combination restaurants/package liquor stores. The table below
provides information concerning the type (i.e. restaurant, package liquor store
or combination restaurant/package liquor store) and ownership of the units (i.e.
whether (i) we own 100% of the unit; (ii) the unit is owned by a limited
partnership of which we are the sole general partner and/or have invested in; or
(iii) the unit is franchised by us), as of April 3, 2021 and as compared to
March 28, 2020. With the exception of "The Whale's Rib", a restaurant we operate
but do not own, all of the restaurants operate under our service mark
"Flanigan's Seafood Bar and Grill" and all of the package liquor stores operate
under our service marks "Big Daddy's Liquors" or "Big Daddy's Wine & Liquors".



Types of Units                     April 3, 2021 October 3, 2020 March 28, 2020
Company Owned:

Combination package and restaurant       3              3              3

(1)


Restaurant only                          7              7              7
Package store only                       7              7              7

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

Total Company Owned/Operated Units      27             27              27
Franchised Units                         5              5              5        (2)


Notes:

(1) During the first quarter of our fiscal year 2019, our combination package
liquor store and restaurant located at 2505 N. University Drive, Hollywood,
Florida (Store #19) was damaged by a fire which has caused it to be closed since
the first quarter of our fiscal year 2019. Store #19 remains closed through
April 3, 2021.

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





                                      17

  Index


In March 2020, a novel strain of coronavirus was declared a global pandemic and
a National Public Health Emergency. The novel coronavirus pandemic and related
"shelter-in-place" orders and other governmental mandates relating thereto
(collectively, "COVID-19") adversely affected and will, in all likelihood
continue to adversely affect, our restaurant operations and financial results
for the foreseeable future. Throughout the second quarter of our fiscal year
2021, in accordance with guidance from health officials, we have offered both
indoor and outdoor food and bar options at all of our restaurants, with, among
other precautions appropriate social distancing and mask requirements for all
customers and employees.



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



Limited Partnership Financial Arrangement: We manage and control the operations
of all restaurants owned by limited partnerships, except the Fort Lauderdale,
Florida restaurant which is owned by a related franchisee. Accordingly, the
results of operations of all limited partnership owned restaurants, except the
Fort Lauderdale, Florida restaurant are consolidated into our operations for
accounting purposes. The results of operations of the Fort Lauderdale, Florida
restaurant are accounted for by us utilizing the equity method of accounting. In
general, until the investors' cash investment in a limited partnership
(including any cash invested by us and our affiliates) is returned in full, the
limited partnership distributes to the investors annually out of available cash
from the operation of the restaurant up to 25% of the cash invested in the
limited partnership, with no management fee paid to us. Any available cash in
excess of the 25% of the cash invested in the limited partnership distributed to
the investors annually, is paid one-half (½) to us as a management fee, with the
balance distributed to the investors. Once the investors in the limited
partnership have received, in full, amounts equal to their cash invested, an
annual management fee is payable to us equal to one-half (½) of cash available
to the limited partnership, with the other one half (½) of available cash
distributed to the investors (including us and our affiliates). As of April 3,
2021, all limited partnerships have returned all cash invested and we receive an
annual management fee equal to one-half (½) of the cash available for
distribution by the limited partnership. In addition to receipt of distributable
amounts from the limited partnerships, we receive a fee equal to 3% of gross
sales for use of the service mark "Flanigan's Seafood Bar and Grill".



RESULTS OF OPERATIONS

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


                                                    April 3, 2021                   March 28, 2020
                                            Amount                                      Amount
                                        (In thousands)            Percent           (In thousands)            Percent
Restaurant food sales                   $        20,689                 61.63       $        18,213                 61.62
Restaurant bar sales                              5,050                 15.04                 5,315                 17.98
Package store sales                               7,830                 23.33                 6,027                 20.40

Total Sales                             $        33,569                100.00       $        29,555                100.00

Franchise related revenues                          422                                         307
Rental income                                       226                                         209
Other operating income                              140                                          57

Total Revenue                           $        34,357                             $        30,128




                                      18

  Index

                                   -----------------------Twenty Six Weeks Ended-----------------------
                                         April 3, 2021                              March 28, 2020
                                 Amount                                      Amount
                             (In thousands)            Percent           (In thousands)            Percent
Restaurant food sales        $        39,017                 60.63       $        36,955                 61.70
Restaurant bar sales                   9,493                 14.75                11,206                 18.71
Package store sales                   15,841                 24.62                11,734                 19.59

Total Sales                  $        64,351                100.00       $        59,895                100.00

Franchise related revenues               808                                         667
Rental income                            413                                         403
Other operating income                   165                                         104

Total Revenue                $        65,737                             $        61,069

Comparison of Thirteen Weeks Ended April 3, 2021 and March 28, 2020.


Revenues.Total revenue for the thirteen weeks ended April 3, 2021 increased
$4,229,000 or 14.04% to $34,357,000 from $30,128,000 for the thirteen weeks
ended March 28, 2020 due primarily to increased package liquor store and
restaurant sales, increased menu prices and the comparatively more adverse
effects of COVID-19 on our operations during the thirteen weeks ended March 28,
2020 as compared with the thirteen weeks ended April 3, 2021. Effective November
29, 2020 we increased menu prices for our bar offerings to target an increase to
our bar revenues of approximately 1.83% annually and effective December 6, 2020
we increased menu prices for our food offerings to target an increase to our
food revenues of approximately 2.45% annually to offset higher food costs and
higher overall expenses, (the "2020 Prices Increases"). Prior to these
increases, we previously raised menu prices in the third quarter of our fiscal
year 2019. We expect that Store #19 (2505 N. University Drive, Hollywood,
Florida) will remain closed during our fiscal year 2021 due to damages caused by
a fire in October 2018 and accordingly do not expect to generate any revenue
from it.




Restaurant Food Sales. Restaurant revenue generated from the sale of food,
including non-alcoholic beverages, at restaurants totaled $20,689,000 for the
thirteen weeks ended April 3, 2021 as compared to $18,213,000 for the thirteen
weeks ended March 28, 2020. The increase in restaurant food sales for the
thirteen weeks ended April 3, 2021 as compared to restaurant food sales during
the thirteen weeks ended March 28, 2020 is attributable to the 2020 Price
Increases and the comparatively more adverse effects of COVID-19 on our
operations during the thirteen weeks ended March 28, 2020 as compared with the
thirteen weeks ended April 3, 2021. Comparable weekly restaurant food sales (for
restaurants open for all of the thirteen weeks ended April 3, 2021 and March 28,
2020 respectively, which consists of nine restaurants owned by us, (excluding
Store #19 which was closed for the thirteen weeks ended April 3, 2021 and March
28, 2020 due to a fire on October 2, 2018) and eight restaurants owned by
affiliated limited partnerships) was $1,578,000 and $1,388,000 for the thirteen
weeks ended April 3, 2021 and March 28, 2020, respectively, an increase of
13.69%. Comparable weekly restaurant food sales for Company owned restaurants
only was $786,000 and $713,000 for the thirteen weeks ended April 3, 2021 and
March 28, 2020 respectively, an increase of 10.24%. Comparable weekly restaurant
food sales for affiliated limited partnership owned restaurants only was
$792,000 and $675,000 for the thirteen weeks ended April 3, 2021 and March 28,
2020 respectively, an increase of 17.33%.



                                      19

  Index

Restaurant Bar Sales. Restaurant revenue generated from the sale of alcoholic
beverages at restaurants totaled $5,050,000 for the thirteen weeks ended April
3, 2021 as compared to $5,315,000 for the thirteen weeks ended March 28, 2020.
The decrease in restaurant bar sales during the thirteen weeks ended April 3,
2021 is primarily due to the comparatively more adverse effects of COVID-19 on
our operations during the thirteen weeks ended April 3, 2021 as compared with
the thirteen weeks ended March 28, 2020, offset by the 2020 Price Increases.
Comparable weekly restaurant bar sales (for restaurants open for all of the
thirteen weeks ended April 3, 2021 and March 28, 2020 respectively, which
consists of nine restaurants owned by us, (excluding Store #19 which was closed
for the thirteen weeks ended April 3, 2021 and March 28, 2020 due to a fire on
October 2, 2018), and eight restaurants owned by affiliated limited
partnerships) was $389,000 for the thirteen weeks ended April 3, 2021 and
$409,000 for the thirteen weeks ended March 28, 2020, a decrease of 4.89%.
Comparable weekly restaurant bar sales for Company owned restaurants only was
$166,000 and $189,000 for the thirteen weeks ended April 3, 2021 and March 28,
2020 respectively, a decrease of 12.17%. Comparable weekly restaurant bar sales
for affiliated limited partnership owned restaurants only was $223,000 and
$220,000 for the thirteen weeks ended April 3, 2021 and March 28, 2020
respectively, an increase of 1.36%.



Package Store Sales. Revenue generated from sales of liquor and related items at
package liquor stores totaled $7,830,000 for the thirteen weeks ended April 3,
2021 as compared to $6,027,000 for the thirteen weeks ended March 28, 2020, an
increase of $1,803,000. This increase was primarily due to increased package
liquor store traffic due to what appears to be an increased demand for package
liquor store products resulting from COVID-19 during the second quarter of our
fiscal year 2021, offset by the fact that both New Year's Eve and New Year's Day
2021 (days we have historically experienced high sales volume in our package
liquor stores) occurred during the first quarter of our fiscal year 2021 and
occurred during the second quarter of our fiscal year 2020. The weekly average
of same store package liquor store sales, which includes nine (9) Company-owned
package liquor stores, (excluding Store #19, which was closed for the thirteen
weeks ended April 3, 2021 and March 28, 20020 due to a fire on October 2, 2018,
but includes Store #45, which opened for business on October 10, 2019), was
$602,000 and $464,000 for the thirteen weeks ended April 3, 2021 and March 28,
2020 respectively, an increase of 29.74%.



Operating Costs and Expenses. Operating costs and expenses, (consisting of cost
of merchandise sold, payroll and related costs, occupancy costs and selling,
general and administrative expenses), for the thirteen weeks ended April 3, 2021
increased $2,953,000 or 10.32% to $31,564,000 from $28,611,000 for the thirteen
weeks ended March 28, 2020. The increase was primarily due to an expected
general increase in food costs and payroll, offset by actions taken by
management to reduce and/or control costs. We anticipate that our operating
costs and expenses will continue to increase through our fiscal year 2021 for
the same reasons. Operating costs and expenses decreased as a percentage of
total revenue to approximately 91.87% in the second quarter of our fiscal year
2021 from 94.96% in the second quarter of our fiscal year 2020.

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





Restaurant Food Sales and Bar Sales. Gross profit for food and bar sales for the
thirteen weeks ended April 3, 2021 increased to $17,277,000 from $15,628,000 for
the thirteen weeks ended March 28, 2020. Our gross profit margin for restaurant
food and bar sales (calculated as gross profit reflected as a percentage of
restaurant food and bar sales), was 67.12% for the thirteen weeks ended April 3,
2021 and 66.42% for the thirteen weeks ended March 28, 2020. Gross profit margin
for restaurant food and bar sales increased during the second quarter of our
fiscal year 2021 when compared to the second quarter of our fiscal year 2020 due
to, among other things, the inclusion of a 10% take-out charge on restaurant
food sales, which is approximately three times pre-pandemic levels, the 2020
Price Increases and the comparatively more adverse effects of COVID-19 on our
operations during the thirteen weeks ended March 28, 2020 as compared with the
thirteen weeks ended April 3, 2021, offset by higher food costs. .



                                      20

  Index


Package Store Sales. Gross profit for package store sales for the thirteen weeks
ended April 3, 2021 increased to $2,162,000 from $1,701,000 for the thirteen
weeks ended March 28, 2020, due primarily to increased package liquor store
traffic which we believe has been caused by COVID-19. Our gross profit margin,
(calculated as gross profit reflected as a percentage of package liquor store
sales), for package store sales was 27.61% for the thirteen weeks ended April 3,
2021 and 28.22% for the thirteen weeks ended March 28, 2020.



Payroll and Related Costs. Payroll and related costs for the thirteen weeks
ended April 3, 2021 increased $1,312,000 or 14.34% to $10,464,000 from
$9,152,000 for the thirteen weeks ended March 28, 2020. Payroll and related
costs for the thirteen weeks ended April 3, 2021 were stable, notwithstanding
higher costs for employees such as cooks. Payroll and related costs as a
percentage of total revenue was 30.46% in the thirteen weeks ended April 3, 2021
and 30.38% of total revenue in the thirteen weeks ended March 28, 2020.



Occupancy Costs. Occupancy costs (consisting of percentage rent, common area
maintenance, repairs, real property taxes, amortization of leasehold purchases
and rent expense associated with operating lease liabilities under ASC 842) for
the thirteen weeks ended April 3, 2021 decreased $251,000 or 13.55% to
$1,602,000 from $1,853,000 for the thirteen weeks ended March 28, 2020. The
decrease in occupancy costs was primarily due to the termination of rent for our
combination retail package liquor store and restaurant located at 5450 N. State
Road 7, North Lauderdale, Florida (Store #40), the real property and
improvements of which we purchased on December 31, 2020 and the elimination of
occupancy costs due to the elimination of rent for our restaurant location which
we are developing located at 14301 West Sunrise Boulevard, Sunrise, Florida
(Store #85), the real property and improvements of which we purchased on March
2, 2021. We anticipate that our occupancy costs will decrease throughout the
balance of our fiscal year 2021.



Selling, General and Administrative Expenses.Selling, general and administrative
expenses (consisting of general corporate expenses, including but not limited to
advertising, insurance, professional costs, clerical and administrative
overhead) for the thirteen weeks ended April 3, 2021 decreased $12,000 or 0.22%
to $5,368,000 from $5,380,000 for the thirteen weeks ended March 28, 2020.
Selling, general and administrative expenses decreased as a percentage of total
revenue in the thirteen weeks ended April 3, 2021 to 15.62% as compared to
17.86% in the thirteen weeks ended March 28, 2020. We anticipate that our
selling, general and administrative expenses will decrease throughout the
balance of our fiscal year 2021 due primarily to increases in total revenue when
compared to the balance of our fiscal year 2020.



Depreciation and Amortization. Depreciation and amortization expense for the
thirteen weeks ended April 3, 2021 decreased $53,000 or 6.50% to $762,000 from
$815,000 from the thirteen weeks ended March 28, 2020. As a percentage of total
revenue, depreciation and amortization expense was 2.22% of revenue in the
thirteen weeks ended April 3, 2021 and 2.71% of revenue in the thirteen weeks
ended March 28, 2020.




Interest Expense, Net. Interest expense, net, for the thirteen weeks ended April
2, 2021 increased $50,000 to $248,000 from $198,000 for the thirteen weeks ended
March 28, 2020. Interest expense, net, will increase throughout the balance of
our fiscal year 2021 due to interest on our borrowing of $2,200,000 during the
second quarter of our fiscal year 2021 from our unrelated third party lender to
finance our purchase of the real property and improvements located at 14301 West
Sunrise Boulevard, Sunrise, Florida (Store #85) and the borrowing by six of our
limited partnerships of an additional approximately $3.35 million during the
second quarter of our fiscal year 2021 on the 2nd PPP Loans, if not forgiven.



Income Taxes. Income tax for the thirteen weeks ended April 3, 2021 was an
expense of $533,000, as compared to a benefit of $88,000 for the thirteen weeks
ended March 28, 2020. Income tax for the second quarter of our fiscal year 2021
was not affected by the forgiveness of debt of certain of the PPP Loans,
pursuant to the terms of the PPP Loans. The income tax benefit for the thirteen
weeks ended March 28, 2020 reflects an adjustment to the income tax expense for
the first quarter of our fiscal year 2020 which was based upon a pre COVID-19
estimated annual net income for our fiscal year 2020.



                                      21

  Index


Net Income. Net income for the thirteen weeks ended April 3, 2021 increased
$4,272,000 or 300.85% to $5,692,000 from $1,420,000 for the thirteen weeks ended
March 28, 2020 due primarily to the forgiveness of debt of certain of the PPP
Loans, increased revenue at our retail package liquor stores and restaurants,
the 2020 Price Increases and the comparatively more adverse effects of COVID-19
on our operations during the thirteen weeks ended March 28, 2020 as compared
with the thirteen weeks ended April 3, 2021, offset by higher food costs and
overall expenses. As a percentage of revenue, net income for the thirteen weeks
ended April 3, 2021 is 16.57%, as compared to 4.71% in the thirteen weeks ended
March 28, 2020.



Net Income Attributable to Stockholders.Net income attributable to stockholders
for the thirteen weeks ended April 3, 2021 increased $1,803,000 or 278.24% to
$2,451,000 from $648,000 for the thirteen weeks ended March 28, 2020 due
primarily to the forgiveness of debt of certain of the PPP Loans, increased
revenue at our retail package liquor stores and restaurants, the 2020 Price
Increases and the comparatively more adverse effects of COVID-19 on our
operations during the thirteen weeks ended March 28, 2020 as compared with the
thirteen weeks ended April 3, 2021, offset by higher food costs and overall
expenses. As a percentage of revenue, net income attributable to stockholders
for the second quarter of our fiscal year 2021 is 7.13%, as compared to 2.15% in
the second quarter of our fiscal year 2020.

Comparison of Twenty-Six Weeks Ended April 1, 2021 and March 28, 2020.





Revenues.Total revenue for the twenty-six weeks ended April 3, 2021 increased
$4,668,000 or 7.64% to $65,737,000 from $61,069,000 for the twenty-six ended
March 28, 2020 due primarily to increased package liquor store and restaurant
sales, increased menu prices and the comparatively more adverse effects of
COVID-19 on our operations during the thirteen weeks ended March 28, 2020 as
compared with the thirteen weeks ended April 3, 2021. We expect that Store #19
(2505 N. University Drive, Hollywood, Florida) will remain closed during our
fiscal year 2021 due to damages caused by a fire in October 2018 and accordingly
do not expect to generate any revenue from it.



Restaurant Food Sales. Restaurant revenue generated from the sale of food,
including non-alcoholic beverages, at restaurants totaled $39,017,000 for the
twenty-six weeks ended April 3, 2021 as compared to $36,955,000 for the
twenty-six weeks ended March 28, 2020. The increase in restaurant food sales for
the twenty-six weeks ended April 3, 2021 as compared to restaurant food sales
during the twenty-six ended March 28, 2020 is attributable to the 2020 Price
Increases and the comparatively more adverse effects of COVID-19 on our
operations during the thirteen weeks ended March 28, 2020 as compared with the
thirteen weeks ended April 3, 2021. Comparable weekly restaurant food sales (for
restaurants open for the twenty-six weeks ended April 3, 2021 and March 28, 2020
respectively, which consists of nine restaurants owned by us, (excluding Store
#19 which was closed for the twenty-six weeks ended April 3, 2021 and March 28,
2020 respectively, due to a fire on October 2, 2018) and eight restaurants owned
by affiliated limited partnerships) was $1,489,000 and $1,410,000 for the
twenty-six weeks ended April 3, 2021 and March 28, 2020 respectively, an
increase of 5.60%. Comparable weekly restaurant food sales for Company owned
restaurants only was $733,000 and $717,000 for the twenty-six weeks ended April
3, 2021 and March 28, 2020 respectively, an increase of 2.23%. Comparable weekly
restaurant food sales for affiliated limited partnership owned restaurants only
was $756,000 and $693,000 for the twenty-six weeks ended April 3, 2021 and March
28, 2020 respectively, an increase of 9.09%.



                                      22

  Index

Restaurant Bar Sales. Restaurant revenue generated from the sale of alcoholic
beverages at restaurants totaled $9,493,000 for the twenty-six weeks ended April
3, 2021 as compared to $11,206,000 for the twenty-six weeks ended March 28,
2020. The decrease in restaurant bar sales during the twenty-six weeks ended
April 3, 2021 is primarily due to the comparatively more adverse effects of
COVID-19 on our operations during the twenty-six weeks ended April 3, 2021 as
compared with the twenty-six weeks ended March 28, 2020, offset by 2020 Price
Increases. Comparable weekly restaurant bar sales (for restaurants open for the
twenty-six weeks ended April 3, 2021 and March 28, 2020, which consists of nine
restaurants owned by us, (excluding Store #19 which was closed for the
twenty-six weeks ended April 3, 2021 and March 28, 2020 due to a fire on October
2, 2018), and eight restaurants owned by affiliated limited partnerships) was
$365,000 for the twenty-six weeks ended April 3, 2021 and $431,000 for the
twenty-six weeks ended March 28, 2020 respectively, a decrease of 15.31%.
Comparable weekly restaurant bar sales for Company owned restaurants only was
$153,000 and $198,000 for the twenty-six weeks ended April 3, 2021 and March 28,
2020, respectively, a decrease of 22.73%. Comparable weekly restaurant bar sales
for affiliated limited partnership owned restaurants only was $212,000 and
$233,000 for the twenty-six weeks ended April 3, 2021 and March 28, 2020,
respectively, a decrease of 9.01%.



Package Store Sales. Revenue generated from sales of liquor and related items at
package liquor stores totaled $15,841,000 for the twenty-six weeks ended April
3, 2021 as compared to $11,734,000 for the twenty-six weeks ended March 28,
2020, an increase of $4,107,000. This increase was primarily due to increased
package liquor store traffic due to what appears to be an increased demand for
package liquor store products resulting from COVID-19 during the twenty-six
weeks of our fiscal year 2021. The weekly average of same store package liquor
store sales, which includes nine (9) Company-owned package liquor stores,
(excluding Store #19, which was closed for the twenty-six weeks ended April 3,
2021 and March 28, 2020 respectively due to a fire on October 2, 2018, but
includes Store #45, which opened for business on October 10, 2019), was $609,000
and $451,000 for the twenty-six weeks ended April 3, 2021 and March 28, 2020
respectively, an increase of 35.03%.



Operating Costs and Expenses. Operating costs and expenses, (consisting of cost
of merchandise sold, payroll and related costs, occupancy costs and selling,
general and administrative expenses), for the twenty-six weeks ended April 3,
2021 increased $3,353,000 or 5.75% to $61,674,000 from $58,321,000 for the
twenty-six weeks ended March 28, 2020. The increase was primarily due to an
expected general increase in food costs and payroll, offset by actions taken by
management to reduce and/or control costs. We anticipate that our operating
costs and expenses will continue to increase through our fiscal year 2021 for
the same reasons. Operating costs and expenses decreased as a percentage of
total revenue to approximately 93.82% in the twenty-six weeks ended April 3,
2021 from 95.50% in the twenty-six weeks ended March 28, 2020.

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





Restaurant Food Sales and Bar Sales. Gross profit for food and bar sales for the
twenty-six weeks ended April 3, 2021 increased to $32,526,000 from $31,837,000
for the twenty-six weeks ended March 28, 2020. Our gross profit margin for
restaurant food and bar sales (calculated as gross profit reflected as a
percentage of restaurant food and bar sales), was 67.05% for the twenty-six
weeks ended April 3, 2021 and 66.11% for the twenty-six weeks ended March 28,
2020. Gross profit margin for restaurant food and bar sales increased during the
twenty-six weeks ended April 3, 2021 when compared to the twenty-six weeks ended
March 28, 2020 due to, among other things, the inclusion of a 10% take-out
charge on restaurant food sales, which is approximately three times pre-pandemic
levels, the 2020 Price Increases and the comparatively more adverse effects of
COVID-19 on our operations during the thirteen weeks ended March 28, 2020 as
compared with the thirteen weeks ended April 3, 2021, offset by higher food
costs.



Package Store Sales. Gross profit for package liquor store sales for the
twenty-six weeks ended April 3, 2021 increased to $4,322,000 from $3,269,000 for
the twenty-six weeks ended March 28, 2020, due primarily to increased package
liquor store traffic which we believe has been caused by COVID-19. Our gross
profit margin, (calculated as gross profit reflected as a percentage of package
liquor store sales), for package store sales was 27.28% for the twenty-six weeks
ended April 3, 2021 and 27.86% for the twenty-six weeks ended March 28, 2020.



                                      23

  Index

Payroll and Related Costs. Payroll and related costs for the twenty-six weeks
ended April 3, 2021 increased $1,258,000 or 6.74% to $19,927,000 from
$18,669,000 for the twenty-six weeks ended March 28, 2020. Payroll and related
costs for the twenty-six weeks ended April 3, 2021 were stable, notwithstanding
higher costs for employees such as cooks. Payroll and related costs as a
percentage of total revenue was 30.31% in the twenty-six weeks ended April 3,
2021 and 30.57% of total revenue in the twenty-six weeks ended March 28, 2020.



Occupancy Costs. Occupancy costs (consisting of percentage rent, common area
maintenance, repairs, real property taxes, amortization of leasehold purchases
and rent expense associated with operating lease liabilities under ASC 842) for
the twenty-six weeks ended April 3, 2021 decreased $302,000 or 8.14% to
$3,408,000 from $3,710,000 for the twenty-six weeks ended March 28, 2020. The
decrease in occupancy costs was primarily due to the termination of rent for our
combination retail package liquor store and restaurant located at 5450 N. State
Road 7, North Lauderdale, Florida (Store #40), the real property and
improvements of which we purchased on December 31, 2020 and the elimination of
occupancy costs due to the elimination of rent for our restaurant location which
we are developing located at 14301 West Sunrise Boulevard, Sunrise, Florida
(Store #85), the real property and improvements of which we purchased on March
2, 2021. We anticipate that our occupancy costs will decrease throughout the
balance of our fiscal year 2021.



Selling, General and Administrative Expenses.Selling, general and administrative
expenses (consisting of general corporate expenses, including but not limited to
advertising, insurance, professional costs, clerical and administrative
overhead) for the twenty-six weeks ended April 3, 2021 decreased $317,000 or
2.84% to $10,836,000 from $11,153,000 for the twenty-six weeks ended March 28,
2020. Selling, general and administrative expenses decreased as a percentage of
total revenue in the twenty-six weeks ended April 3, 2021 to 16.48% as compared
to 18.26% in the twenty-six weeks ended March 28, 2020. We anticipate that our
selling, general and administrative expenses will decrease throughout the
balance of our fiscal year 2021 due primarily to increases in total revenue when
compared to the balance of our fiscal year 2020.



Depreciation and Amortization. Depreciation and amortization expense for the
twenty-six weeks ended April 3, 2021 decreased $96,000 or 5.88% to $1,536,000
from $1,632,000 from the twenty-six weeks ended March 28, 2020. As a percentage
of total revenue, depreciation and amortization expense was 2.34% of revenue in
the twenty-six weeks ended April 3, 2021 and 2.67% of revenue in the twenty-six
weeks ended March 28, 2020.



Interest Expense, Net. Interest expense, net, for the twenty-six weeks ended
April 2, 2021 increased $125,000 to $527,000 from $402,000 for the twenty-six
weeks ended March 28, 2020. Interest expense, net, increased for the twenty-six
weeks ended April 3, 2021 and will increase throughout the balance of our fiscal
year 2021 due to interest on our borrowing of $2,200,000 during the second
quarter of our fiscal year 2021 from our unrelated third party lender to finance
our purchase of the real property and improvements located at 14301 West Sunrise
Boulevard, Sunrise, Florida (Store #85) and the borrowing by six of our limited
partnerships of an additional approximately $3.35 million during the second
quarter of our fiscal year 2021 on the 2nd PPP Loans, if not forgiven.



Income Taxes. Income tax for the twenty-six weeks ended April 3, 2021 was an
expense of $529,000, as compared to an expense of $30,000 for the twenty-six
weeks ended March 28, 2020. Income tax for the twenty-six weeks ended April 3,
2021 was not affected by the forgiveness of debt of certain of the PPP Loans,
pursuant to the terms of the PPP Loans.



                                      24

  Index

Net Income. Net income for the twenty-nine weeks ended April 3, 2021 increased
$4,383,000 or 187.23% to $6,724,000 from $2,341,000 for the twenty-six weeks
ended March 28, 2020 due primarily to the forgiveness of debt of certain of the
PPP Loans, increased revenue at our retail package liquor stores and
restaurants, the 2020 Price Increases and the comparatively more adverse effects
of COVID-19 on our operations during the twenty-six weeks ended March 28, 2020
as compared with the twenty-six weeks ended April 3, 2021, offset by higher food
costs and overall expenses. As a percentage of revenue, net income for the
twenty-six weeks ended April 3, 2021 is 10.23%, as compared to 3.83% in the
twenty-six weeks ended March 28, 2020.



Net Income Attributable to Stockholders.Net income attributable to stockholders
for the twenty-six weeks ended April 3, 2021 increased $2,089,000 or 182.92% to
$3,231,000 from $1,142,000 for the twenty-six weeks ended March 28, 2020 due
primarily to the forgiveness of debt of certain of the PPP Loans, increased
revenue at our retail package liquor stores and restaurants, the 2020 Price
Increases and the comparatively more adverse effects of COVID-19 on our
operations during the twenty-six weeks ended March 28, 2020 as compared with the
twenty-six weeks ended April 3, 2021, offset by higher food costs and overall
expenses. As a percentage of revenue, net income attributable to stockholders
for the twenty-six weeks ended April 3, 2021 is 4.92%, as compared to 1.87% for
the twenty-six weeks ended March 28, 2020.

New Limited Partnership Restaurants





As new restaurants open, our income from operations will be adversely affected
due to our obligation to advance pre-opening costs, including but not limited to
pre-opening rent for the new locations. During the thirteen weeks ended April 3,
2021, we had one new restaurant location in Sunrise, Florida in the development
stage. During the fourth quarter of our fiscal year 2019, we entered into leases
for two spaces adjacent to each other, to house a new "Flanigan's Seafood Bar
and Grill" as well as a "Big Daddy's Wine and Liquors" in a shopping center in
Miramar, Florida, which shopping center is currently under construction.

Menu Price Increases and Trends

Subsequent to the end of the second quarter of our fiscal year 2021, we increased menu prices for our food offerings (effective April 11, 2021) to target an increase to our food revenues of approximately 4.60% annually to offset higher food costs and higher overall expenses.


During the first quarter of our fiscal year 2021, we increased menu prices for
our bar offerings (effective November 29, 2020) to target an increase to our bar
revenues of approximately 1.83% annually and we increased menu prices for our
food offerings (effective December 6, 2020) to target an increase to our food
revenues of approximately 2.45% annually to offset higher food costs and higher
overall expenses. Prior to these increases, we previously raised menu prices in
the third quarter of our fiscal year 2019.

COVID-19 has and will continue to materially and adversely affect our restaurant
business for what may be a prolonged period of time. This damage and disruption
has resulted from events and factors that were impossible for us to predict and
are beyond our control. As a result, COVID-19 has materially adversely affected
our results of operations for the thirteen weeks ended April 3, 2021 will, in
all likelihood, impact our results of operations, liquidity and/or financial
condition throughout the remainder of our fiscal year 2021. The extent to which
our restaurant business may be adversely impacted and its effect on our
operations, liquidity and/or financial condition cannot be accurately predicted.

We are not actively searching for locations for the operation of new package
liquor stores, but during the fourth quarter of our fiscal year 2019, we entered
a lease to house a new "Big Daddy's Wine & Liquors" package liquor store in
space adjacent to where we are planning a new "Flanigan's Seafood Bar and
Grill", restaurant in a shopping center in Miramar, Florida, which shopping
center is currently under construction.

                                      25

Index

Liquidity and Capital Resources





We fund our operations through cash from operations and borrowings from third
parties. As of April 3, 2021, we had cash of approximately $32,628,000, an
increase of $2,706,000 from our cash balance of $29,922,000 as of October 3,
2020. During the first quarter of our fiscal year 2021, we closed on our
purchase of the real property and improvements located at 5450 N. State Road 7,
North Lauderdale, Florida where we operate a combination "Flanigan's Seafood Bar
and Grill" restaurant and "Big Daddy's Liquors" package liquor store (Store #40)
and paid $1,200,000 cash at closing. During the third quarter of our fiscal year
2020, we, certain of the entities owning the limited partnership stores (the
"LP's"), franchised stores (the "Franchisees") as well as the store we manage
but do not own (the "Managed Store") (collectively, the "Borrowers"), applied
for and received loans from an unrelated third party lender (the "Lender")
pursuant to the PPP under the CARES Act, in the aggregate principal amount of
approximately $13.1 million (the "PPP Loans"), of which approximately: (i) $5.9
million was loaned to us; (ii) $4.1 million was loaned to 8 of the LP's; (iii)
$2.6 million was loaned to 5 of the Franchisees; and (iv) $0.5 million was
loaned to the Managed Store. During the second quarter of our fiscal year 2021,
we applied for forgiveness for all PPP Loans, including Franchisees and the
Managed Store and the entire amount of principal and accrued interest was
forgiven for 7 of our limited partnerships, 2 of our Franchisees and the Managed
Store (principal amount of approximately $5,208,000). Subsequent to the end of
the second quarter of our fiscal year 2021, the entire amount of principal and
accrued interest was forgiven for our remaining limited partnership and for 2 of
our Franchisees (principal amount of approximately $1,291,000). During the first
quarter of our fiscal year 2020, our wholly owned subsidiary, Flanigan's Calusa
Center, LLC, re-financed its mortgage loan with an unrelated third party lender,
increasing the principal amount borrowed from $2.72 million to $7.21 million.

During the second quarter of our fiscal year 2021, 6 of the entities owning
limited partnership stores (the "LP's") and the store we manage but do not own
(the "Managed Store") (collectively, the "Borrowers"), applied for and received
second loans from an unrelated third party lender (the "Lender") pursuant to the
PPP under the CARES Act, as amended, in the aggregate principal amount of
approximately $3.98 million (the "2nd PPP Loans"), of which approximately: (i)
$3.35 million was loaned to 6 of the LP's ; and (ii) $0.63 million was loaned to
the Managed Store.

The 2nd PPP Loans, which are in the form of Notes issued by each of the
Borrowers, mature five years from the date of funding (March 23, 2021) and bear
interest at a rate of 1.00% per annum, payable monthly commencing after the U.S.
Small Business Administration makes a determination of the forgiveness of the
2nd PPP Loans. The Notes may be prepaid by the applicable Borrower at any time
prior to maturity with no prepayment penalties. Proceeds from the PPP Loans will
be available to the respective Borrower to fund designated expenses, including
certain payroll costs, group health care benefits and other permitted expenses,
including rent and interest on mortgages and other debt obligations incurred
before February 15, 2020. Under the terms of the PPP, up to the entire amount of
principal and accrued interest may be forgiven to the extent the proceeds of the
2nd PPP Loans are used for qualifying expenses as described in the CARES Act and
applicable implementing guidance issued by the U.S. Small Business
Administration under the PPP. No assurance can be given that the Borrowers will
obtain forgiveness of the 2nd PPP Loans in whole or in part.

With respect to any portion of any of the 2ndPPP Loans that is not forgiven under the terms of the PPP, such amounts will be subject to customary provisions for a loan of this type, including customary events of default relating to, among other things, payment defaults, breaches of the provisions of the applicable PPP Note and cross-defaults on any other loan with the Lender or other creditors.



                                      26

  Index

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

Cash Flows

The following table is a summary of our cash flows for the twenty-six weeks ended April 3, 2021 and March 28, 2020.

---------Twenty-Six Weeks Ended--------

April 3, 2021              March 28, 2020
                                                                      (in Thousands)


Net cash provided by operating activities             $             7,092         $             4,213
Net cash provided by (used in) investing activities                (5,493 )                    (1,982 )
Net cash provided by (used in) financing activities                 1,107                       2,158
Net Increase in Cash and Cash Equivalents                           2,706                       4,389
Cash and Cash Equivalents, Beginning                               29,922                      13,672
Cash and Cash Equivalents, Ending                     $            32,628  

      $            18,061





During the twenty-six weeks ended April 3, 2021, we did not declare or pay a
cash dividend on our capital stock. During the twenty-six weeks ended March 28,
2020, due to the negative effects of COVID 19 on our operations, our Board of
Directors cancelled a previously declared cash dividend of $.30 per share to
shareholders of record on March 20, 2020 and payable on April 3, 2020. Any
future determination to pay cash dividends will be at our Board's discretion and
will depend upon our financial condition, operating results, capital
requirements and such other factors as our Board deems relevant.



Capital Expenditures



In addition to using cash for our operating expenses, we use cash to fund the
development and construction of new restaurants and to fund capitalized property
improvements for our existing restaurants. During the twenty-six weeks ended
April 3, 2021, we acquired property, plant and equipment and construction in
progress of $7,251,000, (of which $58,000 was for the purchase of a vehicle for
debt; of which $2,200,000 was for the purchase of real property for debt;
$14,000 was deposits recorded in other assets and $18,000 was purchase deposits
transferred to construction in process as of October 3, 2020), which amount
included $23,000 for the renovation to one (1) existing limited partnership
restaurants and $364,000 for renovations to five (5) Company owned restaurants.
During the twenty-six weeks ended March 28, 2020, we acquired property, plant
and equipment and construction in progress of $1,640,000, (of which $61,000 was
deposits recorded in other assets and $2,000 was purchase deposits transferred
to construction in process as of September 28, 2019), which amount included
$263,000 for the renovation to two (2) existing limited partnership restaurants
and $254,000 for renovations to four (4) Company owned restaurants.



                                      27

  Index

All of our owned units require periodic refurbishing in order to remain
competitive. We anticipate the cost of this refurbishment in our fiscal year
2021 to be approximately $950,000, excluding construction/renovations to Store
#19 (our combination package liquor store and restaurant which is being rebuilt
due to damages caused by a fire) and Store #85 (our Sunrise, Florida restaurant
location in development), which funds will be provided from operations.



Long Term Debt



As of April 3, 2021, we had long term debt of $28,269,000, as compared to
$17,448,000 as of March 28, 2018, and $26,323,000 as of October 3, 2020. Our
long term debt increased as of April 3, 2021 as compared to October 3, 2020 due
to the 2nd PPP Loans received by 6 of our limited partnerships and $1,281,000
for financed insurance premiums, less any payments made on account thereof,
offset by the forgiveness of certain of the PPP Loans of our limited
partnerships. As of April 3, 2021, we are in compliance with the covenants

of
all loans with our lender.



As of April 3, 2021, the aggregate principal balance owed from the financing of
our property and general liability insurance policies is $1,127,000, excluding
coverage for our franchises (of approximately $339,000), which are not included
in our consolidated financial statements.



Construction Contracts

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





During the third quarter of our fiscal year 2019, we entered into an agreement
with a third party unaffiliated architect for design and development services
totaling $77,000 for the re-build of our restaurant located at 2505 N.
University Drive, Hollywood, Florida (Store #19) which has been closed since
October 2018 due to damages caused by a fire, of which $62,000 has been paid.
Additionally, during the third quarter of our fiscal year 2019, we entered into
an agreement with a third party unaffiliated general contractor for site work at
this location totaling $1,618,000, (i) to connect the real property where this
restaurant operated (Store #19) to city sewer and (ii) to construct a new
building on the adjacent parcel of real property for the operation of a package
liquor store. During our fiscal year 2020 and the first and second quarters of
our fiscal year 2021, we agreed to change orders to the agreement for additional
construction services increasing the total contract price by $140,000 to
$1,757,000, of which $133,000 of the total amount obligated has been paid
through April 3, 2021. Subsequent to the end of the second quarter of our fiscal
year 2021, we agreed to change orders to the agreement for additional
construction services increasing the total contract price by $350,000 to
$2,107,000, with an additional $117,000 paid subsequent to the end of the second
quarter of our fiscal year 2021.

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





During the third quarter of our fiscal year 2019, we also entered into an
agreement with a third party unaffiliated design group for design and
development services of our new location at 14301 W. Sunrise Boulevard, Sunrise,
Florida 33323 (Store #85) for a total contract price of $122,000. During our
fiscal year 2020, we agreed upon amendments to the $122,000 Contract for
additional design and development services which had the effect of increasing
the total contract price by $18,000 to $140,000, of which $115,000 has been paid
through April 3, 2021, with an additional $16,000 paid subsequent to the end of
the second quarter of our fiscal year 2021. Additionally, during the fourth
quarter of our fiscal year 2020, we entered into an agreement with a third party
unaffiliated general contractor for interior renovations at this location
totaling $1,236,000, of which $111,000 has been paid through April 3, 2021 and
an additional $156,000 has been paid subsequent to the end of the second quarter
of our fiscal year 2021.



                                      28

  Index

c. Miramar, Florida ("Flanigan's Seafood Bar and Grill")


During the fourth quarter of our fiscal year 2019, we entered into a Lease
Agreement with a non-affiliated third party for the lease of a restaurant
location in a shopping center at 11225 Miramar Parkway, #250, Miramar, Florida
33024 (Store #25). The shopping center is currently in the developmental stage
and the Lease Agreement is still contingent upon our receipt of delivery of the
leased premises by August 28, 2021. During the second quarter of our fiscal year
2021, we entered into an Architectural Professional Services Agreement with a
third-party unaffiliated architect for design and development services for this
new location (Store #25) for a total contract price of $73,850, of which $51,695
has been paid during the second quarter of our fiscal year 2021 and an
additional $7,385 has been paid subsequent to the end of the second quarter

of
our fiscal year 2021.

d. Miramar, Florida ("Big Daddy's Wine and Liquors")


During the fourth quarter of our fiscal year 2019, we entered into a Lease
Agreement with a non-affiliated third party for the lease of a retail package
liquor store location in a shopping center at 11225 Miramar Parkway, #245,
Miramar, Florida 33024 (Store #24). The shopping center is currently in the
developmental stage and the Lease Agreement is still contingent upon our receipt
of delivery of the leased premises by August 28, 2021. During the second quarter
of our fiscal year 2021, we entered into an Architectural Professional Services
Agreement with a third-party unaffiliated architect for design and development
services for this new location (Store #24) for a total contract price of
$18,650, of which $11,190 has been paid during the second quarter of our fiscal
year 2021.



Purchase Commitments



In order to fix the cost and ensure adequate supply of baby back ribs for our
restaurants, on November 9, 2020, we entered into a purchase agreement with our
current rib supplier, whereby we agreed to purchase approximately $6,420,000 of
baby back ribs during calendar year 2021 from this vendor at a fixed cost.

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





Working Capital

The table below summarizes the current assets, current liabilities, and working capital for our fiscal quarters ended April 3, 2021, March 28, 2020 and our fiscal year ended October 3, 2020.





Item                   April 3, 2021      March 28, 2020       Oct. 3, 2020
                                          (in Thousands)

Current Assets        $        40,239     $        25,324     $       36,508
Current Liabilities            23,317              15,957             25,362
Working Capital       $        16,922     $         9,367     $       11,146
Our working capital increased during our fiscal quarter ended April 3, 2021 from
our working capital for our fiscal quarter ended March 28, 2020 due to the cash
received from (i) the PPP Loan to us of $5.9 million; (ii) the PPP Loans to
eight limited partnerships of $4.1 million; and the 2nd PPP Loans to six of
limited partnerships of $3.35 million.



While there can be no assurance due to, among other things, unanticipated
expenses or unanticipated decline in revenues, or both, we believe that our cash
on hand, positive cash flow from operations and borrowed funds will adequately
fund operations, debt reductions and planned capital expenditures throughout our
fiscal year 2021.

                                      29

  Index

Off-Balance Sheet Arrangements

We do not have off-balance sheet arrangements.





Inflation



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

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