BDL

New in FY2025

• During our fiscal years 2025 and 2024, no significant pending matters have been initiated concerning any of our licenses which might be expected to result in a revocation of a liquor license or other significant actions against us.
• As of our fiscal year end 2025, we employed 2,033 persons, of which 773 were full-time and 1,260 were part-time.
• Of these, 58 were employed at our corporate offices in administrative capacities and 13 were employed in maintenance.
• Of the remaining employees, 76 were employed in our package liquor stores and 1,886 in our restaurants.
• We periodically donate to philanthropic organizations through campaigns designed to engage our staff, as follows: ● Breast Cancer Awareness – We donate $10,000 annually to local Breast Cancer Support organizations. ● Flanigan’s Rockin’ Rib run 10k – We donate over $40,000 to Mami HOPE mission through our annual 10k event.
• Money is used for disaster and hunger relief all over the world, youth outreach, and community building. ● Achievement Awards – We provide schools in Miami-Dade, Broward, and Palm Beach County with free kids’ meals and achievement awards throughout the year.
• We give out approximately 85,000 awards every year. ● Fishing Tournaments/Marine Conservation – We donate to fishing tournaments and beach cleanup projects. ● Supporting the local community – We donate funds to boy scouts, baseball teams, schools, etc. ● Reclaimed Wood – All of our locations use reclaimed wood on interior walls.
• During our fiscal years ended September 27, 2025 and September 28, 2024, the Board of Directors approved discretionary matching contributions totaling $87,000 and $74,000, respectively.
• General Liability Insurance For the policy year beginning December 30, 2024, we have general liability insurance which incorporates a $50,000 self-insured retention per occurrence for us and a $10,000 self-insured retention per occurrence for the limited partnerships.
• Our general policy is to settle only those legitimate and reasonable claims asserted and to aggressively defend and go to trial, if necessary, on frivolous and unreasonable claims.
• Property Insurance; Windstorm Insurance For the policy year beginning December 30, 2024, our property insurance is a one (1) year policy with an unaffiliated third party insurance carrier, including coverage for properties leased by us and our consolidated limited partnerships, and provides for full insurance coverage for property losses, including those caused by windstorms, such as a hurricane.
• Insurance Premiums Due to continuing higher interest rates, for the policy year commencing December 30, 2024 we paid the premiums for general liability, auto, property, excess liability and terrorism policies totaling approximately $4.01 million, which includes coverage for our franchises (of approximately $911,000), which are not included in our consolidated financial statements.
• For the policy year commencing December 30, 2025, we will pay the premiums for general liability, auto, property, excess liability and terrorism policies in full again due to continuing higher interest rates.
• Competition and the Company’s Market The liquor and hospitality industries are highly competitive and are often affected by changes in taste and entertainment trends among the public, by local, national and economic conditions affecting spending habits, and by population and traffic patterns.
• Due to the competitive nature of the liquor industry in South Florida, we have had to adjust our pricing to stay competitive.
• During the second quarter of our fiscal year 2025, we increased our menu prices for our bar offerings (effective February 23, 2025) to target an increase to our bar revenues of approximately 0.84% annually to offset higher food and liquor costs and higher overall expenses.
• During the first quarter of our fiscal year 2025, we increased our menu prices for our bar offerings (effective December 4, 2024) to target an increase to our bar revenues of approximately 4.90% annually and we increased our menu prices for our food offerings (effective November 17, 2024) to target an increase to our food revenues of approximately 4.14% annually to offset higher food and liquor costs and higher overall expenses.
• During our fiscal year 2024, we increased menu prices for our bar offerings (effective August 25, 2024) to target an increase to our bar revenues of approximately 5.63% annually to offset higher food and liquor costs and higher overall expenses.
• Prior to these increases we previously raised menu prices in the second quarter of our fiscal year 2023.
• Risks Related to Our Business and Industry If we are unable to staff and retain qualified restaurant and package liquor store management and operating personnel in an increasingly competitive market, we may be unable to effectively operate and grow our business and revenues, which could materially adversely affect our financial performance.
• The market for qualified talent continues to be competitive and we must continue to offer competitive wages, benefits and workplace conditions to retain qualified employees.
• We have experienced and may in the future experience challenges in hiring and retaining restaurant and store employees and in maintaining full restaurant staffing in various locations, which could result in decreased employee and customer satisfaction.
• A shortage of qualified candidates who meet legal work authorization requirements, failure to hire, train and retain new employees in a timely manner or higher than expected turnover levels could affect our ability to open new restaurants, grow sales at existing restaurants or meet our labor cost objectives.
• Anticipated changes in immigration laws and regulations could decrease the pool of candidates with legal work authorization, cause disruption in the workforce for all companies that rely on hourly workers and increase the costs, time and requirements to hire new employees.
• In addition, failure to adequately monitor and proactively respond to employee dissatisfaction could lead to poor customer satisfaction, higher turnover and litigation, which could negatively impact our financial results.
• The State of Florida has already enacted a minimum wage and tip credit, with the minimum wage currently at $14.00 per hour and a tip credit of $3.02 per hour.
• There is no assurance that comparable restaurant sales will increase in fiscal year 2026 due to, among other things, ongoing consumer and economic uncertainty.
• Any inability to compete successfully with the other restaurants and/or stores in our markets will prevent us from increasing or sustaining our revenues and profitability and will result in a material adverse effect on our business, financial condition, results of operations and cash flows.
• Changes in customer tastes and preferences, spending patterns and demographic trends could cause sales to decline and adversely affect financial performance.
• Changes in customer preferences, general economic conditions, discretionary spending priorities, demographic trends, traffic patterns and the type, number and location of competing restaurants affect the restaurant industry.
• Our success depends to a significant extent on consumer confidence, which is influenced by general economic conditions and discretionary income levels.
• Our sales may decline during economic downturns, which can be caused by various economic factors such as high gasoline prices, or during periods of uncertainty.
• Any material decline in consumer confidence or a decline in spending on casual dining away from home could cause our sales, operating results, business or financial condition to decline.
• If we fail to adapt to changes in customer preferences and trends, we may lose customers and our sales may deteriorate.
• As a result, our disaster recovery procedures and business continuity plans may not adequately address all threats we face or protect us from loss.
• Our ability to efficiently and effectively manage our business depends significantly on the reliability and capacity of these and other systems and our operations depend substantially on the availability of our point-of-sale system and related networks and applications.
• Employment and immigration regulations We are subject to various federal and state laws governing our relationship with our employees, including wage and hour laws, requirements to provide meal and rest periods or other benefits, healthcare, family leave mandates, requirements regarding working conditions and accommodations to certain employees, citizenship or work authorization and related requirements, insurance and workers’ compensation rules and anti-discrimination laws.
• We could suffer losses from and incur legal costs to defend these and similar cases and the amount of such losses or costs could be significant.
• Complex local, state and federal laws and regulations apply to the collection, use, retention, protection, disclosure, transfer and other processing of personal data.
• These privacy and data protection laws and regulations are quickly evolving, with new or modified laws and regulations proposed and implemented frequently and existing laws and regulations subject to new or different interpretations and enforcement.

and 18 more.

Gone since FY2024

• During our fiscal years 2024 and 2023, no significant pending matters have been initiated concerning any of our licenses which might be expected to result in a revocation of a liquor license or other significant actions against us.
• As of our fiscal year end 2024, we employed 1,990 persons, of which 669 were full-time and 1,321 were part-time.
• Of these, 57 were employed at our corporate offices in administrative capacities and 12 were employed in maintenance.
• Of the remaining employees, 74 were employed in our package liquor stores and 1,847 in our restaurants.
• We periodically donate to philanthropic organizations through campaigns designed to engage our staff company-wide service programs, as follows: ● Breast Cancer Awareness – We donate $10,000 annually to local Breast Cancer Support organizations. ● Donated over $100,000 in total to HOPE mission.
• Money is used for disaster and hunger relief all over the world, youth outreach, and community building. ● Achievement Awards – We provide schools in Miami-Dade, Broward, and Palm Beach County with free meal coins and achievement awards throughout the year.
• We give out approximately 85,000 awards every year. ● Fishing Tournaments/Marine Conservation – We donate to fishing tournaments and beach cleanup projects. ● Supporting the local community – We donate funds to boy scouts, baseball teams, schools, etc. ● Sheridan House – We donated 500 backpacks to underprivileged children.
• We also collect and donate school supplies annually. ● Reclaimed Wood – All of our locations use reclaimed wood on interior walls.
• During our fiscal years ended September 28, 2024 and September 30, 2023, the Board of Directors approved discretionary matching contributions totaling $74,000 and $70,000, respectively.
• General Liability Insurance For the policy year beginning December 30, 2023, we have general liability insurance which incorporates a $50,000 self-insured retention per occurrence for us and a $10,000 self-insured retention per occurrence for the limited partnerships.
• We secured general liability insurance and excess liability insurance to be effective as of December 30, 2024.
• Subsequent Events for a discussion of general liability and excess liability insurance for the period commencing December 30, 2024.) Our general policy is to settle only those legitimate and reasonable claims asserted and to aggressively defend and go to trial, if necessary, on frivolous and unreasonable claims.
• Property Insurance; Windstorm Insurance For the policy year beginning December 30, 2023, our property insurance is a one (1) year policy with an unaffiliated third party insurance carrier, including coverage for properties leased by us and our consolidated limited partnerships, and provides for full insurance coverage for property losses, including those caused by windstorms, such as a hurricane.
• We secured property insurance, including windstorm coverage, to be effective as of December 30, 2024.
• Subsequent Events for a discussion of property insurance for the period commencing December 30, 2024.) Insurance Premiums Due to continuing higher interest rates, for the policy year commencing December 30, 2023 we paid the premiums for property, general liability, excess liability and terrorism policies in full with premiums totaling approximately $3.92 million which includes coverage for our franchises (of approximately $850,000), which are not included in our consolidated financial statements.
• For the policy year commencing December 30, 2024, we will pay the premiums for property, general liability, excess liability and terrorism policies in full again due to continuing higher interest rates.
• Subsequent Events for a discussion of property, general liability, excess liability, and terrorism insurance policies for the period commencing December 30, 2024.) Competition and the Company's Market The liquor and hospitality industries are highly competitive and are often affected by changes in taste and entertainment trends among the public, by local, national and economic conditions affecting spending habits, and by population and traffic patterns.
• Due to the competitive nature of the liquor industry in South Florida, we have had to adjust our pricing to stay competitive, including meeting all competitors’ advertisements subject to certain limitations.
• Effective August 25, 2024 we increased menu prices for our bar offerings to target an increase to our bar revenues of approximately 5.63% annually to offset higher food and liquor costs and higher overall expenses.
• Effective March 26, 2023, we increased menu prices for our food offerings to target an increase to our food revenues of approximately 2.06% annually and on March 20, 2023 we increased menu prices for our bar offerings to target an increase to our bar revenues of approximately 5.65% annually to offset higher food and liquor costs and higher overall expenses.
• Risks Related to Our Business If we are unable to staff and retain qualified restaurant and package liquor store management and operating personnel in an increasingly competitive market, we may be unable to effectively operate and grow our business and revenues, which could materially adversely affect our financial performance.
• Similar to the broader economy, we are experiencing labor shortfalls relative to our sales levels in certain parts of our workforce.
• The State of Florida has already enacted a minimum wage and tip credit, with the minimum wage currently at $13.00 per hour and a tip credit of $3.02 per hour.
• There is no assurance that comparable restaurant sales will increase in fiscal year 2024 due to, among other things, ongoing consumer and economic uncertainty.
• Any inability to compete successfully with the other restaurants and/or stores in our markets will prevent us from increasing or sustaining our revenues and profitability and will result in a material adverse effect on our business, financial condition, results of operations or cash flows.
• Changes in customer preferences for casual dining styles could adversely affect financial performance.
• Changing customer preferences, tastes and dietary habits can adversely impact our business and financial performance.
• As a result, our disaster recovery procedures and business continuity plans security may not adequately address all threats we face or protect us from loss.
• Our business can be adversely affected by negative publicity resulting from, among other things, complaints or litigation alleging poor food quality, food-borne illness or other health concerns or operating issues stemming from one or a limited number of restaurants.
• Unfavorable publicity could negatively impact public perception of our brands.
• Our ability to manage efficiently and effectively our business depends significantly on the reliability and capacity of these and other systems and our operations depend substantially on the availability of our point-of-sale system and related networks and applications.
• Employment and immigration regulations We are subject to various federal and state laws governing our relationship with and other matters pertaining to our employees, including wage and hour laws, requirements to provide meal and rest periods or other benefits, healthcare, family leave mandates, requirements regarding working conditions and accommodations to certain employees, citizenship or work authorization and related requirements, insurance and workers’ compensation rules and anti-discrimination laws.
• We could suffer losses from and we incur legal costs to defend these and similar cases and the amount of such losses or costs could be significant.
• As of September 28, 2024, we had one variable rate instrument outstanding that is impacted by changes in interest rates.
• The variable rate debt instrument is equal to the lender’s BSBY Screen Rate plus one and one-half percent (1.50%) per annum.
• As a means of managing our interest rate risk on the debt instrument, we entered into an interest rate swap agreement with our unrelated third party lender to convert this variable rate debt obligation to fixed rate.
• The Bloomberg Index Services Limited announced the permanent cessation of all tenors of BSBY, effective immediately following the last publication of BSBY on November 15, 2024.
• As of that date, our lender has determined that a commercially reasonable and good faith alternative to BSBY is the 1 Month CME Term Secured Overnight Financing Rate (“SOFR”), plus 10 Basis Points.