Flanigan`s Enterprises (BDL)

Management Discussion

• Comparison of Thirteen Weeks Ended July 2, 2022 and July 3, 2021.
• Revenues. Total revenue for the thirteen weeks ended July 2, 2022 increased $2,740,000 or 7.22% to $40,675,000 from $37,935,000 for the thirteen weeks ended July 3, 2021 due primarily to increased package liquor store and restaurant sales, increased menu prices, revenue generated from the opening of our limited partnership owned restaurant in Sunrise, Florida, (Store #85) in March 2022 and the comparatively less adverse effects of COVID-19 on our operations during the thirteen weeks ended July 2, 2022 as compared with the thirteen weeks ended July 3, 2021. Effective October 3, 2021 and then effective December 19, 2021 we increased menu prices for our food offerings to target an increase to our food revenues of approximately 2.38% and 3.34% annually, respectively, to offset higher food costs and higher overall expenses and effective December 12, 2021 we increased menu prices for our bar offerings to target an increase to our bar revenues of approximately 7.80% annually, (collectively the “Recent Price Increases”). Prior to these increases, we previously raised menu prices in the third quarter of our fiscal year 2021. We expect that the new package liquor store located at 7990 Davie Road Extension, Hollywood, Florida will open for business during our fiscal year 2022 and we expect to generate revenue from it. We do not anticipate that the restaurant located at 2505 N. University Drive, Hollywood, Florida, which has been closed since October, 2018 due to a fire (the “Hollywood restaurant”) or the Miramar Restaurant will open for business during our fiscal year 2022 and accordingly we do not expect to generate any revenue from them.
• Restaurant Food Sales. Restaurant revenue generated from the sale of food, including non-alcoholic beverages, at restaurants totaled $25,574,000 for the thirteen weeks ended July 2, 2022 as compared to $23,484,000 for the thirteen weeks ended July 3, 2021. The increase in restaurant food sales for the thirteen weeks ended July 2, 2022 as compared to restaurant food sales during the thirteen weeks ended July 3, 2021 is attributable to menu price increases, restaurant food sales generated from the opening of our limited partnership owned restaurant in Sunrise, Florida, (Store #85) in March 2022 and the comparatively greater adverse effects of COVID-19 on our operations during the thirteen weeks ended July 3, 2021 as compared with the thirteen weeks ended July 2, 2022. Comparable weekly restaurant food sales (for restaurants open for all of the thirteen weeks ended July 2, 2022 and July 3, 2021 respectively, which consists of nine restaurants owned by us, (excluding Store #19 which was closed for the thirteen weeks ended July 2, 2022 and July 3, 2021 due to a fire on October 2, 2018) and eight restaurants owned by affiliated limited partnerships, (excluding Store #85 which opened for business during the second quarter of our fiscal year 2022) was $1,860,000 and $1,789,000 for the thirteen weeks ended July 2, 2022 and July 3, 2021, respectively, an increase of 3.97%. Comparable weekly restaurant food sales for Company owned restaurants only was $931,000 and $893,000 for the thirteen weeks ended July 2, 2022 and July 3, 2021, respectively, an increase of 4.26%. Comparable weekly restaurant food sales for affiliated limited partnership owned restaurants only, (excluding Store #85 which opened for business during the second quarter of our fiscal year 2022), was $930,000 and $896,000 for the thirteen weeks ended July 2, 2022 and July 3, 2021 respectively, an increase of 3.79%.