BDL Flanigan's Enterprises, Inc.

Management Discussion

• Comparison of Thirteen Weeks Ended March 28, 2020 and March 30, 2019.
• Revenues. Despite COVID 19, total revenue for the thirteen weeks ended March 28, 2020 increased $392,000 or 1.32% to $30,128,000 from $29,736,000 for the thirteen weeks ended March 30, 2019. The increase in total revenue was due primarily to: (i) the cessation of dine-in service and alcohol sales at our restaurants (limiting service to take-out and delivery of food only) and reduced operating hours of our retail package liquor stores not taking place until mid-March 2020 and thereby not adversely affecting our results for the entire quarter; (ii) increased restaurant traffic prior to mid-March 2020; (iii) the 2019 Price Increases (defined below); and (iv) increased package liquor store sales offset by the negative effects of COVID 19 on our operations. Effective June 16, 2019 we increased certain menu prices for our bar offerings to target an increase to our total bar revenues of approximately 6.2% annually and effective June 23, 2019 we increased certain menu prices for our food offerings to target an increase to our total food revenues of approximately 3.4% annually, (the “2019 Price Increases”). We expect that total revenue for the balance of our fiscal year 2020 will decrease due to our operations being adversely impacted by COVID 19. We expect that Store #19 will remain closed during the balance of our fiscal year 2020 and accordingly do not expect to generate any revenue from it.