0001140361-21-003333 | 10-Q | XBRL Viewer | Rave Restaurant Group INC

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Dec. 27, 2020	Jan. 22, 2021
Cover [Abstract]
Entity Registrant Name	RAVE RESTAURANT GROUP, INC.
Entity Central Index Key	0000718332
Current Fiscal Year End Date	--06-27
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 27, 2020
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Entity Address, State or Province	TX
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		18,004,904

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 27, 2020	Dec. 29, 2019	Dec. 27, 2020	Dec. 29, 2019
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract]
REVENUES:	$ 2,128	$ 2,830	$ 4,031	$ 5,706
COSTS AND EXPENSES:
Cost of sales	75	115	153	249
General and administrative expenses	1,185	1,565	2,274	2,928
Franchise expenses	606	838	1,153	1,704
Gain on sale of assets	0	0	0	(11)
Impairment of long-lived assets and other lease charges	4	193	21	341
Bad debt expense	88	36	115	28
Interest expense	23	24	46	51
Depreciation and amortization expense	43	49	87	96
Total costs and expenses	2,024	2,820	3,849	5,386
INCOME BEFORE TAXES	104	10	182	320
Income tax expense (benefit)	2	(4)	4	69
NET INCOME	$ 102	$ 14	$ 178	$ 251
INCOME PER SHARE OF COMMON STOCK - BASIC: (in dollars per share)	$ 0.01	$ 0	$ 0.01	$ 0.02
INCOME PER SHARE OF COMMON STOCK - DILUTED: (in dollars per share)	$ 0.01	$ 0	$ 0.01	$ 0.02
Weighted average common shares outstanding - basic (in shares)	17,712	15,129	16,596	15,106
Weighted average common and potential dilutive common shares outstanding (in shares)	18,510	15,930	17,394	15,924

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 27, 2020	Jun. 28, 2020
CURRENT ASSETS
Cash and cash equivalents	$ 6,292	$ 2,969
Restricted cash	235	234
Accounts receivable, less allowance for bad debts of $166 and $269, respectively	919	965
Notes receivable	1,006	546
Deferred contract charges	35	44
Prepaid expenses and other	261	174
Total current assets	8,748	4,932
LONG-TERM ASSETS
Property, plant and equipment, net	324	366
Operating lease right of use asset, net	3,274	3,567
Intangible assets definite-lived, net	136	155
Notes receivable, net of current portion	65	449
Long-term deferred contract charges	232	231
Deposits and other	0	5
Total assets	12,779	9,705
CURRENT LIABILITIES
Accounts payable - trade	649	446
Accounts payable - lease termination impairments	0	407
Accrued expenses	791	775
Operating lease liability, current	658	632
Deferred revenues	155	254
Total current liabilities	2,253	2,514
LONG-TERM LIABILITIES
Convertible notes	1,562	1,549
PPP loan	657	657
Operating lease liability, net of current portion	3,138	3,471
Deferred revenues, net of current portion	806	960
Other long-term liabilities	51	51
Total liabilities	8,467	9,202
COMMITMENTS AND CONTINGENCIES (SEE NOTE D)
SHAREHOLDERS' EQUITY
Common stock, $.01 par value; authorized 26,000,000 shares; issued 25,090,058 and 22,550,376 shares, respectively; outstanding 18,004,904 and 15,465,222 shares, respectively	251	225
Additional paid-in capital	37,136	33,531
Accumulated deficit	(8,538)	(8,716)
Treasury stock at cost Shares in treasury: 7,085,154 and 7,085,154, respectively	(24,537)	(24,537)
Total shareholders' equity	4,312	503
Total liabilities and shareholders' equity	$ 12,779	$ 9,705

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 27, 2020	Jun. 28, 2020
CURRENT ASSETS
Accounts receivable, allowance for bad debts	$ 166	$ 269
SHAREHOLDERS' EQUITY
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	26,000,000	26,000,000
Common stock, shares issued (in shares)	25,090,058	22,550,376
Common stock, shares outstanding (in shares)	18,004,904	15,465,222
Treasury stock at cost (in shares)	7,085,154	7,085,154

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Treasury Stock [Member]	Total
Beginning balance at Jun. 30, 2019	$ 222	$ 33,327	$ (4,483)	$ (24,632)	$ 4,434
Beginning balance (in shares) at Jun. 30, 2019	22,208,000			(7,117,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of senior notes, net	$ 0	(31)	0	$ 95	64
Conversion of senior notes, net (in shares)	0			32,000
Equity issue costs - ATM Offering	$ 0	(2)	0	$ 0	(2)
Net income	0	0	237	0	237
Ending balance at Sep. 29, 2019	$ 222	33,294	(4,246)	$ (24,537)	4,733
Ending balance (in shares) at Sep. 29, 2019	22,208,000			(7,085,000)
Beginning balance at Jun. 30, 2019	$ 222	33,327	(4,483)	$ (24,632)	4,434
Beginning balance (in shares) at Jun. 30, 2019	22,208,000			(7,117,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income					251
Ending balance at Dec. 29, 2019	$ 222	33,210	(4,232)	$ (24,537)	4,663
Ending balance (in shares) at Dec. 29, 2019	22,217,000			(7,085,000)
Beginning balance at Sep. 29, 2019	$ 222	33,294	(4,246)	$ (24,537)	4,733
Beginning balance (in shares) at Sep. 29, 2019	22,208,000			(7,085,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock compensation expense	$ 0	(85)	0	$ 0	(85)
Issuance of common stock	$ 0	0	0	0	0
Issuance of common stock (in shares)	9,000
Equity issue costs - ATM Offering	$ 0	1	0	0	1
Net income	0	0	14	0	14
Ending balance at Dec. 29, 2019	$ 222	33,210	(4,232)	$ (24,537)	4,663
Ending balance (in shares) at Dec. 29, 2019	22,217,000			(7,085,000)
Beginning balance at Jun. 28, 2020	$ 225	33,531	(8,716)	$ (24,537)	$ 503
Beginning balance (in shares) at Jun. 28, 2020	22,550,000			(7,085,000)	15,465,222
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity issue costs - ATM Offering	$ 0	(3)	0	$ 0	$ (3)
Net income	0	0	76	0	76
Ending balance at Sep. 27, 2020	$ 225	33,528	(8,640)	$ (24,537)	576
Ending balance (in shares) at Sep. 27, 2020	22,550,000			(7,085,000)
Beginning balance at Jun. 28, 2020	$ 225	33,531	(8,716)	$ (24,537)	$ 503
Beginning balance (in shares) at Jun. 28, 2020	22,550,000			(7,085,000)	15,465,222
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income					$ 178
Ending balance at Dec. 27, 2020	$ 251	37,136	(8,538)	$ (24,537)	$ 4,312
Ending balance (in shares) at Dec. 27, 2020	25,090,000			(7,085,000)	18,004,904
Beginning balance at Sep. 27, 2020	$ 225	33,528	(8,640)	$ (24,537)	$ 576
Beginning balance (in shares) at Sep. 27, 2020	22,550,000			(7,085,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock	$ 26	3,735	0	$ 0	3,761
Issuance of common stock (in shares)	2,540,000
Equity issue costs - ATM Offering	$ 0	(127)	0	0	(127)
Net income	0	0	102	0	102
Ending balance at Dec. 27, 2020	$ 251	$ 37,136	$ (8,538)	$ (24,537)	$ 4,312
Ending balance (in shares) at Dec. 27, 2020	25,090,000			(7,085,000)	18,004,904

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Dec. 27, 2020	Dec. 29, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 178	$ 251
Adjustments to reconcile net income to cash (used in) provided by operating activities:
Impairment of long-lived assets and other lease charges	21	341
Stock compensation expense	0	(85)
Depreciation and amortization	87	96
Amortization of right of use assets	293	230
Amortization of debt issue costs	13	15
Gain on the sale of assets	0	(11)
Provision for bad debt	115	28
Deferred income tax	0	60
Changes in operating assets and liabilities:
Restricted cash	(1)	0
Accounts receivable	(69)	126
Notes receivable	(102)	0
Deferred contract charges	8	(2)
Inventories	0	1
Prepaid expenses and other	(87)	59
Deposits and other	5	0
Accounts payable - trade	203	(35)
Accounts payable - lease termination impairments	(428)	(658)
Accrued expenses	17	(2)
Operating lease liability	(307)	(241)
Deferred revenue	(253)	(505)
Deferred rent and other	0	(21)
Cash used in operating activities	(307)	(353)
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments received on notes receivable from fixed asset sales	26	108
Purchase of property, plant and equipment	(26)	(47)
Cash provided by investing activities	0	61
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of stock	3,761	0
Equity issuance costs	(130)	(1)
Cash (used in) provided by financing activities	3,631	(1)
Net (decrease)/increase in cash, cash equivalents and restricted cash	3,324	(293)
Cash, cash equivalents and restricted cash, beginning of period	3,203	2,264
Cash, cash equivalents and restricted cash, end of period	6,527	1,971
CASH PAID FOR:
Interest	0	2
Income taxes	16	18
Non-cash activities:
Conversion of notes to common shares	0	64
Operating lease right of use assets at adoption of ASC 842	0	3,428
Operating lease liability at adoption of ASC 842	$ 0	$ 3,875

Summary of Significant Accounting Policies

6 Months Ended

Dec. 27, 2020

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note A - Summary of Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All appropriate intercompany balances and transactions have been eliminated.

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Restricted cash of $0.2 million at December 27, 2020 and June 28, 2020 is omitted from cash and cash equivalents and is included in current assets. The restricted cash is held in an interest-bearing money market account and is restricted pursuant to a letter of credit for an insurance claim dating back to the mid-1980’s.

Fiscal Quarters

The three and six month periods ended December 27, 2020 and December 29, 2019 each contained 13 weeks and 26 weeks, respectively.

Use of Management Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires the Company’s management to make estimates and assumptions that affect its reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingent liabilities. The Company bases its estimates on historical experience and other various assumptions that it believes are reasonable under the circumstances. Estimates and assumptions are reviewed periodically, and actual results could differ materially from estimates.

Revenue Recognition

Revenue is measured based on consideration specified in contracts with customers and excludes incentives and amounts collected on behalf of third parties, primarily sales tax. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue.

The following describes principal activities, separated by major product or service, from which the Company generates its revenues:

Restaurant Sales

Revenue from restaurant sales is recognized when food and beverage products are sold in Company-owned restaurants. The Company reports revenue net of sales taxes collected from customers and remitted to governmental taxing authorities.

Franchise Revenues

Franchise revenues consist of 1) franchise royalties, 2) supplier and distributor incentive revenues, 3) franchise license fees, 4) area development exclusivity fees and foreign master license fees, 5) advertising funds, 6) supplier convention funds, and 7) rental income.

Franchise royalties, which are based on a percentage of franchise restaurant sales, are recognized as sales occur.

Supplier and distributor incentive revenues are recognized when title to the underlying commodities transfer.

Franchise license fees are typically billed upon execution of the franchise agreement and amortized over the term of the franchise agreement which can range from five to 20 years. Fees received for renewal periods are amortized over the life of the renewal period.

Area development exclusivity fees and foreign master license fees are typically billed upon execution of the area development and foreign master license agreements. Area development exclusivity fees are included in deferred revenue in the Condensed Consolidated Balance Sheets and allocated on a pro rata basis to all stores opened under that specific development agreement. Area development exclusivity fees that include rights to subfranchise are amortized as revenue over the term of the contract.

Advertising fund contributions for Pie Five units represent contributions collected where we have control over the activities of the fund. Contributions are based on a percentage of net retail sales. The adoption of Topic 606 revised the determination of whether these arrangements are considered principal versus agent. For Pie Five, we have determined that we are the principal in these arrangements, and advertising fund contributions and expenditures are, therefore, reported on a gross basis in the Condensed Consolidated Statements of Operations. In general, we expect such advertising fund contributions and expenditures to be largely offsetting and, therefore, do not expect a significant impact on our reported income before income taxes. Our obligation related to these funds is to develop and conduct advertising activities. Pie Five marketing fund contributions are billed and collected weekly.

Supplier convention funds are deferred until the obligations of the agreement are met and the event takes place.

Rental Income

The Company also subleases some of its restaurant space to third parties. The Company’s two subleases have terms that end in 2023 and 2025. The sublease agreements are noncancelable through the end of the term and both parties have substantive rights to terminate the lease when the term is complete. Sublease agreements are not capitalized and are recorded as rental income in the period that rent is received.

Total revenues consist of the following (in thousands):

	Three Months Ended
	December 27, 2020		December 29, 2019
Restaurant sales	$	—	$	96
Franchise royalties		847		1,028
Supplier and distributor incentive revenues		808		1,033
Franchise license fees		80		410
Area development exclusivity fees and foreign master license fees		4		6
Advertising funds		150		132
Supplier convention funds		177		63
Rental income		52		48
Other		10		14
	$	2,128	$	2,830

	Six Months Ended
	December 27, 2020		December 29, 2019

Restaurant sales	$	—	$	204
Franchise royalties		1,705		2,136
Supplier and distributor incentive revenues		1,575		2,056
Franchise license fees		182		621
Area development exclusivity fees and foreign master license fees		8		13
Advertising funds		275		284
Supplier convention funds		177		278
Rental income		100		89
Other		9		25
	$	4,031	$	5,706

Stock-Based Compensation

The Company accounts for stock options using the fair value recognition provisions of the authoritative guidance on share-based payments. The Company uses the Black-Scholes formula to estimate the value of stock-based compensation for options granted to employees and directors and expects to continue to use this acceptable option valuation model in the future. The authoritative guidance also requires the benefits of tax deductions in excess of recognized compensation cost to be reported as a financing cash flow.

Compensation cost for restricted stock units (“RSU’s”) is measured as an amount equal to the fair value of the RSU’s on the date of grant and is expensed over the vesting period if achievement of the performance criteria is deemed probable, with the amount of the expense recognized based on the best estimate of the ultimate achievement level.

Adoption of ASC 842, "Leases"

6 Months Ended

Dec. 27, 2020

Adoption of ASC 842, "Leases" [Abstract]

Adoption of ASC 842, "Leases"

Note B - Adoption of ASC 842, “Leases”

In February 2016, FASB issued Accounting Standards Codification 842, Leases (“ASC 842”) which requires an entity to recognize a right of use asset and lease liability for all leases. Classification of leases as either a finance or operating lease determines the recognition, measurement and presentation of expenses.

The new standard was effective for the Company in the first quarter of fiscal 2020 and was adopted using a modified retrospective approach with the date of initial application on July 1, 2019. Consequently, upon transition, the Company recognized an operating lease right of use asset and an operating lease liability.

The Company applied the following practical expedients as provided in the standards update which provide elections to:

•

not apply the recognition requirements to short-term leases (a lease that at commencement date has a lease term of 12 months or less and does not contain a purchase option);

•

not reassess whether a contract contains a lease, lease classification and initial direct costs; and

•

not reassess certain land easements in existence prior to July 1, 2019.

Through the implementation process, the Company evaluated each of its lease arrangements and enhanced its systems to track and calculate additional information required upon adoption of this standards update. The adoption had an impact to the Condensed Consolidated Balance Sheet as of July 1, 2019 relating to the recognition of operating lease right of use assets and operating lease liabilities which represented approximately a 30% change to total assets and a 64% change to total liabilities. The impact of adoption of this new standards update was as follows (in thousands):

	July 1, 2019
		Adoption	Reclassification (1)			Total Adjustment
Operating lease right of use assets	$	3,428	$	434	$	3,862
Operating lease liabilities – current		528				528
Operating lease liabilities - long-term		3,347				3,347

(1)

As of June 30, 2019, the Company had $132 thousand recorded within deferred rent for lease incentives incurred at the inception of the affected leases and $302 thousand in deferred rent tenant improvements. Upon adoption of the new standards update, these lease incentives were included within the lease liability.

Adoption of the new standard did not materially impact the Condensed Consolidated Statements of Operations, Cash Flows or Shareholders’ Equity.

Leases

The Company determines if an arrangement is a lease at inception of the arrangement. To the extent that it can be determined that an arrangement represents a lease, it is classified as either an operating lease or a finance lease. The Company does not currently have any finance leases. The Company capitalizes operating leases on the Condensed Consolidated Balance Sheets through a right of use asset and a corresponding operating lease liability. Right of use assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Short-term leases that have an initial term of one year or less are not capitalized but are disclosed below.

Operating lease right of use assets and liabilities are recognized at the commencement date of an arrangement based on the present value of lease payments over the lease term. In addition to the present value of lease payments, the operating lease right of use asset also includes any lease payments made to the lessor prior to lease commencement less any lease incentives and initial direct costs incurred. Lease expense is recognized on a straight-line basis over the lease term.

Nature of Leases

The Company leases certain office space, restaurant space, and information technology equipment under non-cancelable leases to support its operations. A more detailed description of significant lease types is included below.

Office Agreements

The Company rents office space from third parties for its corporate location. Office agreements are typically structured with non-cancelable terms of one to 10 years. The Company has concluded that its office agreements represent operating leases with a lease term that equals the primary non-cancelable contract term. Upon completion of the primary term, both parties have substantive rights to terminate the lease. As a result, enforceable rights and obligations do not exist under the rental agreements subsequent to the primary term.

Restaurant Space Agreements

The Company rents restaurant space from third parties for its Company-owned restaurants. Restaurant space agreements are typically structured with non-cancelable terms of one to 10 years. The Company has concluded that its restaurant agreements represent operating leases with a lease term that equals the primary non-cancelable contract term. Upon completion of the primary term, both parties have substantive rights to terminate the lease. As a result, enforceable rights and obligations do not exist under the rental agreements subsequent to the primary term.

Information Technology Equipment

The Company rents information technology equipment, primarily printers and copiers, from a third party for its corporate office location. Information technology equipment agreements are typically structured with non-cancelable terms of one to five years. The Company has concluded that its information technology equipment commitments are operating leases.

Discount Rate

Leases typically do not provide an implicit rate. Accordingly, the Company is required to use its incremental borrowing rate in determining the present value of lease payments based on the information available at commencement date. The Company’s incremental borrowing rate reflects the estimated rate of interest that it would pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The Company uses the implicit rate in the limited circumstances in which that rate is readily determinable.

Lease Guarantees

The Company has guaranteed the financial responsibilities of certain franchised store leases. These guaranteed leases are not considered operating leases because the Company does not have the right to control the underlying asset. If the franchisee abandons the lease and fails to meet the lease’s financial obligations, the lessor may assign the lease to the Company for the remainder of the term. If the Company does not expect to assign the abandoned lease to a new franchisee within 12 months, the lease will be considered an operating lease and a right-of-use asset and liability will be recognized.

Practical Expedients and Accounting Policy Elections

Certain lease agreements include lease and non-lease components. For all existing asset classes with multiple component types, the Company has utilized the practical expedient that exempts it from separating lease components from non-lease components. Accordingly, the Company accounts for the lease and non-lease components in an arrangement as a single lease component.

In addition, for all existing asset classes, the Company has made an accounting policy election not to apply the lease recognition requirements to short-term leases (that is, a lease that, at commencement, has a lease term of 12 months or less and does not include an option to purchase the underlying asset that the Company is reasonably certain to exercise). Accordingly, we recognize lease payments related to our short-term leases in our statement of operations on a straight-line basis over the lease term which has not changed from our prior recognition. To the extent that there are variable lease payments, we recognize those payments in our statement of operations in the period in which the obligation for those payments is incurred.

The components of total lease expense for the six months ended December 27, 2020, the majority of which is included in general and administrative expense, are as follows (in thousands):

		Six Months Ended
		December 27, 2020
Operating lease cost	$	367
Sublease income		(99	)
Total lease expense, net of sublease income	$	268

Supplemental cash flow information related to operating leases is included in the table below (in thousands):

	Six Months Ended
	December 27, 2020
Cash paid for amounts included in the measurement of lease liabilities	$	388

Weighted average remaining lease term and weighted average discount rate for operating leases are as follows:

	December 27, 2020
Weighted average remaining lease term	5.0 Years
Weighted average discount rate	4.0	%

Operating lease liabilities with enforceable contract terms that are greater than one year mature as follows (in thousands):

	Operating Leases

Remainder of fiscal year 2021	$	398
2022		804
2023		813
2024		766
Thereafter		1,448
Total operating lease payments	$	4,229
Less: imputed interest		(433	)
Total operating lease liability	$	3,796

Stock Purchase Plan	6 Months Ended
Stock Purchase Plan	Dec. 27, 2020
Stock Purchase Plan [Abstract]
Stock Purchase Plan	Note C - Stock Purchase Plan On May 23, 2007, the Company’s board of directors approved a stock purchase plan (the “2007 Stock Purchase Plan”) authorizing the purchase of up to 1,016,000 shares of its common stock in the open market or in privately negotiated transactions. On June 2, 2008, the Company’s board of directors amended the 2007 Stock Purchase Plan to increase the number of shares of common stock the Company may repurchase by 1,000,000 shares to a total of 2,016,000 shares. On April 22, 2009, the Company’s board of directors amended the 2007 Stock Purchase Plan again to increase the number of shares of common stock the Company may repurchase by 1,000,000 shares to a total of 3,016,000 shares. The 2007 Stock Purchase Plan does not have an expiration date. There were no stock purchases in the fiscal quarters ended December 27, 2020 or December 29, 2019.

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Dec. 27, 2020
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note D - Commitments and Contingencies The Company is subject to various claims and contingencies related to employment agreements, franchise disputes, lawsuits, taxes, food product purchase contracts and other matters arising out of the normal course of business. Management believes that any such claims and actions currently pending are either covered by insurance or would not have a material adverse effect on the Company’s annual results of operations or financial condition if decided in a manner that is unfavorable to the Company. COVID-19 Pandemic On March 11, 2020, the World Health Organization declared the outbreak of novel coronavirus (COVID-19) as a pandemic, and the disease has spread rapidly throughout the United States and the world. Federal, state and local responses to the COVID-19 pandemic, as well as our internal efforts to protect costumers, franchisees and employees, have severely disrupted our business operations. Most of the domestic Pizza Inn buffet restaurants and Pie Five restaurants are in areas that were for varying periods subject to “shelter-in-place” and social distancing restrictions prohibiting in-store sales and, therefore, were limited to carry-out and/or delivery orders. In some areas, these restrictions limited non-essential movement outside the home, which discouraged or even precluded carry-out orders. In most cases, in-store dining has now resumed subject to seating capacity limitations, social distancing protocols, and enhanced cleaning and disinfecting practices. Further, the COVID-19 pandemic has precipitated significant job losses and a national economic downturn that typically impacts the demand for restaurant food service. Although most of our domestic restaurants have continued to operate under these conditions, we have experienced temporary closures from time to time during the pandemic. The COVID-19 pandemic has resulted in dramatically reduced aggregate in-store retail sales at Buffet Units and Pie Five Units, modestly offset by increased aggregate carry-out and delivery sales. The decreased aggregate retail sales have correspondingly decreased supplier rebates and franchise royalties payable to the Company. During the fourth quarter of fiscal 2020, we participated in a government-sponsored loan program. We also temporarily furloughed certain employees and reduced base salary by 20% for all remaining employees for the fourth quarter of fiscal 2020, as well as reducing other expenses. While the Company will remain focused on controlling expenses, future results of operations are likely to be materially adversely impacted by the pandemic and its aftermath. We expect that Buffet Units and Pie Five Units will continue to be subject to capacity restrictions for some time as social distancing protocols remain in place. Additionally, an outbreak or perceived outbreak of COVID-19 connected to restaurant dining could cause negative publicity directed at any of our brands and cause customers to avoid our restaurants. We cannot predict how long the pandemic will last or whether it will reoccur, what additional restrictions may be enacted, to what extent off-premises dining will continue, or if individuals will be comfortable returning to our Buffet Units and Pie Five Units following social distancing protocols. Any of these changes could materially adversely affect the Company’s future financial performance. However, the ultimate impact of COVID-19 on our future results of operations and liquidity cannot presently be predicted.

Stock-Based Compensation

6 Months Ended

Dec. 27, 2020

Stock-Based Compensation [Abstract]

Stock-Based Compensation

Note E - Stock-Based Compensation

Stock Options:

For the fiscal quarters ended December 27, 2020 and December 29, 2019, the Company did not recognize any stock-based compensation expense related to stock options. As of December 27, 2020, there was no unamortized stock-based compensation expense related to stock options.

The following table summarizes the number of shares of the Company’s common stock subject to outstanding stock options:

	Six Months Ended
	December 27, 2020		December 29, 2019
	Shares		Shares
Outstanding at beginning of year		206,750		216,550

Granted		—		—
Exercised		—		—
Forfeited/Canceled/Expired		—		—

Outstanding at end of period		206,750		216,550

Exercisable at end of period		206,750		216,550

Restricted Stock Units:

For the three months ended December 27, 2020 and December 29, 2019, the Company had no stock-based compensation expenses related to RSU’s. As of December 27, 2020, there was no unamortized stock-based compensation expense related to RSU’s.

A summary of the status of restricted stock units as of December 27, 2020, and changes during the three months then ended is presented below:

Unvested at June 28, 2020			—
Granted			—
Vested			—
Forfeited			—
Unvested at December 27, 2020			—

Earnings per Share (EPS)

6 Months Ended

Dec. 27, 2020

Earnings per Share (EPS) [Abstract]

Earnings per Share (EPS)

Note F - Earnings per Share (EPS)

The following table shows the reconciliation of the numerator and denominator of the basic EPS calculation to the numerator and denominator of the diluted EPS calculation (in thousands, except per share amounts).

(In thousands, except per share amounts)

	Three Months Ended				Six Months Ended
	December 27, 2020		December 29, 2019		December 27, 2020		December 29, 2019
Net income available to common stockholders	$	102	$	14	$	178	$	251

BASIC:
Weighted average common shares		17,712		15,129		16,596		15,106

Net income per common share	$	0.01	$	0.00	$	0.01	$	0.02

DILUTED:
Weighted average common shares		17,712		15,129		16,596		15,106
Convertible notes		798		800		798		815
Dilutive stock options		—		1		—		3
Weighted average common shares outstanding		18,510		15,930		17,394		15,924

Net income per common share	$	0.01	$	0.00	$	0.01	$	0.02

For the three and six months ended December 27, 2020, options to purchase 206,750 shares of common stock at exercise prices from $2.71 to $13.11 were excluded from the computation of diluted EPS because they were not in-the-money.

For the three and six months ended December 29, 2019, options to purchase 216,550 shares of common stock at exercise prices ranging from $2.71 to $13.11 were excluded from the computation of diluted EPS because they were not in-the-money.

Income Taxes	6 Months Ended
Income Taxes	Dec. 27, 2020
Income Taxes [Abstract]
Income Taxes	Note G - Income Taxes For the six months ended December 27, 2020, the Company recorded an income tax expense of $4 thousand, all of which was attributable to current state taxes. The Company utilized net operating losses to offset federal taxes. The Company continually reviews the realizability of its deferred tax assets, including an analysis of factors such as future taxable income, reversal of existing taxable temporary differences, and tax planning strategies. In assessing the need for a valuation allowance, the Company considers both positive and negative evidence related to the likelihood of realization of deferred tax assets. Future sources of taxable income are also considered in determining the amount of the recorded valuation allowance. As of December 27, 2020, the Company had established a full valuation allowance of $6.5 million against its deferred tax assets. The Company will continue to review the need for an adjustment to the valuation allowance.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Segment Reporting

6 Months Ended

Dec. 27, 2020

Segment Reporting [Abstract]

Segment Reporting

Note H - Segment Reporting

The Company has three reportable operating segments as determined by management using the “management approach” as defined by the authoritative guidance on Disclosures about Segments of an Enterprise and Related Information: (1) Pizza Inn Franchising, (2) Pie Five Franchising and (3) Company-Owned Restaurants. These segments are a result of differences in the nature of the products and services sold. Corporate administration costs, which include, but are not limited to, general accounting, human resources, legal and credit and collections, are partially allocated to the three operating segments. Other revenue consists of non-recurring items.

The Pizza Inn and Pie Five Franchising segments establish franchisees, licensees and territorial rights. Revenue for this segment is primarily derived from franchise royalties, franchise license fees, sale of area development and foreign master license rights, incentive payments from third party suppliers and distributors, advertising funds, and supplier convention funds. Assets for these segments include equipment, furniture and fixtures.

The Company-Owned Restaurant segment includes sales and operating results for all Company-owned restaurants. Assets for this segment include equipment, furniture and fixtures for the Company-owned restaurants.

Revenue for corporate administration and other consists of rental income and interest income. Assets primarily include cash and short-term investments, as well as furniture and fixtures located at the corporate office and trademarks and other intangible assets. All assets are located within the United States.

Summarized in the following table are net sales and operating revenues, depreciation and amortization expense, and income before taxes, for the Company’s reportable segments as of the three months and six months ended December 27, 2020 and December 29, 2019 (in thousands):

	Three Months Ended						Six Months Ended
	December 27, 2020			December 29, 2019			December 27, 2020			December 29, 2019
Net sales and operating revenues:
Pizza Inn Franchising	$	1,624		$	1,648		$	3,004		$	3,512
Pie Five Franchising		456			1,021			932			1,873
Company-Owned Restaurants		—			96			—			204
Corporate administration and other		48			65			95			117
Consolidated revenues	$	2,128		$	2,830		$	4,031		$	5,706

Depreciation and amortization:
Pizza Inn Franchising	$	—		$	—		$	—		$	—
Pie Five Franchising		—			—			—			—
Company-Owned Restaurants		—			—			—			—
Combined		—			—			—			—
Corporate administration and other		43			49			87			96
Depreciation and amortization	$	43		$	49		$	87		$	96

Income before taxes:
Pizza Inn Franchising	$	1,284		$	1,323		$	2,384		$	2,735
Pie Five Franchising		190			508			399			946
Company-Owned Restaurants		(79	)		(236	)		(179	)		(439	)
Combined		1,395			1,595			2,604			3,242
Corporate administration and other		(1,291	)		(1,585	)		(2,422	)		(2,922	)
Income before taxes	$	104		$	10		$	182		$	320

Geographic information (revenues):
United States	$	2,074		$	2,778		$	3,933		$	5,595
Foreign countries		54			52			98			111
Consolidated total	$	2,128		$	2,830		$	4,031		$	5,706

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Dec. 27, 2020

Summary of Significant Accounting Policies [Abstract]

Principles of Consolidation

Cash and Cash Equivalents

Fiscal Quarters

The three and six month periods ended December 27, 2020 and December 29, 2019 each contained 13 weeks and 26 weeks, respectively.

Use of Management Estimates

Revenue Recognition

The following describes principal activities, separated by major product or service, from which the Company generates its revenues:

Restaurant Sales

Franchise Revenues

Franchise royalties, which are based on a percentage of franchise restaurant sales, are recognized as sales occur.

Supplier and distributor incentive revenues are recognized when title to the underlying commodities transfer.

Supplier convention funds are deferred until the obligations of the agreement are met and the event takes place.

Rental Income

Total revenues consist of the following (in thousands):

	Three Months Ended
	December 27, 2020		December 29, 2019
Restaurant sales	$	—	$	96
Franchise royalties		847		1,028
Supplier and distributor incentive revenues		808		1,033
Franchise license fees		80		410
Area development exclusivity fees and foreign master license fees		4		6
Advertising funds		150		132
Supplier convention funds		177		63
Rental income		52		48
Other		10		14
	$	2,128	$	2,830

	Six Months Ended
	December 27, 2020		December 29, 2019

Restaurant sales	$	—	$	204
Franchise royalties		1,705		2,136
Supplier and distributor incentive revenues		1,575		2,056
Franchise license fees		182		621
Area development exclusivity fees and foreign master license fees		8		13
Advertising funds		275		284
Supplier convention funds		177		278
Rental income		100		89
Other		9		25
	$	4,031	$	5,706

Stock-Based Compensation

- Definition

Disclosure of accounting policy for revenue from contract with customer.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
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+ Details

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Dec. 27, 2020

Summary of Significant Accounting Policies [Abstract]

Total Revenues

Total revenues consist of the following (in thousands):

	Three Months Ended
	December 27, 2020		December 29, 2019
Restaurant sales	$	—	$	96
Franchise royalties		847		1,028
Supplier and distributor incentive revenues		808		1,033
Franchise license fees		80		410
Area development exclusivity fees and foreign master license fees		4		6
Advertising funds		150		132
Supplier convention funds		177		63
Rental income		52		48
Other		10		14
	$	2,128	$	2,830

	Six Months Ended
	December 27, 2020		December 29, 2019

Restaurant sales	$	—	$	204
Franchise royalties		1,705		2,136
Supplier and distributor incentive revenues		1,575		2,056
Franchise license fees		182		621
Area development exclusivity fees and foreign master license fees		8		13
Advertising funds		275		284
Supplier convention funds		177		278
Rental income		100		89
Other		9		25
	$	4,031	$	5,706

Adoption of ASC 842, "Leases" (Tables)

6 Months Ended

Dec. 27, 2020

Adoption of ASC 842, "Leases" [Abstract]

Impact of Adoption of New Standards Update Related to Operating Lease

The impact of adoption of this new standards update was as follows (in thousands):

	July 1, 2019
		Adoption	Reclassification (1)			Total Adjustment
Operating lease right of use assets	$	3,428	$	434	$	3,862
Operating lease liabilities – current		528				528
Operating lease liabilities - long-term		3,347				3,347

(1)

Components of Total Lease Expense

The components of total lease expense for the six months ended December 27, 2020, the majority of which is included in general and administrative expense, are as follows (in thousands):

		Six Months Ended
		December 27, 2020
Operating lease cost	$	367
Sublease income		(99	)
Total lease expense, net of sublease income	$	268

Supplemental Cash Flow Information Related to Operating Leases

Supplemental cash flow information related to operating leases is included in the table below (in thousands):

	Six Months Ended
	December 27, 2020
Cash paid for amounts included in the measurement of lease liabilities	$	388

Weighted Average Remaining Lease Term and Weighted Average Discount Rate

Weighted average remaining lease term and weighted average discount rate for operating leases are as follows:

	December 27, 2020
Weighted average remaining lease term	5.0 Years
Weighted average discount rate	4.0	%

Maturities of Operating Lease Liabilities

Operating lease liabilities with enforceable contract terms that are greater than one year mature as follows (in thousands):

	Operating Leases

Remainder of fiscal year 2021	$	398
2022		804
2023		813
2024		766
Thereafter		1,448
Total operating lease payments	$	4,229
Less: imputed interest		(433	)
Total operating lease liability	$	3,796

Stock-Based Compensation (Tables)

6 Months Ended

Dec. 27, 2020

Stock-Based Compensation [Abstract]

Outstanding Stock Options

The following table summarizes the number of shares of the Company’s common stock subject to outstanding stock options:

	Six Months Ended
	December 27, 2020		December 29, 2019
	Shares		Shares
Outstanding at beginning of year		206,750		216,550

Granted		—		—
Exercised		—		—
Forfeited/Canceled/Expired		—		—

Outstanding at end of period		206,750		216,550

Exercisable at end of period		206,750		216,550

Summary of Restricted Stock Units

A summary of the status of restricted stock units as of December 27, 2020, and changes during the three months then ended is presented below:

Unvested at June 28, 2020			—
Granted			—
Vested			—
Forfeited			—
Unvested at December 27, 2020			—

Earnings per Share (EPS) (Tables)

6 Months Ended

Dec. 27, 2020

Earnings per Share (EPS) [Abstract]

Earnings per Share Basic and Diluted

(In thousands, except per share amounts)

	Three Months Ended				Six Months Ended
	December 27, 2020		December 29, 2019		December 27, 2020		December 29, 2019
Net income available to common stockholders	$	102	$	14	$	178	$	251

BASIC:
Weighted average common shares		17,712		15,129		16,596		15,106

Net income per common share	$	0.01	$	0.00	$	0.01	$	0.02

DILUTED:
Weighted average common shares		17,712		15,129		16,596		15,106
Convertible notes		798		800		798		815
Dilutive stock options		—		1		—		3
Weighted average common shares outstanding		18,510		15,930		17,394		15,924

Net income per common share	$	0.01	$	0.00	$	0.01	$	0.02

Segment Reporting (Tables)

6 Months Ended

Dec. 27, 2020

Segment Reporting [Abstract]

Segment Reporting Information

	Three Months Ended						Six Months Ended
	December 27, 2020			December 29, 2019			December 27, 2020			December 29, 2019
Net sales and operating revenues:
Pizza Inn Franchising	$	1,624		$	1,648		$	3,004		$	3,512
Pie Five Franchising		456			1,021			932			1,873
Company-Owned Restaurants		—			96			—			204
Corporate administration and other		48			65			95			117
Consolidated revenues	$	2,128		$	2,830		$	4,031		$	5,706

Depreciation and amortization:
Pizza Inn Franchising	$	—		$	—		$	—		$	—
Pie Five Franchising		—			—			—			—
Company-Owned Restaurants		—			—			—			—
Combined		—			—			—			—
Corporate administration and other		43			49			87			96
Depreciation and amortization	$	43		$	49		$	87		$	96

Income before taxes:
Pizza Inn Franchising	$	1,284		$	1,323		$	2,384		$	2,735
Pie Five Franchising		190			508			399			946
Company-Owned Restaurants		(79	)		(236	)		(179	)		(439	)
Combined		1,395			1,595			2,604			3,242
Corporate administration and other		(1,291	)		(1,585	)		(2,422	)		(2,922	)
Income before taxes	$	104		$	10		$	182		$	320

Geographic information (revenues):
United States	$	2,074		$	2,778		$	3,933		$	5,595
Foreign countries		54			52			98			111
Consolidated total	$	2,128		$	2,830		$	4,031		$	5,706

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 27, 2020	Dec. 29, 2019	Dec. 27, 2020	Dec. 29, 2019	Jun. 28, 2020
Cash and Cash Equivalents [Abstract]
Restricted cash	$ 235		$ 235		$ 234
Revenues [Abstract]
Revenues	2,128	$ 2,830	$ 4,031	$ 5,706
Minimum [Member]
Franchise Revenues [Abstract]
Amortization term of franchise license fees			5 years
Maximum [Member]
Franchise Revenues [Abstract]
Amortization term of franchise license fees			20 years
Restaurant Sales [Member]
Revenues [Abstract]
Revenues	0	96	$ 0	204
Franchise Royalties [Member]
Revenues [Abstract]
Revenues	847	1,028	1,705	2,136
Supplier and Distributor Incentive Revenues [Member]
Revenues [Abstract]
Revenues	808	1,033	1,575	2,056
Franchise License Fees [Member]
Revenues [Abstract]
Revenues	80	410	182	621
Area Development Exclusivity Fees and Foreign Master License Fees [Member]
Revenues [Abstract]
Revenues	4	6	8	13
Advertising Funds [Member]
Revenues [Abstract]
Revenues	150	132	275	284
Supplier Convention Funds [Member]
Revenues [Abstract]
Revenues	177	63	177	278
Rental Income [Member]
Revenues [Abstract]
Revenues	52	48	100	89
Other [Member]
Revenues [Abstract]
Revenues	$ 10	$ 14	$ 9	$ 25

Adoption of ASC 842, "Leases" (Details)
$ in Thousands

6 Months Ended

Dec. 27, 2020

USD ($)

Lease

Jun. 28, 2020

USD ($)

Jun. 30, 2019

USD ($)

Adoption of ASC 842, "Leases" [Abstract]

Percentage of change to total assets under operating leases

30.00%

Percentage of change to total liabilities under operating leases

64.00%

Balance Sheet [Abstract]

Operating lease right of use asset

$ 3,274

$ 3,567

Operating lease liabilities - current

658

632

Operating lease liabilities - long-term

$ 3,138

$ 3,471

Deferred rent recorded for lease incentives

$ 132

Deferred rent tenant improvements

302

Operating Lease, Description [Abstract]

Number of subleases | Lease

Components of Total Lease Expense [Abstract]

Operating lease cost

$ 367

Sublease income

(99)

Total lease expense, net of sublease income

268

Supplemental Cash Flow Information Related to Operating Leases [Abstract]

Cash paid for amounts included in the measurement of lease liabilities

$ 388

Weighted Average Remaining Lease Term and Discount Rate [Abstract]

Weighted average remaining lease term

5 years

Weighted average discount rate

4.00%

Maturities of Operating Lease Liabilities [Abstract]

Remainder of fiscal year 2021

$ 398

804

813

766

1,448

Total operating lease payments

4,229

Less: imputed interest

(433)

Total operating lease liability

$ 3,796

Information Technology Equipment [Member] | Minimum [Member]

Operating Lease, Description [Abstract]

Term of contract

1 year

Information Technology Equipment [Member] | Maximum [Member]

Operating Lease, Description [Abstract]

Term of contract

5 years

Office Agreements [Member] | Minimum [Member]

Operating Lease, Description [Abstract]

Term of contract

1 year

Office Agreements [Member] | Maximum [Member]

Operating Lease, Description [Abstract]

Term of contract

10 years

Restaurant Space Agreements [Member] | Minimum [Member]

Operating Lease, Description [Abstract]

Term of contract

1 year

Restaurant Space Agreements [Member] | Maximum [Member]

Operating Lease, Description [Abstract]

Term of contract

10 years

ASU 2016-02 [Member]

Balance Sheet [Abstract]

Operating lease right of use asset

3,862

Operating lease liabilities - current

528

Operating lease liabilities - long-term

3,347

ASU 2016-02 [Member] | Adoption [Member]

Balance Sheet [Abstract]

Operating lease right of use asset

3,428

Operating lease liabilities - current

528

Operating lease liabilities - long-term

3,347

ASU 2016-02 [Member] | Reclassification [Member]

Balance Sheet [Abstract]

Operating lease right of use asset

^[1]

$ 434

[1]

Stock Purchase Plan (Details) - shares			3 Months Ended
Stock Purchase Plan (Details) - shares	Apr. 22, 2009	Jun. 02, 2008	Dec. 27, 2020	Dec. 29, 2019	May 23, 2007
Treasury Stock, Shares [Abstract]
Repurchase of shares common stock (in shares)			0	0
2007 Stock Purchase Plan [Member]
Treasury Stock, Shares [Abstract]
Number of common stock shares authorized to purchase (in shares)					1,016,000
Amended 2007 Stock Purchase Plan [Member]
Treasury Stock, Shares [Abstract]
Number of common stock shares authorized to purchase (in shares)	3,016,000	2,016,000
Repurchase of shares common stock (in shares)	1,000,000	1,000,000

Commitments and Contingencies (Details)	3 Months Ended
Commitments and Contingencies (Details)	Jun. 28, 2020
Commitments and Contingencies [Abstract]
Percentage reduction of employees base salary	20.00%

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Stock-Based Compensation (Details) - USD ($) $ in Thousands	Dec. 27, 2020	Dec. 29, 2019	Dec. 27, 2020	Dec. 29, 2019
Stock Options [Member]
Share-based Arrangement [Abstract]
Stock-based compensation expense recognized	$ 0	$ 0
Unamortized stock-based compensation expense	$ 0		$ 0
Summary of Shares of Common Stock Subject to Outstanding Stock Options [Roll Forward]
Outstanding at beginning of year (in shares)			206,750	216,550
Granted (in shares)			0	0
Exercised (in shares)			0	0
Forfeited/Canceled/Expired (in shares)			0	0
Outstanding at end of period (in shares)	206,750	216,550	206,750	216,550
Exercisable at end of Period (in shares)	206,750	216,550	206,750	216,550
Restricted Stock Units [Member]
Share-based Arrangement [Abstract]
Stock-based compensation expense recognized	$ 0	$ 0
Unamortized stock-based compensation expense	$ 0		$ 0
Summary of Restricted Stock Units [Roll forward]
Unvested Beginning Balance (in shares)			0
Granted (in shares)			0
Vested (in shares)			0
Forfeited (in shares)			0
Unvested Ending Balance (in shares)	0		0

Earnings per Share (EPS) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 27, 2020	Dec. 29, 2019	Dec. 27, 2020	Dec. 29, 2019
Earnings Per Share [Abstract]
Net income available to common stockholders	$ 102	$ 14	$ 178	$ 251
BASIC [Abstract]
Weighted average common shares (in shares)	17,712,000	15,129,000	16,596,000	15,106,000
Net income per common share (in dollars per share)	$ 0.01	$ 0	$ 0.01	$ 0.02
DILUTED [Abstract]
Weighted average common shares (in shares)	17,712,000	15,129,000	16,596,000	15,106,000
Convertible notes (in shares)	798,000	800,000	798,000	815,000
Dilutive stock options (in shares)	0	1,000	0	3,000
Weighted average common shares outstanding (in shares)	18,510,000	15,930,000	17,394,000	15,924,000
Net income per common share (in dollars per share)	$ 0.01	$ 0	$ 0.01	$ 0.02
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings per Share [Abstract]
Options to purchase shares of common stock excluded from computation of diluted EPS (in shares)	206,750	216,550	206,750	216,550
Stock Options [Member] \| Minimum [Member]
Antidilutive Securities Excluded from Computation of Earnings per Share [Abstract]
Options to purchase shares of common stock exercise price (in dollars per share)	$ 2.71	$ 2.71	$ 2.71	$ 2.71
Stock Options [Member] \| Maximum [Member]
Antidilutive Securities Excluded from Computation of Earnings per Share [Abstract]
Options to purchase shares of common stock exercise price (in dollars per share)	$ 13.11	$ 13.11	$ 13.11	$ 13.11

Income Taxes (Details) $ in Thousands	6 Months Ended
Income Taxes (Details) $ in Thousands	Dec. 27, 2020 USD ($)
Income Taxes [Abstract]
Current state tax expense	$ 4
Valuation allowance on deferred tax assets	$ 6,500

Segment Reporting (Details) $ in Thousands	3 Months Ended		6 Months Ended
Segment Reporting (Details) $ in Thousands	Dec. 27, 2020 USD ($)	Dec. 29, 2019 USD ($)	Dec. 27, 2020 USD ($) Segment	Dec. 29, 2019 USD ($)
Segment Reporting [Abstract]
Number of reportable segments \| Segment			3
Segment Reporting Information, Profit (Loss) [Abstract]
Consolidated revenues	$ 2,128	$ 2,830	$ 4,031	$ 5,706
Depreciation and amortization	43	49	87	96
Income before taxes	104	10	182	320
Operating Segments [Member]
Segment Reporting Information, Profit (Loss) [Abstract]
Depreciation and amortization	0	0	0	0
Income before taxes	1,395	1,595	2,604	3,242
Corporate Administration and Other [Member]
Segment Reporting Information, Profit (Loss) [Abstract]
Consolidated revenues	48	65	95	117
Depreciation and amortization	43	49	87	96
Income before taxes	(1,291)	(1,585)	(2,422)	(2,922)
Reportable Geographical Components [Member] \| United States [Member]
Segment Reporting Information, Profit (Loss) [Abstract]
Consolidated revenues	2,074	2,778	3,933	5,595
Reportable Geographical Components [Member] \| Foreign Countries [Member]
Segment Reporting Information, Profit (Loss) [Abstract]
Consolidated revenues	54	52	98	111
Pizza Inn Franchising [Member] \| Operating Segments [Member]
Segment Reporting Information, Profit (Loss) [Abstract]
Consolidated revenues	1,624	1,648	3,004	3,512
Depreciation and amortization	0	0	0	0
Income before taxes	1,284	1,323	2,384	2,735
Pie Five Franchising [Member] \| Operating Segments [Member]
Segment Reporting Information, Profit (Loss) [Abstract]
Consolidated revenues	456	1,021	932	1,873
Depreciation and amortization	0	0	0	0
Income before taxes	190	508	399	946
Company-Owned Restaurants [Member] \| Operating Segments [Member]
Segment Reporting Information, Profit (Loss) [Abstract]
Consolidated revenues	0	96	0	204
Depreciation and amortization	0	0	0	0
Income before taxes	$ (79)	$ (236)	$ (179)	$ (439)