Flanigans Enterprises (BDL) risk factors, FY2024 10-K

Risks Related to Our Business

1. 01If 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
2. 02We have experienced and continue to experience significant labor cost inflation. If we are unable to offset higher labor costs, our cost of doing business will significantly increase, which could materially adversely impact our financial performance
3. 03Any significant changes to the healthcare insurance system could impact our healthcare costs. Material increases in healthcare costs could materially adversely affect our financial performance
4. 04Our sales and profit growth could be adversely affected if comparable restaurant sales increases are less than we expect, and we may not successfully increase comparable restaurant sales or they may decrease
5. 05High unemployment, instability in the housing market, high energy and food costs and general economic uncertainty could result in a decline in consumer discretionary spending that would materially affect our financial performance
6. 06Intense competition in the restaurant and package liquor store industry could prevent us from increasing or sustaining our revenues and profitability
7. 07New information or attitudes regarding diet and health could result in changes in regulations and consumer eating habits that could adversely affect our revenues
8. 08Adverse public or medical opinions about health effects of consuming our products as well as negative publicity about us, our restaurants and/or package liquor stores and about others across the food and liquor industry supply chain, whether or not accurate, could negatively affect us
9. 09Our inability to successfully and sufficiently raise menu prices could result in a decline in profitability
10. 10Increases in Food Costs, Raw Materials and Other Supplies and Services Due to Inflation May Have a Material Adverse Impact on our Financial Performance
11. 11Shortages or interruptions in the supply of food offering ingredients and/or liquor inventory could adversely affect our operating results
12. 12Our business could be materially adversely affected if we are unable to expand in a timely and profitable manner
13. 13Changes in customer preferences for casual dining styles could adversely affect financial performance
14. 14Our success depends substantially on the value of our brands and our reputation for offering guests a satisfactory experience
15. 15Our marketing and advertising strategies may not be successful, which could adversely impact our business
16. 16Labor shortages, an increase in labor costs, or inability to attract employees could harm our business
17. 17Due to our geographic locations, restaurants are subject to climate conditions that could affect operations
18. 18If we were to experience widespread difficulty renewing existing leases on favorable terms, our revenue or occupancy costs could be adversely affected
19. 19Due to our geographic locations, we may not be able to acquire windstorm insurance coverage or adequate windstorm insurance coverage at a reasonable rate
20. 20Our inability or failure to execute a comprehensive business continuity plan at our restaurant support centers following a disaster or force majeure event could have a material adverse impact on our business
21. 21Inability to attract and retain customers could affect results of operations
22. 22A failure to comply with governmental regulations could harm our business and our reputation
23. 23We may face liability under dram shop statutes
24. 24The COVID-19 pandemic had a significant adverse impact on our customer traffic and ability to operate our restaurants and future pandemics and other diseases may have a similar or more severe impact
25. 25If we are unable to protect our customers’ credit card data, we could be exposed to data loss, litigation and liability, and our reputation could be significantly harmed
26. 26If we experience a significant failure in or interruption of certain key information technology systems, our business could be adversely impacted
27. 27The effect of changes to U.S. healthcare laws may increase our healthcare costs and negatively impact our financial results
28. 28Employment and immigration regulations
29. 29Americans with disabilities act and similar state laws
30. 30Nutrition and food regulation
31. 31Local licensure, zoning and other regulation
32. 32We could be party to litigation that could adversely affect us by distracting management, increasing our expenses or subjecting us to material money damages and other remedies
33. 33Our success may depend on the continued service and availability of key personnel
34. 34We are exposed to risks related to cybersecurity
35. 35If there is a material failure in our information technology systems, our business operations and profits could be negatively affected and our systems may be inadequate to support our future growth strategies
36. 36Acts of violence at or threatened against our restaurants or the centers in which they are located, including active shooter situations and terrorism, could unfavorably impact our restaurant sales, which could materially adversely affect our financial performance
37. 37Social media impact on customer perceptions of our brand
38. 38Our digital business has become an increasingly significant part of our business
39. 39Changes in interest rates