BJs Restaurants (BJRI) risk factors, FY2024 10-K

Risks Related to our Restaurant Business, Operations and Future Growth

1. 01The restaurant industry is highly competitive. Any inability to maintain our brand image and compete effectively in the restaurant industry may adversely affect our revenues, profitability and financial results
2. 02Our inability or failure to successfully and sufficiently raise menu prices to offset rising costs and expenses may adversely affect guest traffic and our results of operations
3. 03Negative publicity about us, our restaurants, other restaurants, or others across the food supply chain, due to foodborne illness or for other reasons, whether or not accurate, may adversely affect the reputation and popularity of our restaurants and our results of operations
4. 04problems related to one or more of our restaurants, may adversely affect sales for all of our restaurants and make our brand and menu offerings less appealing to consumers
5. 05Health concerns arising from food-borne or other illnesses or specific categories of foods may adversely affect our business
6. 06Any deterioration in general economic conditions which adversely affects consumer spending, our landlords or businesses neighboring our locations, may adversely affect our results of operations
7. 07Changes in consumer buying patterns, particularly e-commerce sites and off-premise sales affect our revenues, operating results and liquidity
8. 08Any adverse change in consumer trends or traffic levels may adversely affect our business, revenues and results of operations
9. 09Changes in off-premise sales or costs may adversely affect our operating results
10. 10Any inability or failure to recognize, respond to and effectively manage the accelerated impact of social media may adversely affect our business
11. 11Any inability or failure to successfully expand our restaurant operations or open and adequately staff new restaurants may adversely affect our growth rate and results of operations
12. 12newly opened restaurants in the same market, resulting in negative pressure on our overall comparable restaurant sales metric. While we do not generally select locations for our new restaurants where we believe that a significant sales transfer will likely occur, some unexpected sales transfer may inadvertently occur
13. 13Our inability to renew existing leases on favorable terms may adversely affect our results of operations
14. 14Any inability to retain key personnel or difficulties in recruiting qualified personnel may adversely affect our business until a suitable replacement is found
15. 15Any adverse changes in the cost of food, brewing commodities and other materials, including cost increases caused by inflation, tariffs, or global conflicts may adversely affect our operating results
16. 16We may be subject to increased labor costs resulting from wage pressure, higher turnover and changes in government regulations, any of which could adversely affect our results of operations
17. 17Any inability or failure of distributors, suppliers or independent third-party brewers to provide food, beverages and beer to us in a timely fashion may adversely affect our reputation, guest patronage, revenues and results of operations
18. 18Any adverse weather conditions, seasonal fluctuations, natural disasters and environmental matters, including the effects of climate change, may adversely affect our results of operations
19. 19closure, lack of an adequate work force, or temporary or long-term disruption in the supply of food, beverages, electric, water, sewer and waste disposal services necessary for our restaurants or Restaurant Support Center to operate
20. 20Our corporate office is located in California and a significant number of our restaurants are located in California, Texas and Florida which makes us particularly sensitive to economic, regulatory, weather and other risk factors and conditions are more prevalent in those states

Risks Related to Data Security and Technology

1. 21Our business may be adversely affected by cybersecurity incidents which result in unauthorized access, theft, modification or destruction of confidential information that is stored in our systems or by third parties on our behalf, including confidential business, team member, or guest data

Risk Related to Regulations and Legal Proceedings

1. 22Federal, state and local beer, liquor and food service regulations and any violations thereof may adversely affect our revenues and results of operations
2. 23Compliance with cybersecurity, privacy and similar laws may involve significant costs and any failure to comply could adversely affect our business, reputation and results of operations
3. 24We are subject to a variety of laws, government regulations and other legal requirements and any failure to comply with these laws and regulations or any new laws or regulations could have a material adverse effect on our operations
4. 25public company compliance, disclosure and governance matters, including accounting regulations, Securities and Exchange Commission (“SEC”) and NASDAQ disclosure requirements
5. 26We may become party to legal proceedings which could have a material adverse effect on our business
6. 27Any inability to access sources of capital and/or to raise capital in the future on favorable terms may adversely affect our business and results of operations
7. 28The market price of our common stock may be volatile, and our shareholders may lose all or part of their investment