prolonged periods of time. All of our currently-open restaurants have temporarily shifted to a to-go operating model, suspending dine-in services until applicable state and local governments determine it is safe for restaurants to resume such services. In addition, our restaurants have implemented limited service and modified hours, and in
some cases have experienced temporary closures. The Company has also determined that one of its locations, which closed in March of 2020, will not reopen. Restaurants that are permitted to reopen for dining have and are expected to operate at
decreased capacity to comply with social distancing requirements. As a result of these changes to our operations, we have experienced severe decreases in revenues, while continuing to incur significant levels of expenses. Further, we have new or
additional competitors we may not otherwise face under normal operations, and we may not be able to successfully compete with such establishments.
Moreover, the COVID-19 pandemic has impacted, and may continue to impact, the greater economy, causing an economic
downturn and generating uncertainty related to factors that may impact our business, such as timing of any economic recovery, changes in guest spending, and changes in consumer habits in light of job loss, lower discretionary income, and higher
individual debt levels. The COVID-19 pandemic may also materially adversely affect our ability to implement our growth plans, including closures of existing stores, delays in opening new stores, and delaying
our ongoing exploration of strategic alternatives. These changes have materially adversely affected our revenues, results of operations, cash flows, liquidity and financial condition, and may continue to materially adversely affect such aspects of
our business, particularly if these changes continue for an extended period of time.
We are seeking an amendment to our Loan Agreement to expand the
revolving credit facility, and we are taking steps to defer payments to landlords and other parties in order to reduce our capital commitments and supplement our liquidity. We cannot assure you that we will be able to enter into the amendment on the
desired terms or at all or obtain any payment deferrals or contract concessions sought. If we are unable to obtain additional liquidity, our operations and financial condition may be adversely affected.
The long-term impact of this or any other pandemic remains uncertain, as viruses may be transmitted through human contact, and the risk of contracting viruses
could cause employees or guests to avoid gathering in public places, which has adversely impacted our operations, and could further have longer-term adverse effects on our restaurant guest traffic or the ability to adequately staff our restaurants.
Additionally, it is possible that we may experience some reputational harm due to our responses to the COVID-19 pandemic that may negatively impact our business and results of operations. Lastly, we will be
adversely affected if government authorities impose longer-term restrictions on public gatherings, human interactions, operations of restaurants, or mandatory closures. Even if such measures are not implemented and a virus or other disease does not
spread significantly after we reopen our restaurants, any continuing perceived risk of infection or health risk may adversely affect our business, cash flows, liquidity, financial condition and results of operations.
Forward-Looking Statements
This report contains forward-looking statements, which include all statements that do not relate solely to historical or current facts, such as statements regarding our expectations, intentions or strategies regarding the future,
including the Companys plans to continue its review of strategic alternatives and its efforts to enhance shareholder value. These forward-looking statements are based on managements beliefs, as
well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future financial and operating results and other events and are not statements of fact, actual results may
differ materially from those projected and are subject to a number of known and unknown risks and uncertainties, including the health and financial effects of the COVID-19 pandemic; the Companys ability
to reopen its restaurants for in-person dining, and thereafter to reestablish and maintain satisfactory guest count levels and maintain or increase sales and operating margin in its restaurants under