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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Jun. 26, 2016	Sep. 20, 2016	Dec. 27, 2015
Document and Entity Information:
Entity Registrant Name	RAVE RESTAURANT GROUP, INC.
Entity Trading Symbol	rave
Document Type	10-K
Document Period End Date	Jun. 26, 2016
Amendment Flag	false
Entity Central Index Key	0000718332
Current Fiscal Year End Date	--06-26
Entity Common Stock, Shares Outstanding		10,656,551
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	FY
Entity Public Float			$ 43,700,000

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 26, 2016	Jun. 28, 2015
REVENUES
REVENUES:	$ 60,811	$ 48,199
COSTS AND EXPENSES:
Cost of sales	53,303	41,307
General and administrative expenses	7,247	4,792
Franchise expenses	3,636	3,154
Pre-opening expenses	883	721
Impairment of long-lived assets and other lease charges	1,698	300
Bad debt	101	153
Interest expense	4	113
Total costs and expenses	66,872	50,540
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES	(6,061)	(2,341)
Income tax expense (benefit)	2,713	(670)
LOSS FROM CONTINUING OPERATIONS	(8,774)	(1,671)
Loss from discontinued operations, net of taxes	(112)	(168)
Net loss	$ (8,886)	$ (1,839)
LOSS PER SHARE OF COMMON STOCK - BASIC:
Loss from continuing operations	$ (0.85)	$ (0.17)
Loss from discontinued operations	(0.01)	(0.02)
Net loss	(0.86)	(0.19)
LOSS PER SHARE OF COMMON STOCK - DILUTED:
Loss from continuing operations	(0.82)	(0.16)
Loss from discontinued operations	(0.01)	(0.02)
Net loss	$ (0.83)	$ (0.18)
Weighted average common shares outstanding - basic	10,317	9,744
Weighted average common shares outstanding - diluted	10,749	10,306

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 26, 2016	Jun. 28, 2015
CURRENT ASSETS
Cash and cash equivalents	$ 1,104	$ 5,958
Accounts receivable, less allowance for doubtful accounts of $198 and $193, respectively	2,974	3,437
Notes receivable	167	24
Inventories	197	180
Income tax receivable		492
Deferred income tax assets		729
Prepaid expenses and other	430	872
Total current assets	4,872	11,692
LONG-TERM ASSETS
Property, plant and equipment, net	12,979	10,020
Long-term notes receivable	382	119
Long-term deferred tax asset		1,864
Deposits and other	272	276
Total assets	18,505	23,971
CURRENT LIABILITIES
Accounts payable - trade	3,815	2,875
Accrued expenses	1,220	1,267
Deferred rent	160	155
Deferred revenues	304	374
Total current liabilities	5,499	4,671
LONG-TERM LIABILITIES
Deferred rent, net of current portion	2,133	893
Deferred revenues, net of current portion	1,440	1,166
Deferred gain on sale of property		9
Other long-term liabilities	30	22
Total liabilities	9,102	6,761
COMMITMENTS AND CONTINGENCIES (See Notes F and J)
SHAREHOLDERS' EQUITY
Common stock, $.01 par value; authorized 26,000,000 shares; issued 17,460,951 and 17,374,735 shares, respectively; outstanding 10,341,551 and 10,255,335 shares, respectively	175	174
Additional paid-in capital	25,778	24,700
Retained earnings	8,086	16,972
Treasury stock at cost 7,119,400 shares	(24,636)	(24,636)
Total shareholders' equity	9,403	17,210
Total liabilities and shareholders' equity	$ 18,505	$ 23,971

CONDENSED BALANCE SHEETS PARENTHETICALS - USD ($) shares in Thousands, $ in Thousands	Jun. 26, 2016	Jun. 28, 2015
Parentheticals
Allowance for bad debts accounts	$ 198	$ 193
Common Stock, Par Value	$ 0.01	$ 0.01
Common Stock, Shares Authorized	26,000,000	26,000,000
Common Stock, Shares Issued	17,460,951	17,374,735
Common Stock, Shares Outstanding	10,341,551	10,255,335
Treasury Stock, shares	7,119,400	7,119,400

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock Shares	Common Stock Amount	Additional Paid-in Capital	Retained Earnings	Treasury Stock Shares	Treasury Stock Amount	Total
BALANCE, at Jun. 29, 2014	9,121	162	15,905	18,811	(7,119)	(24,636)	10,242
Stock compensation expense			$ 128				$ 128
Stock options exercised	170	2	424				426
Sale of Stock	964	10	8,243				8,253
Net loss				$ (1,839)			$ (1,839)
BALANCE at Jun. 28, 2015	10,255	174	24,700	16,972	(7,119)	(24,636)	17,210
Stock compensation expense			$ 213				$ 213
Stock options exercised	28		102				102
Sale of stock	59	1	763				764
Net loss				$ (8,886)			$ (8,886)
BALANCE at Jun. 26, 2016	10,342	175	25,778	8,086	(7,119)	(24,636)	9,403

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Jun. 26, 2016	Jun. 28, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (8,886)	$ (1,839)
Adjustments to reconcile net loss to cash provided by operating activities:
Impairment of fixed assets and other assets	1,698	300
Stock compensation expense	213	128
Deferred income taxes	2,593	(703)
Depreciation and amortization	2,722	1,617
Loss on the sale of assets	432	49
Provision for bad debt	101	153
Changes in operating assets and liabilities:
Notes and accounts receivable	(44)	(240)
Inventories	(17)	1,523
Income tax receivable	492	(107)
Prepaid expenses and other	419	(705)
Deferred revenue	195	545
Accounts payable - trade	940	852
Accrued expenses	1,088	404
Cash provided by operating activities	1,946	1,977
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of assets	444
Capital expenditures	(8,110)	(6,727)
Cash used for investing activities	(7,666)	(6,727)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of bank debt		(767)
Proceeds from sale of stock	764	8,253
Proceeds from exercise of stock options	102	426
Cash provided by financing activities	866	7,912
Net increase in cash and cash equivalents	(4,854)	3,162
Cash and cash equivalents, beginning of year	5,958	2,796
Cash and cash equivalents, end of year	1,104	5,958
CASH PAID FOR:
Interest	$ 4	113
Income taxes		$ 19

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Jun. 26, 2016

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Description of Business:

Rave Restaurant Group, Inc. and its subsidiaries (collectively referred to as the "Company", or in the first person notations of "we", "us" and "our") operate and franchise pizza buffet, delivery/carry-out and express restaurants domestically and internationally under the trademark "Pizza Inn" and operate and franchise domestic fast casual restaurants under the trademarks "Pie Five Pizza Company" or "Pie Five". We provide or facilitate the procurement and distribution of food, equipment and supplies to our domestic and international system of restaurants through our Norco Restaurant Services Company ("Norco") division and through agreements with third party distributors.

As of June 26, 2016, we owned and operated 32 restaurants comprised of 31 Pie Five restaurants ("Pie Five Units") and one Pizza Inn buffet restaurant ("Buffet Unit"). As of that date, we also had 57 franchised Pie Five Units and 221 franchised Pizza Inn restaurants. The 161 domestic franchised Pizza Inn restaurants were comprised of 95 Buffet Units, 15 delivery/carry-out restaurants ("Delco Units") and 51 express restaurants ("Express Units"). The 60 international franchised Pizza Inn restaurants were comprised of 12 Buffet Units, 40 Delco Units and eight Express Units. Domestic restaurants were located predominantly in the southern half of the United States, with Texas, North Carolina, Arkansas and Kansas accounting for approximately 33%, 12%, 10% and 6%, respectively, of the total number of domestic restaurants.

Principles of Consolidation:

The consolidated financial statements include the accounts of Rave Restaurant Group, Inc. and its subsidiaries, all of which are wholly owned. All appropriate inter-company balances and transactions have been eliminated.

Reclassifications:

Certain reclassifications have been made to prior period amounts to conform to the current period presentation.

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.

Concentration of Credit Risk:

Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of cash and cash equivalents. At June 26, 2016 and June 28, 2015 and at various times during the fiscal years then ended, cash and cash equivalents were in excess of Federal Depository Insurance Corporation insured limits. We do not believe we are exposed to any significant credit risk on cash and cash equivalents.

Inventories:

Inventory consists primarily of food, paper products and supplies stored in and used by Company restaurants and was stated at lower of first-in, first-out ("FIFO") or market. The valuation of such restaurant inventory requires us to estimate the amount of obsolete and excess inventory based on estimates of future retail sales by Company-owned restaurants. Overestimating retail sales by Company-owned restaurants could result in the write-down of inventory which would have a negative impact on the gross margin of such Company-owned restaurants.

Closed Restaurants and Discontinued Operations:

In April, 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which modifies the definition of discontinued operations to include only disposals of an entity that represent strategic shifts that have or will have a major effect on an entity's operation and requires entities to disclose information about disposals of individually significant components that do not meet the definition of discontinued operations. The standard was effective prospectively for annual and interim periods beginning after December 15, 2014, with early adoption permitted. This pronouncement did not have a material impact on our condensed consolidated financial statements

The authoritative guidance on "Accounting for the Impairment or Disposal of Long-Lived Assets," requires that discontinued operations that meet certain criteria be reflected in the statement of operations after results of continuing operations as a net amount. This guidance also requires that the operations of closed restaurants, including any impairment charges, be reclassified to discontinued operations for all periods presented.

The authoritative guidance on "Accounting for Costs Associated with Exit or Disposal Activities," requires that a liability for a cost associated with an exit or disposal activity be recognized when the liability is incurred. This authoritative guidance also establishes that fair value is the objective for initial measurement of the liability.

Discontinued operations include losses from two Pizza Inn locations in Texas. One is a leased building associated with a Company-owned restaurant closed during fiscal 2008. The other is results of operations for a Company-owned restaurant that was closed in the fourth quarter of fiscal 2014 due to declining sales.

Property, Plant and Equipment:

Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Repairs and maintenance are charged to operations as incurred while major renewals and betterments are capitalized. Upon the sale or disposition of a fixed asset, the asset and the related accumulated depreciation or amortization are removed from the accounts and the gain or loss is included in operations. The Company capitalizes interest on borrowings during the active construction period of major capital projects. Capitalized interest is added to the cost of the underlying asset and amortized over the estimated useful life of the asset.

Depreciation and amortization are computed on the straight-line method over the estimated useful lives of the assets or, in the case of leasehold improvements, over the term of the lease including any reasonably assured renewal periods, if shorter. The useful lives of the assets range from three to ten years.

Impairment of Long-Lived Asset and other Lease Charges:

The Company reviews long-lived assets for impairment when events or circumstances indicate that the carrying value of such assets may not be fully recoverable. Impairment is evaluated based on the sum of undiscounted estimated future cash flows expected to result from use of an asset compared to its carrying value. If impairment is recognized, the carrying value of the impaired asset is reduced to its fair value, based on discounted estimated future cash flows. During fiscal year 2016 and 2015, the Company tested its long-lived assets for impairment and recognized pre-tax, non-cash impairment charges of $1.7 million and $0.3 million, respectively, related to the carrying value of several Pie Five and Pizza Inn units.

Accounts Receivable:

Accounts receivable consist primarily of receivables from food and supply sales and franchise royalties. The Company records a provision for doubtful receivables to allow for any amounts that may be unrecoverable based upon an analysis of the Company's prior collection experience, customer creditworthiness and current economic trends. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. Finance charges may be accrued at a rate of 18% per year, or up to the maximum amount allowed by law, on past due receivables. The interest income recorded from finance charges is immaterial.

Notes Receivable:

Notes receivable primarily consist of accounts receivable from franchisees converted into notes. The majority of amounts and terms are contained under formal promissory and personal guarantee agreements. All notes allow for early payment without penalty. Fixed principle and interest payments are due weekly or monthly. Interest income is recognized monthly. Notes receivable mature at various dates through 2024 and bear interest at rates that range from 5% to 7% (6% average rate at June 26, 2016).

Management evaluates the creditworthiness of franchisees by considering credit history and sales to evaluate credit risk. Management determines interest rates based on credit risk of the underlining franchisee. The Company monitors payment history to determine whether or not a loan should be placed on a nonaccrual status or impaired.

The Company charges off notes receivable based on an account-by-account analysis of the borrower's current economic conditions, monthly payments history and historical loss experience. The allowance for doubtful notes receivable is included with the allowance for doubtful accounts. Notes receivable as of June 26, 2016 consisted of $0.2 million in current assets and $0.4 million in long-term assets.

The principal balance outstanding on the notes receivable and expected principal collections for the next five years and thereafter were as follows as of June 26, 2016 (in thousands):

	Notes
	Receivable
2017		167
2018		86
2019		81
2020		87
2021 and thereafter		128
	$	549

One note totaling $15 thousand was charged off for the fiscal year ended June 26, 2016.

Income Taxes:

Income taxes are accounted for using the asset and liability method pursuant to the authoritative guidance on Accounting for Income Taxes. Deferred taxes are recognized for the tax consequences of "temporary differences" by applying enacted statutory tax rates applicable to future years to differences between the financial statement and carrying amounts and the tax bases of existing assets and liabilities. The effect on deferred taxes for a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes future tax benefits to the extent that realization of such benefits is more likely than not.

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 the second quarter of fiscal year 2016, the Company recorded a $3.5 million valuation allowance against its net deferred tax assets. The valuation allowance was increased by $0.5 million in the third quarter of fiscal year 2016 to $4.0 million and again in the fourth quarter by $0.9 million to $4.9 million. The Company assessed whether a valuation allowance should be established against its deferred tax assets based on consideration of all available evidence, using a "more likely than not" standard. In assessing the need for a valuation allowance, the Company considered both positive and negative evidence related to the likelihood of realization of deferred tax assets. In making such assessment, more weight was given to evidence that could be objectively verified, including recent cumulative losses. Future sources of taxable income were also considered in determining the amount of the recorded valuation allowance. Based on the Company's review of this evidence, management determined that a full valuation allowance against all of the Company's deferred tax assets was appropriate.

The Company follows authoritative guidance that prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that it has taken or expects to take on a tax return. This authoritative guidance requires that a company recognize in its financial statements the impact of tax positions that meet a "more likely than not" threshold, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. As of June 26, 2016 and June 28, 2015, the Company had no uncertain tax positions. Federal returns for tax years 2012 through 2015 remained open for examination as of June 26, 2016.

Pre-Opening Expense:

The Company's pre-opening costs are expensed as incurred and generally include payroll and other direct costs associated with training new managers and employees prior to opening a new restaurant, rent and other unit operating expenses incurred prior to opening, and promotional costs associated with the opening.

Related Party Transactions:

On February 20, 2014, the Company entered into an Advisory Services Agreement (the "Agreement") with NCM Services, Inc. ("NCMS") pursuant to which NCMS provides certain advisory and consulting services to the Company. NCMS is indirectly owned and controlled by Mark E. Schwarz, the Chairman of the Company. The term of the Agreement commenced December 30, 2013, and continues quarterly thereafter until terminated by either party. Pursuant to the Agreement, NCMS was paid an initial fee of $150,000 and earns quarterly fees of $50,000 and an additional fee of up to $50,000 per quarter (not to exceed an aggregate of $100,000 in additional fees). The quarterly and additional fees are waived if the Company is not in compliance with all financial covenants under its primary credit facility or to the extent that payment of those fees would result in non-compliance with such financial covenants. As of June 26, 2016, the accrued liability relating to services performed by NCMS was $100,003.

Revenue Recognition:

The Company recognizes food and supply revenue when products are delivered and the customer takes ownership and assumes risk of loss, collection of the relevant receivable is probable, persuasive evidence of an arrangement exists and the sales price is fixed or determinable. The Company's Norco division sells food and supplies to franchisees on trade accounts under terms common in the industry. Shipping and handling costs billed to customers are recognized as revenue and the associated costs are included in cost of sales.

Franchise revenue consists of income from license fees, royalties, and area development and foreign master license sales. License fees are recognized as income when there has been substantial performance of the agreement by both the franchisee and the Company, generally at the time the restaurant is opened. Royalties are recognized as income when earned. For the fiscal years ended June 26, 2016 and June 28, 2015, 82.8% and 82.2%, respectively, of franchise revenue was comprised of recurring royalties.

We recognize restaurant sales when food and beverage products are sold. The Company reports revenue net of sales and use taxes collected from customers and remitted to governmental taxing authorities.

Stock Options:

We account 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.

The Company's stock-based compensation plans are described more fully in Note H. Stock options under these plans are granted at exercise prices equal to the fair market value of the Company's stock at the dates of grant.

Generally those options vest ratably over various vesting periods.

Restricted Stock Units:

Fair Value of Financial Instruments:

The carrying amounts of accounts receivable and accounts payable approximate fair value because of the short maturity of these instruments. The Company had no bank debt at June 26, 2016.

Advertising and Marketing Costs:

Advertising and marketing costs are expensed as incurred and totaled $1.2 million for fiscal year ended June 26, 2016 and $0.7 million for fiscal year ended June 28, 2015. Advertising and marketing costs are included in cost of sales and general and administrative expenses in the consolidated statements of operations.

Contingencies:

Provisions for legal settlements are accrued when payment is considered probable and the amount of loss is reasonably estimable in accordance with the authoritative guidance on Accounting for Contingencies. If the best estimate of cost can only be identified within a range and no specific amount within that range can be determined more likely than any other amount within the range, and the loss is considered probable, the minimum of the range is accrued. Legal and related professional services costs to defend litigation are expensed as incurred.

Use of Management Estimates:

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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. Actual results could differ materially from estimates.

Fiscal Year:

The Company's fiscal year ends on the last Sunday in June. The fiscal year ended June 26, 2016 and the fiscal year ended June 28, 2015 both contained 52 weeks.

PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Jun. 26, 2016

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT

NOTE B – PROPERTY, PLANT AND EQUIPMENT:

Property, and plant and equipment consist of the following (in thousands):

	Estimated Useful	June 26,			June 28,
	Lives	2016			2015

Equipment, furniture and fixtures	3 - 7 yrs	$	9,697		$	6,927
Software	5 yrs		872			637
Vehicle	2 - 3 yrs		-			19
Leasehold improvements	10 yrs or lease term, if shorter		13,290			9,134
			23,859			16,717
Less: accumulated depreciation/amortization			(10,880	)		(6,697	)
		$	12,979		$	10,020

Depreciation and amortization expense was approximately $2.7 million and $1.6 million for the fiscal years ended June 26, 2016 and June 28, 2015, respectively

ACCRUED EXPENSES

12 Months Ended

Jun. 26, 2016

ACCRUED EXPENSES:

ACCRUED EXPENSES

NOTE C - ACCRUED EXPENSES:

Accrued expenses consist of the following (in thousands):

	June 26,		June 28,
	2016		2015
Compensation	$	728	$	587
Other		447		506
Professional fees		37		79
Insurance loss reserves		8		95

	$	1,220	$	1,267

LONG-TERM DEBT

12 Months Ended

Jun. 26, 2016

LONG-TERM DEBT

LONG-TERM DEBT

NOTE D - LONG-TERM DEBT:

On August 28, 2012, the Company entered into a Loan and Security Agreement (the "F&M Loan Agreement") with The F&M Bank & Trust Company ("F&M") providing for a $2.0 million revolving credit facility (with a $500 thousand letter of credit subfacility), a $2.0 million fully funded term loan facility and a $6.0 million advancing term loan facility. An origination fee of 0.5% of the total credit facilities was paid at closing. At closing, F&M funded a $2.0 million term loan payable in 48 equal monthly installments of principal plus accrued interest at a fixed rate of 4.574% per annum. Amounts repaid under this fully funded term loan could not be reborrowed. Initial proceeds from the F&M Loan Agreement were used to repay amounts borrowed under a previous credit facility that subsequently was canceled.

On June 13, 2013 the Company entered into a First Amendment to the F&M Loan Agreement that revised certain financial covenants to address proceeds from the Company's at-the-market offerings of common stock. On September 10, 2013 the Company entered into a Second Amendment to the F&M Loan Agreement that specified the application of prepayments to the loan amortization schedule and revised certain definitions.

The Company could borrow, repay and reborrow under the revolving credit facility through August 28, 2014, at which time all amounts outstanding under the revolving credit facility would mature. The Company did not draw borrowings on the revolving credit facility during fiscal 2015 and allowed it to expire. An unused commitment fee of 0.50% per annum was payable quarterly on the average unused portion of the revolving credit facility.

Through August 28, 2014, F&M had agreed to make up to $6.0 million in additional term loans to the Company. However, no amounts were outstanding on the advancing term loan facility at the expiration of the advance period. As of September 26, 2014, the balance on the initial term loan facility was also paid in full. As a result, the F&M Loan Agreement expired by its terms.

Management believes the cash on hand combined with cash from operations and proceeds from the 2014 ATM Offering will be sufficient to fund operations for the next 12 months.

INCOME TAXES

12 Months Ended

Jun. 26, 2016

INCOME TAXES

INCOME TAXES

NOTE E - INCOME TAXES:

Provision for income taxes from continuing operations consists of the following (in thousands):

	Fiscal Year Ended
	June 26,			June 28,
	2016			2015
Current - Federal	$	-		$	-
Current - Foreign		-			24
Current - State		4			29
Deferred - Federal		2,823			(674	)
Deferred - State		(114	)		(49	)
Provision for income taxes	$	2,713		$	(670	)

Included in loss from discontinued operations is $58,000 and $86,000 of tax benefit for the fiscal years ended June 26, 2016 and June 28, 2015, respectively.

The effective income tax rate varied from the statutory rate for the fiscal years ended June 26, 2016 and June 28, 2015 as reflected below (in thousands):

	June 26,			June 28,
	2016			2015
Federal income taxes based on 34%
of pre-tax loss	$	(2,060	)	$	(796	)
State income tax, net of federal effect		(45	)		(13	)
Permanent adjustments		19			44
Valuation allowance		4,891			-
Foreign tax credits		-			24
Other		(92	)		71
	$	2,713		$	(670	)

The tax effects of temporary differences that give rise to the net deferred tax assets consisted of the following (in thousands):

	June 26,			June 28,
	2016			2015


Current
Reserve for bad debt	$	70		$	69
Deferred fees		105			124
Other reserves and accruals		1,246			536
		1,421			729
Non Current
Credit carryforwards		747			180
Net operating loss carryforwards		197			1,633
Depreciable assets		2,526			51

Total gross deferred tax asset		4,891			2,593

Valuation allowance		(4,891	)		-

Net deferred tax asset	$	-		$	2,593

At the end of tax year ended June 26, 2016, the Company had net operating loss carryforwards totaling $7.5 million that are available to reduce future taxable income and will begin to expire 2032.

LEASES

12 Months Ended

Jun. 26, 2016

LEASES

LEASES

NOTE F - LEASES:

Premises occupied by Company-owned restaurants are leased for initial terms of five to ten years, and each has multiple renewal terms. Certain lease agreements contain either a provision requiring additional rent if sales exceed specified amounts or an escalation clause based upon a predetermined multiple.

In fiscal 2007, the Company sold its corporate office building and distribution facility located at 3551 Plano Parkway, The Colony, Texas, and entered into a ten-year lease agreement for the corporate office building. This lease expires December 19, 2016. The Company is in discussion with the landlord to extend its lease, and is also evaluating alternative options.

Future minimum rental payments under non-cancelable leases, net of subleases, with initial or remaining terms of one year or more at June 26, 2016 were as follows (in thousands):

	Operating
	Leases

2017	$	3,346
2018		3,050
2019		2,951
2020		2,899
2021		2,892
Thereafter		10,296
	$	25,434

Rental expense consisted of the following (in thousands):

	Fiscal Year Ended
	June 26,			June 28,
	2016			2015

Minimum rentals	$	3,090		$	1,666
Sublease rentals		(257	)		(221	)
	$	2,833		$	1,445

EMPLOYEE BENEFITS

12 Months Ended

Jun. 26, 2016

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS

NOTE G - EMPLOYEE BENEFITS:

The Company has a tax advantaged savings plan that is designed to meet the requirements of Section 401(k) of the Internal Revenue Code (the "Code"). The current plan is a modified continuation of a similar savings plan established by the Company in 1985. Employees who have completed six months of service and are at least 21 years of age are eligible to participate in the plan. The plan provides that participating employees may elect to have between 1% and 15% of their compensation deferred and contributed to the plan subject to certain IRS limitations. Effective June 27, 2005, the Company contributes on behalf of each participating employee an amount equal to 50% of the employee's contributions up to 4% of compensation. Separate accounts are maintained with respect to contributions made on behalf of each participating employee. Employer matching contributions and earnings thereon are invested in the same investments as each participant's employee deferral. The plan is subject to the provisions of the Employee Retirement Income Security Act, as amended, and is a profit sharing plan as defined in Section 401(k) of the Code.

For the fiscal years ended June 26, 2016 and June 28, 2015, total matching contributions to the tax advantaged savings plan by the Company on behalf of participating employees were approximately $53,000 and $39,000, respectively.

STOCK BASED COMPENSATION PLANS

12 Months Ended

Jun. 26, 2016

STOCK BASED COMPENSATION PLANS

STOCK BASED COMPENSATION PLANS

NOTE H - STOCK BASED COMPENSATION PLANS:

In June 2005, the 2005 Employee Incentive Stock Option Award Plan (the "2005 Employee Plan") was approved by the Company's shareholders with a plan effective date of June 23, 2005. Under the 2005 Employee Plan, officers and employees of the Company were eligible to receive options to purchase shares of the Company's common stock. Options were granted at market value of the stock on the date of grant, were subject to various vesting and exercise periods as determined by the Compensation Committee of the board of directors, and could be designated as non-qualified or incentive stock options. A total of 1,000,000 shares of common stock were authorized for issuance under the 2005 Employee Plan. During the 2015 fiscal year, options to purchase 92,000 shares were granted under the 2005 Employee Plan. Also during the 2015 fiscal year, 3,000 shares of common stock were issued upon the exercise of options granted under the 2005 Employee Plan. The 2005 Employee Plan expired by its terms on June 23, 2015. During fiscal 2016, contingencies were satisfied with respect to options to purchase 18,500 shares of common stock previously conditionally granted under the 2005 Employee Plan.

The shareholders also approved the 2005 Non-Employee Directors Stock Award Plan (the "2005 Directors Plan") in June 2005, to be effective as of June 23, 2005. Directors not employed by the Company were eligible to receive stock options under the 2005 Directors Plan. Options for common stock equal to twice the number of shares of common stock acquired during the previous fiscal year, up to 40,000 shares per year, were automatically granted to each non-employee director on the first day of each fiscal year. Options were granted at market value of the stock on the first day of each fiscal year, with vesting periods beginning at a minimum of six months and with exercise periods up to ten years. A total of 650,000 shares of Company common stock were authorized for issuance pursuant to the 2005 Directors Plan. During the 2015 fiscal year, 28,800 options were granted under the 2005 Directors Plan. Also during the 2015 fiscal year, 167,200 shares of common stock were issued upon the exercise of options granted under the 2005 Directors Plan. The 2005 Directors Plan expired by its terms on June 23, 2015.

The 2015 Long Term Incentive Plan (the "2015 LTIP") was approved by the Company's shareholders on November 18, 2014, and became effective June 1, 2015. Officers, employees and non-employee directors of the Company are eligible to receive awards under the 2015 LTIP. A total of 1,200,000 shares of common stock are authorized for issuance under the 2015 LTIP. Awards authorized under the 2015 LTIP include incentive stock options, non-qualified stock options, restricted shares, restricted stock units and rights (either with or without accompanying options). The 2015 LTIP provides for options to be granted at market value of the stock on the date of grant and have exercise periods determined by the Compensation Committee of the board of directors. The Compensation Committee may also determine the vesting periods, performance criteria and other terms and conditions of all awards under the 2015 LTIP. The Compensation Committee has adopted resolutions under the 2015 LTIP automatically granting to each non-employee director on the first day of each fiscal year options to purchase twice the number of shares of common stock acquired during the previous fiscal year, up to a maximum of 40,000 shares. Such options are exercisable at the market value of the stock on the first day of the fiscal year, vest six months from the date of grant and expire 10 years from the date of grant. During fiscal 2016, options to purchase 24,286 shares of common stock and 100,190 restricted stock units (representing the right to receive up to 150,285 shares of common stock) were granted under the 2015 LTIP and represent the only awards outstanding thereunder.

Share based compensation expense is included in general and administrative expense in the statement of operations.

Stock Options:

A summary of stock option transactions under all of the Company's stock option plans and information about fixed-price stock options is as follows:

	Fiscal Year Ended
	June 26, 2016					June 28, 2015
				Weighted-					Weighted-
				Average					Average
				Exercise					Exercise
	Shares			Price		Shares			Price

Outstanding at beginning
of year		871,798		$	3.51		921,198		$	2.92

Granted		42,786		$	10.92		120,800		$	6.57
Exercised		(27,916	)	$	3.65		(170,200	)	$	2.50
Forfeited/Canceled/Expired		(39,112	)	$	5.67		-		$	-

Outstanding at end of year		847,556		$	3.77		871,798		$	3.51

Exercisable at end of year		558,620		$	2.71		406,378		$	2.63

Weighted-average fair value of
options granted during the year				$	4.24				$	3.16

Total intrinsic value of
options exercised				$	102,010				$	425,944

At June 26, 2016, the total intrinsic value of options outstanding was $8.2 million and of options exercisable was $5.8 million.

The following table provides information on options outstanding and options exercisable as of June 26, 2016:

		Options Outstanding						Options Exercisable
				Weighted-
				Average
		Options		Remaining		Weighted-		Options		Weighted-
Range of		Outstanding		Contractual		Average		Exercisable		Average
Exercise Prices		at June 26, 2016		Life (Years)		Exercise Price		at June 26, 2016		Exercise Price

$	1.55 - 1.95		81,306		3.1	$	1.90		81,306	$	1.90
$	1.96 - 2.35		90,000		2.0	$	2.32		90,000	$	2.32
$	2.36 - 2.75		390,000		6.2	$	2.58		250,000	$	2.58
$	2.76 - 3.30		55,000		6.0	$	3.11		55,000	$	3.11
$	5.51 - 5.74		8,664		7.0	$	5.74		8,664	$	5.74
$	5.95 - 6.25		153,300		7.9	$	6.06		66,150	$	3.40
$	6.26 - 8.16		69,286		8.3	$	9.85		7,500	$	8.12
			847,556		5.9	$	3.77		558,620	$	2.71

We determine fair value following the authoritative guidance as follows:

Valuation and Amortization Method. We estimate the fair value of share-based awards granted using the Black-Scholes option valuation model. We amortize the fair value of all awards on a straight-line basis over the requisite service periods, which are generally the vesting periods.

Expected Life. The expected life of awards granted represents the period of time that they are expected to be outstanding. Unless a life is specifically stated, we determine the expected life using the "simplified method" in accordance with Staff Accounting Bulletin No. 110 since we do not have sufficient historical share option exercise experience.

Expected Volatility. Using the Black-Scholes option valuation model, we estimate the volatility of our common stock at the date of grant based on the historical volatility of our common stock.

Risk-Free Interest Rate. We base the risk-free interest rate used in the Black-Scholes option valuation model on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent remaining term equal to the expected life of the award.

Expected Dividend Yield. We have not paid any cash dividends on our common stock in the last ten years and we do not anticipate paying any cash dividends in the foreseeable future. Consequently, we use an expected dividend yield of zero in the Black-Scholes option valuation model.

Expected Forfeitures. We use historical data to estimate pre-vesting option forfeitures. We record stock-based compensation only for those awards that are expected to vest.

The following weighted average assumptions were used for options granted in the last two fiscal years:

	June 26,	June 28,
Fiscal Year Ended	2016	2015

Expected life (in years)	5.7	5.9
Expected volatility	36.0%	39.1%
Risk-free interest rate	1.6%	1.9%
Expected forfeiture rate	61.8%	47.1%

At June 26, 2016, the Company had unvested options to purchase 288,936 shares with a weighted average grant date fair value of $4.47. The total remaining unrecognized compensation cost related to unvested stock options amounted to approximately $0.2 million at June 26, 2016. The weighted average remaining requisite service period of the unvested awards was 9.3 months. Stock compensation expense related to stock options of $0.2 million and $0.1 million was recognized in fiscal years 2016 and 2015, respectively.

Restricted Stock Units:

Restricted stock units awarded under the 2015 LTIP represent the right to receive shares of common stock upon the satisfaction of vesting requirements, performance criteria and other terms and conditions. During the third quarter of fiscal 2016, an aggregate of 100,190 restricted stock units were granted to certain employees.

The restricted stock units granted to each recipient are allocated among performance criteria pertaining to various aspects of the Company's business, as well as its overall operations, measured based on its fiscal year ending June 24, 2018. Achievement of the various performance criteria entitles the recipient to receive shares of common stock in amounts ranging from 50% to 150% of the number of restricted stock units granted. Grantees of restricted stock units do not have any rights of a stockholder, and do not participate in any distributions on our common stock, until the award fully vests upon satisfaction of the vesting schedule, performance criteria and other conditions set forth in their award agreement. Therefore, unvested restricted stock units are not considered participating securities under ASC 260, "Earnings Per Share," and are not included in the calculation of basic or diluted earnings per share.

Compensation cost is measured as an amount equal to the fair value of the restricted stock units 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. The grant date fair value of the restricted stock units granted in fiscal 2016 is $5.99 per unit. The Company incurred compensation expense of $33 thousand and recorded no income tax benefit due to a full valuation allowance.

A summary of the status of restricted stock units as of June 26, 2016, and changes during the fiscal year then ended is presented below:

Number of Restricted Stock Units

Vested at June 28, 2015			-
Granted			100,190
Vested			-
Forfeited			20,570
Unvested at June 26, 2016			79,620

As of June 26, 2016, there was $0.2 million of total unrecognized compensation cost related to unvested restricted stock units granted under the 2015 LTIP, of which $79 thousand is expected to be recognized in each of fiscal 2017 and fiscal 2018, and $23 thousand is expected to be recognized in fiscal 2019.

SHAREHOLDERS' EQUITY

12 Months Ended

Jun. 26, 2016

SHAREHOLDERS' EQUITY {1}

SHAREHOLDERS' EQUITY

NOTE I - SHAREHOLDERS' EQUITY:

On April 22, 2009, the board of directors of the Company amended the stock repurchase plan first authorized on May 23, 2007, and previously amended on June 2, 2008, by increasing the aggregate number of shares of common stock the Company may repurchase under the plan to a total of 3,016,000 shares. No shares were repurchased during fiscal 2016 and, as of June 26, 2016, there were 848,425 shares available to repurchase under the plan.

On May 20, 2013, the Company entered into an At-the-Market Issuance Sales Agreement with MLV & Co. LLC ("MLV") pursuant to which the Company could offer and sell shares of its common stock having an aggregate offering price of up to $3,000,000 from time to time through MLV, acting as agent (the "2013 ATM Offering"). The 2013 ATM Offering was undertaken pursuant to Rule 415 and a shelf Registration Statement on Form S-3 which was declared effective by the SEC on May 13, 2013. On November 20, 2013, the Company and MLV amended the At-the-Market Issuance Sales Agreement and the SEC declared effective a new shelf Registration Statement on Form S-3 to increase the 2013 ATM Offering by $5,000,000. The Company ultimately sold an aggregate of 1,257,609 shares in the 2013 ATM Offering, realizing aggregate gross proceeds of $8.0 million.

On October 1, 2014, the Company entered into a new At Market Issuance Sales Agreement with MLV pursuant to which the Company could initially offer and sell shares of its common stock having an aggregate offering price of up to $5,000,000 from time to time through MLV, acting as agent (the "2014 ATM Offering"). On February 13, 2015, the aggregate offering amount of the 2014 ATM Offering was increased to $10,000,000. The 2014 ATM Offering is being undertaken pursuant to Rule 415 and a shelf Registration Statement on Form S-3 which was declared effective by the SEC on August 8, 2014. Through June 26, 2016, the Company had sold an aggregate of 825,763 shares in the 2014 ATM Offering, realizing aggregate gross proceeds of $8.1 million.

The Company pays to MLV a fee equal to 3% of the gross sales price in addition to reimbursing certain costs. Expenses associated with the 2013 ATM Offering and 2014 ATM Offering were $21,000 and $42,000 in fiscal 2016 and fiscal 2015, respectively, which includes fees and expense reimbursement to MLV and legal and other offering expenses incurred by the Company.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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-Subparagraph (SX 210.4-08.(d),(e))
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-Section E

Reference 15: http://www.xbrl.org/2003/role/presentationRef
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-Name Staff Accounting Bulletin (SAB)
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+ Details

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Jun. 26, 2016

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

NOTE J - 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 us.

EARNINGS PER SHARE

12 Months Ended

Jun. 26, 2016

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE K - EARNINGS PER SHARE:

The Company computes and presents earnings per share ("EPS") in accordance with the authoritative guidance on Earnings Per Share. Basic EPS excludes the effect of potentially dilutive securities while diluted EPS reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised, converted or resulted in the issuance of common stock that then shared in the earnings of the Company.

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).

	Fiscal Year Ended
	June 26,			June 28,
	2016			2015
Loss from continuing operations	$	(8,774	)	$	(1,671	)
Discontinued operations		(112	)		(168	)
Net loss available to common stockholders	$	(8,886	)	$	(1,839	)

BASIC:
Weighted average common shares		10,317			9,744

Loss from continuing operations per common share	$	(0.85	)	$	(0.17	)
Discontinued operations per common share		(0.01	)		(0.02	)
Net loss per common share	$	(0.86	)	$	(0.19	)

DILUTED:
Weighted average common shares		10,317			9,744
Stock options		432			562
Weighted average common shares outstanding		10,749			10,306


Loss from continuing operations per common share	$	(0.82	)	$	(0.16	)
Discontinued operations per common share		(0.01	)		(0.02	)
Net loss per common share	$	(0.83	)	$	(0.18	)

SEGMENT REPORTING

12 Months Ended

Jun. 26, 2016

SEGMENT REPORTING

SEGMENT REPORTING

NOTE L– SEGMENT REPORTING:

The Company has two 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) Franchising and Food and Supply Distribution, and (2) 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 two operating segments. Other revenue consists of nonrecurring items.

The Franchising and Food and Supply Distribution segment establishes franchisees and franchise territorial rights and sells and distributes proprietary and non-proprietary food and other items to franchisees. Revenue for this segment is derived from the sale of distributed products and franchise royalties, franchise fees and sale of area development and foreign master license rights. Assets for this segment 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.

Corporate administration and other 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 tables are net sales and operating revenues, depreciation and amortization expense, income from continuing operations before taxes, capital expenditures and assets for the Company's reportable segments as of and for the fiscal years ended June 26, 2016 and June 28, 2015 (in thousands):

	Fiscal Year Ended
	June 26,			June 28,
	2016			2015
Net sales and operating revenues:
Franchising and food and supply distribution	$	40,324		$	35,330
Company-owned restaurants (1)		20,487			12,869
Consolidated revenues	$	60,811		$	48,199

Depreciation and amortization:
Franchising and food and supply distribution	$	23		$	24
Company-owned restaurants (1)		2,458			1,374
Combined		2,481			1,398
Corporate administration and other		241			219
Depreciation and amortization	$	2,722		$	1,617

Loss from continuing operations before taxes
Franchising and food and supply distribution (2)	$	2,694		$	1,492
Company-owned restaurants (1) (2)		(6,183	)		(1,729	)
Combined		(3,489	)		(237	)
Corporate administration and other (2)		(2,572	)		(2,104	)
Loss from continuing operations before taxes	$	(6,061	)	$	(2,341	)

Capital Expenditures:
Franchising and food and supply distribution	$	-		$	-
Company-owned restaurants		7,497			6,443
Corporate administration		613			284
Combined capital expenditures	$	8,110		$	6,727

Assets:
Franchising and food and supply distribution	$	3,187		$	4,314
Company-owned restaurants		12,817			11,088
Corporate administration		2,501			8,569
Combined assets	$	18,505		$	23,971


(1	)	Company stores that were closed are included in discontinued operations in the accompanying Condensed
		Consolidated Statement of Operations.

(2	)	Portions of corporate administration and other have been allocated to segments.

The following table provides information on our foreign and domestic revenues:


United States	$	60,260	$	47,509
Foreign countries		551		690
Consolidated total	$	60,811	$	48,199

- 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.

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+ Details

Accounting Policies (Policies)

12 Months Ended

Jun. 26, 2016

Accounting Policies:

Description of Business

Description of Business:

Principles of Consolidation

Principles of Consolidation:

Reclassification

Reclassifications:

Certain reclassifications have been made to prior period amounts to conform to the current period presentation.

Cash and Cash Equivalents

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.

Concentration of Credit Risk, Policy

Concentration of Credit Risk:

Inventories, Policy

Inventories:

Closed Restaurants and Discontinued Operations, Policy

Closed Restaurants and Discontinued Operations:

Property, Plant and Equipment, Policy

Property, Plant and Equipment:

Impairment of Long-Lived Asset and other Lease Charges, Policy

Impairment of Long-Lived Asset and other Lease Charges:

Accounts Receivable , Policy

Accounts Receivable:

Notes Receivable

Notes Receivable:

The principal balance outstanding on the notes receivable and expected principal collections for the next five years and thereafter were as follows as of June 26, 2016 (in thousands):

	Notes
	Receivable
2017		167
2018		86
2019		81
2020		87
2021 and thereafter		128
	$	549

One note totaling $15 thousand was charged off for the fiscal year ended June 26, 2016.

Income Taxes, Policy

Income Taxes:

Pre-Opening Expense

Pre-Opening Expense:

Related Party Transactions

Related Party Transactions:

Revenue Recognition

Revenue Recognition:

Stock Options

Stock Options:

Generally those options vest ratably over various vesting periods.

Restricted Stock Units

Restricted Stock Units:

Fair Value of Financial Instruments, Policy

Fair Value of Financial Instruments:

The carrying amounts of accounts receivable and accounts payable approximate fair value because of the short maturity of these instruments. The Company had no bank debt at June 26, 2016.

Advertising and Marketing Costs, Policy

Advertising and Marketing Costs:

Contingencies, Policy

Contingencies:

Use of Management Estimates

Use of Management Estimates:

Fiscal Year

Fiscal Year:

The Company's fiscal year ends on the last Sunday in June. The fiscal year ended June 26, 2016 and the fiscal year ended June 28, 2015 both contained 52 weeks.

Schedule of notes receivable (Tables)

12 Months Ended

Jun. 26, 2016

Schedule of notes receivable (Tables):

Schedule of notes receivable

The principal balance outstanding on the notes receivable and expected principal collections for the next five years and thereafter were as follows as of June 26, 2016 (in thousands):

	Notes
	Receivable
2017		167
2018		86
2019		81
2020		87
2021 and thereafter		128

Schedule of Property, and plant and equipment (Tables)

12 Months Ended

Jun. 26, 2016

Schedule of Property, and plant and equipment (Tables):

Schedule of Property, and plant and equipment (Tables)

Property, and plant and equipment consist of the following (in thousands):

	Estimated Useful	June 26,			June 28,
	Lives	2016			2015

Equipment, furniture and fixtures	3 - 7 yrs	$	9,697		$	6,927
Software	5 yrs		872			637
Vehicle	2 - 3 yrs		-			19
Leasehold improvements	10 yrs or lease term, if shorter		13,290			9,134
			23,859			16,717
Less: accumulated depreciation/amortization			(10,880	)		(6,697	)
		$	12,979		$	10,020

Schedule of Accrued expenses (Tables)

12 Months Ended

Jun. 26, 2016

Schedule of Accrued expenses (Tables):

Schedule of Accrued expenses

Accrued expenses consist of the following (in thousands):

<BTB>	June 26,		June 28,
<S>	2016		2015
Compensation	$	728	$	587
Other		447		506
Professional fees		37		79
Insurance loss reserves		8		95

	$	1,220	$	1,267

Schedule of income taxes (Tables)

12 Months Ended

Jun. 26, 2016

Schedule of income taxes (Tables):

Schedule of Provision for income taxes (Tables)

Provision for income taxes from continuing operations consists of the following (in thousands):

	Fiscal Year Ended
	June 26,			June 28,
	2016			2015
Current - Federal	$	-		$	-
Current - Foreign		-			24
Current - State		4			29
Deferred - Federal		2,823			(674	)
Deferred - State		(114	)		(49	)
Provision for income taxes	$	2,713		$	(670	)

Schedule of Effective Income Tax Rate Reconciliation

The effective income tax rate varied from the statutory rate for the fiscal years ended June 26, 2016 and June 28, 2015 as reflected below (in thousands):

	June 26,			June 28,
	2016			2015
Federal income taxes based on 34%
of pre-tax loss	$	(2,060	)	$	(796	)
State income tax, net of federal effect		(45	)		(13	)
Permanent adjustments		19			44
Valuation allowance		4,891			-
Foreign tax credits		-			24
Other		(92	)		71
	$	2,713		$	(670	)

Schedule of Deferred Tax Assets

The tax effects of temporary differences that give rise to the net deferred tax assets consisted of the following (in thousands):

	June 26,			June 28,
	2016			2015


Current
Reserve for bad debt	$	70		$	69
Deferred fees		105			124
Other reserves and accruals		1,246			536
		1,421			729
Non Current
Credit carryforwards		747			180
Net operating loss carryforwards		197			1,633
Depreciable assets		2,526			51

Total gross deferred tax asset		4,891			2,593

Valuation allowance		(4,891	)		-

Net deferred tax asset	$	-		$	2,593

Schedule of Leases (Tables)

12 Months Ended

Jun. 26, 2016

Schedule of Leases (Tables):

Schedule of Future Minimum Lease rental payments

Future minimum rental payments under non-cancelable leases, net of subleases, with initial or remaining terms of one year or more at June 26, 2016 were as follows (in thousands):

	Operating
	Leases

2017	$	3,346
2018		3,050
2019		2,951
2020		2,899
2021		2,892
Thereafter		10,296
	$	25,434

Schedule of Rental expense

Rental expense consisted of the following (in thousands):

	Fiscal Year Ended
	June 26,			June 28,
	2016			2015

Minimum rentals	$	3,090		$	1,666
Sublease rentals		(257	)		(221	)
	$	2,833		$	1,445

Schedule of Summary of Outstanding Stock Options (Tables)

12 Months Ended

Jun. 26, 2016

Schedule of Summary of Outstanding Stock Options

Schedule of Summary of Outstanding Stock Options

A summary of stock option transactions under all of the Company's stock option plans and information about fixed-price stock options is as follows:

	Fiscal Year Ended
	June 26, 2016					June 28, 2015
				Weighted-					Weighted-
				Average					Average
				Exercise					Exercise
	Shares			Price		Shares			Price

Outstanding at beginning
of year		871,798		$	3.51		921,198		$	2.92

Granted		42,786		$	10.92		120,800		$	6.57
Exercised		(27,916	)	$	3.65		(170,200	)	$	2.50
Forfeited/Canceled/Expired		(39,112	)	$	5.67		-		$	-

Outstanding at end of year		847,556		$	3.77		871,798		$	3.51

Exercisable at end of year		558,620		$	2.71		406,378		$	2.63

Weighted-average fair value of
options granted during the year				$	4.24				$	3.16

Total intrinsic value of
options exercised				$	102,010				$	425,944

Schedule of restricted stock units (Tables)

A summary of the status of restricted stock units as of June 26, 2016, and changes during the fiscal year then ended is presented below:

Number of Restricted Stock Units

Vested at June 28, 2015			-
Granted			100,190
Vested			-
Forfeited			20,570
Unvested at June 26, 2016			79,620

Schedule of Stock Options weighted average Valuation Assumptions

The following weighted average assumptions were used for options granted in the last two fiscal years:

	June 26,	June 28,
Fiscal Year Ended	2016	2015

Expected life (in years)	5.7	5.9
Expected volatility	36.0%	39.1%
Risk-free interest rate	1.6%	1.9%
Expected forfeiture rate	61.8%	47.1%

Schedule of reconciliation of the numerator and denominator of the basic EPS calculation to the numerator and denominator of the diluted EPS calculation (Tables)

12 Months Ended

Jun. 26, 2016

Schedule of reconciliation of the numerator and denominator of the basic EPS calculation to the numerator and denominator of the diluted EPS calculation

Schedule of Earnings Per Share, Basic and Diluted

	Fiscal Year Ended
	June 26,			June 28,
	2016			2015
Loss from continuing operations	$	(8,774	)	$	(1,671	)
Discontinued operations		(112	)		(168	)
Net loss available to common stockholders	$	(8,886	)	$	(1,839	)

BASIC:
Weighted average common shares		10,317			9,744

Loss from continuing operations per common share	$	(0.85	)	$	(0.17	)
Discontinued operations per common share		(0.01	)		(0.02	)
Net loss per common share	$	(0.86	)	$	(0.19	)

DILUTED:
Weighted average common shares		10,317			9,744
Stock options		432			562
Weighted average common shares outstanding		10,749			10,306


Loss from continuing operations per common share	$	(0.82	)	$	(0.16	)
Discontinued operations per common share		(0.01	)		(0.02	)
Net loss per common share	$	(0.83	)	$	(0.18	)

Notes Receivables (Details)	Jun. 26, 2016 USD ($)
Accounts Receivalble details
Finance charges may be accrued at a rate per year	18.00%
Notes Receivables details
Notes receivable bear interest rate minimum	5.00%
Notes receivable bear interest rate maximum	7.00%
Current notes receivables	$ 200,000
Total notes receivables	$ 600,000

Expected Principal Collections For The Next Five Years And Thereafter (Details) $ in Thousands	Jun. 26, 2016 USD ($)
Expected principal collections for the next five years and thereafter
Notes Recevables 2017	$ 167
Notes Recevables 2018	86
Notes Recevables 2019	81
Notes Recevables 2020	87
Notes Recevables 2021 and there after	128
Total Notes Receivables	549
One note totaling	$ 15

Significant Accounting Policies (Details) - USD ($)	12 Months Ended
Significant Accounting Policies (Details) - USD ($)	Jun. 26, 2016	Jun. 28, 2015
Impairment of Long-Lived Asset
Long-lived assets for impairment and recognized pre-tax, non-cash impairment charges	$ 1,700,000	$ 300,000
Royalties in percentge	82.00%	82.20%
Advertising and Marketing Costs
Advertising and marketing costs are expensed and totaled	$ 1,200,000	$ 700,000
Company's fiscal year	52	52

Related Party (Details)	Feb. 20, 2014 USD ($)
Related Party Details
NCMS was paid an initial fee	$ 150,000
Earns quarterly fees	50,000
Additional fee per quarter	50,000
Aggregate additional fees	100,000
Accrued liability relating to services performed by NCMS	$ 100,003

Property, and plant and equipment consist of the following (Details) - USD ($) $ in Thousands	Jun. 26, 2016	Jun. 28, 2015
Property, and plant and equipment consist of the following
Equipment, furniture and fixtures with estimated life of 3 to 7 years	$ 9,697	$ 6,927
Software with estimated life of 5 years	872	637
Vehicle with estimated life of 2 to 3 years		19
Leasehold improvements with estimated life of 10 yrs or lease term, if shorter	13,290	9,134
Gross Total of Property, and plant and equipment	23,859	16,717
Less: accumulated depreciation/amortization	(10,880)	(6,697)
Net Total of Property, and plant and equipment	$ 12,979	$ 10,020

Depreciation And Amortization Expense (Details) - USD ($)	12 Months Ended
	Jun. 26, 2016	Jun. 28, 2015
Depreciation and amortization expense Details
Depreciation and amortization expense	$ 2,700,000	$ 1,600,000

Accrued Expenses Consist Of The Following (Details) - USD ($) $ in Thousands	Jun. 26, 2016	Jun. 28, 2015
Accrued expenses consist of the following
Compensation accrued	$ 728	$ 587
Other	447	506
Professional fees accrued	37	79
Insurance loss reserves	8	95
Total accrued expense	$ 1,220	$ 1,267

Loan and Security Agreement with F & M Bank & Trust Company (Details) - USD ($)	Aug. 28, 2014	Aug. 28, 2012
Loan and Security Agreement with F & M Bank & Trust Company:
Revolving credit facility provided		$ 2,000,000
Fully Funded Term loan facility		2,000,000
Advancing term loan facility		$ 6,000,000
Origination fee of total credit facilities		0.50%
F & M funded term loan payable		$ 2,000,000
Term loan payable in equal monthly installments		48
Accrued interest at a fixed rate		4.57%
Unused commitment fee per annum is payable quarterly	0.50%
F&M had agreed to make up in additional term loans	$ 6,000,000

Provision For Income Taxes From Continuing Operations Consists Of The Following (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 26, 2016	Jun. 28, 2015
Provision for income taxes from continuing operations consists of the following
Current - Federal	$ 0
Current - Foreign		$ 24
Current - State	4	29
Deferred - Federal	2,823	(674)
Deferred - State	(114)	(49)
Provision for income taxes	2,713	(670)
Tax benefit Included in loss from discontinued operations	$ 58,000	$ 86,000

Effective Income Tax Rate Varied From The Statutory Rate (Details) - USD ($) $ in Thousands	Jun. 26, 2016	Jun. 28, 2015
Effective income tax rate varied from the statutory rate
Federal income taxes based on 34% of pre-tax income	$ (2,060)	$ (796)
State income tax, net of federal effect	(45)	(13)
Permanent adjustments	19	44
Valuation allowance	4,891
Foreign tax credits		24
Other adjustments	(92)	71
Total tax net	$ 2,713	$ (670)

Tax Effects Of Temporary Differences That Give Rise To The Net Deferred tax Assets Consisted Of The Following (Details) - USD ($) $ in Thousands	Jun. 26, 2016	Jun. 28, 2015
Current
Reserve for bad debt	$ 70	$ 69
Deferred fees	105	124
Other reserves and accruals	1,246	536
Total gross current deferred tax asset	1,421	729
Non Current
Credit carryforwards,	747	180
Net operating loss carryforwards,	197	1,633
Depreciable assets	2,526	51
Total gross deferred tax asset	4,891	2,593
Valuation allowance	$ (4,891)
Net deferred tax asset		$ 2,593

Income Tax (Details)	Jun. 26, 2016 USD ($)
Income Tax
Company had federal and state net operating loss carryforwards	$ 7,500,000
Valuation allowance against its net deferred tax assets	$ 3,500,000

Future minimum rental payments under non-cancelable leases (Operating Leases) (Details) $ in Thousands	Jun. 26, 2016 USD ($)
Future minimum rental payments under non-cancelable leases
Future minimum rental payments under non-cancelable leases in 2017	$ 3,346
Future minimum rental payments under non-cancelable leases in 2018	3,050
Future minimum rental payments under non-cancelable leases in 2019	2,951
Future minimum rental payments under non-cancelable leases in 2020	2,899
Future minimum rental payments under non-cancelable leases in 2021	2,892
Future minimum rental payments under non-cancelable leases Thereafter	10,296
Future minimum rental payments under non-cancelable leases	$ 25,434

Rental Expense Consisted Of The Following (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 26, 2016	Jun. 28, 2015
Rental expense consisted of the following
Minimum rentals	$ 3,090	$ 1,666
Sublease rentals	(257)	(221)
Total rental expense	$ 2,833	$ 1,445

Employee Benefits (Details) - USD ($)	12 Months Ended
Employee Benefits (Details) - USD ($)	Jun. 26, 2016	Jun. 28, 2015
EMPLOYEE BENEFITS Details
Contributions to the tax advantaged savings plan	$ 53,000	$ 39,000
Company contributes on behalf of each participating employee an amount equal to the percentage contributed by employees	50.00%
Maximum percentage of contribution by the employer as compensation	4.00%
Compensation deferred minimum	1.00%
Compensation deferred maximum	15.00%

Stock Options (Details)	Jun. 26, 2016 shares
Stock Options Details
Total shares of common stock are authorized for issuance under the 2005 Employee Plan	1,000,000
Options to purchase Shares granted under the Employee plan.	92,000
Shares of common stock were issued upon the exercise of options granted under Employee Plan	3,000
Shares of common stock acquired per year	40,000
Total shares of common stock are authorized for issuance under the 2005 Directors Plan	650,000
Options to purchase Shares granted under the Directors plan.	28,800
Shares of common stock were issued upon the exercise of options granted under Directors plan	167,200
Total shares of common stock are authorized for issuance under the 2015 LTIP	1,200,000
Company had unvested options to purchase shares	24,286
Weighted average grant date fair value per share	100,190
Total remaining unrecognized compensation cost related to unvested awards	150,285

Common Stock To Outstanding Stock Options of 2015-2016 (Details) {Stockholder Equity}	12 Months Ended
	Jun. 26, 2016 $ / shares shares
Shares
Outstanding at beginning of year	871,798
Granted	42,786
Exercised	(27,916)
Forfeited/Canceled/Expired	(39,112)
Outstanding at end of year	847,556
Exercisable at end of year	558,620
Weighted-Average Exercise Price
Outstanding at beginning of year	3.51
Granted	10.92
Exercised	3.65
Forfeited/Canceled/Expired	5.67
Weighted-average fair value of options granted during the year \| $ / shares	$ 4.24
Total intrinsic value of options exercised	102,010
Outstanding at end of year	3.77
Exercisable at end of year	2.71

Common Stock To Outstanding Stock Options of 2014-2015 (Details) {Stockholder Equity}	12 Months Ended
	Jun. 26, 2016 $ / shares shares
Shares
Outstanding at beginning of year	921,198
Granted	120,800
Exercised	(170,200)
Outstanding at end of year	871,798
Exercisable at end of year	406,378
Weighted-Average Exercise Price
Outstanding at beginning of year	2.92
Granted	6.57
Exercised	2.5
Forfeited/Canceled/Expired	0
Weighted-average fair value of options granted during the year \| $ / shares	$ 3.16
Total intrinsic value of options exercised	425,944
Outstanding at end of year	3.51
Exercisable at end of year	2.63

Total intrinsic value of options (Details)	Jun. 26, 2016 shares
Total intrinsic value of options
Total intrinsic value of options outstanding	8,200,000
Total intrinsic value of options exercisable	5,800,000

Options outstanding and options exercisable (Details){Stockholder Equity}	12 Months Ended
	Jun. 26, 2016 shares
Options Outstanding at June 26, 2016
Range of Exercise Prices 1.55 - 1.95	81,306
Range of Exercise Prices 1.96 - 2.35	90,000
Range of Exercise Prices 2.36 - 2.75	390,000
Range of Exercise Prices 2.76 - 3.30	55,000
Range of Exercise Prices 5.51 - 5.74	8,664
Range of Exercise Prices 5.95 - 6.25	153,300
Range of Exercise Prices 6.26 - 8.16	69,286
Total Options outstanding and options exercisable	847,556
Options Outstanding Weighted-Average Remaining Contractual Life (Years)
Range of Exercise Prices 1.55 - 1.95	3.1
Range of Exercise Prices 1.96 - 2.35	2.0
Range of Exercise Prices 2.36 - 2.75	6.2
Range of Exercise Prices 2.76 - 3.30	6.0
Range of Exercise Prices 5.51 - 5.74	7.0
Range of Exercise Prices 5.95 - 6.25	7.9
Range of Exercise Prices 6.26 - 8.16	8.3
Total Options outstanding and options exercisable	5.9
Options Outstanding Weighted-Average Exercise Price
Range of Exercise Prices 1.55 - 1.95	1.9
Range of Exercise Prices 1.96 - 2.35	2.32
Range of Exercise Prices 2.36 - 2.75	2.58
Range of Exercise Prices 2.76 - 3.30	3.11
Range of Exercise Prices 5.51 - 5.74	5.74
Range of Exercise Prices 5.95 - 6.25	6.06
Range of Exercise Prices 6.26 - 8.16	9.85
Total Options outstanding and options exercisable	3.77
Options Exercisable at June 26, 2016
Range of Exercise Prices 1.55 - 1.95	81,306
Range of Exercise Prices 1.96 - 2.35	90,000
Range of Exercise Prices 2.36 - 2.75	250,000
Range of Exercise Prices 2.76 - 3.30	55,000
Range of Exercise Prices 5.51 - 5.74	8,664
Range of Exercise Prices 5.95 - 6.25	66,150
Range of Exercise Prices 6.26 - 8.16	7,500
Total Options outstanding and options exercisable	558,620
Options Exercisable Weighted-Average Exercise Price
Range of Exercise Prices 1.55 - 1.95	1.90
Range of Exercise Prices 1.96 - 2.35	2.32
Range of Exercise Prices 2.36 - 2.75	2.58
Range of Exercise Prices 2.76 - 3.30	3.11
Range of Exercise Prices 5.51 - 5.74	5.74
Range of Exercise Prices 5.95 - 6.25	3.40
Range of Exercise Prices 6.26 - 8.16	8.12
Total Options outstanding and options exercisable	2.71

Weighted Average Assumptions (Details)	Jun. 26, 2016	Jun. 28, 2015
Weighted average assumptions
Expected life (in years)	5.7	5.9
Expected volatility	36.00%	39.10%
Risk-free interest rate	1.60%	1.90%
Expected forfeiture rate	61.80%	47.10%

Stock compensation expense (Details)	12 Months Ended
Stock compensation expense (Details)	Jun. 26, 2016 USD ($)	Jun. 28, 2015 USD ($)
Stock compensation expense Details
Stock compensation expense related to stock options	$ 200,000	$ 100,000
Fair value of the restricted stock units granted	5.99

Number of Restricted Stock Units (Details)	Jun. 26, 2016 shares
Number of Restricted Stock Units Details
Vested at June 28, 2015	0
Granted	100,190
Vested	0
Forfeited	20,570
Unvested at June 26, 2016	79,620

Stock Options Narrative (Details)	Jun. 26, 2016 USD ($) $ / shares shares
Stock Options Narrative Details
Unvested options to purchase \| shares	288,936
Weighted average grant date fair value \| $ / shares	$ 4.47
Total remaining unrecognized compensation \| shares	200,000
Remaining requisite service period of the unvested awards in months	93
Restricted Stock Units
Restricted stock units were granted to certain employees \| shares	100,190
Unrecognized compensation cost related to unvested restricted stock	$ 200,000
Recognized compensation each of fiscal 2017 and fiscal 2018	79,000
Recognized compensation each of fiscal 2019	23,000
Company incurred compensation expense	$ 23

Stock repurchase plan (Details) - shares	Jun. 26, 2016	Apr. 22, 2009
Stock repurchase plan
Aggregate number of shares of common stock the Company may repurchase under the plan		3,016,000
Shares available to repurchase under the plan.	848,425

Sales Agreement with MLV & Co. LLC (Details) - USD ($)	Jun. 26, 2016	Feb. 13, 2015	Oct. 01, 2014	Nov. 20, 2013	May 20, 2013
Sales Agreement with MLV & Co. LLC
Company may offer and sell shares of its common stock having an aggregate offering price			$ 5,000,000		$ 3,000,000
The Company pays to MLV a fee equal to the gross sales price					3.00%
Increase the 2014 ATM Offering by		$ 10,000,000		$ 5,000,000
Company had sold an aggregate of shares of common stock in the ATM offering	$ 825,763				$ 1,257,609
Realizing net proceeds in the ATM offering	$ 8,100,000				$ 8,000,000

ATM offering Expenses (Details) - USD ($)	12 Months Ended
ATM offering Expenses (Details) - USD ($)	Jun. 26, 2016	Jun. 28, 2015
ATM offering Expenses Details
Expenses associated with the ATM offering were	$ 21,000	$ 42,000

Earnings per Share (EPS) Consists of the Following (Details) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 26, 2016	Jun. 28, 2015
Earnings per Share (EPS) Consists of the Following
Loss from continuing operations	$ (8,774)	$ (1,671)
Discontinued operations	(112)	(168)
Net loss available to common stockholders	$ (8,886)	$ (1,839)
BASIC:
Weighted average common shares	10,317	9,744
Loss from continuing operations per common share	$ (0.85)	$ (0.17)
Discontinued operations per common share	(0.01)	(0.02)
Net loss per common share	$ (0.86)	$ (0.19)
DILUTED:
Weighted average common shares	10,317	9,744
Stock options	432	562
Weighted average common shares outstanding	10,749	10,306
Loss from continuing operations per common share	$ (0.82)	$ (0.16)
Discontinued operations per common share	(0.01)	(0.02)
Net loss per common share	$ (0.83)	$ (0.18)

Segment Reporting Operating Income And Geographic Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 26, 2016	Jun. 28, 2015
Net sales and operating revenues:
Franchising and food and supply distribution	$ 40,324	$ 35,330
Company-owned restaurants	20,487	12,869
Consolidated revenues	60,811	48,199
Depreciation and amortization:
Franchising and food and supply distribution	23	24
Company-owned restaurants	2,458	1,374
Combined	2,481	1,398
Corporate administration and other	241	219
Depreciation and amortization	2,722	1,617
Loss from continuing operations before taxes
Franchising and food and supply distribution	2,694	1,492
Company-owned restaurants	(6,183)	(1,729)
Combined	(3,489)	(237)
Corporate administration and other	(2,572)	(2,104)
Loss from continuing operations before taxes	(6,061)	(2,341)
Capital Expenditures:
Franchising and food and supply distribution	0
Company-owned restaurants	7,497	6,443
Corporate administration	613	284
Combined capital expenditures	8,110	6,727
Assets:
Franchising and food and supply distribution	3,187	4,314
Company-owned restaurants	12,817	11,088
Corporate administration	2,501	8,569
Combined assets	$ 18,505	$ 23,971

Foreign and domestic revenues (Details) - USD ($)	Jun. 26, 2016	Jun. 28, 2015
Foreign and domestic revenues Details
United States	$ 60,260	$ 47,509
Foreign countries	551	690
Consolidated total	$ 60,811	$ 48,199