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EXHIBIT 10.4

LEASE RESTRUCTURING AND OPTION AGREEMENT

        THIS LEASE RESTRUCTURING AND OPTION AGREEMENT (the "Lease Agreement")
entered into effective the 7th day of February 2011 (the "Execution Date"), by
and among Dunham Capital Management, L.L.C. and GC Rosedale, L.L.C. (each, a
"Dunham Landlord", collectively, the "Dunham Landlords"), and Granite City
Food & Brewery, Ltd. ("GCFB").

WITNESSETH:

        WHEREAS, one of the Dunham Landlords is the landlord under each lease
agreement with GCFB described on the attached Exhibit A for the location
indicated on Exhibit A for the applicable lease (the "Leases"), and

        WHEREAS, GCFB, DHW Leasing, L.L.C., Mr. & Mrs. Donald A. Dunham, Jr.,
Mr. Charles J. Hey and Concept Development Partners LLC have entered into a
letter of intent dated December 23, 2010 to invest in GCFB and help secure
separate financing, among other things as described therein (the "Letter of
Intent"). The Dunham Landlords have agreed in connection therewith to amend the
terms of the Leases as described therein;

        NOW, THEREFORE, in consideration of the above recitals that by this
reference are incorporated herein, the mutual covenants and conditions contained
herein and other valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties agree as follows:

        1.    Lease Amendments.    At the time the transaction described in the
Letter of Intent closes, the Dunham Landlords and GCFB will enter into a lease
amendment substantially in the form attached as Exhibit B for each Lease, which
lease amendment will amend each Lease pursuant to Section 4(b) of the Letter of
Intent and add the option to each Lease pursuant to Section 4(c) of the Letter
of Intent. Each party agrees that when such lease amendments are executed, such
lease agreements shall supersede and replace any prior agreements, either oral
or written, including without limitation, this Lease Agreement.

        2.    Defaults.    The Dunham Landlords hereby waive all defaults or
events of default under the Leases existing as of the Execution Date.

        3.    Authority.    Each signatory of this Lease Agreement represents
hereby that he or she has the authority to execute and deliver the same on
behalf of the party hereto for which such signatory is acting. This Lease
Agreement shall be binding upon and inure to the benefit of each Dunham Landlord
and GCFB and their respective successors, assigns and related entities.

        4.    Miscellaneous.    The parties are also subject to the following
miscellaneous provisions: (a) this Lease Agreement is governed by and shall be
construed in accordance with the laws of the state of Minnesota; (b) captions
used in this Lease Agreement are for convenience only and are not a part of the
agreement; (c) time is of the essence; (d) if any provision of this Lease
Agreement is invalid or unenforceable to any extent, the remainder of this Lease
Agreement shall continue in effect and be enforceable to the fullest extent
permitted by law; (e) this Lease Agreement may be modified only by a writing
executed and delivered by all parties; and (f) nothing contained in this Lease
Agreement shall be deemed or construed to create a partnership or joint venture
of or between any Dunham Landlord and GCFB.

        5.    Counterparts.    This Lease Agreement may be executed in any
number of counterparts, all of which together shall constitute one and the same
instrument, and any party or signatory hereto may execute this Lease Agreement
by signing any such counterpart. Delivery of a facsimile or digital copy (pdf)
of an executed copy of this Lease Agreement shall be effective to bind the
executing party. Each party so executing this Lease Agreement shall promptly
deliver an original executed counterpart to the other signatories.

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WITH RESPECT TO ANY ACTION OR PROCEEDING ARISING IN CONNECTION WITH THIS LEASE
AGREEMENT, EACH PARTY HERETO (I) WAIVES ITS RIGHT TO A TRIAL BY JURY IN ANY SUCH
ACTION, (II) CONSENTS TO ANY SUCH ACTION BEING VENUED IN ANY FEDERAL COURT OR
MINNESOTA STATE COURT SITTING IN MINNEAPOLIS OR ST. PAUL, MINNESOTA AND WAIVES
ANY ARGUMENT THAT VENUE IN SUCH FORUMS IS NOT CONVENIENT.

2

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        IN WITNESS WHEREOF, the Dunham Landlords and GCFB have executed this
Lease Agreement as of the day and year first above written.

DUNHAM LANDLORDS        
Dunham Capital Management, L.L.C.
 
GC Rosedale, L.L.C.
By:
 
/s/ DONALD A. DUNHAM, JR.

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By:
 
/s/ DONALD A. DUNHAM, JR.  

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Name: Donald A. Dunham, Jr.
Its: Managing Member   Name: Donald A. Dunham, Jr.
Its: Managing Member
TENANT
 
 
 
 
Granite City Food & Brewery Ltd.
 
 
 
 
By:
 
/s/ STEVEN J. WAGENHEIM

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  Name: Steven J. Wagenheim
Its: President and Chief Executive Officer        

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EXHIBIT A
List of Leases

 
  Location   Title of Lease   Current Landlord   1.   Madison   Sublease
Agreement by and between Dunham Capital Management, L.L.C. and Granite City
Food & Brewery Ltd. dated May 31, 2006 (as later amended and assigned).   Dunham
Capital Management, L.L.C.
 
2.
 
Roseville
 
Sublease Agreement by and between GC Rosedale, L.L.C. and Granite City Food &
Brewery Ltd. dated May 11, 2006 (as later amended and assigned).
 
GC Rosedale, L.L.C.
 
3.
 
Rockford
 
Sublease Agreement by and between Dunham Capital Management, L.L.C. and Granite
City Food & Brewery Ltd. dated November 9, 2006 (as later amended and assigned).
 
Dunham Capital Management, L.L.C.
 
4.
 
Creve Coeur
 
Sublease Agreement by and between Dunham Capital Management, L.L.C. and Granite
City Food & Brewery Ltd. dated June 19, 2007 (as later amended and assigned).
 
Dunham Capital Management, L.L.C.
 
5.
 
Ft. Wayne
 
Sublease Agreement by and between Dunham Capital Management, L.L.C. and Granite
City Food & Brewery Ltd. dated September 12, 2006 (as later amended and
assigned).
 
Dunham Capital Management, L.L.C.
 
6.
 
Maumee
 
Sublease Agreement by and between Dunham Capital Management, L.L.C. and Granite
City Food & Brewery Ltd. dated August 7, 2007 (as later amended and assigned).
 
Dunham Capital Management, L.L.C.

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EXHIBIT B

FORM OF LEASE AMENDMENT

AMENDMENT TO SUBLEASE

        THIS                    AMENDMENT TO SUBLEASE (the
"                    Amendment") entered into effective the [1st day of May],
2011, by and between Dunham Capital Management, L.L.C. ("Landlord"), and Granite
City Restaurant Operations, Inc. ("GCROI"), assignee of Granite City Food &
Brewery, Ltd. ("GCFB").

WITNESSETH:

        WHEREAS, Landlord entered into a Sublease (the "Sublease") with GCFB
dated                        , 20    , as amended by Amendment No. 1 to Sublease
Agreement dated                        , 20    , as further amended by the
Second Amendment to Sublease effective as of                        , 20    ,
and as amended by a Master Amendment to Leases by and among GC Omaha Limited
Partnership, GC Rosedale, L.L.C., GC Lincoln Limited Partnership, GC Olathe
Limited Partnership, GC Eagan Limited Partnership, GC Cedar Rapids/Davenport
Limited Partnership, GC Des Moines Limited Partnership, GC Holdings Limited
Partnership, GC Wichita Limited Partnership, Landlord, and GCFB dated as of
October 5, 2009 (which by its terms does not affect the Sublease terms past the
first anniversary of its execution), and as assigned to GCROI by an Assignment
and Assumption of Sublease dated                        , 20    , and as amended
by the                    Amendment to Sublease effective September 1, 2010, for
the Premises located in                        , and legally described on
Exhibit A attached to this                    Amendment to Sublease, (the
"Premises"),

        WHEREAS, Donald A. Dunham, Jr., the sole owner of Landlord, is also a
50% owner in DHW Leasing, LLC ("DHWL"),

        WHEREAS, the Landlord has entered into land lease ("Ground Lease")
with                        , (the "Ground Lease Landlord"), and

        WHEREAS, pursuant to a transaction with Concept Development Partners LLC
("CDP"), whereby CDP agreed to invest in GCFB and help secure separate
financing, among other things, the parties desire to amend the Annual Base Rent
and other terms of the Sublease as reflected below.

        NOW THEREFORE, for good and valuable consideration, the nature, receipt
and sufficiency of which is hereby acknowledged, the parties have agreed to
amend the Sublease as set forth below.

        1.    Rent.    Effective as of [May 1, 2011], Article 3(a)(i) of the
Sublease is hereby amended and replaced in its entirety to read as follows:

a.Rent.

i.Base Rent.    For that part of the Initial Term beginning
[                        , 2011] Tenant covenants and agrees to pay to Landlord
Annual Base Rent equal to the sum of (i) the amount of any rent payments paid by
Landlord pursuant to the Ground Lease, including without limitation any payments
of Rent (as that term is defined in the Ground Lease); and
(ii) $                        . The Annual Base Rent shall be payable in equal
monthly installments in advance on or before the first day of each month.

        2.    Adjustment of Base Rent.    Article 3(    ) is hereby added to the
Sublease to read as follows:

.Adjustment of Base Rent.    In addition, to the extent DHWL and/or DHWL's banks
sell shares of Common Stock of GCFB or otherwise pays down the DHWL GCFB-related
loans (the "DHWL Loans") after the date of this                    Amendment
("Debt Payment"), then the aggregate rents, on those properties described on
Exhibit B ("Properties") will be decreased ratably by 4.25¢ for every dollar of
proceeds from such sales of Common Stock owned by DHWL or (without duplication)
for each dollar of principal amount that the DHWL Loans are decreased. For
example, if the DHWL

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Loans are reduced by $1,000,000, then the aggregate rents on the Properties will
be reduced by $42,500, to be allocated among the Properties as agreed upon by
Landlord and GCFB. At such time a Debt Payment occurs, this Lease (and the
leases for the other Properties) will be amended to reflect the adjusted Base
Rent. Provided, however, that the aggregate maximum amount of such additional
rent reduction on the Properties shall be $297,500 per year.

        3.    Purchase Option.    Landlord hereby grants to GCFB an option (the
"Option") to acquire fee title to the improvements on the Premises and to assume
the Ground Lease by paying off the Landlord debt remaining with respect to the
Premises at that time. Landlord acknowledges the debt currently outstanding with
respect to the Premises is $        . Landlord agrees to reduce the debt with
respect to the Premises in accordance with the amortization in effect as of the
date of this                    Amendment. The Option shall be exercisable by
GCFB or its assigns at any time prior to the fifth anniversary of the date of
this                    Amendment. Landlord agrees to incur no additional debt
with respect to the Premises, including without limitation debt secured by an
interest in the Premises, through the end of the five-year Option period
following the date of this                    Amendment. As a condition to GCFB
exercising its Option to acquire the Premises from Landlord, it is specifically
understood that GCFB will use its best efforts (which shall not include the
payment of money) to assume all future obligations for rent or other
lease-related obligations due to the Ground Lease Landlord under the Ground
Lease arising on and after the date of acquisition of the Premises. If, upon
GCFB's exercise of its Option, GCFB cannot achieve a full release of the
Landlord's obligations under the Ground Lease from the Ground Lease Landlord,
GCFB will specifically indemnify Landlord against any obligations under Ground
Lease arising on and after the date of acquisition of the Premises.

        4.    Replacement.    The rent provisions outlined in
this                    Amendment are intended to replace all previous
agreements relating to the payment of Annual Base Rent for the Term of this
Sublease.

        5.    Successors and Assigns.    This                    Amendment
inures to the benefit of and is binding upon the parties hereto and their
respective successors and assigns.

        6.    Counterparts.    This                    Amendment may be executed
in any numbers of counterparts; each counterpart is deemed to be an original
document, but all counterparts together constitute but
one                    Amendment.

        7.    Provisions Severable.    The unenforceability or invalidity of any
provision of this                    Amendment does not render any other
provision of this                    Amendment unenforceable or invalid.

        8.    Captions.    The captions at the beginning of the several
paragraphs are for convenience only and do not control or affect the meaning or
construction of any provision of this                    Amendment.

        9.    Applicable Law.    This                    Amendment is governed
by and construed in accordance with the laws of the State of South Dakota.

        10.    Force and Effect.    Except as expressly modified herein,
Landlord and GCROI ratify, confirm, and affirm the Sublease.

[SIGNATURE PAGE TO FOLLOW]

B-2

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        IN WITNESS WHEREOF, the Landlord and GCROI have executed this Agreement
as of the [1st day of May, 2011].

    LANDLORD
 
 
DUNHAM CAPITAL MANAGEMENT, L.L.C.
 
 
By:
 

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Donald A. Dunham, Jr., Managing Member     Its:   Managing Member
 
 
TENANT
 
 
GRANITE CITY RESTAURANT OPERATIONS, INC.
 
 
By:
 

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    Its:  

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CONSENT

        Granite City Food & Brewery Ltd. ("GCFB") consents to the
above                    Amendment to Sublease and agrees to be bound by its
terms and conditions as if GCFB were a party for the Amendment.

    GRANITE CITY FOOD & BREWERY LTD.
 
 
By:
 

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    Its:  

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B-3

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EXHIBIT A

(Legal Description of Leased Property)

B-4

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EXHIBIT B

(List of Leased Properties)

Fort Wayne, IN

Creve Coeur, MO

Madison, WI

Roseville, MN

Rockford, IL

Maumee, OH

B-5

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EXHIBIT 10.4

LEASE RESTRUCTURING AND OPTION AGREEMENT
WITNESSETH