SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM 10-QSB


(Mark One)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

                  For the quarterly period ended March 29, 1998

                                       OR

[ ]  TRANSITION  REPORT  PURSUANT  TO SECTION  13 OR 15(d) OF THE  SECURITIES
     EXCHANGE ACT OF 1934

         For the transition period from _____________ to _____________.


                           Commission File No. 0-23226


                              GRILL CONCEPTS, INC.
                         ------------------------------
        (Exact name of small business issuer as specified in its charter)




           Delaware                                         13-3319172
--------------------------------                --------------------------------
(State or other jurisdiction                   (IRS Employer Identification No.)
of incorporation or organization)

        11661 San Vicente Blvd., Suite 404, Los Angeles, California 90049
     -------------------------------------------------------------------------
                    (Address of principal executive offices)


                                 (310) 820-5559
                              --------------------
                           (Issuer's telephone number)
 
         --------------------------------------------------------------
              (Former name, former address and former fiscal year,
                         if changed since last report)


     Check  whether  the issuer (1) filed all  reports  required  to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or for such
shorter period that the  registrant was required to file such reports),  and (2)
has been subject to such filing requirements for the past 90 days. Yes X   No
                                                                      ---    ---

     As of May 2, 1998,  15,790,128  shares of Common  Stock of the issuer  were
outstanding.


<PAGE>


                              GRILL CONCEPTS, INC.
                              --------------------
                                      INDEX


                                                                          Page
                                                                         Number
                                                                        --------
PART I - FINANCIAL INFORMATION

   Item 1.  Financial Statements

        Consolidated Condensed Balance Sheets - March 29, 1998
        and December 28, 1997........................................       1

        Consolidated Condensed Statements of Operations - For the 
        three months ended March 29, 1998 and March 30,1997..........       3

        Consolidated Condensed Statements of Cash Flows - For the 
        three months ended March 29, 1998 and March 30, 1997.........       4

        Notes to Consolidated Condensed Financial Statements.........       5

   Item 2.  Management's Discussion and Analysis of Financial Condition 
            and Results of Operations................................       7

PART II - OTHER INFORMATION

   Item 6.  Exhibits and Reports on Form 8-K.........................      9
 
SIGNATURES............................................................    10


<PAGE>


                         PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS


                      GRILL CONCEPTS, INC. AND SUBSIDIARIES

                      CONSOLIDATED CONDENSED BALANCE SHEETS


                                     ASSETS



                                             March 29,         December 28,
                                               1998                1997
                                           -------------       ------------
 
 

Current assets:
     Cash and cash equivalents                $614,660           $272,567
     Inventories                               295,951            302,631
     Receivables                               329,720            375,117
     Prepaid expenses                        1,092,971            955,329
 
                                        --------------       ------------

          Total current assets               2,333,302          1,905,644
                                        --------------       ------------

Property and equipment, at cost             11,276,181         10,340,678
     Less:  accumulated depreciation       (4,520,818)        (4,277,546)
                                        --------------       ------------

          Property and equipment, net        6,755,363          6,063,132
                                        --------------       ------------

Goodwill                                       235,635            237,636

Liquor licenses, net                           613,686            613,686

Other assets                                   145,136            190,757
                                        --------------       ------------


          Total assets                     $10,083,122         $9,010,855
                                        ==============       ============



 



The accompanying notes are an integral part of these consolidated condensed
                              financial statements.



                                       1
<PAGE>

 


                      GRILL CONCEPTS, INC. AND SUBSIDIARIES

                      CONSOLIDATED CONDENSED BALANCE SHEETS
                                   (Continued)

                      LIABILITIES AND STOCKHOLDERS' EQUITY


<TABLE>
                                                                            March 29,          December 28,
                                                                             1998                1997
                                                                         --------------      -------------
<S>                                                                        <C>                 <C>    
Current liabilities:
     Bank line of credit                                                       $535,000           $480,000
     Accounts payable                                                         1,042,351          1,359,529
     Accrued expenses                                                         1,126,329            858,050
     Current portion of long term debt                                          350,300            346,208
     Note payable - related party                                                84,500             84,500
                                                                         --------------      -------------

          Total current liabilities                                           3,138,480          3,128,287

Long-term debt, net of current                                                1,410,307            699,364
                                                                         --------------      -------------

          Total liabilities                                                   4,548,787          3,827,651
                                                                         --------------      -------------

Minority interest                                                               199,800                 --

Stockholders' equity:
    Series B, Convertible Preferred Stock, $.001 par value, authorized
      1,000,000 shares; shares issued and outstanding: 22 in 1998, 32 in
      1997.                                                                           1                  1
   Series I, Convertible Preferred Stock,$.001 par value, authorized
      1,000,000 shares, shares issued and outstanding: 1000 shares in
      1998 and 1997                                                                   1                  1
    Series II, Convertible Preferred Stock, $.001 par value, authorized
      1,000,000 shares, shares issued and outstanding: 500 shares in
      1998 and 1997                                                                   1                  1
    Common stock, $.00001 par value: 30,000,000 shares authorized,
      shares issued and outstanding: 15,790,128 in 1998 and
      15,672,481 in 1997                                                            158                157

   Additional paid-in capital                                                11,053,913         11,053,913

   Accumulated deficit                                                       (5,719,539)        (5,870,869)
                                                                          --------------      -------------

          Stockholders' equity                                                5,334,535          5,183,204
                                                                          --------------      -------------

          Total liabilities and stockholders' equity                        $10,083,122         $9,010,855
                                                                          ==============      =============


</TABLE>


  The accompanying notes are an integral part of these consolidated condensed
                              financial statements



                                       2
<PAGE>



                      GRILL CONCEPTS, INC. AND SUBSIDIARIES

                 CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS


                                                        Three Months Ended
                                                   -----------------------------

                                                    March 29,        March 30,
                                                      1998              1997
                                                 -------------   --------------
Sales                                                $8,361,241       $7,140,720

Cost of sales                                         2,203,050        1,956,217
                                                  -------------   --------------

Gross Profit                                          6,158,191        5,184,503
                                                  -------------   --------------

Costs and expenses:
    Restaurant operating expenses                     5,045,368        4,340,867
    General and administrative                          622,594          523,484
    Depreciation and amortization                       243,270          199,678
    Amortization of preopening expenses                  45,600           50,300
                                                  -------------   --------------

              Total operating expenses                5,956,832        5,114,329
                                                  -------------   --------------

Income from operations                                  201,359           70,174

Non-recurring credit                                          -           49,286
Interest expense - net                                 (39,119)         (44,047)
                                                  -------------   --------------
Income before provision for income taxes                162,240           75,413

Provision for income taxes                              (1,200)            (800)
                                                  -------------   --------------

Net income                                             $161,040          $74,613
                                                  -------------   --------------


Preferred stock:
    Preferred dividends accrued or paid                (22,328)               --
    Accounting deemed dividends                        (42,133)               --
                                                  -------------   --------------
                                                      ($64,461)               --
                                                  -------------   --------------
    Net income applicable to common stock               $96,579          $74,613
                                                  =============   ==============

Net income per share
    Basic net income                                      $0.01            $0.01
                                                  -------------   --------------

    Preferred stock
         Dividends                                         0.00               --
         Accounting deemed dividends                       0.00               --
                                                  -------------   --------------
                                                   
                                                           0.00               --
                                                  -------------   --------------
Basic net income applicable to common stock               $0.01            $0.01
                                                  =============   ==============

Average weighted shares outstanding                  15,704,802       14,328,736
                                                ===============    =============

   The accompanying notes are an integral part of these consolidated condensed
                             financial statements.



                                       3
<PAGE>


                      GRILL CONCEPTS, INC. AND SUBSIDIARIES

                 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS



<TABLE>
                                                                 Three Months Ended
                                                          -------------------------------

                                                            March 29,        March 30,
                                                              1998             1997
                                                          --------------   --------------
<S>                                                    <C>                 <C>
Cash flows from operating activities:
     Net income                                                $161,040         $74,613
     Adjustments to reconcile net income to net cash
       provided by (used in) operating activities:
        Depreciation and amortization                           288,870         249,978
        Changes in operating assets and liabilities
          Inventories                                             6,680         (43,802)
          Receivables                                            45,397              --
          Prepaid expenses                                    (137,642)         193,166
          Other assets                                          (7,687)         (97,314)
          Accounts payable                                    (317,178)          44,170
          Accrued liabilities                                   268,281        (219,806)
                                                          -------------    -------------

     Net cash provided by operating activities                  307,761         201,005
                                                          -------------    -------------

Cash flows from investing activities:
     Additions to furniture, equipment and improvements       (935,503)      (1,020,292)
                                                          --------------   -------------
     Net cash (used in) investing activities                  (935,503)      (1,020,292)
                                                          -------------    -------------

Cash flows from financing activities:
     Proceeds from note payable                                 800,000              --
     Proceeds from investment in L.L.C.                         199,800              --
     Proceeds from line of credit                                55,000         645,000
     Payments on long-term debt                                (84,965)         (83,856)
                                                          -------------    -------------
     Net cash provided by financing activities                  969,835         561,144
                                                          -------------    -------------

Net increase (decrease) in cash and cash equivalents            342,093        (258,143)

Cash and cash equivalents, beginning of period                  272,567         372,317
                                                          -------------    --------------
Cash and cash equivalents, end of period                       $614,660        $114,174
                                                          =============    =============


Supplemental cash flow information:
     Cash paid during the period for:
     Interest                                                  $38,830           $39,614
     Income taxes                                                   --              $421

</TABLE>


  The accompanying notes are an integral part of these consolidated condensed
                             financial statements.



                                       4
<PAGE>



                      GRILL CONCEPTS, INC. AND SUBSIDIARIES

              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
 


1.   INTERIM FINANCIAL PRESENTATION

     The interim consolidated  financial statements are prepared pursuant to the
     requirements for reporting on Form 10- QSB. These financial statements have
     not been audited by independent accountants.  The December 28, 1997 balance
     sheet data was  derived  from  audited  financial  statements  but does not
     include  all  disclosures   required  by  generally   accepted   accounting
     principles.  The interim  financial  statements and notes thereto should be
     read in conjunction with the financial statements and notes included in the
     Company's   Form  10-KSB  dated  December  28,  1997.  In  the  opinion  of
     management, these interim financial statements reflect all adjustments of a
     normal  recurring  nature necessary for a fair statement of the results for
     the interim periods presented. The current period results of operations are
     not necessarily indicative of results which ultimately will be reported for
     the full year ending December 27, 1998.


2.   STOCKHOLDERS' EQUITY

     During  the  quarter  ended  March  29,  1998,  100,000  shares of Series B
     Convertible  Preferred Stock were converted resulting in the issuance of an
     aggregate of 117,647  shares of common  stock at an average  price of $0.85
     per share.


3.   DEEMED DIVIDEND

     In accordance  with the position of the Securities and Exchange  Commission
     regarding accounting for Preferred Stock which is convertible at a discount
     from market price for common stock, the Company has reflected an accounting
     "deemed  dividend." This accounting  deemed dividend,  which relates to the
     issuance of the Preferred  Stock, is a non-cash,  non-recurring  accounting
     entry for determining  income (loss)  applicable to common stock and income
     (loss) per share.


4.   MINORITY INTEREST

     In  connection  with the building of a new  restaurant,  in January 1998, a
     limited  liability  company  was formed for the  operation  of "The  Grill"
     restaurant  in San Jose,  California,  of which the  Company  owns  50.05%.
     Construction  of the restaurant  has been funded by a capital  contribution
     from the Company of $200,200 and by a capital  contribution of $199,800 and
     a $800,000  loan from the other  minority  interest  member of the  limited
     liability company. The consolidated  condensed financial statements include
     the accounts of the limited liability company.


5.   NET INCOME PER SHARE

     Statement of Financial  Accounting  Standards (SFAS) No. 128, "Earnings Per
     Share",  was  adopted in the  fourth  quarter  of 1997 and  supersedes  the
     Company's  previous  standards  for  computing  net income per share  under
     Accounting  Principles  Board  No.  15.  The  new  standard  requires  dual
     presentation  of net  income  per  common  share and net  income per common
     share, assuming dilution,  on the face of the income statement.  Net income
     per  share  data has been  restated  for  1997 in  accordance  with the new
     standard.  Dilutive net income (loss) per share is not presented  since all
     of the dilutive shares are antidilutive for the periods presented.



                                       5
<PAGE>



     6. COMPREHENSIVE INCOME

     SFAS No. 130,  "Reporting  Comprehensive  Income",  was adopted  during the
     first  quarter  of  1998.  The  standard  establishes  guidelines  for  the
     reporting  and  display  of  comprehensive  income  and its  components  in
     financial statements.  Companies are required to report total comprehensive
     income for interim periods  beginning first quarter of 1998.  Disclosure of
     comprehensive  income and its components will be required  beginning fiscal
     year end 1998.  The  adoption of the new standard did not have an impact on
     the Company's  financial  statements since the Company had no comprehensive
     income components as defined in SFAS No. 130 for the periods presented.


     7. FUTURE ACCOUNTING REQUIREMENTS

     In June 1997, the FASB issued SFAS No. 131,  "Disclosures About Segments of
     an Enterprise and Related Information". The standard establishes guidelines
     for  reporting  information  on  operating  segments  in interim and annual
     financial  statements.  The new  standard  will be  effective  for the 1998
     fiscal year.  Abbreviated  quarterly  disclosure will be required beginning
     first quarter of 1999, and will include both 1999 and 1998 information. The
     Company does not believe that the new standard will have a material  impact
     on the reporting of its segments.

     As is  currently  the  practice of many  restaurant  entities,  the Company
     defers its restaurant  preopening  costs and amortizes them over a one-year
     period following the opening of each respective restaurant.  In April 1997,
     the Accounting  Standards  Executive Committee of the American Institute of
     Certified Public  Accountants  issued a draft Statement of Position ("SOP")
     entitled "Reporting on the Costs of Start-Up  Activities." The proposed SOP
     would require  entities to expense as incurred all start-up and  preopening
     costs  that are not  otherwise  capitalizable  as long-  lived  assets.  In
     February  1998,  the FASB  adopted the SOP for final  issuance,  subject to
     certain  changes.  The Company believes the final SOP will be issued during
     the second  quarter of fiscal 1998 and will be  effective  for fiscal years
     beginning  after  December  15,  1998.  Restatement  of  previously  issued
     financial  statements  is not  permitted by the draft SOP, and entities are
     not  permitted  to  report  the  pro  forma  effects  of  the   retroactive
     application of the new accounting  standard.  The Company's adoption of the
     new accounting standard proposed by the SOP will involve the recognition of
     the cumulative effect of the change in accounting principle required by the
     SOP as a one-time  charge against  earnings,  net of any related income tax
     effect,  retroactive  to the beginning of the fiscal year of adoption.  The
     Company's total deferred preopening costs were $24,660 at March 29, 1998.




                                       6
<PAGE>


Item 2. Management's  Discussion and Analysis of Financial Condition and Results
        of Operations.

The following  discussion and analysis  should be read in  conjunction  with the
Company's financial statements and notes thereto included elsewhere in this Form
10-QSB.  Except for the historical  information contained herein, the discussion
in this Form 10-QSB contains  certain  forward  looking  statements that involve
risks and uncertainties,  such as statements of the Company's plans, objectives,
expectations and intentions.  The cautionary statements made in this Form 10-QSB
should be read as being  applicable to all related forward  statements  wherever
they appear in this Form  10-QSB.  The  Company's  actual  results  could differ
materially  from those  discussed here. For a discussion of certain factors that
could cause actual  results to be materially  different,  refer to the Company's
Annual Report on Form 10-KSB for the year ended December 28, 1997.

Material  Changes in Results of Operations  for the Three Months Ended March 29,
1998 as Compared to the Three Months Ended March 30, 1997.

The results of  operations  for the 13 week period  ended March 29, 1998 include
the  operations of eight Daily Grill  restaurants;  three Pizzeria Uno units and
The Grill  restaurant.  The first  quarter of 1997  includes  seven  Daily Grill
restaurants for the full quarter plus the Washington, D.C. Daily Grill for three
weeks, three Pizzeria Uno stores and The Grill.

The Company's  revenues for the three month period increased 17.1% to $8,361,000
from  $7,141,000  for the same period in 1997.  The  increase of $1.2 million is
primarily a result of added sales by the inclusion of the Washington  D.C. Daily
Grill, for a full quarter ($1,041,000). Additionally, same store sales increased
5.6% over the 1997 first quarter.

While  revenues  increased by 17.1% in the 1998 three month period when compared
with the similar period in 1997,  cost of sales increased 12.6% and decreased as
a percentage  of sales from 27.4% to 26.3%.  This decrease in cost of sales as a
percentage of sales during the 1998 period is attributable  principally to a new
buying program begun in late 1997 which has reduced net food costs.
 
As a result,  gross profit  increased 18.8% from $5,185,000  (72.6% of sales) in
1997 to $6,158,000 (73.6% of sales) in 1998.

Restaurant  operating expenses increased 16.2% to $5,045,000 (60.3% of sales) in
1998 from $4,341,000 (60.8% of sales) in 1997. The dollar increase in restaurant
operating  expenses  was  primarily  attributable  to the  operation  of the new
Washington, D.C. restaurant during the 1998 period ($556,000).

General and  administrative  expenses increased 18.9% to represent 7.4% of sales
in the 1998 three  months  while  amounting to 7.3% of sales in the 1997 period.
The dollar increase in the corporate  overhead category amounted to $100,000 and
resulted primarily from added corporate  personnel,  merit increases and related
payroll  taxes.  Also,  the office space was expanded with increased rent during
the second quarter of 1997.

Depreciation and  amortization  expense,  excluding  amortization of pre-opening
expenses, increased by $44,000 during the 1998 three month period as a result of
the opening of the  Washington,  D.C.  restaurant.  Amortization  of  preopening
expenses for this new Daily Grill restaurant totaled $46,000 during the quarter.
The Company  had  amortization  of  preopening  expenses  of $50,300  during the
similar period in 1997.

In  accordance  with the  position of the  Securities  and  Exchange  Commission
relating to accounting  for  Preferred  Stock which is  convertible  into common
stock at a discount  from the  market  price of the common  stock,  the  Company
reported a "deemed  dividend"  of  approximately  $42,000  during  the  quarter.
Additionally,  the Company reported accrued or paid dividends on preferred stock
of $22,000  during the  quarter.  The "deemed  dividend,"  which  relates to the
issuance  of   convertible   preferred   stock  during  1997,   is  a  non-cash,
non-recurring  accounting  entry  which,  along with the  accrued  dividends  on
preferred  stock,  is a deduction from net income in  calculating  income (loss)
applicable to common stock.



                                       7
<PAGE>


Material Changes in Financial Condition, Liquidity and Capital Resources.

At March 29, 1998 the Company had negative working capital of $0.8 million and a
cash  balance of $0.6  million  compared  to  negative  working  capital of $1.2
million and a cash balance of $0.3  million at December 28, 1997.  The change in
working capital and cash was primarily  attributable to the investment  received
in the San Jose Grill L.L.C.

The  Company's  need  for  capital  resources  has  resulted  from,  and for the
foreseeable  future is expected to relate  primarily  to, the  construction  and
acquisition of restaurants.  Historically, the Company has funded its day-to-day
operations  through its  operating  cash flow,  while funding  growth  through a
combination of bank  borrowing,  loans from  stockholders/officers,  the sale of
Debentures, the sale of Preferred Stock, the issuance of warrants, and loans and
tenant allowances from certain of its landlords.  At March 29,1998,  the Company
had existing bank borrowing of $1.1 million, a loan from a San Jose Grill L.L.C.
member   of  $0.8   million,   an  SBA  loan  of  $0.1   million,   loans   from
stockholders/officers  of $0.1  million and  loans/advances  from a landlord and
others of $0.2 million.

The Company  presently  anticipates  opening 2 new restaurants  during 1998. The
first,  The Grill at the San Jose Fairmont  Hotel is nearing  completion  and is
scheduled to open in May,  1998.  The second,  a Daily Grill in Tyson's  Corner,
Virginia is expected to open in September,  1998. The Company has entered into a
lease  covering a 6,400  square foot site in Tyson's  Corner,  Virginia  and has
begun construction of the restaurant which will be its second  Washington,  D.C.
area Daily Grill restaurant.

The cost to build and open The Grill at the San Jose Fairmont Hotel is estimated
at $1.5 million. The restaurant is being built and will be owned and operated by
a limited  liability  company of which the Company owns 50.05%.  Construction of
the  restaurant  has been funded by a capital  contribution  from the Company of
$200,200 and by a capital  contribution of $199,800 and a $800,000 loan from the
other  member of the  limited  liability  company.  The  Company,  and the other
member,  each expect to be required to  contribute  approximately  an additional
$150,000 to the limited  liability  company.  Substantially  all operating  cash
flows from the limited  liability  company will be used to pay down the $800,000
loan  prior to the  distribution  of funds to the  members.  The  Company  will,
however, receive a management fee of 5% of sales.

The cost to build new Daily Grill  restaurants  is  anticipated to range from $1
million to $2 million per site depending upon the location and available  tenant
allowances.  The Company has budgeted  $1.2 million to build the Tyson's  Corner
Daily  Grill.  Construction  and  opening of the Tyson's  Corner  Daily Grill is
expected  to be  funded  by a  combination  of  operating  cash  flow  and  bank
borrowing. The Company is presently in discussions with its bank with respect to
increasing  the  amount  available  under the  Company's  line of credit  with a
portion  of the  increased  bank line  expected  to be used to fund the  Tyson's
Corner  Daily Grill  opening.  There is no  assurance  that the Company  will be
successful in securing a sufficient increase in its bank credit line to fund the
opening of the restaurant.

Other than for the  opening of new  restaurants,  management  believes  that the
Company  has  adequate  resources  on hand  and  through  cash  flow to  sustain
operations for at least the following 12 months.

Future Accounting Requirements

In June 1997,  the FASB issued SFAS No. 131,  "Disclosures  About Segments of an
Enterprise and Related  Information".  The standard  establishes  guidelines for
reporting  information  on  operating  segments in interim and annual  financial
statements.  The new  standard  will be  effective  for the  1998  fiscal  year.
Abbreviated  quarterly  disclosure  will be required  beginning first quarter of
1999,  and will  include  both 1999 and 1998  information.  The Company does not
believe that the new standard  will have a material  impact on the  reporting of
its segments.

As is currently the practice of many restaurant entities, the Company defers its
restaurant  preopening costs and amortizes them over a one-year period following
the  opening  of each  respective  restaurant.  In April  1997,  the  Accounting
Standards  Executive  Committee  of the American  Institute of Certified  Public
Accountants issued a draft Statement of Position ("SOP") entitled  "Reporting on
the Costs of Start-Up  Activities."  The proposed SOP would require  entities to
expense as incurred  all start-up and  preopening  costs that are not  otherwise
capitalizable as long-lived  assets.  In February 1998, the FASB adopted the SOP
for final issuance,  subject to certain changes.  The Company believes the final
SOP  will be  issued  during  the  second  quarter  of  fiscal  1998 and will be
effective for fiscal years  beginning  after  December 15, 1998.  Restatement of
previously  issued  financial  statements is not permitted by the draft SOP, and
entities are not  permitted to report the pro forma  effects of the  retroactive
application of the new accounting  standard.  The Company's  adoption of the new
accounting  standard  proposed by the SOP will  involve the  recognition  of the
cumulative effect of the change in accounting principle required by the SOP as a
one-time  charge  against  earnings,  net  of any  related  income  tax  effect,
retroactive to the beginning of the fiscal year of adoption. The Company's total
deferred preopening costs were $24,660 at March 29, 1998.



                                       8
<PAGE>


Certain Factors Affecting Future Operating Results

In  addition to the  anticipated  opening of new  restaurants  during  1998,  as
described  above,  and the various  factors  described in the  Company's  Annual
Report on Form  10-KSB for the year  ended  December  28,  1997,  the  following
developments during the quarter may impact future operating results.

In March 1998,  the Company  initiated a pilot program to provide  management of
the food  service  operations  at the San Jose Hilton  Hotel,  for which it will
receive a  performance  based fee.  The  arrangement  is part of a test  project
developed by the Company to provide hotel restaurant  management  services.  The
program will require  minimal  investment and risk. This project is in the early
stages and further implementation will depend upon results.

As of the end of April,  1998, the Company  continued in its efforts to sell its
Pizza Restaurants.  Additionally, the Company was continuing in its negotiations
with CA One Services to modify the terms of the operating  agreement for the LAX
Daily Grill.

There can be no  assurance  that the Company will be  successful  in opening new
restaurants in accordance with its anticipated opening schedule; that sufficient
capital  resources will be available to fund scheduled  restaurant  openings and
start-up  costs;  that new restaurants  can be operated  profitably;  that hotel
restaurant management services will produce satisfactory cash flow and operating
results to support such operations;  that additional hotels will elect to retain
the Company's hotel restaurant  management services;  that the Pizza Restaurants
can be sold on terms  satisfactory to the Company;  that proceeds,  if any, from
the sale of the Pizza  Restaurants  can be deployed in a manner so as to replace
the cash flows,  revenues and operating profits from the Pizza Restaurants;  or,
that the  operating  agreement  relating to the LAX Daily Grill can, or will, be
modified on terms deemed acceptable to the Company.




                           PART II - OTHER INFORMATION
 

Item 6. Exhibits and Reports on Form 8-K

     (a) Exhibits
 
         10.1     Management Agreement re: San Jose Grill

         27.1     Financial Data Schedule

     (b) Reports on Form 8-K

         None




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<PAGE>


                                   SIGNATURES

In accordance with the  requirements of the Exchange Act, the registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.

                                          GRILL CONCEPTS, INC.


Dated:  May 8, 1998                       By: /s/ ROBERT SPIVAK 
                                             -----------------------------------
                                             Robert Spivak, President and C.E.O



Dated:  May 8, 1998                       By: /s/ BEN SUMNER
                                             -----------------------------------
                                             Ben Sumner, Chief Financial Officer
                                             and Accounting Officer



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