SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

(Mark One)

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

                  For the quarterly period ended April 1, 2001

                                       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 registrant as specified in its charter)

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


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


                                 (310) 820-5559
               ---------------------------------------------------
              (Registrant's telephone number, including area code)



              -----------------------------------------------------
              (Former name, former address and former fiscal year,
                         if changed since last report)

     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934 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 5, 2001,  4,203,838  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 - April 1, 2001
            and December 31, 2000............................................. 1

            Consolidated Condensed Statements of Operations - For the three
            months ended April 1, 2001 and March 26, 2000..................... 3

            Consolidated Condensed Statements of Cash Flows - For the three
            months ended April 1, 2001 and March 26, 2000..................... 4

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

   Item 2.  Management's Discussion and Analysis of Financial Condition
            and Results of Operations......................................... 6
   Item 3.  Quantitative and Qualitative Disclosures About Market Risk........10

PART II - OTHER INFORMATION

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

SIGNATURES....................................................................11

<PAGE>
                         PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                      GRILL CONCEPTS, INC. AND SUBSIDIARIES
                      CONSOLIDATED CONDENSED BALANCE SHEETS


                                     ASSETS




                                                     April 1,       December 31,
                                                      2001             2000
                                                   --------------  -------------
                                                   (unaudited)
Current assets:
     Cash and cash equivalents                        $423,506        $ 623,097
     Inventories                                       534,284          541,579
     Receivables                                       401,285          654,594
     Prepaid expenses & other current assets           371,371          270,672
                                                 --------------    -------------

          Total current assets                       1,730,446        2,089,942

Furniture, equipment and improvements, net           9,018,653        9,300,548

Goodwill, net                                          210,957          213,053
Liquor licenses                                        587,494          587,614
Other assets                                           375,753          342,921
                                                 --------------    -------------

          Total assets                             $11,923,303      $12,534,078
                                                 ==============    =============


        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, MINORITY INTEREST AND STOCKHOLDERS' EQUITY
<TABLE>


                                                                  April 1,         December 31,
                                                                    2001             2000
                                                               ---------------  -----------------
                                                                (unaudited)
<S>                                                            <C>              <C>

Current liabilities:
     Bank line of credit                                          $100,000          $ 100,000
     Accounts payable                                            1,096,959          1,420,591
     Accrued expenses                                            2,135,839          2,358,699
     Current portion of long term debt                             743,564            737,881
     Note payable - related parties                                192,465            191,716
                                                             --------------    ---------------
          Total current liabilities                              4,268,827          4,808,887

Long-term debt                                                   2,186,109          2,408,151
Notes payable - related parties                                    445,306            458,132
                                                             --------------    ---------------
          Total liabilities                                      6,900,242          7,675,170

Minority interest                                                1,198,859          1,363,494

Stockholders' equity:
Series A, 10% Convertible Preferred Stock,
$.001 par value;  1,000,000 shares
 authorized, none issued
 and outstanding in 2001 and 2000                                        -                 -
Series B, 8% Convertible Preferred Stock, $.001
 par value; 1,000,000 shares authorized, none issued
 and outstanding in 2001 and 2000                                        -                 -
Series I,  Convertible Preferred Stock, $.001 par
 value; 1,000,000 shares authorized, none
 issued and outstanding in 2001 and 2000                                 -                 -
Series II, 10% Convertible  Preferred Stock,
$.001 par value;  1,000,000 shares
 authorized, 500 shares issued
 and outstanding in 2001 and 2000                                        1                 1
Common stock, .00004 par value; 7,500,000 shares
 Authorized, 4,203,888 shares issued and outstanding
 in 2001 and 2000                                                      168               168

Additional paid-in capital                                      11,071,055        11,071,055

Accumulated deficit                                             (7,247,022)       (7,575,810)
                                                             -------------    ---------------
          Total stockholders' equity                             3,824,202         3,495,414

Total liabilities, minority interest and stockholders'
equity                                                        $ 11,923,303       $12,534,078
                                                             =============    ===============
</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
                                   (unaudited)
<TABLE>


                                                       Three Months Ended
                                              -------------------------------------
                                                  April 1,            March 26,
                                                    2001                2000
                                              -----------------    ----------------
<S>                                           <C>                   <C>

Revenues:
     Sales                                         $12,278,861         $10,675,990
     Management and license fees                       156,507             149,740
                                              -----------------    ----------------
          Total revenues                            12,435,368          10,825,730

Cost of sales                                        3,372,267           3,009,685
                                              -----------------    ----------------
     Gross Profit                                    9,063,101           7,816,045
                                              -----------------    ----------------

Costs and expenses
     Restaurant operating expenses                   7,326,903           6,304,113
     General and administrative                      1,023,509             801,295
     Depreciation and amortization                     309,554             286,684
     Preopening costs                                                       20,509

                                              -----------------    ----------------
          Total operating expenses                   8,659,966           7,412,601
                                              -----------------    ----------------

Income from operations                                 403,135             403,444
     Interest expense, net                            (90,252)            (83,907)
                                              -----------------    ----------------
     Income before provision for income
taxes, equity in loss of joint venture
and minority interest                                  312,883             319,537

Provision for income taxes                                (99)             (4,000)
Minority interest                                       16,004            (32,636)
Equity in loss of joint venture                              -             (9,469)
                                              -----------------    ----------------
          Net income                                  $328,788           $ 273,432
                                              =================    ================
Preferred stock:
     Preferred dividends accrued or paid              (12,500)            (12,500)
                                              -----------------    ----------------

Basic net income applicable to common stock          $ 316,288           $ 260,932
                                              =================    ================
Net income per share:
     Basic net income                                    $0.08               $0.07
 Preferred stock:
     Dividends                                            0.00                0.00
                                              -----------------    ----------------
Basic net income applicable to common stock              $0.08               $0.07
                                              =================    ================

Weighted average share outstanding                   4,203,738           4,003,738
                                              =================    ================
</TABLE>


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

                                        3
<PAGE>

                      GRILL CONCEPTS, INC. AND SUBSIDIARIES
                 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
<TABLE>

                                                                       Three Months Ended
                                                                 -------------------------------
                                                                  April 1,             March 26,
                                                                   2001                 2000
                                                                 ----------         ------------
<S>                                                              <C>                <C>

Cash flows from operating activities:
     Net income                                                   $328,788           $ 273,432
     Adjustments to reconcile net income to net cash
       provided by operating activities:
          Depreciation and amortization                            309,554             286,684
          Minority interest in earnings (loss) of subsidiary       (16,004)             32,636
          Equity in loss of joint venture                                -               9,469
          Changes in operating assets and liabilities
           Inventories                                               7,295              (6,496)
           Receivables                                             253,309             (88,133)
           Prepaid expenses                                       (103,342)            173,115
           Liquor Licenses and other assets                        (32,713)            (42,345)
           Accounts payable                                       (323,632)             29,256
           Accrued expenses                                       (222,860)            308,732
                                                              -------------     ----------------
Net cash provided by operating activities                          200,395              976,350
                                                              -------------     ----------------

Cash flows from investing activities:
   Additions to furniture, equipment and improvements              (22,920)          (1,115,114)
   Return of capital to minority shareholder                       (89,910)
                                                              -------------     ----------------
 Net cash used in investing activities                            (112,830)          (1,115,114)
                                                              -------------     ----------------

Cash flows from financing activities
     Payments on line of credit                                          -             (111,600)
     Payments to related party                                     (12,077)            (239,474)
     Payments on debt                                             (216,358)            (129,013)
     Preferred return to minority shareholders                     (58,721)                   -
     Borrowings on notes payable                                         -              114,612
     Proceeds from investment in Chicago Grill                                          876,881
                                                              -------------     ----------------
Net cash (used in) provided by financing activities               (287,156)             511,406
                                                              -------------     ----------------

Net (decrease) increase  in cash and cash equivalents             (199,591)              372,642
Cash and cash equivalents, beginning of period                     623,097               352,453
                                                              -------------     ----------------
Cash and cash equivalents, end of period                         $ 423,506            $  725,095
                                                              =============     ================

Supplemental cash flow information: Cash paid during
the period for:
       Interest                                                    $94,579              $84,629
       Income taxes                                                 $8,900              $ 4,000

</TABLE>


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

                                        4
<PAGE>
                      GRILL CONCEPTS, INC. AND SUBSIDIARIES
              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                                   (unaudited)

1.   INTERIM FINANCIAL PRESENTATION

     The interim consolidated  financial statements are prepared pursuant to the
     requirements  for reporting on Form 10-Q.  These financial  statements have
     not been audited by independent accountants.  The December 31, 2000 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-K dated December 31, 2000. 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 30, 2001.

     Certain  prior year  amounts have been  reclassified  to conform to current
     year presentation.

2.   FUTURE ACCOUNTING REQUIREMENTS

     In June 1998,  the FASB  issued SFAS No. 133,  "Accounting  for  Derivative
     Instruments  and Hedging  Activities".  This  Statement  requires  that all
     derivative  instruments  be  recorded  on the  balance  sheet at their fair
     value.  Changes  in the fair value of  derivatives  will be  recorded  each
     period in current  earnings or other  comprehensive  income,  depending  on
     whether a derivative is designated as part of a hedge  transaction  and, if
     it is,  the type of hedge  transaction.  The new rules were  effective  the
     first quarter of 2001.  The new standard did not have a material  impact on
     the Company's financial statements.

3.   DISTRIBUTION OF CAPITAL AND PREFERRED RETURNS

     The  Operating   Agreement  for  San  Jose  Grill  LLC,   stipulates   that
     distributions of distributable cash shall be made first, 10% to the Manager
     and 90% to the Members in the ratio of their percentage interests until the
     Members have  received the amount of their  initial  capital  contribution.
     Second,  to the payment of the preferred return of ten percent per annum on
     the unpaid balance of the Member's adjusted capital  contribution until the
     entire accrued but unpaid  preferred  return has been paid.  Third,  to the
     Members in the ratio of their  percentage  interests  until the  additional
     capital  contributions  have been  repaid.  Thereafter,  to the Manager and
     Members in the ratio of their percentage interests.

     The Operating  Agreement and the Senior  Promissory  Note for Chicago - The
     Grill on the Alley, LLC stipulates that the non-manager member of Chicago -
     The Grill on the Alley, LLC is entitled to a cumulative preferred return of
     eight percent annually of their converted capital contribution.


                                        5
<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-Q. Except for the historical  information contained herein, the discussion in
this Form 10-Q 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-Q
should be read as being  applicable to all related forward  statements  wherever
they  appear in this Form  10-Q.  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-K for the year ended December 31, 2000.

Results of Operations

The following table sets forth, for the periods indicated,  information  derived
from  the  Company's  consolidated  statements  of  operations  expressed  as  a
percentage of total operating revenues, except where otherwise noted.

                                                       Three Months Ended
                                                   --------------------------
                                                     April 1,      March 26,
                                                     2001            2000
                                                   -----------     ---------
                                                      %                %
Revenues:
    Company restaurant sales                           98.7           98.6
    Management and license fees                         1.3            1.4
                                                ------------    -----------
          Total revenues                              100.0          100.0

Cost of sales                                          27.1           27.8
                                                ------------    -----------
          Gross profit                                 72.9           72.2
                                                ------------    -----------

     Restaurant operating expenses                     58.9           58.2
     General and administrative                         8.2            7.4
     Depreciation and amortization                      2.5            2.7
     Preopening costs                                   0.0            0.2
                                                ------------    -----------
          Total operating expenses                     69.6           68.5
                                                ------------    -----------

          Operating income                             3.3             3.7
Interest expense, net                                 (1.0)           (0.8)
                                                ------------    -----------
          Income before taxes, equity in loss
          of joint venture and minority
          interest                                      2.6            2.9
Provision for income taxes                              0.0            0.0
Minority interest                                       0.1           (0.3)
Equity in loss of joint venture                        (0.0)          (0.1)
                                                ------------    -----------
          Net income                                    2.7            2.5
                                                ============    ===========


                                        6
<PAGE>

The following table sets forth certain unaudited financial information and other
restaurant data relating to Company owned restaurants and Company managed and/or
licensed restaurants.

                                    First Quarter             Total open at
                                      Openings               End of Quarter
                                ----------------------- -----------------------
                                 FY 2001      FY 2000    FY 2001      FY 2000
Daily Grill Restaurants:
     Company owned                   -            -         10           10
     Managed and/or licensed         -            -          4            3
Grill on the Alley restaurants:
     Company owned                   -            -          3            2
Pizza restaurants                    -            -          2            3
Other restaurants
     Managed and/or licensed         -            -          1            1
                                 --------    ---------- ----------   ---------
Total                                0            0         20           19
                                 ========    ========== ==========   =========


                                                    Three Months Ended
                                            ------------------------------------
                                             April 1, 2001      March 26, 2000
                                            ----------------    ----------------
Weighted average weekly sales per company
owned restaurant:
   Daily Grill                                   $67,050             $61,886
   Grill on the Alley                             89,920              83,939
   Pizza restaurants                              35,660              32,127

Change in comparable restaurants (1)
   Daily Grill                                      7.8%                4.8%
   Grill on the Alley                               6.2%               11.6%
   Pizza restaurants                               (2.8%)              (3.5%)

Total Company revenues:
  Daily Grill                                $ 7,844,833         $ 7,240,622
  Grill on the Alley                           3,506,863           2,182,405
  Pizza restaurants                              927,165           1,252,963
  Management and license fees                    156,507             149,740
                                           --------------    ----------------
Total consolidated revenues                  $12,435,368         $10,825,730
                                           --------------    ----------------

Managed restaurants                            2,832,544           2,771,116
Licensed restaurants                           1,943,411           1,247,371
Less management and license fees               (156,507)           (149,740)
                                           --------------    ----------------
Total system sales                           $17,054,816         $14,694,477
                                           ==============    ================

(1)  When computing comparable  restaurant sales,  restaurants open for at least
     12 months are compared from period to period.

                                        7

<PAGE>

Material  Changes in Results of  Operations  for the Three Months Ended April 1,
2001 as Compared to the Three Months Ended March 26, 2000.

On July 11, 2000,  the Company made a strategic  decision to close,  and closed,
its Pizzeria Uno restaurant in Media,  Pennsylvania due to declining operations.
Additionally, the 2001 period includes the operations of the Company's Chicago -
The Grill on the Alley  restaurant that opened on June 12, 2000 and license fees
from the Skokie Daily Grill restaurant that opened in September 2000.

The Company's revenues for the three-month period increased 14.9% to $12,435,000
from $10,826,00 for the same period in 2000. Total revenues included $12,279,000
of sales  revenues  and $157,000 of  management  and  licensing  fees in 2001 as
compared  to  $10,676,000  of sales  revenues  and  $150,000 of  management  and
licensing fees in 2000. The increase of $1,603,000,  or 15.0%, in sales revenues
is  primarily  attributable  to the  operation  of  Chicago - Grill on the Alley
($1,214,000) and increases in same store sales ($699,000), offset by the closure
of the Pizzeria Uno in Media ($319,000).  Same store sales (for restaurants open
at least 12 months)  increased 6.8% due to average ticket price increases at the
Daily Grill restaurants  ($730,000) and the Grill restaurants  ($182,000) offset
by a decrease in the number of guests at the Grill and Daily  Grill  restaurants
($199,000).  Management  and licensing  fees  increased 4.5% to $157,000 in 2001
from  $150,000 for the same period in 2000.  This  resulted  primarily  from the
addition of fees from the Daily Grill in Skokie, which opened in September 2000.

Cost of sales  increased 12.0% yet decreased as a percentage of sales from 27.8%
to 27.1%.  This  decrease in cost of sales as a  percentage  of sales during the
2001 period is principally  attributable  to a price  increase  effective in the
fourth  quarter of 2000 for the Daily  Grill  restaurants.  As a result,  dollar
gross  profit  increased  16.0%  from  $7,816,000  (72.2%  of  sales) in 2000 to
$9,063,000 (72.9% of sales) in 2001.

Restaurant  operating  expenses  increased  16.2%  to  $7,327,000  in 2001  from
$6,304,000 in 2000.  The dollar  increase in restaurant  operating  expenses was
primarily  attributable to increased payroll and employee  benefits.  Restaurant
operating  expenses as a  percentage  of sales  increased  from 58.2% in 2000 to
58.9% in 2001.

General and  administrative  expenses increased 27.7% to represent 8.2% of sales
in the 2001 three  month  period  while  amounting  to 7.4% of sales in the 2000
three month period.  Corporate payroll and related benefits  increased  $147,000
and  represent  66.2% of the  increase  while  professional  services  increased
$42,000 and represent 19.4% of the increase.

Depreciation  and amortization  expense  increased 8.0% for the 2001 three month
period  representing  2.5% of sales in 2001 and 2.6% of sales in 2000 due to the
Chicago Grill assets being in service for the full quarter.

All preopening  costs incurred  during the 2000 three month period relate to the
opening of Chicago  Grill on the Alley,  L.L.C.  and were fully  funded  through
landlord contributions,  partnerships or a combination thereof and were expensed
as incurred.

The 2001 three month  operations also reflect income due to a minority  interest
in the net loss of subsidiaries of $16,000 from San Jose Grill,  L.L.C.  and the
Chicago Grill on the Alley, L.L.C.  compared to a loss in 2000 of $33,000 due to
the  allocation  of  minority  interest  in the net income of the San Jose Grill
L.L.C. for the 2000 three month period.


                                        8
<PAGE>

The  Company  incurred  a charge in 2000 of $9,000 for its equity in the loss of
joint  venture,  which  reflects the  Company's  50% interest in the Daily Grill
Short Order at Universal  Studios  CityWalk.  As generally  accepted  accounting
principles  limit the loss the Company can record to the amount  invested in the
joint venture and losses in the amount of the Company's  investment in the joint
venture had previously been charged, the Company recorded no charge with respect
to the joint venture during the 2001 period.

The Company recorded only minimal income taxes for the three month period due to
the available  federal and state net operating  loss carry  forwards that can be
utilized to offset federal and state taxable earnings.

The Company reported accrued  dividends on preferred stock of $12,500 in each of
the three-month periods ending April 1, 2001 and March 26, 2000.

Material Changes in Financial Condition, Liquidity and Capital Resources.

At April 1, 2001 the Company had negative working capital of $ 2.5 million and a
cash  balance of $ 0.4 million  compared to  negative  working  capital of $ 2.7
million and a cash balance of $ 0.6 million at December 31, 2000.

The  favorable  change in working  capital  was  primarily  attributable  to the
operating  profit  during  the  period  along  with a  decrease  in  receivables
partially offset by decreases in accounts payable and accrued expenses.

The  Company's  need  for  capital  resources  has  resulted  from,  and for the
foreseeable  future is  expected to relate  primarily  to, the  construction  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,  loans and tenant  allowances
from certain of its  landlords  and,  beginning in 1998,  through  joint venture
arrangements.  At April 1, 2001, the Company had existing bank borrowing of $1.1
million, an SBA loan of $0.1 million, loans from  stockholders/officers  of $0.6
million,  equipment loans of $1.3 million and loans/advances from a landlord and
others of $0.5 million.

As of May 1, 2001 the Company had opened no new restaurants in 2001. The Company
is scheduled to begin  management  of a San  Francisco  hotel-based  Daily Grill
restaurant in November 2001. The Company will be responsible  for  approximately
$250,000 of pre-opening costs in San Francisco.  Management anticipates that new
non-hotel  based  restaurants  will cost  between $1 million  and $2 million per
restaurant to build and open  depending  upon the location and available  tenant
allowances.  Hotel based restaurants may involve remodeling existing facilities,
substantial  capital  contributions  from the hotel  operators and other factors
which will cause the cost to the Company of opening such  restaurants to be less
than the Company's cost to build and open non-hotel based restaurants.

The Company may enter into  investment/loan  arrangements in the future on terms
similar to the San Jose Fairmont Grill and Chicago Westin Grill  arrangements to
provide for the funding of selected  restaurants.  Management  believes that the
Company  has  adequate  resources  on hand and  operating  cash flow to  sustain
operations for at least the following 12 months. In order to fund the opening of
additional  restaurants,  the  Company  will  require,  and  intends  to  raise,
additional capital through  additional bank borrowings,  the issuance of debt or
equity securities, or the formation of additional investment/loan  arrangements,
or a  combination  thereof.  The Company  presently has no  commitments  in that
regard.

                                        9
<PAGE>

Future Accounting Requirements

In  June  1998,  the  FASB  issued  SFAS  No.133,   "Accounting  for  Derivative
Instruments and Hedging Activities". This Statement requires that all derivative
instruments be recorded on the balance sheet at their fair value. Changes in the
fair value of  derivatives  will be recorded each period in current  earnings or
other comprehensive  income,  depending on whether a derivative is designated as
part of a hedge transaction and, if it is the type of hedge transaction. The new
rules were  effective the first quarter of 2001. The new standard did not have a
material impact on the Company's financial statements.

Certain Factors Affecting Future Operating Results

In addition to the opening of new restaurants  during 2001, as described  above,
and the various  factors  described in the Company's  Annual Report on Form 10-K
for the year ended  December 31, 2000,  the  following  developments  during the
first half of this year may impact future operating results.

In  October  2000,  the  Company  entered  into an  agreement  to sell its South
Plainfield,  New  Jersey  Pizza  Restaurant  for  $700,000.  Sale  of the  South
Plainfield Restaurant is subject to certain contingencies.

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.

Item 3.  Quantitative and Qualitative Disclosures about Market Risk

The Company is exposed to market risk from  changes in interest  rates on funded
debt. This exposure relates to its  non-revolving  credit and term loan facility
(the  "Credit  Facility").  Borrowings  outstanding  under the  Credit  Facility
totaled  $1,125,000 at April 1, 2001.  Borrowings under the Credit Facility bear
interest at the lender's  reference rate plus 0.25%. A hypothetical  1% interest
rate  change  would not have a  material  impact  on the  Company's  results  of
operations.

                           PART II - OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K

     (a)  Exhibits

     10.1 Employment Agreement with Robert Spivak,  amended effective January 1,
          2001

     (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.


May 11, 2001                                    By:   /s/ Robert Spivak
                                                   -----------------------------
                                                      Robert Spivak
                                                      President and Chief
                                                      Executive Officer


                                                By:   /s/ Daryl Ansel
                                                   -----------------------------
                                                      Daryl Ansel
                                                      Chief Financial Officer



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