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 September 24, 2000

                                       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                               (IRS Employer
of 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  preceding  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 November 6, 2000, 4,203,888 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 -
         September 24, 2000 and December 26, 1999.........................    3

         Consolidated Condensed Statements of Operations -
         For the three months and nine months ended September
         24, 2000 and September 26, 1999..................................    5

         Consolidated Condensed Statements of Cash Flows -
         For the nine months ended September 24, 2000 and
         September 26, 1999...............................................    6

         Notes to Consolidated Condensed Financial Statements.............    7

Item 2.  Management's Discussion and Analysis of Financial Condition
         and Results of Operations........................................    9

Item 3.  Quantitative and Qualitative Disclosures About Market Risk.......   15

PART II - OTHER INFORMATION

Item 2.  Changes in Securities and Use of Proceeds........................   15
Item 6.  Exhibits and Reports on Form 8-K.................................   15

         SIGNATURES.......................................................   16
<PAGE>
                         PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS


                      GRILL CONCEPTS, INC. AND SUBSIDIARIES
                      CONSOLIDATED CONDENSED BALANCE SHEETS

                                     ASSETS


                                                   September 24,    December 26,
                                                       2000             1999
                                                   -------------    ------------
                                                   (unaudited)
Current assets:
     Cash and cash equivalents                      $ 212,307       $ 352,453
     Inventories                                      533,178         426,680
     Receivables                                      462,505         738,757
     Prepaid expenses                                 177,142         294,251
                                                    ----------     -----------

       Total current assets                         1,385,132       1,812,141
                                                    ----------     -----------
     Furniture, equipment, and improvements, net    9,546,899       8,272,509

     Goodwill, net                                    215,149         221,437

     Liquor licenses                                  678,284         646,647

     Other assets                                     379,709         334,818
                                                   ----------     -----------
       Total assets                               $12,205,173    $ 11,287,552
                                                   ==========     ===========



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


                                       3
<PAGE>



                     GRILL CONCEPTS, INC. AND SUBSIDIARIES
                      CONSOLIDATED CONDENSED BALANCE SHEETS
                                   (Continued)

             LIABILITIES, MINORITY INTEREST AND STOCKHOLDERS' EQUITY
<TABLE>


                                                               September 24,       December 26,
                                                                  2000                 1999
                                                               -------------       -------------
<S>                                                           <C>                 <C>

Current liabilities:                                           (unaudited)

     Bank line of credit                                    $    100,000         $   935,000
     Accounts payable                                          1,643,303           1,881,908
     Accrued expenses                                          1,798,450           1,663,590
     Current portion of long term debt                           632,020             463,853
     Note payable - related party                                192,779             553,058
                                                              -----------         -----------
       Total current liabilities                               4,366,552           5,497,409

     Long-term debt                                            2,648,828           1,537,994
     Notes payable - related parties                             467,716             495,295
                                                              -----------         -----------
       Total liabilities                                       7,483,096           7,530,698

     Minority interest                                         1,228,050             295,478

     Stockholders' equity:
     Series I, Convertible Preferred Stock, $.001 par
     value; 1,000,000 shares authorized, 0 and 1,000 shares
     issued and outstanding in 2000 and 1999, respectively             0                   1
       Series II, 10% Convertible Preferred Stock, $.001 par
     value; 1,000,000 shares, authorized, 500 shares
     issued and outstanding in 2000 and 1999                           1                   1
       Common stock, $.00004 par value; 7,500,000 shares
     authorized, 4,203,888 and 4,003,888 shares issued
     and outstanding in 2000 and 1999, respectively                  168                 160
     Additional paid-in capital                               11,071,054          11,071,062
     Accumulated deficit                                      (7,577,196)         (7,609,848)
                                                              -----------         -----------
     Stockholders' equity                                      3,494,027           3,461,376
                                                              -----------         -----------
       Total liabilities, minority interest
          and stockholders' equity                           $12,205,173         $11,287,552
                                                              ===========         ===========

</TABLE>



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


                                       4
<PAGE>

                      GRILL CONCEPTS, INC. AND SUBSIDIARIES
                 CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                                   (Unaudited)
<TABLE>

                                                    Three Months Ended                Nine Months Ended
                                             September 24,    September 26,    September 24,  September 26,
                                             --------------   --------------   -------------  --------------
                                                 2000             1999             2000           1999
                                                ------           ------           -------        -------
<S>                                         <C>                <C>               <C>            <C>

     Revenues:Sales                          $10,761,965       $8,962,886      $31,632,970     $28,582,040
            Management and license fees          170,754          138,811          466,844         375,122
                                             ------------      -----------     ------------    ------------
                   Total revenues             10,932,719        9,101,697       32,099,814      28,957,162
     Cost of sales                             3,261,674        2,551,507        9,209,956       7,981,154
                                             ------------      -----------     ------------    ------------
     Gross profit                              7,671,045        6,550,640       22,889,858      20,976,008
                                             ------------      -----------     ------------    ------------
     Costs and expenses:
     Restaurant operating expenses             6,456,468        5,431,627       18,777,825      17,072,853
     General and administrative                  912,490          762,552        2,588,453       2,364,454
     Depreciation and amortization               344,606          348,251          927,974         919,116
     Preopening costs                                  -                -          457,928               -
                                             ------------      -----------     ------------    ------------
       Total operating expenses                7,713,564        6,542,430       22,752,180      20,356,423
                                             ------------      -----------     ------------    ------------
Income (loss) from operations                    (42,519)           8,210          137,678         619,585
Interest expense, net                           (152,638)        (169,871)        (333,295)       (376,985)
Provision for income taxes                        (7,500)          (2,000)         (13,100)         (6,000)
Equity in loss of joint venture                       (0)         (80,379)          (9,469)        (80,379)
Minority interest in loss
of subsidiaries                                   82,472           32,572          250,838           4,383
                                             ------------      -----------     ------------    ------------
Net income (loss)                              $(120,185)       $(211,468)         $32,652        $160,604
                                             ------------      -----------     ------------    ------------
Preferred stock:
     Preferred dividends accrued or paid        (12,500)         (12,500)          (37,500)        (37,500)
                                             ------------      -----------     ------------    ------------
Basic net income (loss) applicable to
 common stock                                 $(132,685)       $(223,968)          $(4,848)        123,104
                                             ============      ===========     ============    ============
Net income (loss) per share
     Basic net income (loss)                    $ (0.03)          $(0.05)         $   0.01          $ 0.04
                                             ------------      -----------     ------------    ------------
     Preferred stock
       Dividends                                   ($ -)          ($0.01)        ($   0.01)         ($0.01)
                                             ------------      -----------     ------------    ------------
     Basic net income (loss) applicable to
      common stock                              ($ 0.03)         ($ 0.06)           $ 0.00         ($ 0.03)
                                             ============      ===========     ============    ============
     Average weighted shares outstanding      4,171,823        4,003,888         4,061,402       4,003,888
                                             ============      ===========     ============    ============

</TABLE>



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

                                       5
<PAGE>


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

                                                                         Nine Months Ended
                                                                   September 24,    September 26,
                                                                   --------------  ---------------
                                                                        2000           1999
                                                                       ------         ------
<S>                                                                   <C>             <C>

Cash flows from operating activities:
     Net income                                                       $32,652       $ 160,604
     Adjustments to reconcile net income to net cash
     provided by operating activities:
         Depreciation and amortization                                927,974         919,116
         Equity in loss of joint venture                                9,469          80,379
         Minority interest in net loss                               (250,838)         (4,383)
     Changes in operating assets and liabilities
         Inventories                                                 (106,498)        (91,503)
         Receivables                                                  276,252        (537,187)
         Prepaid expenses                                             117,109           8,087
         Liquor licenses and other assets                             (76,529)         49,894
         Accounts payable                                            (238,605)        207,403
         Accrued liabilities                                          134,860         394,574
                                                                   -----------     -----------
         Net cash provided by operating activities                    825,846       1,186,984
                                                                   -----------     -----------
         Cash flows from investing activities:
         Investment in joint venture                                        -         (83,606)
         Additions to furniture, equipment and improvements        (2,196,076)       (768,480)
                                                                   -----------     -----------
         Net cash used in investing activities                     (2,196,076)       (852,086)
                                                                   -----------     -----------
     Cash flows from financing activities:
     Proceeds from issuance of note payable                           400,000               -
     Proceeds from minority members' investment in L.L.C.           1,173,941         210,052
     Proceeds from line of credit                                     100,000         234,974
     Proceeds from bank term loan                                   1,200,000               -
     Proceeds from equipment financing                              1,003,535               -
     Repayments on long term debt and bank loans                   (2,259,482)       (365,384)
     Repayments on related party debt                                (387,910)       (603,509)
                                                                   -----------     -----------
     Net cash provided by (used in) financing activities            1,230,084        (523,867)
                                                                   -----------     -----------
     Net decrease in cash and cash equivalents                       (140,146)       (188,969)
     Cash and cash equivalents, beginning of period                   352,453         438,184
                                                                   -----------     -----------
     Cash and cash equivalents, end of period                       $ 212,307       $ 249,215
                                                                   ===========     ===========
     Supplemental cash flow information:
     Cash paid during the period for:
         Interest                                                   $ 370,231       $ 316,293
         Income taxes                                               $     - 0 -      $     -0 -
</TABLE>



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

                                       6
<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 26, 1999 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 26, 1999. 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 31, 2000.

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

2.   PREOPENING COSTS

     In accordance  with AICPA  Statement of Position (SOP) 98-5,  "Reporting on
     the Costs of Start-Up  Activities."  The Company  expenses all start-up and
     preopening costs as they are incurred.

3.   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 will be effective the
     first quarter of 2001,  as amended by SFAS No.137 issued in June 1999.  The
     new standard  will not have a material  impact on the  Company's  financial
     statements.

4.   REVERSE STOCK SPLIT

     On August 9, 1999,  the Company  effected a 1-for-4  reverse stock split of
     the Company's common stock. All share and per share data have been restated
     to reflect the reverse stock split.

                                       7
<PAGE>

5.   LONG TERM DEBT

     On  August  1, 2000 the  Company  received  a  $400,000  loan from  private
     individuals.  The loan  bears  interest  at 9% and is  payable  in  monthly
     installments  over the next four years.  In connection  with the loan,  the
     Company issued 40,000 warrants.  The warrants are exercisable at the option
     of the holder and have an exercise  price equal to the fair market value of
     the Company's common stock at the date of issuance.

     On August 10, 2000 the Company  obtained a new bank credit  facility in the
     amount of  $1,500,000.  The Credit  Facility is  comprised  of a $1,200,000
     long-term note payable and a $300,000 revolving line of credit. Interest is
     payable at the Bank's  reference  rate,  which was 9.25% at  September  24,
     2000.  In  connection  with the Credit  Facility the Company is required to
     comply with certain debt service coverage and liquidity  requirements.  Two
     of  the  Company's  principal   stockholders  have  guaranteed  the  Credit
     Facility.  In  exchange  for the  guarantee,  the  Company  issued  150,000
     warrants and agreed to pay each of the  stockholders  interest at a rate of
     2% per annum on the average  annual balance of the note payable to the bank
     for  guaranteeing  the note. The warrants are  exercisable at the option of
     the holder and have an exercise price equal to the fair market value of the
     Company's common stock at the date of issuance.

6.   PREFERRED STOCK

     In July 2000, the holder of Series I Convertible  Preferred Stock converted
     1,000 shares of preferred stock into 200,000 shares of common stock.

7.   SUBSEQUENT EVENTS

     On October 23,  2000 the Company  entered  into an  agreement  to sell it's
     Pizzeria Uno restaurant in South Plainfield,  New Jersey for $700,000.  The
     net  book  value of the  assets  to be sold is  $600,000.  The sale of this
     restaurant will not have a material impact on the future operating  results
     of the Company.


                                       8
<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.
Percentages may not add due to rounding.
<TABLE>

                                       Three Months Ended       Nine Months Ended
                                     September    September  September      September
                                     ---------    ---------  ---------      ---------
                                     24, 2000     26, 1999    24, 2000       26, 1999
                                     ---------    ---------  ---------      ---------
<S>                                  <C>          <C>        <C>            <C>

Revenues:
    Company restaurant sales           98.4%        98.5 %      98.5 %         98.7%
    Management and license fees         1.6          1.5         1.5            1.3
                                     --------     --------    --------       --------
    Total operating revenues          100.0%       100.0 %     100.0 %        100.0%
Cost of sales                          29.8         28.0        28.7           27.6
                                     --------     --------    --------       --------
Gross profit                           70.2         72.0        71.3           72.4
                                     --------     --------    --------       --------
Restaurant operating expense           59.1         59.7        58.5           59.7
General and administrative expense      8.3          8.4         8.1            7.4
Depreciation and amortization           3.2          3.8         2.9            3.2
Preopening costs                        0.0          0.0         1.4            0.0
                                     --------     --------    --------       --------
     Total operating expenses          70.6         71.9        70.9           70.3
                                     --------     --------    --------       --------
Operating income (loss)                (0.4)         0.1          .4            2.1
Interest expense, net                  (1.4)        (1.9)       (1.0)          (1.3)
                                     --------     --------    --------       --------
Income (loss) before taxes             (1.8)        (2.3)       (0.6)           0.6
Provision for taxes                     0.0          0.0         0.0            0.0
Equity in loss of joint venture         0.0          0.9         0.0            0.3
Minority interest                       0.8          0.4         0.7            0.0
                                     --------     --------    --------       --------
         Net income (loss)             (1.0) %      (2.3) %      0.1%           0.6 %
                                     ========     ========    ========       ========
</TABLE>


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.


                                       9
<PAGE>
<TABLE>

                                       Third Quarter          Year-to-date           Total open at
                                         Openings               Openings            End of Quarter
                                   FY 2000    FY 1999       FY 2000   FY 1999     FY 2000     FY 1999
                                   -------    -------       -------   -------     -------     -------
<S>                                <C>        <C>           <C>       <C>         <C>         <C>

Daily Grill restaurants:
     Company owned                    -           1             -          1         10          10
    Managed and/or licensed           1           -             1          3          4           4
Grill on the Alley restaurants:
     Company owned                    -           -             1          -          3           2
Pizza restaurants                    (1)          -            (1)         -          2           3
Other restaurants(1)
      Managed and/or licensed         -           -             -          -          1           1
                                   ------      ------        -------     ------    ------     --------

Total                                 0           1             1          4         20          20
                                   ======      ======        =======     ======    ======     ========
</TABLE>



(1) The Company's licensed Daily Grill restaurant at LAX has been moved from the
Other restaurant  category and is now included as a Daily Grill restaurant.  The
prior year information has been adjusted to reflect this change.
<TABLE>


                                           Three Months Ended              Nine Months Ended
                                       September         September      September       September
                                        24, 2000         26, 1999        24, 2000       26, 1999
                                      ------------      -----------    ------------  --------------
<S>                                   <C>               <C>            <C>           <C>

Weighted average weekly sales
   per company owned restaurant:
    Daily Grill                         $ 54,765         $ 52,655        $ 58,205         $ 55,466
    Grill on the Alley                  $ 86,860         $ 63,484        $ 83,502         $ 68,542
    Pizza restaurants                   $ 35,492         $ 32,261        $ 32,428         $ 32,735

    Change in comparable restaurant
   sales (1):
    Daily Grill                              5.9%            (1.0) %          5.3 %            0.5 %
    Grill on the Alley                      17.0%            (1.6) %         13.3 %            3.2 %
    Pizza restaurants                       (4.5)%           (1.7) %         (4.2)%           (2.7)%

    Total Company revenues:
    Daily Grill                      $ 6,407,463      $ 6,052,856     $20,429,973     $ 19,404,544
    Grill on the Alley                 3,387,526        1,651,844       7,765,645        5,347,549
    Pizza restaurants                    966,975        1,258,356       3,437,351        3,829,947
      Management and license fees        170,754          138,811         466,844          375,122
                                     ------------     ------------   -------------    -------------
      Total consolidated revenues   $ 10,932,719      $ 9,101,697    $ 32,099,814     $ 28,957,162
                                     ============     ============   =============    =============
      Total system sales            $ 14,366,377     $ 12,032,100    $ 40,296,382     $ 35,047,084
                                     ============     ============   =============    =============
</TABLE>


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

                                       10
<PAGE>


Material  Changes in Results of  Operations  for the Three and Nine Months Ended
September 24, 2000 as compared to the Three and Nine Months Ended  September 26,
1999

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.
Management  does  not  anticipate   significant   losses  due  to  the  closure.
Additionally,  the 2000 period includes the operations of the Company's  Chicago
-The Grill on the Alley restaurant which opened on June 12, 2000.

Revenues

Revenues for the third quarter of fiscal 2000 increased to $10.9 million, 19.8 %
over the $9.1 million  generated  for the same quarter of fiscal 1999.  Revenues
for the nine months ended  September  24, 2000 rose 11.1% to $32.1  million from
the $28.9 million  generated for the same period of fiscal 1999.  Total revenues
included  $10.7  million of sales  revenues and $0.2 million of  management  and
licensing fees for the 2000 quarter and $31.6 million of sales revenues and $0.5
million of management and licensing fees for the first nine months of 2000. This
compares to $9.0 million of sales  revenues and $0.1 million of  management  and
licensing fees for the 1999 quarter and $28.6 million of sales revenues and $0.4
million of management  and licensing fees for the first nine months of 1999. The
increase in sales revenues for both the quarter ($1.8 million, or 19.8%) and the
nine months ($3.2 million,  or 11.1%) was primarily  attributable to the opening
of the Chicago Grill restaurant in June 2000.

Same store sales (for  restaurants  open at least 12 months)  increased 6.9% for
the quarter and increased 5.8% for the nine month period. Management and license
fees  increased  for  both the  quarter  ($32,000,  or 23%) and the nine  months
($92,000,  or 24.5%). For the quarter, fees from managed restaurants were higher
due to higher sales at managed and licensed restaurants.

In  addition  to  the  restaurants  owned  by  the  Company,   which  sales  are
consolidated  and included in the results of  operations  for the  Company,  the
Company manages or licenses four other  restaurants.  Total restaurant  revenues
for all 20  restaurants  owned,  managed or licensed  by the Company  were $14.4
million and $12.0  million  for the three  months,  and $40.3  million and $35.0
million for the nine months, ended September 2000 and 1999,  respectively.  This
represents  an  increase  of $2.4  million  or 20.0% for the  quarter,  and $5.4
million or 15.0% for the nine months,  ended  September  24, 2000 as compared to
the 1999 periods.

Cost of Sales

Cost of sales increased by 27.8 % for the quarter and 15.4 % for the nine months
ended  September  24,  2000 as  compared  to the  same  periods  in  1999.  As a
percentage of total revenues cost of sales was 29.8 % for the quarter and 28.7 %
for the nine months as compared to 28.0 % for the third quarter of 1999 and 27.6
% for the  year-to-date  period  in  1999.  The  increase  in cost of sales as a
percentage  of sales  during  the three and nine  month  periods  was  primarily
attributable  to the opening of the Chicago - Grill,  which has a higher cost of
sales percentage.

                                       11
<PAGE>

Restaurant Operating Expenses

Restaurant operating expenses increased by 18.9 % for the quarter and 10.0 % for
the nine  months as  compared  to the same  periods  in 1999.  The  increase  in
restaurant  operating expenses was primarily  attributable to the opening of the
Chicago Grill. As a percentage of total revenues,  restaurant operating expenses
totaled  59.1% for the quarter and 58.5% for the nine months of 2000 as compared
to 59.7 % for the  quarter  and 59.7% for the nine month  periods  in 1999.  The
increase in restaurant  operating expenses as a percentage of total revenues was
primarily attributable the opening of the Chicago Grill restaurant.

General and Administrative Expense

General and  administrative  expense  increased 19.7 % for the quarter and 9.5 %
for the nine  month  period  as  compared  to the  same  periods  in 1999.  As a
percentage of total revenues,  general and administrative  expense totaled 8.3 %
for the quarter and 8.1 % for the nine month period as compared to 8.4 % for the
quarter  and 7.4 % for the nine  month  period in 1999.  The  increase  in total
general and administrative  expense during 2000 was primarily attributable to an
increase of approximately $150,000 in legal,  accounting and consulting expenses
relating  primarily to establishment of new credit  facilities,  efforts to sell
the Pizza Restaurants and certain litigation.

Depreciation and Amortization

Depreciation  and  amortization  expense  decreased by 1.0 % for the quarter and
increased  by 1 % for the nine month  period as compared to 1999.  The change in
depreciation and amortization expense was primarily  attributable to the opening
of the Chicago  Grill in June 2000 offset in part by some  restaurants  reaching
their estimated useful lives.

Preopening Costs

All preopening  costs  incurred  during the 2000 period relate to the opening of
Chicago - The Grill on the Alley in June 2000 and were expensed as incurred.

Interest Expense, Net

Interest expense,  net,  decreased by 10.1 % during the quarter and 11.6% during
the nine month  periods  compared to the same  periods in 1999.  The decrease in
interest expense was primarily attributable to decreased borrowing during 2000.

Minority Interest and Equity in Loss of Joint Venture

The three and nine month expenses also reflect a net minority interest in losses
of subsidiaries of $ 82,000 and $251,000 respectively, compared with $33,000 and
$4,000 in the same periods in 1999.  This  resulted from losses at the Chicago -
Grill on the Alley partially offset by income at the San Jose Grill.

The  Company  incurred a charge of $0 and $9,000 for its equity in loss of joint
venture  during the three and nine month  periods  respectively,  compared  with
$80,000  and  $80,000 in the same  periods in 1999.  The equity in loss of joint
venture  reflects the  Company's  50% interest in the Daily Grill Short Order at
Universal Studios CityWalk.

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<PAGE>

Net Income

Net income for the nine month  period was  negatively  impacted  by the one time
preopening  costs  incurred at Chicago - The Grill on the Alley.  Without such a
one time charge,  net income would have been  $490,580 for the nine month period
ended  September  24, 2000 as compared  to  $160,604  for the nine months  ended
September 26, 1999.

Preferred Stock Dividends

The Company  reported  accrued or paid  dividends on preferred  stock of $12,500
during the quarter  and $37,500 for the nine month  period for both the 2000 and
1999 periods.

Material Changes in Financial Condition, Liquidity and Capital Resources

At September 24, 2000 the Company had negative  working  capital of $3.0 million
and a cash balance of $0.2 million  compared to negative working capital of $3.7
million and a cash balance of $0.4  million at December 26, 1999.  The change in
working  capital was primarily  attributable to the repayment of debt during the
nine months ended September 24, 2000.

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 September 24, 2000, the Company had existing bank borrowing of
$1.3  million,  a loan from a Chicago - The Grill on the Alley L.L.C.  member of
$0.5 million,  loans from private investors of $0.4 million, an SBA loan of $0.1
million, loans from  stockholders/officers  of $0.2 million,  equipment loans of
$1.5 million,  and  loans/advances  from a landlord of $0.1 million.

On August 1, 2000 the Company received a $400,000 loan from private individuals.
The loan bears  interest at 9% and is payable in monthly  installments  over the
next  four  years.  In  connection  with the loan,  the  Company  issued  40,000
warrants.

On August 10, 2000 the Company obtained a new bank credit facility in the amount
of $1,500,000.  The Credit  Facility is comprised of a $1,200,000 long term note
payable  and a $300,000  revolving  line of credit.  Interest  is payable at the
Bank's  reference rate. In connection with the Credit  Facility,  the Company is
required  to  comply  with   certain  debt   service   coverage  and   liquidity
requirements.  Two of the Company's  principal  stockholders have guaranteed the
Credit  Facility.  In exchange for the  guarantee,  the Company  issued  150,000
warrants and agreed to pay each of the stockholders interest at a rate of 2% per
annum  on the  average  annual  balance  of the  note  payable  to the  bank for
guaranteeing the note.

In July 2000, the holder of Series I Convertible Preferred Stock converted 1,000
shares of preferred stock into 200,000 shares of common stock.

                                       13
<PAGE>

As of September 24, 2000,  the Company had opened a majority  owned  hotel-based
The Grill  restaurant  in the Chicago  Westin  Hotel.  The cost to construct the
Chicago Grill was $3.4 million.

In  September  2000,  the  Company  opened a  hotel-based  licensed  Daily Grill
restaurant at the Double Tree in Skokie,  Illinois.  All costs to build and open
the restaurant were incurred by the hotel

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  substantially  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.

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 will be effective  the first  quarter of 2001,  as amended by SFAS No.
137 in June 1999. The Company does not believe that the new standard will 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 2000, as described  above,
and the various  factors  described in the Company's  Annual Report on Form 10-K
for the year ended  December 26, 1999,  the  following  developments  during the
first nine months of this year may impact future operating results:

The Company  continues its efforts to sell its Pizza Restaurants and, in October
2000,  entered  into an agreement to sell its South  Plainfield  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;  or that  additional  hotels will elect to
retain the Company's hotel restaurant management services.

                                       14
<PAGE>

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 $1,500,000  revolving  credit and term loan
facility  (the  "Credit  Facility").  Borrowings  outstanding  under the  Credit
Facility totaled  $1,250,000 at September 24, 2000.  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 2. Changes in Securities and Use of Proceeds

     In  connection  with a $400,000  loan to the  Company,  the Company  issued
40,000 warrants to two accredited investors.  The warrants are exercisable for a
period of four years at a price of $1.406 per share.  The  warrants  were issued
pursuant to a  privately  negotiated  lending  arrangement  with two  accredited
investors  pursuant to the exemption  from  registration  in Section 4(2) of the
Securities Act of 1933, as amended.

     In connection with a guaranty of the Company's bank lending  facility,  the
Company  issued 150,000  warrants to two directors of the Company.  The warrants
are exercisable  for a period of four years at a price of $1.406 per share.  The
warrants  were  issued  pursuant  to a  privately  negotiated  guarantee  of the
Company's  loan  facility  by two  directors  of  the  Company  pursuant  to the
exemption  from  registration  in Section 4(2) of the Securities Act of 1933, as
amended.

Item 6. Exhibits and Reports on Form 8-K

(a)   Exhibits

      Exhibit No.                Description
     -------------              --------------

       10.1   Letter Agreement dated July 19, 2000 with Wells Fargo Bank

       10.2   Indemnification  Agreement between Grill Concepts, Inc.,
              Lewis N. Wolff and the Lewis N. Wolff Revocable Trust of 1993
              and Michael S. Weinstock and Michael S.  Weinstock  Trustee
              of the Michael S. Weinstock Living Trust
       10.3   Form of Letter Agreement regarding Loan Facility

       10.4   Form of four year 9% Promissory Note

       10.5   Form of Warrant issued in connection with Promissory Notes

       10.6   Guarantee  Agreement  dated July 11, 2000 with Michael  Weinstock
              and Lewis Wolff

       10.7   Form of Warrant issued in connection with Loan Guaranty

       27     Financial Data Schedule

(b)   Reports on Form 8-K

      None

                                       15
<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: November 7, 2000                By: /s/ Robert Spivak
                                          ---------------------------------
                                                Robert Spivak, President
                                                and Chief Executive Officer

Dated: November 7, 2000                By: /s/ Margaret L. Debevec
                                          ---------------------------------
                                                Margaret L. Debevec,
                                                Principal Accounting Officer


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