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 June 30, 2002

                                       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 August 13, 2002,  5,537,071 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 -
           June 30, 2002 and December 30, 2001..........................    2

         Consolidated Condensed Statements of Operations -
           For the three months and six months ended June
           30, 2002 and July 1, 2001....................................    4

         Consolidated Condensed Statements of Cash Flows -
         For the six months ended June 30, 2002 and
           July 1, 2001.................................................    5

         Notes to Consolidated Condensed Financial Statements...........    6

Item 2.  Management's Discussion and Analysis of Financial Condition
           and Results of Operations....................................   10

Item 3.  Quantitative and Qualitative Disclosures About Market Risk.....   17

PART II - OTHER INFORMATION

Item 4.  Submission of Matters to a Vote of Security Holders............   18

Item 6.  Exhibits and Reports on Form 8-K...............................   18

SIGNATURES..............................................................   19

<PAGE>


                         PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS


                      GRILL CONCEPTS, INC. AND SUBSIDIARIES
                      CONSOLIDATED CONDENSED BALANCE SHEETS


                                     ASSETS


                                                  June 30,        December 30,
                                                   2002              2001
                                                ----------        ------------
                                                (unaudited)
Current assets:
     Cash and cash equivalents                 $  1,076,000       $  2,300,000
     Inventories                                    520,000            590,000
     Receivables                                    667,000            602,000
     Prepaid expenses                               605,000            575,000
                                                 -----------       ------------

       Total current assets                       2,868,000          4,067,000

     Furniture, equipment, & improvements, net    8,602,000          9,066,000

     Goodwill, net                                  205,000            205,000
     Note receivable                                117,000                  -
     Liquor licenses                                332,000            454,000
     Advance to managed outlet                      287,000                  -
     Other assets                                   551,000            552,000
                                                -----------      -------------

       Total assets                             $12,962,000      $  14,344,000
                                                ===========      =============


   The accompanying notes are an integral part of these consolidated condensed
                             financial statements.
                                       2
<PAGE>


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

             LIABILITIES, MINORITY INTEREST AND STOCKHOLDERS' EQUITY
<TABLE>


                                                                     June 30,          December 30,
                                                                      2002                2001
                                                                   (unaudited)
                                                                  --------------       ------------
<S>                                                               <C>                  <C>

Current liabilities:
     Accounts payable                                            $   883,000          $ 1,179,000
     Accrued expenses                                              2,236,000            2,919,000
     Current portion of long term debt                               386,000              369,000
     Notes payable - related parties                                 300,000              293,000
                                                                  -----------          -----------
       Total current liabilities                                   3,805,000            4,760,000

     Long-term debt                                                  747,000              943,000
     Notes payable - related parties                                 516,000              591,000
                                                                  ------------         -----------
     Total liabilities                                             5,068,000            6,294,000

     Minority interest                                             1,671,000            2,005,000

     Stockholders' equity:
      Series I, Convertible Preferred Stock, $.001 par
     value; 1,000,000 shares authorized, none
     issued and outstanding in 2002 and 2001                               -                    -
       Series II, 10% Convertible Preferred Stock, $.001
      par value; 1,000,000
     shares, authorized, 500 shares
     issued and outstanding in 2002 and 2001                               -                    -
       Common stock, $.00004 par value; 12,000,000 shares
                 authorized in 2002 and 2001, 5,537,071 shares
                 issued and outstanding in 2002 and 2001                   -                    -
       Additional paid-in capital                                 13,152,000           13,152,000
  Accumulated deficit                                             (6,929,000)          (7,107,000)
                                                                  ------------         ------------
     Total stockholders' equity                                    6,223,000            6,045,000
                                                                  ------------         ------------
       Total liabilities, minority interest and
           stockholders' equity                                  $12,962,000          $14,344,000
                                                                  ===========          ============
</TABLE>


   The accompanying notes are an integral part of these consolidated condensed
                             financial statements.
                                       3
<PAGE>


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

                                                    Three Months Ended                 Six Months Ended
                                             -------------------------------   ------------------------------
                                             June 30, 2002     July 1, 2001    June 30, 2002     July 1, 2001
                                             -------------     ------------    -------------     ------------
<S>                                          <C>               <C>             <C>               <C>

     Revenues:Sales                          $ 10,062,000       $11,042,000     $21,612,000      $23,321,000
     Management and license fees                  246,000           258,000         468,000          414,000
                                             ------------        ----------     ------------      -----------
       Total revenues                          10,308,000       11,300,000        22,080,000      23,735,000
     Cost of sales                              2,780,000        3,137,000         5,961,000       6,509,000
                                             ------------        ----------     ------------      ----------
     Gross profit                               7,528,000        8,163,000        16,119,000      17,226,000
                                             ------------        ----------     ------------      ----------

     Operating expenses:Restaurant
     operating expenses                         6,375,000        6,960,000        13,408,000      14,287,000
     General and administrative                   937,000          874,000         1,866,000       1,897,000
     Depreciation and amortization                357,000          346,000           728,000         656,000
                                              -----------        ----------     ------------      ----------
     Total operating expenses                   7,669,000        8,180,000        16,002,000      16,840,000
                                              -----------        ----------     ------------      ----------

     (Loss) income from operations               (141,000)         (17,000)          117,000         386,000
Interest expense, net                             (56,000)        (104,000)         (101,000)       (194,000)
                                              -----------        ----------     ------------      ----------
(Loss) income before provision for
income taxes, equity in loss of joint
venture and minority interest                    (197,000)        (121,000)           16,000         192,000
Provision for income taxes                         (2,000)          (2,000)          (20,000)         (2,000)
Minority interest                                 141,000           53,000           194,000          69,000
Equity in loss of joint venture                    (7,000)          (4,000)          (12,000)         (4,000)
                                              -----------        ----------     ------------      -----------

Net (loss) income                                 (65,000)         (74,000)          178,000         255,000
Preferred dividends accrued or paid               (12,000)         (12,000)          (25,000)        (25,000)
                                              -----------        ----------     ------------      -----------

     Net (loss) income applicable to
      common stock                               $(77,000)       $ (86,000)         $153,000       $ 230,000
                                              ===========        ==========     ============      ===========

     Net (loss) income per share applicable
   to common stock:
          Basic                                   $ (0.01)         $ (0.02)          $ 0.03        $    0.05
                                              ===========        ==========     ============       ==========

          Diluted                              $    (0.01)         $ (0.02)         $ 0.03            $ 0.05
                                              ===========        ==========     ============       ==========

     Weighted average shares outstanding:
     Basic                                      5,537,071        4,203,738       5,537,071         4,203,738
                                              ===========        =========      ============       ==========
     Diluted                                    5,537,071        4,203,738       5,562,651         4,338,353
                                              ===========        =========      ============       ==========

</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 CASH FLOWS
                                   (Unaudited)
<TABLE>

                                                                        Six Months Ended
                                                                     --------------------------
                                                                     June 30,           July 1,
                                                                       2002              2001
                                                                     ---------        ---------
<S>                                                                  <C>              <C>

Cash flows from operating activities:
     Net income                                                   $   178,000          $ 255,000
     Adjustments to reconcile net income to net cash
     provided by operating activities:
         Depreciation and amortization                                728,000            656,000
         Gain on sale of assets                                       (71,000)                 -
         Minority interest in earnings (loss) of subsidiaries        (194,000)           (69,000)
         Equity in loss of joint venture                               12,000              4,000
     Changes in operating assets and liabilities
         Inventories                                                   70,000            (63,000)
         Receivables                                                  (65,000)           157,000
         Prepaid expenses and other current assets                    (37,000)          (257,000)
         Liquor licenses and other assets                              15,000           (167,000)
         Accounts payable                                            (296,000)          (384,000)
         Accrued liabilities                                         (573,000)           119,000
                                                                  ------------         ----------
     Net cash (used in) provided by operating activities             (233,000)           251,000
                                                                  ------------         ----------

     Cash flows from investing activities:
       Proceeds from sale of assets                                   144,000                 -
     Advance to managed outlet                                       (287,000)                -
     Investment in non-consolidated entity                            (47,000)                -
     Additions to furniture, equipment and improvements              (402,000)          (55,000)
                                                                   -----------          --------
     Net cash used in investing activities                           (592,000)          (55,000)
                                                                   -----------          --------

     Cash flows from financing activities:Preferred return
     to minority stockholders                                         (88,000)         (134,000)
     Return of capital to minority stockholders                       (64,000)          (90,000)
     Payments to related parties                                      (68,000)          (21,000)
     Payments on long-term debt                                      (179,000)         (426,000)
                                                                    ----------         ----------
     Net cash used in financing activities                           (399,000)         (671,000)
                                                                    ----------         ----------

Net decrease in cash and cash equivalents                          (1,224,000)         (475,000)
Cash and cash equivalents, beginning of period                      2,300,000           623,000
                                                                    ----------         ----------
Cash and cash equivalents, end of period                           $1,076,000         $ 148,000
                                                                    ==========         ==========

Supplemental cash flow information: Cash paid during
the period for:
         Interest                                                    $ 90,000         $ 160,000
         Income taxes                                                  85,000            13,000
         Non cash transaction:
                     Note receivable from sale of assets            $ 117,000                 -
</TABLE>


              The accompanying notes are an integral part of these
                  consolidated condensed financial statements.
                                       5
<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  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 30, 2001. 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 29, 2002.  Certain  prior year amounts have been  reclassified  to
     conform to current year presentation.

2.   RECENTLY ISSUSED ACCOUNTING REQUIREMENTS

     Accounting Pronouncements Adopted December 31, 2001

     In July 2001, the Financial  Accounting  Standards  Board  ("FASB")  issued
     Statement of Financial Standards No. 142 ("SFAS 142"),  "Goodwill and Other
     Intangible Assets." SFAS 142, which changes the accounting for goodwill and
     indefinite-lived  intangible  assets  from  an  amortization  method  to an
     impairment-only  approach,  is  effective  for the  Company for fiscal year
     2002. Adoption of SFAS 142 reduced  amortization expense by $ 4,000 for the
     first six months of 2002.  The Company has not  identified  any  impairment
     losses that need to be recognized.

     In August 2001, the FASB also issued  Statement of Financial  Standards No.
     144, ("SFAS 144"), "Accounting for the Impairment or Disposal of Long-Lived
     Assets,"  which  replaces  SFAS No.  121,  "Accounting  for  Impairment  of
     Long-Lived  Assets and for Long-Lived to be Disposed Of'" and also replaces
     and broadens the provisions of Accounting  Principles Board Opinion No. 30,
     ("APB No. 30") "Reporting  Results of Operations - Reporting the Effects of
     Disposal  of a  Segment  of a  Business,  and  Extraordinary,  Unusual  and
     Infrequently  Occurring Events and Transactions."  SFAS 144 establishes one
     accounting model,  based on the framework  established in SFAS No. 121, for
     recognition,  measurement and reporting of impairment of long-lived  assets
     to be held and used and measurement of long-lived  assets to be disposed of
     by sale.  SFAS 144 was required for our fiscal year beginning  December 31,
     2001 and did not have a significant  impact on our  consolidated  financial
     position, results of operations and cash flows.
                                       6
<PAGE>

     Future Accounting Requirements

     In May 2002,  the FASB issued  Statement  of Financial  Standards  No. 145,
     ("SFAS 145"),  "Rescission  of FAS Nos. 4, 44 and 64,  Amendment of FAS 13,
     and Technical  Corrections."  Among other things, SFAS 145 rescinds various
     pronouncements   regarding   early   extinguishment   of  debt  and  allows
     extraordinary  accounting  treatment for early extinguishment only when the
     provisions  of APB No. 30, are met.  SFAS 145  provisions  regarding  early
     extinguishment  of debt are generally  effective for fiscal years beginning
     after May 15, 2002.  Management  does not believe that the adoption of this
     statement  will  have  a  material  impact  on our  consolidated  financial
     statements.

     In July 2002,  the FASB issued  Statement of Financial  Standards  No. 146,
     ("SFAS  146"),  "Accounting  for Costs  Associated  with  Exit or  Disposal
     Activities," which superceded EITF Issue No. 94-3,  "Liability  Recognition
     for  Certain  Employee  Termination  Benefits  and  Other  Costs to Exit an
     Activity." SFAS 146 requires that a liability for a cost associated with an
     exit activity or disposal activity be recognized and measured  initially at
     fair  value  only when the  liability  is  incurred.  EITF  Issue No.  94-3
     requires  recognition  of a liability  at the date an entity  commits to an
     exit  plan.  All  provisions  of SFAS  146  will be  effective  for exit or
     disposal activities that are initiated after December 31, 2002.  Management
     does not believe that the adoption of this  statement  will have a material
     impact on our consolidated 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,  distributions  of
     distributable  cash  will be made  first,  16 2/3% as an  incentive  to the
     manager  and the  balance to the  members in the ratio of their  percentage
     interests. In April 2002 a distribution of distributable cash in the amount
     of $64,000  was made to the  minority  member  that  reduced  the  member's
     interest.  The minority member's  unrecovered capital  contribution at June
     30, 2002 was $195,000.

     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  capital  contribution.  Preferred  return
     payments of $88,000 were paid to the  non-manager  member  during the first
     six months of 2002.  These  payments  are treated as a reduction of equity.
     Payments  returning $20,000 of converted capital  contribution were made in
     the first six months of 2002.  The minority  member's  unrecovered  capital
     contribution at June 30, 2002 was $838,000.

     The Operating  Agreement for The Grill on Hollywood,  LLC  stipulates  that
     distributions  of  distributable  cash  shall  be  made  first,  90% to the
     non-manager member and 10% to the manager member until non-manager member's
     preferred   return,   unrecovered   contribution   account  and  additional
     contribution account are reduced to zero. Second, 90% to the manager member
     and 10% to the  non-manager  member  until the manager  member's  preferred
     return and  unrecovered  contribution  account  have been  reduced to zero.
     Thereafter,  distributions  of  distributable  cash  shall  be  made to the
     members  in  proportion  to  their  respective  percentage  interests.   No
     distribution  of  distributable  cash has been made. The minority  member's
     unrecovered  combined capital and additional  capital  contribution at June
     30, 2002 was $1,200,000.
                                       7
<PAGE>

4.   PER SHARE DATA

     Basic earnings per share data is based upon the weighted  average number of
     common shares  outstanding.  Diluted  earnings per share data is based upon
     the weighted average number of common shares outstanding plus the number of
     common shares  potentially  issuable for dilutive  securities such as stock
     options and warrants.
<TABLE>

                                         Three Months Ended                   Six Months Ended
                                 June 30, 2002      July 1, 2001      June 30, 2002      July 1, 2001
                                 --------------     -------------     -------------      ------------
<S>                             <C>                 <C>               <C>                <C>

Common stock outstanding             5,537,071         4,203,738         5,537,071         4,203,738
Dilutive securities:
   Stock options                             -                 -             2,572            37,837
Convertible preferred stock                  -                 -                 -                 -
Warrants                                     -                 -            25,580            96,778
                                     ----------       -----------        ----------       -----------
Dilutive securities used in          5,537,071         4,203,738         5,562,651         4,338,353
calculation                          ==========       ===========        ==========       ===========
</TABLE>


     For the  three  months  ended  June 30,  2002  675,113  options,  2,297,786
     warrants and 500 shares of convertible  preferred  stock were excluded from
     the calculation because they were  anti-dilutive.  For the six months ended
     June 30,  2002  592,813  options,  2,107,786  warrants  and 500  shares  of
     convertible preferred stock were excluded from the calculation because they
     are anti-dilutive.

5.   ADVANCE TO MANAGED OUTLET

     On February  25,  2002 the  Company  began  management  of a San  Francisco
     hotel-based Daily Grill restaurant.  The Company has advanced approximately
     $287,000 to the  restaurant  during the first six months of 2002 which will
     be reimbursed through future operations.

6.   SALE OF COMPANY ASSETS

     On April 23,  2002 the sale of the assets of the Cherry Hill  Pizzeria  Uno
     was  finalized.  The price was  $325,000  less legal and other sale related
     fees of $61,000.  The Company received  $175,000 in cash and a non-interest
     bearing note for the remaining  $150,000.  The note receivable was recorded
     net of a discount  of $33,000.  The profit from the sale was $46,000  which
     was recorded as a reduction to restaurant operating expenses.

     In April  2002 the lease for the Encino  Daily  Grill  expired  and was not
     renewed.  In May 2002  equipment  and fixtures from the Encino Daily Grill,
     having a net book value of $5,000,  were sold for $30,000.  The profit from
     the sale was recorded as a reduction to restaurant operating expenses.
                                       8
<PAGE>

7.   ADDITIONAL INVESTMENT IN NON-CONSOLIDATED ENTITIY

     In April the Company  contributed  an  additional  $47,000 to the Universal
     CityWalk  joint venture.  Although the  management  agreement for Universal
     Grill Joint  Venture  requires  the Company and the other member to make an
     interest  free loan to the joint  venture of fifty  percent of  anticipated
     negative  cash flows,  both  members  agreed to make this payment a capital
     contribution.

8.   SUBSEQUENT EVENTS

     On July 10,  2002 the  Company  began  management  of the hotel based Daily
     Grill  Houston.  This  restaurant  is  located in the  Westin  Galleria  in
     Houston,  Texas.  This is the  first  restaurant  to be  opened  under  the
     Development Agreement signed last July with Starwood Hotels and Resorts.

     In  connection  with the building of a new  restaurant a limited  liability
     company was formed for the operation of the Daily Grill at Continental Park
     in El Segundo,  California of which the Company owns 50.1%. Construction of
     the  restaurant  will be  funded  primarily  by a capital  contribution  of
     $1,000,000  from the  minority  interest  member of the  limited  liability
     company  and a  tenant  improvement  allowance  of  $500,000.  The  Company
     contributed a capital contribution of $350,000 in July 2002. The restaurant
     is scheduled to open in the fourth quarter of 2002.
                                       9
<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  looking  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 30, 2001.

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           Six Months Ended
                                                  June 30,       July 1,      June 30,       July 1,
                                                    2002          2001         2002           2001
                                                  ---------     --------     ----------     --------
Revenues:                                            %              %            %             %
<S>                                              <C>            <C>           <C>          <C>

    Company restaurant sales                        97.6          97.7          97.9          98.3
    Management and license fees                      2.4           2.3           2.1           1.7
                                                  --------      --------      -------       -------
         Total operating revenues                  100.0         100.0         100.0         100.0

Cost of sales                                       27.0          27.8          27.0          27.4
                                                  --------      --------      -------       -------
     Gross profit                                   73.0          72.2          73.0          72.6
                                                  --------      --------      -------       -------

     Restaurant operating expense                   61.8          61.6          60.7          60.2
     General and administrative expense              9.1           7.7           8.5           8.0
     Depreciation and amortization                   3.5           3.1           3.3           2.8
                                                  --------       -------      -------       -------
          Total operating expenses                  74.4          72.4          72.5          71.0
                                                  --------       -------      -------       -------
          Operating (loss) income                   (1.4)         (0.2)          0.5           1.6

Interest expense, net                               (0.5)         (0.9)         (0.5)         (0.8)
                                                  -------        -------      -------       -------
(Loss) income before provision for income
taxes, minority interest and equity in loss of
joint venture                                       (1.9)         (1.1)          0.0           0.8
Provision for income taxes                           0.0           0.0          (0.1)          0.0
Minority interest                                    1.4           0.5           0.9           0.3
Equity in loss of joint venture                     (0.1)         (0.1)          0.0           0.0
                                                 --------        -------      -------       -------
Net (loss) income                                  (0.6)          (0.7)          0.8           1.1
                                                 ========        =======      =======       =======

</TABLE>
                                       10
<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.
<TABLE>


                                              Second Quarter           Year-to-date            Total open at
                                                 Openings                Openings             End of Quarter
                                           FY 2002      FY 2001     FY 2002     FY 2001     FY 2002     FY 2001
                                           -------      --------    -------     -------     -------     -------
<S>                                       <C>           <C>         <C>         <C>         <C>         <C>

Daily Grill restaurants:
    Company owned                             (1)           -           (1)          -           9          10
    Managed and/or licensed                    -            -            1           -           5           4
Grill on the Alley restaurants:
    Company owned                              -            -            -           -           4           3
Pizza restaurants                             (1)           -           (1)          -           -           2
Other restaurants
    Managed and/or licensed                    -            -            -           -           1           1
                                         -------       ------        ------      -----        ----        ----
Total                                        (2)            -           (1)          -          19          20
                                         =======       ======        ======      =====        ====        ====

                                                Three Months Ended           Six Months Ended
                                              June 30,      July 1,        June 30,       July 1,
                                               2002          2001           2002           2001
                                             --------      --------       --------       --------
Weighted average weekly sales
   per company owned restaurant:
    Daily Grill                            $   56,231     $   59,833     $   58,513     $  63,441
    Grill on the Alley                         71,890         81,165         74,216        85,542
    Pizza restaurants                          30,986         33,715         31,067        34,688

Change in comparable restaurant
    (1):Daily Grill                              (5.7)%         2.9%         (7.0)%           5.9%
    Grill on the Alley                           (2.0)%         0.4%         (5.3)%           2.9%
    Pizza restaurants                            n.a.          (6.0)%         n.a.           (3.3)%

Total Company revenues:
    Daily Grill                           $ 6,230,000    $ 7,000,000      $13,396,000   $14,845,000
    Grill on the Alley                      3,739,000      3,165,000        7,719,000     6,672,000
    Pizza restaurants                          93,000        877,000          497,000     1,804,000
    Management and license fees               246,000        258,000          468,000       414,000
                                            ----------   -----------     ------------   ------------

    Total consolidated revenues           $10,308,000    $11,300,000     $22,080,000    $23,735,000
                                           ===========   ===========     ============   ============

Managed restaurants                         3,267,000      2,694,000       6,352,000      5,528,000
Licensed restaurants                        1,801,000      2,136,000       3,248,000      4,080,000
Less: management and license fees            (246,000)      (258,000)       (468,000)      (414,000)
Total system sales                          ---------      ---------     -----------    -----------
                                          $15,130,000    $15,872,000     $31,212,000    $32,929,000
                                            =========    ===========     ===========    ===========
</TABLE>


(1)  When computing comparable  restaurant sales,  restaurants open for at least
     12 months are compared from period to period.
                                       11
<PAGE>

Material  Changes in Results of  Operations  for the Three and Six Months  Ended
June 30, 2002 as compared to the Three and Six Months Ended July 1, 2001

The Company operated 15 owned  restaurants,  4 managed  restaurants and licensed
its name and recipes to 2 others  during the  quarter and six months  ended June
30,  2002 as  compared  to 15 owned  restaurants,  3 managed  restaurants  and 2
licensed  during the quarter and six months  ended July 1, 2001.  The  Company's
results  fully  consolidate  sales  for  owned  restaurants,  but  include  only
management  fee income from the managed and  licensed  restaurants.  Restaurants
operated for a portion of the current year and/or prior year period  include the
Grill on Hollywood  restaurant  that opened in November  2001, the San Francisco
Daily Grill that opened under a management  agreement in February 2002, Pizzeria
Uno Cherry Hill that was sold in April 2002,  Encino Daily Grill that was closed
in April 2002 and Pizzeria Uno South Plainfield that was sold in July 2001.

The Company's  revenues for the second quarter of fiscal 2002 decreased to $10.3
million,  8.8% under the $ 11.3 million generated for the same quarter of fiscal
2001.  Total revenues  included $10.1 million of sales revenues and $ 246,000 of
management and licensing fees for the 2002 quarter  compared to $11.0 million of
sales  revenues  and  $258,000 of  management  and  licensing  fees for the 2001
quarter. This $ 1.0 million, or 8.8%, decrease in sales revenues for the quarter
was primarily  attributable to a decrease in same store sales ($436,000) and the
closure of the  Pizzeria  Unos in South  Plainfield  ($464,000)  and Cherry Hill
($323,000) and the closure of Encino  ($397,000),  partially offset by a full 13
weeks of sales for The Grill on Hollywood ($636,000).

Revenues for the six months ended June 30, 2002 decreased 7.0% to $ 22.1 million
from the $ 23.7  million  generated  for the same period of fiscal  2001.  Total
revenues  included $ 21.6 million of sales  revenues and $ 468,000 of management
and licensing fees for the first six months of 2002,  compared to $ 23.3 million
of sales  revenues and $414,000 of management  and licensing  fees for the first
six months of 2001.  The  decrease in sales  revenues  for the six months  ($1.7
million,  or 7.3%) was primarily  attributable to a decrease in same store sales
($1,323,000) and the closure of the Pizzeria Unos in South Plainfield ($933,000)
and Cherry Hill ($377,000) and the closure of the Encino Daily Grill ($478,000),
partially offset by sales at The Grill on Hollywood ($1,399,000).

Same store sales (for  restaurants  open at least 12 months)  decreased 4.5% for
the quarter and 6.5% for the six months. For the quarter,  this decrease was due
to a decrease  in the number of guests at the Daily  Grills  ($771,000)  and the
Grill on the Alley  restaurants  ($102,000),  partially offset by an increase in
average check price at the Daily Grill restaurants ($396,000),  and at the Grill
on the Alley restaurants ($39,000). For the six months the decrease was due to a
decrease  in the number of guests at both the Daily Grill and Grill on the Alley
restaurants  ($2,150,000)  which was only  partially  offset by an  increase  in
average check price increases at the Daily Grill restaurants  ($762,000) and the
Grill on the Alley restaurants ($62,000).  Management and licensing fees for the
quarter  decreased  ($12,000 or 4.6%)  primarily  due to decreased  sales at the
Daily Grill at Los Angeles International Airport.  Management and licensing fees
increased for the six months ($54,000 or 13.0%)  primarily due to the opening of
the San Francisco Daily Grill in February 2002.

                                       12
<PAGE>

In addition to the 15  restaurants  owned by the Company  during the quarter and
six months ended June 30,  2002,  the Company also managed or licensed six other
restaurants.  Total revenues for all restaurants owned,  managed and licensed by
the Company were  $15,130,000  and  $15,872,000 for the quarters and $31,212,000
and  $32,929,000  for the six  months  ended  June  30,  2002 and  July1,  2001,
respectively.  This represents a decrease of $742,000,  or 4.7%, for the quarter
and $1,717,000, or 5.2%, for the six months.Cost of sales decreased by $357,000,
or 11.4%,  for the quarter and $548,000,  or 8.4%, for the six months ended June
30, 2002 as compared to the same periods in 2001  primarily  due to the decrease
in sales combined with improved  purchasing and menu refinements.  Cost of sales
decreased as a percentage of sales revenues.

Cost of sales was 27.0% for both the  quarter and six months as compared to 27.8
% for the second quarter of 2001 and 27.4% for the year-to-date  period in 2001.
The  decrease  in cost of sales as a  percentage  of sales  during  the 2002 six
months was  primarily  the result of menu  refinements  and related sales mix as
well as cost reductions resulting from improved purchasing.

Restaurant  operating expenses  decreased by $585,000,  or 8.4%, for the quarter
and  $879,000,  or 6.2%,  for the six months as compared to the same  periods in
2001. The dollar decrease in restaurant  operating  expenses for the quarter was
primarily  attributable  to the closure of the Pizzeria  Uno  locations in South
Plainfield  and Cherry  Hill  ($729,000),  a reduction  in payroll and  benefits
($239,000) and variable costs  ($150,000) at comparable  restaurants,  offset by
the  opening  of The Grill on  Hollywood  ($529,000).  The  dollar  decrease  in
operating expenses for the six months was primarily  attributable to the closure
of the Pizzeria Uno locations ($1,129,000),  a reduction in payroll and benefits
($461,000) and variable costs  ($324,000) at comparable  restaurants,  offset by
the  opening  of The  Grill  on  Hollywood  ($1,040,000).  Restaurant  operating
expenses, as a percentage of revenues, increased in the second quarter from 61.6
% in 2001 to 61.8 % in 2002. For the six months,  the percentages were 60.2 % in
2001 and 60.7% in 2002. The major contributor to the increase as a percentage of
sales was insurance costs.

General and administrative expense increased 7.2 % for the quarter and decreased
1.6 % for the  six  months  as  compared  to the  same  periods  in  2001.  As a
percentage of total revenues,  general and administrative  expense totaled 9.1 %
for the  quarter and 8.5% for the six months as compared to 7.7% for the quarter
and 8.0 % for the six  months  in  2001.  The  decrease  in  total  general  and
administrative  expense of $31,000,  or 1.6%, for the six months during 2002 was
primarily attributable to cost reduction in professional services and travel and
entertainment  offset by an  increase  in  payroll  and  related  benefits.  The
increase in total general and administrative expense of $63,000, or 7.2% for the
2002 quarter is attributable to increased payroll and benefits.

Depreciation  and  amortization  expense  increased by 3.2 % for the quarter and
11.0 % for the six months compared to 2001,  representing  3.3% of sales for the
six months of 2002 compared to 2.8% in 2001.  The increase in  depreciation  and
amortization  expense for both the quarter and the six months was  primarily due
to the addition of The Grill on Hollywood  offset by the closure of the Pizzeria
Uno locations.

Interest expense,  net, decreased by $48,000,  or 46.2%,  during the quarter and
$93,000,  or 47.9%,  during the six months compared to the same periods in 2001.
The decrease in interest  expense resulted from the elimination of bank interest
due to the elimination of bank debt.

                                       13
<PAGE>

The  Company  recorded  $20,000 of income  taxes for the six months  compared to
$2,000 in 2001.  Only  minimal  taxes have been  required  due to the  available
federal  and state net  operating  loss  carryforwards  that can be  utilized to
offset  federal  and  state  taxable  earnings;   however,  some  of  the  state
carryforwards have expired.

Results  for the  quarter and six months  reflect  minority  interest in the net
losses of  subsidiaries  of $141,000  and $53,000  respectively,  compared  with
$194,000 and $69,000 in the same periods in 2001. This increase in the amount of
net losses allocated to minority  interests  resulted primarily from the opening
of The Grill on Hollywood in November 2001.

The company incurred a charge of $12,000 for its equity in loss of joint venture
during the six months of 2002  compared to $4,000 in 2001,  which  reflects  the
Company's 50% interest in the Daily Grill Short Order at Universal  Studios City
Walk.

The Company  reported  dividends  on  preferred  stock of $12,500 in each of the
quarters  and $25,000 in each of the six months  ended June 30, 2002 and July 1,
2001.

Material Changes in Financial Condition, Liquidity and Capital Resources.

At June 30, 2002 the Company had negative  working capital of $0.9 million and a
cash  balance of $1.1  million  compared  to  negative  working  capital of $0.7
million and a cash balance of $2.3 million at December 30, 2001.

Net cash used in  operations  during the six months  ended June 30, 2002 totaled
$233,000 compared to $251,000 provided by operations during the six months ended
July 1, 2001.  The adverse  change in operating  cash flow during the six months
was related to reducing  accounts  payable  ($296,000)  and accrued  liabilities
($573,000).

Net cash used in investing  activities during the six months ended June 30, 2002
totaled  $592,000  compared to $55,000 during the six months ended July 1, 2001.
Cash used in investing activities during the current period were for the remodel
of the Newport Beach Daily Grill ($396,000),  advances made to the San Francisco
Daily Grill ($287,000) and a additional  contribution to the Universal  CityWalk
joint  venture  ($47,000),  partially  offset by the  proceeds  from the sale of
assets  from  Pizzeria  Uno  Cherry  Hill  ($114,000)  and  Encino  Daily  Grill
($30,000).

Net cash used in financing  activities during the six months ended June 30, 2002
totaled $399,000  compared to $671,000 during the six months ended July 1, 2001.
Cash  used  in  financing  activities  during  the  current  period  related  to
reductions  in debt  ($247,000),  preferred  returns to  minority  investors  in
Chicago - the Grill on the  Alley,  LLC  ($88,000)  and  return  of  capital  to
minority investor in San Jose Grill, LLC ($64,000).

                                       14
<PAGE>

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 June 30,  2002,  the Company had a bank credit  facility  with
nothing owing, a SBA loan of $ 0.1 million, loans from  stockholders/officers of
$0.8 million, equipment loans of $0.9 million and loans/advances from a landlord
and others of $0.1 million.

On February 25, 2002 the Company began management of a San Francisco hotel-based
Daily Grill  restaurant.  The  Company  advanced  approximately  $287,000 to the
restaurant that will be reimbursed through future operations.

The Company began management of a hotel-based  Daily Grill in Houston,  Texas on
July 10,  2002.  Under  terms of the  Management  Agreement,  the Company may be
required to loan up to $80,000 to the restaurant for initial working capital.

In connection  with the  construction  of a new  restaurant a limited  liability
company was formed for the operation of the Daily Grill at  Continental  Park in
El Segundo,  California  of which the Company  owns 50.1%.  Construction  of the
restaurant will be funded primarily by a capital contribution of $1,000,000 from
the  minority  interest  member of the  limited  liability  company and a tenant
improvement  allowance of $500,000.  The Company made a capital  contribution of
$350,000 in July 2002. The restaurant is scheduled to open in the fourth quarter
of 2002.

Under  certain of its  operating and  management  agreements  the Company has an
obligation to potentially make additional cash advances and/or contributions and
may not realize any substantial  returns for some time. The CityWalk  management
agreement requires that each member loan, interest free, to the joint venture 50
percent of any operating  deficit forecast for the next quarter such loans to be
repaid out of the first cash available from operations. The management agreement
for the San  Francisco  Daily  Grill  stipulates  that if in any month  there is
insufficient  working capital to pay operating  expenses,  excluding payments to
the Company or the Owner,  the Company will pay one-half of the required working
capital;  such  advances  are to be repaid  prior to  deferred  payments  to the
Company or Owner.  The Operating  Agreement and the Senior  Promissory  Note for
Chicago - The Grill on the Alley,  LLC stipulates  that the  non-manager  member
shall receive a preferred return of eight percent on their capital  contribution
and a payment on their converted  capital prior to any distribution of cash. The
Operating  Agreement  for The Grill on  Hollywood,  LLC  stipulates  that 90% of
distributable  cash shall go to the  non-manager  member  until their  preferred
return,  unrecovered  contribution  and any  additional  contribution  have been
returned.  The  Operating  Agreement  for San Jose Grill,  LLC  stipulates  that
distributable cash shall be paid first 10% to the manager and 90% to the members
in proportion to their ownership  percentage until initial capital is recovered,
then as a  preferred  return on the  capital  contributions  to both  members in
proportion to their ownership  percentage and finally 16 2/3% to the manager and
the balance to the members in proportion to their ownership percentages.

                                       15
<PAGE>


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 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  and to open at  least  one
restaurant. In order to fund the opening of additional restaurants,  the Company
may  require  additional  capital  that may be raised  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,  except  for  funding of the El
Segundo restaurant discussed above.

In April  2002,  the  Company  sold the  assets of its Cherry  Hill,  New Jersey
franchised  pizza restaurant for $325,000 less legal and other sale related fees
of $61,000.  The Company received  $175,000 of cash and a ten-year  non-interest
bearing note for $150,000.

Future Accounting Requirements

In May  2002,  the  FASB  issued  SFAS  145,  "Rescission  of FAS 4,  44 and 64,
Amendment of FAS 13, and Technical  Corrections."  Among other things,  SFAS 145
rescinds  various  pronouncements  regarding  early  extinguishment  of debt and
allows extraordinary accounting treatment for early extinguishment only when the
provisions of Accounting Principles Board Opinion No. 30, "Reporting the Results
of Operations-Reporting  the Effects of Disposal of a Segment of a Business, and
Extraordinary,  Unusual, and Infrequently Occurring Events and Transactions" are
met. SFAS 145 provisions  regarding early  extinguishment  of debt are generally
effective for fiscal years  beginning  after May 15, 2002.  Management  does not
believe that the adoption of this statement  will have a material  impact on our
consolidated financial statements.

In July 2002, the FASB issued SFAS 146,  "Accounting  for Costs  Associated with
Exit or Disposal  Activities",  which superceded EITF Issue No. 94-3, "Liability
Recognition for Certain Employee Termination Benefits and Other Costs to Exit an
Activity." SFAS 146 requires that a liability for a cost associated with an exit
activity or disposal activity be recognized and measured initially at fair value
only when the liability is incurred. EITF Issue No. 94-3 requires recognition of
a liability at the date an entity  commits to an exit plan.  All  provisions  of
SFAS 146 will be effective  for exit or disposal  activities  that are initiated
after December 31, 2002.  Management  does not believe that the adoption of this
statement will have a material impact on our consolidated financial statements.

                                       16
<PAGE>

Certain Factors Affecting Future Operating Results

In  addition to the  planned  opening of the new  restaurants  during  2002,  as
described  above,  and the various  factors  described in the  Company's  Annual
Report  on Form  10-K  for the year  ended  December  30,  2001,  the  following
developments may impact future operating results.

On April 23, 2002 the  Company  finalized  the sale of assets of its  franchised
Cherry Hill, New Jersey Pizza  Restaurant for $325,000 less $61,000 of legal and
other sale  related  fees.  The  proceeds  from the sale will be used for future
capital projects.

In April 2002 the lease for the Encino  Daily Grill  expired and the  restaurant
was closed.  In May 2002 the Company sold equipment and fixtures from the Encino
Daily Grill for $30,000.

The San Francisco  Daily Grill  restaurant  opened in February 2002. The Company
advanced  $287,000 for initial  working  capital  during the first six months of
2002 that is to be repaid through future operations.

The Daily  Grill  Houston  opened in July 2002.  The  Company  may advance up to
$80,000 for initial working capital that will be repaid from future  operations.
The Daily  Grill  Houston is located in a  Starwood  property.  Discussions  are
ongoing with Starwood Hotels and Resorts regarding other development locations.

The current  economic  downturn has had a negative  impact,  and may continue to
have a  negative  impact,  on the  Company's  revenues.  Decreases  in  consumer
spending will have a significant impact on the business.

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.

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 facility (the "Credit
Facility").  There were no borrowings  outstanding  under the Credit Facility at
June 30,  2002.  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.

                                       17
<PAGE>

                          PART II - OTHER INFORMATION

Item 4. Submission of Matters to a Vote of Security Holders

At an annual meeting of shareholders  of Grill  Concepts,  Inc. held on June 26,
2002, the  stockholders  voted on two  proposals:  the election of directors and
ratification of the appointment of  PricewaterhouseCoopers  LLP as the Company's
independent certifying accountants.

The  first  matter  voted on was a  proposal  to elect  Robert  Spivak,  Michael
Weinstock,  Charles Frank, Glenn Golenberg, Lewis Wolff, Stephen Ross and Norman
MacLeod,  as directors of the Company.  All director nominees were elected.  The
following table sets forth the votes in such election:

                                    Votes For                  Votes Against
                                    ---------                  -------------

         Robert Spivak              3,698,659                       84
         Michael Weinstock          3,698,653                       90
         Charles Frank              3,698,659                       84
         Glenn Golenberg            3,698,659                       84
         Lewis Wolff                3,698,656                       90
         Stephen Ross               3,698,654                       89
         Norman MacLeod             3,698,631                      112

In addition to the election of directors as noted above,  the  following  matter
was voted upon at such meeting:

Proposal  2, to ratify  the  appointment  of  PricewaterhouseCoopers  LLP as the
Company's independent  certifying  accountants was approved with 3,684,010 votes
cast for, 15,109 votes cast against, and 808 votes abstained.

Item 6. Exhibits and Reports on Form 8-K

     (a)  Exhibits

         Exhibit No.              Description
         -----------            ---------------
             99.1               Certification  Pursuant  to  18.U.S.C.  Section
                                1350,  as Adopted  Pursuant to Section 906 of
                                the Sarbanes-Oxley Act of 2002


     (b)  Reports on Form 8-K

          None

                                       18
<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.


Signature                          Title                               Date
----------                        -------                            ------

/s/ Robert Spivak
------------------            President and Chief              August 13, 2002
Robert Spivak                 Executive Officer

/s Daryl Ansel                Principal Accounting             August 13, 2002
-----------------             Officer
Daryl Ansel

                                       19