SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM 10-QSB

(Mark One)

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

                  For the quarterly period ended March 30, 1997

                                       OR

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


           For the transition period from          to           .
                                         ----------  -----------

                           Commission File No. 0-23226

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

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


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


                                 (310) 820-5559
                           ---------------------------
                           (Issuer's telephone number)


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


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

     As of May 2, 1997,  14,605,876  shares of Common  Stock of the issuer  were
outstanding.

<PAGE>
                              GRILL CONCEPTS, INC.

                                      INDEX

                                                                         Page
                                                                        Number
                                                                        ------

PART I - FINANCIAL INFORMATION

     Item 1. Financial Statements

          Consolidated  Condensed  Balance  Sheets - March 30, 1997
          and December 29, 1996............................................ 1

          Consolidated Condensed Statements of Operations - For the
          three months ended March 30, 1997 and March 31, 1996............. 3

          Consolidated Condensed Statements of Cash Flows - For the
          three months ended March 30, 1997 and March 31, 1996............. 4

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

     Item 2.  Management's Discussion and Analysis of Financial
              Condition and Results of Operations.......................... 6

PART II - OTHER INFORMATION................................................ 7

SIGNATURES................ ................................................ 7

<PAGE>
                         PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                      GRILL CONCEPTS, INC. AND SUBSIDIARIES

                      CONSOLIDATED CONDENSED BALANCE SHEETS

                                     ASSETS

                                         March 30,        December 29,
                                           1997               1996
                                        -----------       -----------

Current assets:
  Cash and cash equivalents             $   114,174       $   372,317
  Inventory                                 283,039           239,237
  Prepaid expenses                          844,870         1,038,036
                                        -----------       -----------

     Total current assets                 1,242,083         1,649,590
                                        -----------       -----------

Property and equipment, at cost           9,609,889         8,589,597
     Less:  accumulated depreciation     (3,564,168)       (3,364,486)
                                        -----------       -----------

Property and equipment, net               6,045,721         5,225,111
                                        -----------       -----------

Other assets:
  Goodwill                                  243,781           245,829
  Other                                   1,008,498           961,484
                                        -----------       -----------

     Total other assets                   1,252,279         1,207,313
                                        -----------       -----------

     Total assets                       $ 8,540,083       $ 8,082,014
                                        ===========       ===========


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


                                       1
<PAGE>
                      GRILL CONCEPTS, INC. AND SUBSIDIARIES

                      CONSOLIDATED CONDENSED BALANCE SHEETS
                                   (Continued)

                      LIABILITIES AND SHAREHOLDERS' EQUITY


                                               March 30,           December 29,
                                                  1997                 1996
                                              -----------          ------------

Current liabilities:
  Bank line of credit                         $   645,000                ------
  Accounts payable                              1,187,654            $1,143,484
  Accrued expenses                              1,063,399             1,283,805
  Current portion of long term debt               420,000               421,317
                                              -----------            ----------

     Total current liabilities                  3,316,053             2,848,606

Long-term debt, net of current                    946,936             1,030,927
                                              -----------            ----------

     Total liabilities                          4,262,989             3,879,533
                                              -----------            ----------

Stockholders' equity:
  Series A, Preferred Stock, $.001
   par value, authorized 1,000,000                      1                     1
   shares;  Shares issued and
   outstanding 610 in 1997, 700
   in 1996
  Series B,  Preferred Stock, $.001
   par value, authorized 1,000,000                      1                     1
   shares; 65 shares issued and
   outstanding.
  Common stock, $.00001 par value:
   20,000,000 shares authorized,                      144                   138
   shares issued and outstanding:
   14,390,218 in 1997 and 13,799,230
   in 1996

Additional paid-in capital                      9,552,452             9,552,458
Accumulated deficit                            (5,275,504)           (5,350,117)
                                              -----------            ----------

     Stockholders' equity                       4,277,094             4,202,481
                                              -----------            ----------

     Total liabilities and stockholders'
      equity                                  $ 8,540,083            $8,082,014
                                              ===========            ==========


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


                                       2
<PAGE>
                      GRILL CONCEPTS, INC. AND SUBSIDIARIES

           CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS


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

                                              March 30,         March 31,
                                                1997               1996
                                            -----------        -----------

Sales                                       $ 7,140,720        $ 5,245,779

Cost of sales                                 1,956,217          1,346,127
                                            -----------        -----------

Gross profit                                  5,184,503          3,899,652
                                            -----------        -----------

Costs and expenses:
  Restaurant operating expenses               4,340,867          3,182,552
  General and administative                     523,484            470,934
  Depreciation and amortization                 199,678            195,684
  Amortization of preopening expenses            50,300                 --
                                            -----------        -----------

      Total operating expenses                5,114,329          3,849,170
                                            -----------        -----------

Income from operations                           70,174             50,482

Non-recurring credit                             49,286                 --
Interest expense - net                          (44,047)           (37,897)
                                            -----------        -----------
Income before provision for income taxes         75,413             12,585

Provision for income taxts                         (800)              (800)
                                            -----------        -----------

Net income                                  $    74,613        $    11,785
                                            ===========        ===========

Net income per share                        $      0.01              $0.00
                                            ===========        ===========

Weighted average  shares outstanding         14,328,736         12,999,230
                                            ===========        ===========

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


                                       3
<PAGE>
                      GRILL CONCEPTS, INC. AND SUBSIDIARES

                 CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS

                                                    Three Months ended
                                             ---------------------------------
                                              March 30,             March 31,
                                                1997                  1996
                                             ----------            ----------

Cash flows from operating activities:
  Net income                                 $   74,613            $  11,785
  Adjustments to reconcile net income to
   net cash provided by (used in)
   operating activities:
  Depreciation and amortization                 249,978              191,435
  Changes in operating assets and
   liabilities
    Inventories                                 (43,802)              (6,834)
    Prepaid expenses                            193,166              (26,829)
    Other assets                                (97,314)              21,236
    Accounts payable                             44,170             (223,597)
    Accrued liabilities                        (219,806)            (142,020)
                                             ----------            ---------

  Net cash provided by (used in)
   operating activities                         201,005             (174,824)
                                             ----------            ---------

Cash flows from investing activities:
  Additions to furniture, equipment 
   and improvements                          (1,020,292)             (37,660)
                                             ----------            ---------

  Net cash used in investing activities      (1,020,292)             (37,660)
                                             ----------            ---------

Cash flows from financing activities:
  Proceeds from line of credit                  645,000            ---------
  Payments on long-term debt                    (83,856)             (83,922)
                                             ----------            ---------
  Net cash provided by used in
   financial activities                         561,144              (83,922)
                                             ----------            ---------

Net decrease in cash and
 cash equivalents                              (258,143)            (296,406)

Cash and cash equivalents, beginning
 of period                                      372,317              631,116
                                             ----------            ---------

Cash and cash equivalents, end of period     $  114,174            $  334,710
                                             ==========            ==========

Supplemental cash flow information: Cash
 paid during the period for:
  Interest                                   $   39,614            $  40,862
  Income taxes                               $      421            $  13,300


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


                                       4
<PAGE>
                      GRILL CONCEPTS, INC. AND SUBSIDIARIES

              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

1.   INTERIM FINANCIAL PRESENTATION

The interim  consolidated  financial  statements  are  prepared  pursuant to the
requirements  for reporting on Form 10-QSB.  The December 29, 1996 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 conjuntion  with the
financial  statements  and notes  included in the  Company's  Form 10-KSB  dated
December 29, 1996.  The interim  financial  statements  have not been audited by
independent  accountants.  However, 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 28,
1997.

2.   BUSINESS AND ORGANIZATION

In April of 1996, the Company acquired 100% of the common stock of EMNDEE,  Inc.
("EMNDEE") and The Grill on the Alley, Inc. ("Grill,  Inc.").  EMNDEE and Grill,
Inc.  own,  collectively,  100% of The Grill Limited  Partnership,  a California
limited  partnership  which  owns  and  operates  The  Grill on the  Alley  (the
"Grill"), an upscale Beverly Hills restaurant which opened in 1984 and served as
the model for the Company's  Daily Grill  restaurants.  The acquisition has been
accounted for under the purchase  method.  As a result of the  foregoing,  these
interim statements include the accounts of the Grill during 1997. As acquisition
of the Grill  occured  after March  31,1996,  the  accounts of the Grill are not
reflected in the financial  statements as of and for the quarter ended March 31,
1996.

     The unaudited proforma  financial  information set forth below is presented
     as if the  aquisition  of the Grill had been  consumated as of December 31,
     1995. The proforma financial  information is not necessarily  indicative of
     what actual  results of  operations  of the Company  would have been if the
     acquisitions  were consummated as of December 31, 1995, nor does it purport
     to represent the results of operations for future periods.


                                                1997              1996
                                            ----------        ----------

     Sales                                  $7,140,720        $6,101,074
     Net income (loss)                      $   74,613        $   84,195

3.   SHAREHOLDER'S EQUITY

     During the quarter  ended March 30, 1997, 90 shares of Series A Convertible
     Preferred Stock were converted resulting in the issuance of an aggregate of
     84,024 shares of common stock at an average price of $1.07 per share.

4.   SUBSEQUENT EVENTS

     Subsequent to March 30,1997,  180 shares of Series A Convertible  Preferred
     Stock were  converted  resulting in the issuance of an aggregate of 214,445
     shares  of  common   stock  at  an  average   price  of  $0.84  per  share.
     Additionally,  5  shares  of  Series B  Convertible  Preferred  Stock  were
     converted  resulting in the  issuance of an  aggregate of 62,539  shares of
     common stock at an average price of $0.80 per share.

5.   BANK LINE OF CREDIT

     During  the  quarter,  the  Company  borrowed  $645,000  of  the  available
     $1,000,000 line.


                                       5
<PAGE>
Item 2. Management's  Discussion and Analysis of Financial Condition and Results
        of Operations.

Material  Changes in Results of Operations  for the Three Months Ended March 30,
1997 as Compared to the Three Months Ended March 31, 1996.

Due to the acquisition of The Grill in April,  1996 as explained in the Notes to
Consolidated  Condensed Financial Statements,  the results of operations for the
13 week period ended March 30, 1997 include the  operations of seven Daily Grill
Restaurant for the full quarter plus the  Washington  D.C. Daily Grill for three
weeks;  three Pizzeria Uno units and The Grill restaurant.  The first quarter of
1996 includes six Daily Grill restaurants and the three Pizzeria Uno stores.

The Company's  revenues for the three month period increased 36.1% to $7,141,000
from  $5,246,000  for the same period in 1996.  The  increase of $1.9 million is
primarily a result of added sales by the inclusion of The Grill  restaurant this
year,  the  addition of the Irvine,  California,  Daily Grill and three weeks of
sales from the Washington D.C. Daily Grill. Additionally,  same stores increased
3.6%.

While  revenues  increased by 36.1% in the 1997 three month period when compared
with the similar period in 1996,  cost of sales increased 45.3% and increased as
a percentage  of sales from 25.7% to 27.4%.  This increase in cost of sales as a
percentage of sales during the 1997 period is  attributable  principally  to the
inclusion of The Grill which has historically experienced a 31% cost of sales as
compared to approximately 27% cost of sales for Daily Grill. This higher cost of
sales at The Grill is offset by lower labor costs at The Grill.

As a result,  gross profit  increased 32.9% from $3,900,000  (74.3% of sales) in
1996 to $5,185,000 (72.6% of sales) in 1997.

Restaurant  operating  expenses increased to $4,341,000 (60.8% of sales) in 1997
from $3,183,000  (60.7% of sales) in 1996, a minimal increase as a percentage of
sales.  The increase in restaurant  operating  expenses was  attributable to the
operation of the three new restaurants during the 1997 period

General and  administrative  expenses  increased only 11.2% to represent 7.3% of
sales in the 1997 first  quarter  while  amounting  to 9.0% of sales in the 1996
period.  This percentage  decrease occurred as a result of the added volume from
two  additional  Daily  Grills and the addition of The Grill with only a $52,000
increase in corporate overhead.

Depreciation  and  amortization  expense  increased by $54,294  during 1997 as a
result of the opening of two new restaurants.  Included in amortization  expense
is $50,300  relating to the  amortization of preopening  expenses on the two new
Daily Grill restaurants.  The Company had no amortization of preopening expenses
during the period in 1996.

The Company also reported a non-recurring credit of $49,286 during 1997 relating
to an overaccrual of non-recurring acquisition costs reported in 1996.

Material Changes in Financial Condition, Liquidity and Capital Resources.

At March 30, 1997 the Company had negative  working  capital of $2,075,000 and a
cash balance of $114,000 as compared to negative  working  capital of $1,119,000
and a cash  balance of $372,000 at December  29,  1996.  The decrease in working
capital and cash was primarily  attributable  to the funds utilized for building
the new Washington, D.C. Daily Grill.


                                       6
<PAGE>
Historically,  the  Company  has funded its  day-to-day  operations  through its
operating  cash  flow,  while  funding  growth  through  a  combination  of bank
borrowing, loans from stockholders/officers, the sale of Debentures, the sale of
Preferred Stock,  the issuance of warrants and loans and tenant  allowances from
certain of its landlords.  At March 30,1997,  GCI had existing bank borrowing of
$1,632,000,  an SBA  loan  of  $155,000,  loans  from  stockholders/officers  of
$84,000, loans/advances from a landlord of $140,000.

In addition to the  Washington,  D.C.  Daily Grill  opened in March,  1997,  the
Company  presently  anticipates  opening one additional Daily Grill store in the
greater-Washington,  D.C. area and is in negotiations  with a potential  partner
with respect to opening "The Grill" in San Jose, California. The cost of opening
new Daily Grill restaurants is anticipated to be between $800,000 and $1,400,000
per site depending upon the location and available tenant  allowances.  Pursuant
to the on going negotiations with a potential partner,  the Company expects that
the  partner  will pay a  disproportionate  share of the costs  associated  with
opening "The Grill" should such plans materialize.

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

                           PART II - OTHER INFORMATION

None

                                   SIGNATURES

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


                                         GRILL CONCEPTS,INC.


Dated:  May 9, 1997                      By: /s/ Robert Spivak
                                            ------------------------------------
                                            Robert Spivak, President and C.E.O.



Dated:  May 9, 1997                      By: /s/ Ben Sumner
                                            ------------------------------------
                                            Ben Sumner, Chief Financial Officer
                                            and Accounting Officer



                                       7