<PAGE>   1
                                    FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION

                              WASHINGTON D.C. 20549

                   QUARTERLY REPORT UNDER SECTION 13 OR 15(d)



For Quarter Ended  February 18, 2001          Commission file number  0-11514
                 ---------------------                              -----------


                         Max & Erma's Restaurants, Inc.
                ------------------------------------------------
             (Exact name of registrant as specified in its charter)

                     Delaware                                 No. 31-1041397
         -------------------------------                   -------------------
         (State or other jurisdiction of                    (I.R.S. Employer
          incorporation or organization)                   Identification No.)

       4849 Evanswood Drive, Columbus, Ohio                       43229
     ----------------------------------------                   ----------
     (Address of principal executive offices)                   (Zip Code)

Registrant's telephone number, including area code      (614) 431-5800
                                                  --------------------------

Indicate by checkmark 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, and (2) has been subject to the filing
requirements for at least the past 90 days.

                            YES    X         NO
                                 -----           -----


As of the close of the period covered by this report, the registrant had
outstanding 2,403,599 common shares.

<PAGE>   2



                         PART I - FINANCIAL INFORMATION
                          ITEM 1 - FINANCIAL STATEMENTS
                         MAX & ERMA'S RESTAURANTS, INC.
                      CONDENSED BALANCE SHEETS (UNAUDITED)

<TABLE>
<CAPTION>
                                                       February 18,       October 29,
                           ASSETS                         2001               2000
                           ------                      ------------       -----------
<S>                                                   <C>                <C>
Current Assets:
Cash                                                   $ 2,803,918        $ 2,761,842
Inventories                                                987,135            968,118
Other Current Assets                                     1,979,026          2,423,652
                                                       -----------        -----------
Total Current Assets                                     5,770,079          6,153,612

Property - At Cost:                                     71,944,155         68,257,432
Less Accumulated Depreciation and Amortization          25,886,245         24,653,550
                                                       -----------        -----------
Property - Net                                          46,057,910         43,653,550

Other Assets                                             5,890,876          5,394,191
                                                       -----------        -----------
Total                                                  $57,718,865        $55,201,353
                                                       ===========        ===========


          LIABILITIES AND STOCKHOLDERS' EQUITY
          ------------------------------------

Current Liabilities:
Current Maturities of Long-Term Obligations            $ 3,400,417        $ 2,591,331
Accounts Payable                                         3,824,912          5,463,702
Accrued Payroll and Related Taxes                        2,123,313          2,226,319
Accrued Liabilities                                      3,391,964          3,275,966
                                                       -----------        -----------
Total Current Liabilities                               12,740,606         13,557,318

Long-Term Obligations - Less Current Maturities         36,242,466         33,474,483

Stockholders' Equity:
Preferred Stock - $.10 Par Value;
Authorized 500,000 Shares - none outstanding
Common Stock - $.10 Par Value;
Authorized 10,000,000 Shares,
Issued and Outstanding 2,403,599 Shares
   At 2/18/01 and 2,409,403 Shares at 10/29/00             240,359            240,940
Retained Earnings                                        8,495,434          7,928,612
                                                       -----------        -----------
Total Stockholders' Equity                               8,735,793          8,169,552
                                                       -----------        -----------
Total                                                  $57,718,865        $55,201,353
                                                       ===========        ===========
</TABLE>
(See notes to financial statements)


                                                                               1

<PAGE>   3

                         MAX & ERMA'S RESTAURANTS, INC.
                   CONDENSED STATEMENTS OF INCOME (UNAUDITED)

<TABLE>
<CAPTION>
                                                                    Sixteen Weeks Ended
                                                              ---------------------------------
                                                              February 18,         February 20,
                                                                  2001                 2000
                                                              ------------         ------------
<S>                                                          <C>                  <C>
REVENUES:                                                     $ 42,979,261         $ 36,158,721

COSTS AND EXPENSES:
Costs of Goods Sold                                             10,828,992            9,008,925
Payroll and Benefits                                            13,878,423           11,652,476
Other Operating Expenses                                        13,249,276           11,079,382
Pre-Opening Expenses                                               206,292              178,087
Administrative Expenses                                          3,070,650            2,717,633
                                                              ------------         ------------
Total Operating Expenses                                        41,233,633           34,636,503
                                                              ------------         ------------
Operating Income                                                 1,745,628            1,522,218
Interest Expense                                                   857,148              695,245
Minority Interest in Income of Affiliated Partnerships              12,757               38,504
                                                              ------------         ------------
INCOME BEFORE INCOME TAXES AND
  EXTRAORDINARY ITEM                                               875,723              788,469
INCOME TAXES                                                       246,000              238,000
                                                              ------------         ------------
INCOME BEFORE EXTRAORDINARY ITEM                                   629,723              550,469
EXTRAORDINARY LOSS (net of income tax
   benefit of $30,000)                                                                  (45,000)
                                                              ------------         ------------
NET INCOME                                                    $    629,723         $    505,469
                                                              ============         ============

BASIC EARNINGS PER SHARE:
   Income Before Extraordinary Item                           $       0.26         $       0.21
   Extraordinary Loss                                                                     (0.02)
                                                              ------------         ------------
   Net Income                                                 $       0.26         $       0.19
                                                              ============         ============

DILUTED EARNINGS PER SHARE:
   Income Before Extraordinary Item                           $       0.25         $       0.21
   Extraordinary Loss                                                                     (0.02)
                                                              ------------         ------------
   Net Income                                                 $       0.25         $       0.19
                                                              ============         ============

SHARES OUTSTANDING:
   Basic                                                         2,412,994            2,647,897
                                                              ============         ============
   Diluted                                                       2,539,656            2,695,909
                                                              ============         ============
</TABLE>


(See notes to financial statements)

                                                                               2

<PAGE>   4


                         MAX & ERMA'S RESTAURANTS, INC.
                 CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)

<TABLE>
<CAPTION>
                                                                           Sixteen Weeks Ended
                                                                     ---------------------------------
                                                                     February 18,         February 20,
                                                                         2001                 2000
                                                                     ------------         ------------
<S>                                                                 <C>                  <C>
CASH FLOWS FROM  OPERATING ACTIVITIES:
Net income                                                           $    629,723         $    505,459
Depreciation and amortization                                           1,622,928            1,603,148
Extraordinary loss                                                                              45,000
Minority interest in income of Affiliated Partnerships                     12,758               38,503
Changes in other assets and liabilities                                   (55,706)             513,430
                                                                     ------------         ------------
Net cash provided by operating activities                               2,209,703            2,705,540
                                                                     ------------         ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions                                                     (5,569,997)          (7,672,153)
Proceeds from sale of assets                                                3,947           12,868,671
Decrease (increase) in other assets                                        38,874             (131,404)
                                                                     ------------         ------------
Net cash provided (used) by investing activities                       (5,527,176)           5,065,114
                                                                     ------------         ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments under long-term obligations                        (14,808,080)         (25,079,983)
Proceeds from long-term obligations                                    18,285,799           19,467,522
Proceeds from sale of stock                                                20,813               27,098
Purchase of common stock                                                 (138,983)          (1,648,337)
Debt issue costs                                                                               (95,476)
Distributions to minority interests in Affiliated Partnership                                  (38,503)
                                                                     ------------         ------------
Net cash provided (used) by financing activities                        3,359,549           (7,367,679)
                                                                     ------------         ------------

NET INCREASE IN CASH AND EQUIVALENTS                                       42,076              402,975
CASH AND EQUIVALENTS AT
  BEGINNING OF PERIOD                                                   2,761,842            1,318,944
                                                                     ------------         ------------

CASH AND EQUIVALENTS AT END OF PERIOD                                $  2,803,918         $  1,721,919
                                                                     ============         ============

SUPPLEMENTAL DISCLOSURES:
Cash paid during the period for:
  Interest                                                           $  1,465,116         $    575,470
  Income taxes                                                       $    956,788         $    571,661
Non-cash activities:
  Property additions financed by accounts payable                    $  1,016,534         $  1,332,402
  Deferred gain from sales of assets                                                      $    978,344
</TABLE>


                                                                               3

<PAGE>   5

                         MAX & ERMA'S RESTAURANTS, INC.
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (UNAUDITED)

1.       Presentation

         The accompanying unaudited condensed financial statements have been
         prepared in accordance with the instructions to Form 10-Q and include
         all of the information and disclosures required by accounting
         principles generally accepted in the United States of America for
         interim reporting, which are less than those required for annual
         reporting. In the opinion of management, all adjustments, consisting of
         only normal recurring accruals, considered necessary for a fair
         presentation have been included.

         The Company and its Affiliated Partnership each have a 52-53 week
         fiscal year, which ends on the last Sunday in October. Fiscal 2000 and
         2001 each consist of 52 weeks and include one sixteen-week and three
         twelve-week quarters.




                                                                               4

<PAGE>   6



ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL  CONDITION AND RESULTS OF OPERATIONS

REVENUES

         Revenues for the first quarter of 2001 rose $6,820,000 or 19% from the
first quarter of 2000. The increase was a result of i) the opening of seven Max
& Erma's restaurants during 2000, ii) the opening of three Max & Erma's
restaurants during the first quarter of 2001 and, iii) an increase of $1,210,000
or 3.9% in same-store sales for restaurants opened at least 18 months. These
factors offset the loss of sales from two under-performing Max & Erma's, which
were closed during the fourth quarter of 2000 and the closing of the remaining
two Ironwood Cafe restaurants during the first quarter of 2000.

         The same-store sales increase was a result of price increases of
approximately 3.0% over last year, which in addition to a generally higher
average guest check at newer restaurants resulted in a 5.9% increase in the
average per person guest check. The increase in guest check average more than
offset a 1% decline in customer counts. Management believes the decline in
customer counts may be entirely due to reduced coupon discounting as coupon
customers are included in customer count data. A reduction in couponing during
the first quarter of fiscal 2001 would overstate the increase in guest check
average relative to last year. The Company continues to shift its advertising
expenditures away from mass media and discounting and toward local store,
relationship-based marketing. Same-store sales have now been positive for seven
consecutive quarters.

         The Company expects to open three to four additional Company-owned
restaurants during the remainder of 2001. Two restaurants were under
construction at the end of the first quarter with an additional four under lease
or contract to purchase. The Company expects to open six to seven restaurants
during 2002.

         The Company also expects increased franchise fees and royalties in
2001. At the end of fiscal 2000 five franchised restaurants were in operation.
During the first quarter of 2001 the Company signed franchise agreements for
four restaurants in the Milwaukee-Green Bay market and single locations at the
Dayton, Ohio airport and Sandusky, Ohio. At least three additional franchised
restaurants are expected to open during 2001. The Company has several other
franchise agreements under negotiation.


COSTS AND EXPENSES

         Cost of goods sold, as a percentage of revenues, increased from 24.9%
for the first quarter of 2000 to 25.2% for the first quarter of 2001. The
increase was a result of higher ground beef, chicken and dairy prices and offset
the effect of an approximate 3% menu price increase. Most other inventory costs
remained relatively stable.

         Payroll and benefits, as a percentage of revenues, remained relatively
constant at 32.3% for the first quarter of 2001 as compared to 32.2% for the
first quarter of 2000. This occurred despite three restaurant openings during
the first quarter of 2001 as compared to two openings in the first quarter of
2000. The current year's opening may have had less effect on payroll and
benefits, as a percentage of revenues, because they opened early in the quarter
and therefore had a period of time to become more


                                                                               5

<PAGE>   7

efficient. Overall there has also been a leveling off of wage rates. This
factor, in addition to higher sales at new restaurants and positive same-store
sales at older restaurants has allowed payroll and benefits expense to
stabilize.

         Other operating expenses, as a percentage of revenues, increased from
30.6% for the first quarter of 2000 to 30.8% for the first quarter of 2001. The
increase was a result of increased utility costs and higher occupation costs,
which offset reduced advertising and direct operating expenses.

         Pre-opening expenses, as a percentage of revenues, remained steady at
 .5% for both the first quarter of 2000 and 2001. Pre-opening costs are expensed
as incurred. The percentage of revenues remained steady despite one extra
opening during the first quarter of 2001 due to the higher revenue base in 2001.


ADMINISTRATIVE EXPENSES

         Administrative expenses, as a percentage of revenues, declined from
7.5% for the first quarter of 2000 to 7.1% for the first quarter of 2001.
Administrative expenses increased 13% in dollars from the first quarter of 2000
to the first quarter of 2001 due to raises for corporate personnel and
additional personnel to support the Company's growth and franchising. Management
expects that administrative expenses, as a percentage of revenues, will continue
to decline gradually throughout 2001.


INTEREST EXPENSE

         Interest expense increased 23% from the first quarter of 2000 to the
first quarter of 2001 due to increased borrowings under the Company's revolving
credit line to repurchase its common stock and fund development of additional
restaurants and due to higher interest rates. At February 18, 2001 the interest
rate under the Company's term note and revolving credit line was 10% and 9.25%,
respectively, as compared to 9.0% at February 20, 2000. Total interest-bearing
debt was $33.3 million at February 18, 2001 as compared to $24.2 million at
February 20, 2000. The Company capitalized $138,000 and $110,000 of construction
period interest during the first quarter of 2001 and 2000, respectively.


INCOME TAXES AND EXTRAORDINARY LOSS

         The Company's effective tax rate declined from 30.2% for the first
quarter of 2000 to 28.1% for the first quarter of 2001 due to higher FICA tax on
tips credit. During the first quarter of 2000 the Company repaid a $5.2 million
mortgage. As a result, the Company recognized an extraordinary charge of $45,000
($0.02 per diluted share) net of approximately $30,000 of income tax savings
related to the write-off of unamortized loan fees.


LIQUIDITY AND CAPITAL RESOURCES

         The Company's working capital ratio remained to .5 to 1 at October 29,
2000 and February 18, 2001. Historically, the Company has been able to operate
with a working capital deficiency because


                                                                               6

<PAGE>   8

1) restaurant operations are primarily conducted on a cash basis, 2) high
turnover (about once every 10 days) permits a limited investment in inventory,
and 3) trade payables for food purchases usually become due after receipt of
cash from the related sales.

         During the first quarter of 2001, the Company expended approximately
$5,570,000 for property additions, $14,808,000 to reduce long-term obligations
and $139,000 to repurchase approximately 16,000 shares of its common stock.
Funds for such expenditures were provided primarily by $18,286,000 from proceeds
of long-term obligations and $2,210,000 from operations. The Company routinely
draws down and repays balances under its revolving credit agreement, the gross
amounts of which are included in the above numbers.

         At February 18, 2001, the Company was committed to the opening of three
to four Max & Erma's restaurants during the remainder of 2001 and six to seven
Max & Erma's restaurants during fiscal 2002. At February 18, 2001 six sites were
under contract to purchase or lease, two of which were under construction. Four
additional sites had been approved and were in some stage of negotiations.

         Funding for new restaurants is expected to be provided by cash flow
from operations, the sale-leaseback of real estate, equipment leasing and the
Company's revolving credit line. At February 18, 2001, the Company had
approximately $7.1 million available under its $40.0 million revolving credit
line, approximately $22.0 million available under a sale-leaseback commitment
for 10 properties and approximately $2.8 million available under equipment lease
commitments.

         The Company extended the expiration date of an authorized repurchase of
500,000 shares of its common stock from October 31, 2000 to October 31, 2001. At
February 18, 2001 approximately 150,000 shares remain available for repurchase
under the authorization. Funds for the repurchase of common stock will be
provided by cash from operations and the Company's revolving credit line.


SAFE HARBOR STATEMENT UNDER THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995

         This Management's Discussion and Analysis of Financial Condition and
Results of Operations ("MD&A") contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and
Section 27A of the Securities Act of 1933, as amended. The words "plan,"
"anticipate," "believe," "expect," "estimate," and "project" and similar words
and expressions identify forward-looking statements which speak only as of the
date hereof. Forward-looking statements in this MD&A include statements
regarding the opening of additional restaurants (paragraphs 3 and 14), increased
franchise fees and royalties and the opening of franchised locations (paragraph
4), future declines in administrative expenses (paragraph 9), the source of
funds for developing new restaurants (paragraph 15) and the repurchase of common
stock (paragraph 16).

         Investors are cautioned that forward-looking statements involve risks
and uncertainties that could cause actual results to differ materially from
historical or anticipated results due to many factors, including, but not
limited to, the Company's ability to open or franchise new restaurants as
planned, changes in competition in markets where the Company operates
restaurants, the availability of restaurant workers, the Company's ability to
control administrative expenses, changes in interest rates, changes in



                                                                               7

<PAGE>   9

cash flows from operations, the availability of real estate for purchase or
lease, and other risks, uncertainties and factors described in the Company's
most recent Annual Report on Form 10-K and other filings from time to time with
the Securities and Exchange Commission. The Company undertakes no obligation to
publicly update or revise any forward-looking statements.


PART II - OTHER INFORMATION*

Item 6 - EXHIBITS AND REPORTS ON FORM 8-K

     (a)  Exhibits

          The exhibits listed in the accompanying index to exhibits on page 12
are filed as part of this report.

     (b)  Reports on Form 8-K

          None


                                                                               8

<PAGE>   10



                                   SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                             MAX & ERMA'S RESTAURANTS, INC.
                                             ------------------------------
                                             Registrant



                                             Todd B. Barnum
                                             ------------------------------
                                             Todd. B. Barnum
                                             Chairman of the Board
                                             (Chief Executive Officer)



                                             William C. Niegsch, Jr.
                                             ------------------------------
                                             William C. Niegsch, Jr.
                                             Executive Vice President &
                                             Chief Financial Officer




    March 29, 2001
----------------------
         Date





                                                                               9

<PAGE>   11



                          MAX & ERMA'S RESTAURANTS INC.

                                  EXHIBIT INDEX



Exhibit No.             Exhibit                       Page No.
-----------             -------                       --------

    2                   Not applicable

    3                   Not applicable

    4                   Not applicable

   11                   Not applicable

   15                   Not applicable

   18                   Not applicable

   19                   Not applicable

   22                   Not applicable

   23                   Not applicable

   24                   Not applicable


                                                                             10