<PAGE>   1
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                    FORM 10-Q

(MARK ONE)

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

For the quarterly period ended    April 22, 2001
                                ------------------

                                       OR

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

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


Commission file number   333-57925
                       -------------


                             The Restaurant Company
--------------------------------------------------------------------------------
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)


           Delaware                                       62-1254388
--------------------------------------------------------------------------------
(STATE OR OTHER JURISDICTION OF             (I.R.S. EMPLOYER IDENTIFICATION NO.)
 INCORPORATION OR ORGANIZATION)


6075 Poplar Avenue, Suite 800, Memphis, TN                   38119
--------------------------------------------------------------------------------
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)                  (ZIP CODE)


                                 (901) 766-6400
--------------------------------------------------------------------------------
              (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)

         Indicate by [X] 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 [ ]


<PAGE>   2

                         PART I - FINANCIAL INFORMATION
                          ITEM 1. FINANCIAL STATEMENTS
                     THE RESTAURANT COMPANY AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)
                                 (In Thousands)


<TABLE>
<CAPTION>
                                          Quarter Ended
                                     --------------------------
                                     April 22,        March 31,
                                       2001             2000
                                     ---------        --------
<S>                                  <C>              <C>
REVENUES:
   Food sales                        $  93,689        $ 75,491
   Franchise and other revenue           6,878           5,414
                                     ---------        --------
Total Revenues                         100,567          80,905
                                     ---------        --------
COSTS AND EXPENSES:
Cost of sales:
   Food cost                            26,083          21,206
   Labor and benefits                   32,471          26,793
   Operating expenses                   19,714          14,844
General and administrative               9,548           8,195
Depreciation and amortization            7,244           5,490
Interest, net                            5,602           4,424
Loss on disposition of assets               72              --
Other, net                                (393)           (349)
                                     ---------        --------
Total Costs and Expenses               100,341          80,603
                                     ---------        --------
Income before income taxes                 226             302
Provision for income taxes                 (75)            (93)
                                     ---------        --------
NET INCOME                           $     151        $    209
                                     =========        ========
</TABLE>

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






                                       2
<PAGE>   3

                     THE RESTAURANT COMPANY AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                                 (In Thousands)

<TABLE>
<CAPTION>
                                                             April 22,
                                                                2001     December 31,
                                                            (Unaudited)     2000
                                                             ---------    ---------
<S>                                                         <C>          <C>
                                 ASSETS

CURRENT ASSETS:
Cash and cash equivalents                                    $   5,995    $   5,361
Receivables, less allowance for
  doubtful accounts of $643 and $563                             8,238        8,376
Inventories, at the lower of first-in,
  first-out cost or market                                       4,931        5,096
Prepaid expenses and other current assets                        1,894        1,508
Deferred income taxes                                              775          775
                                                             ---------    ---------
                                  Total current assets          21,833       21,116
                                                             ---------    ---------
PROPERTY AND EQUIPMENT, at cost, net of
   accumulated depreciation and amortization                   139,890      140,036

INTANGIBLE ASSETS, net of accumulated
   amortization of $35,594 and $34,830                          33,931       34,566

NOTES RECEIVABLE                                                 1,126        1,064

DEFERRED INCOME TAXES                                            4,925        4,925

OTHER ASSETS                                                     8,324        8,805
                                                             ---------    ---------
                                                             $ 210,029    $ 210,512
                                                             =========    =========
</TABLE>


              The accompanying notes are an integral part of these
                          consolidated balance sheets.




                                       3
<PAGE>   4

                     THE RESTAURANT COMPANY AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                      (In Thousands, Except Share Amounts)


<TABLE>
<CAPTION>
                                                             April 22,
                                                                2001     December 31,
                                                            (Unaudited)     2000
                                                             ---------    ---------
<S>                                                         <C>          <C>
LIABILITIES AND STOCKHOLDER'S INVESTMENT

CURRENT LIABILITIES:
 Current maturities of capital lease obligations             $     984    $     971
 Accounts payable                                               10,771       13,039
 Accrued expenses                                               22,207       20,990
                                                             ---------    ---------
                                Total current liabilities       33,962       35,000
                                                             ---------    ---------
CAPITAL LEASE OBLIGATIONS, less
  current maturities                                             2,757        3,069

LONG-TERM DEBT                                                 169,204      168,080

OTHER LIABILITIES                                                5,707        6,115

STOCKHOLDER'S INVESTMENT:
Common stock $.01 par value, 100,000 shares authorized,
  10,820 issued and outstanding                                      1            1
Accumulated deficit                                             (1,602)      (1,753)
                                                             ---------    ---------
                               Total stockholder's deficit      (1,601)      (1,752)
                                                             ---------    ---------
                                                             $ 210,029    $ 210,512
                                                             =========    =========
</TABLE>


              The accompanying notes are an integral part of these
                          consolidated balance sheets.




                                       4
<PAGE>   5

                     THE RESTAURANT COMPANY AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                 (In Thousands)


<TABLE>
<CAPTION>
                                                               Quarter Ended
                                                           --------------------
                                                           April 22,  March 31,
                                                             2001       2000
                                                            -------    -------
<S>                                                        <C>        <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                                  $   151    $   209
Adjustments to reconcile net income to net cash
  provided by operating activities:
    Depreciation and amortization                             7,244      5,490
    Accretion of interest on Senior Discount Notes              875        634
    Other non-cash income and expense items                     125        111
    Loss on disposition of assets                                72         --
    Net changes in other operating assets and liabilities    (1,477)      (319)
                                                            -------    -------
      Total adjustments                                       6,839      5,916
                                                            -------    -------
Net cash provided by operating activities                     6,990      6,125
                                                            -------    -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash paid for property and equipment                         (6,384)    (4,062)
Cash paid for acquisition of franchised restaurants              --     (5,902)
Proceeds from sale of property and equipment                     --        423
Payments on notes receivable                                     78         36
                                                            -------    -------
Net cash used in investing activities                        (6,306)    (9,505)
                                                            -------    -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from long-term debt                                250      3,750
Principal payments under capital lease obligations             (300)      (258)
                                                            -------    -------
Net cash provided by (used in) financing activities             (50)     3,492
                                                            -------    -------
Net increase in cash and cash equivalents                       634        112
                                                            -------    -------
CASH AND CASH EQUIVALENTS:
Balance, beginning of period                                  5,361      2,908
                                                            -------    -------
Balance, end of period                                      $ 5,995    $ 3,020
                                                            =======    =======
</TABLE>






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




                                       5
<PAGE>   6

                     THE RESTAURANT COMPANY AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

Organization

The Restaurant Company (the "Company," "Perkins," or "TRC") is a wholly-owned
subsidiary of The Restaurant Holding Corporation ("RHC"). TRC conducts business
under the name "Perkins Restaurant and Bakery". TRC is also the sole stockholder
of TRC Realty LLC, The Restaurant Company of Minnesota ("TRCM") and Perkins
Finance Corp. RHC is owned by Donald N. Smith ("Mr. Smith"), TRC's Chairman and
Chief Executive Officer, and BancBoston Ventures, Inc. Mr. Smith is also the
Chairman and Chief Executive Officer of Friendly Ice Cream Corporation ("FICC"),
which operates and franchises approximately 575 restaurants, located primarily
in the northeastern United States. Mr. Smith owns 9.3% of the common stock of
FICC.

Basis of Presentation

The accompanying unaudited consolidated financial statements of TRC have been
prepared in accordance with the instructions to Form 10-Q and therefore do not
include all information and notes necessary for complete financial statements in
conformity with generally accepted accounting principles. The results for the
periods indicated are unaudited but reflect all adjustments (consisting only of
normal recurring adjustments) which management considers necessary for a fair
presentation of the operating results. Results of operations for the interim
periods are not necessarily indicative of a full year of operations. The notes
to the financial statements contained in the 2000 Annual Report on Form 10-K
should be read in conjunction with these statements.

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

Change in Accounting Reporting Period

Effective January 1, 2001, the Company converted its financial reporting from a
calendar year basis to thirteen four-week periods ending on the last Sunday in
December. The first quarter each year will include four four-week periods. The
first quarter of 2001 ended on April 22, 2001. The remaining quarters will end
on July 15, October 7 and December 30.

Contingencies

The Company is a party to various legal proceedings in the ordinary course of
business. Management does not believe it is likely that these proceedings,
either individually or in the aggregate, will have a material adverse effect on
the Company's financial position or results of operations.

In the past, the Company has sponsored financing programs offered by certain
lending institutions to assist its franchisees in procuring funds for the
construction of new franchised restaurants and to purchase and install in-store
bakeries. The Company provides a limited guaranty of funds borrowed. At April
22, 2001, there were $1,772,000 in borrowings outstanding under these programs,
approximately $800,000 of which are guaranteed by the Company. No additional
borrowings are available under these programs.




                                       6
<PAGE>   7

On June 9, 2000, the Company entered into a separate agreement to guarantee
fifty percent of borrowings up to a total guarantee of $1,500,000 for use by a
franchisee to remodel and upgrade existing restaurants. As of April 22, 2001,
there were $1,841,000 in borrowings outstanding under this agreement of which
$921,000 were guaranteed by the Company.

Supplemental Cash Flow Information

The increase or decrease in cash and cash equivalents due to changes in
operating assets and liabilities for the quarters ended April 22 and March 31,
consisted of the following (in thousands):

<TABLE>
<CAPTION>
                                               Quarter Ended
                                          ------------------------
                                          April 22,      March 31,
                                            2001           2000
                                           -------        -------
<S>                                       <C>            <C>
         (Increase) Decrease in:
            Receivables                    $    14        $  (502)
            Inventories                        165            395
            Prepaid expenses and
              other current assets            (386)          (718)
            Other assets                       190         (1,333)

         Increase (Decrease) in:
            Accounts payable                (2,268)        (1,779)
            Accrued expenses                 1,217          2,161
            Other liabilities                 (409)         1,457
                                           -------        -------
                                           $(1,477)       $  (319)
                                           =======        =======
</TABLE>

Other supplemental cash flow information was as follows (in thousands):


<TABLE>
<CAPTION>
                                               Quarter Ended
                                          ------------------------
                                          April 22,      March 31,
                                            2001           2000
                                           -------        -------
<S>                                       <C>            <C>
         Cash paid for interest            $   307        $   256
         Income taxes paid                     587            248
         Income tax refunds received            16              1
</TABLE>





                                       7
<PAGE>   8

Segment Reporting

The following presents revenues and other financial information by business
segment for the periods ended April 22 and March 31 (in thousands):

2001:

<TABLE>
<CAPTION>
                           Restaurants   Franchise   Manufacturing    Other           Totals
                           -----------   ---------   -------------    -----           ------
<S>                        <C>           <C>         <C>             <C>             <C>
Revenues from
    external customers       $84,873       $6,682       $8,754       $    258        $100,567
Intersegment revenues             --           --        2,617             --           2,617
Segment profit (loss)          8,046        5,670        1,900        (15,465)            151
</TABLE>


2000:

<TABLE>
<CAPTION>
                           Restaurants   Franchise   Manufacturing    Other           Totals
                           -----------   ---------   -------------    -----           ------
<S>                        <C>           <C>         <C>             <C>             <C>
Revenues from
   external customers        $68,689       $5,263       $6,802       $    151        $ 80,905
Intersegment revenues             --           --        2,350             --           2,350
Segment profit (loss)          6,875        4,598        1,393        (12,657)            209
</TABLE>


A reconciliation of other segment loss is as follows (in thousands):

<TABLE>
<CAPTION>
                                               2001            2000
                                             --------        --------
<S>                                          <C>             <C>
General and administrative expenses          $  8,167        $  7,097
Depreciation and amortization expenses          1,862           1,487
Interest expense                                5,602           4,424
Loss on disposition of assets                      72              --
Income tax expense                                 75              93
Other                                            (313)           (444)
                                             --------        --------
                                             $ 15,465        $ 12,657
                                             ========        ========
</TABLE>


                                       8
<PAGE>   9

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS FOR THE FIRST QUARTER ENDED APRIL 22, 2001


RESULTS OF OPERATIONS

Overview:

The Company is a leading operator and franchisor of mid-scale restaurants
located in 35 states and 4 Canadian provinces. As of April 22, 2001, the Company
owned and operated 144 restaurants and franchised 350 restaurants. Both the
Company operated restaurants and franchised restaurants operate under the names
"Perkins Restaurant and Bakery," "Perkins Family Restaurant," "Perkins Family
Restaurant and Bakery," or "Perkins Restaurant" and the mark "Perkins." The
Company also manufactures and distributes bakery products which are sold to
Company-operated restaurants, franchisees, third-party bakers and food
distributors. The business of Perkins was founded in 1958, and since then
Perkins has continued to adapt its menus, product offerings, building designs
and decor to meet changing consumer preferences. Perkins is a highly recognized
brand in the geographic areas it serves.

The Company's revenues are derived primarily from the operation of Company-owned
restaurants, the sale of bakery products produced by its manufacturing division,
Foxtail Foods ("Foxtail"), and franchise fees. In order to ensure consistency
and availability of Perkins' proprietary products to each unit in the system,
Foxtail offers cookie doughs, muffin batters, pancake mixes, pies and other food
products to Company-operated and franchised restaurants through food service
distributors. Additionally, it produces a variety of non-proprietary products
for sale in various retail markets. Sales to Company-operated restaurants are
eliminated in the accompanying statements of income. In the quarter ended April
22, 2001, revenues from Company-operated restaurants, Foxtail and franchise and
other accounted for 84.5%, 8.7% and 6.8% of total revenues, respectively.

TRC leases an executive aircraft through TRC Realty LLC. The aircraft is
operated for the benefit of, and all operating costs are reimbursed by, TRC and
FICC. Revenue received from FICC is included in franchise and other revenues in
the accompanying statements of income.




                                       9
<PAGE>   10

A summary of the Company's results for the quarters ended April 22, 2001 and
March 31, 2000 are presented in the following table. All revenues, costs and
expenses are expressed as a percentage of total revenues. Certain prior year
amounts have been reclassified to conform to current year presentation.

<TABLE>
<CAPTION>
                                                  Quarter Ended
                                              ------------------------
                                              April 22,      March 31,
                                                2001           2000
                                               ------         ------
<S>                                           <C>            <C>
         Revenues:
            Food sales                           93.2%          93.3%
            Franchise and other revenues          6.8            6.7
                                               ------         ------
         Total Revenues                         100.0          100.0
                                               ------         ------
         Costs and Expenses:
          Cost of sales:
               Food cost                         25.9           26.2
               Labor and benefits                32.3           33.1
               Operating expenses                19.6           18.3
          General and administrative              9.5           10.1
          Depreciation and amortization           7.2            6.8
          Interest, net                           5.6            5.5
          Loss on disposition of assets           0.1             --
          Other, net                             (0.4)          (0.4)
                                               ------         ------
         Total Costs and Expenses                99.8           99.6
                                               ------         ------
         Income before income taxes               0.2            0.4
         Provision for income taxes              (0.1)          (0.1)
                                               ------         ------
         Net Income                               0.1%           0.3%
                                               ======         ======
</TABLE>


Net income for the first quarter of 2001 was $151,000 versus $209,000 for the
first quarter of 2000.




                                       10
<PAGE>   11

Revenues:

Total revenues for the first quarter of 2001 increased 24.3% over the first
quarter of last year primarily due to the change in accounting reporting period
resulting in 112 days in the first quarter of 2001 versus 91 days in the first
quarter of 2000.

Same store comparable sales decreased approximately 2.2% due to a 6.1% decline
in comparable guest visits. This decrease was partially offset by an increase in
the guest check average due to cumulative price increases and higher prices on
promotional items.

Revenues from Foxtail increased approximately 28.7% over the three months ended
March 31, 2000, and constituted approximately 8.7% of the Company's revenues.
The increase is primarily due to a greater number of days in the first quarter
of 2001. Sales outside the Perkins system have remained stable; however,
Foxtail's sales results are directly impacted by the decrease in sales in system
restaurants.

Franchise and other revenues increased 27.0% over the first quarter of 2000.
During the first quarter of 2001, five new franchised restaurants opened and one
franchised restaurant closed. Since the first quarter of 2000, twenty-one new
franchised restaurants opened, five franchised restaurants closed and one
formerly franchised restaurant was converted to a Company-operated restaurant.
The net increase in the number of franchised restaurants and the greater number
of days in the first quarter of 2001 led to an increase in royalty revenue. An
estimated decrease in franchise comparable sales similar to the decrease
experienced by Company-operated restaurants impacted royalty income as well.

Costs and Expenses:

Food cost:

In terms of total revenues, food cost for the quarter ended April 22, 2001,
decreased 0.3 percentage points over the first quarter of 2000 due to decreased
food cost for both Foxtail and the restaurant division. For the restaurant
division, a change to a lower cost soup product, decreased commodity cost for
bacon and successful promotion of higher gross margin products contributed to
the decrease. Increased commodity cost and an upgrade in quality of certain
seafood items partially offset the favorable variance. Foxtail's food cost
decreased as a result of stable commodity costs and an increase in sales of
higher gross margin products.

Labor and benefits:

Labor and benefits expense, as a percentage of total revenues, decreased 0.8
percentage points for the quarter ended April 22, 2001 as compared to the first
quarter of 2000. This decrease was the result of improved productivity and an
increase in the average guest check. Reduced group insurance costs also
contributed to the improvement in margins. An increase in average wage rate
partially offset these favorable variances. Labor for Foxtail remained stable as
increased labor costs were offset by the production of higher margin products
and improvements in productivity.

The wage rates of the Company's hourly employees are impacted by Federal and
state minimum wage laws. Certain states do not allow tip credits for servers
which results in higher payroll costs as well as greater exposure to increases
in minimum wage rates. In the past, the Company has been able to offset
increases in labor costs through selective menu price increases and improvements
in labor productivity. However, there is no assurance that future increases can
be mitigated through raising menu prices.




                                       11
<PAGE>   12

Operating expenses:

Operating expenses, expressed as a percentage of total revenues for the quarter
increased 1.3 percentage points. This increase is primarily due to the impact of
rising natural gas costs. Increases in various franchise operating expenses also
contributed to this increase.

General and administrative:

General and administrative expenses, as a percentage of total revenues for the
quarter, decreased 0.6 percentage points primarily due to decreased incentive
compensation costs. Incentive compensation cost decreased as a result of Company
performance falling below planned expectations.

Depreciation and amortization:

As a result of the decline in comparable restaurant sales, the addition of new
Company-operated restaurants and continued investment in restaurant imagery,
depreciation and amortization expense, as a percentage of total revenues,
increased 0.4 percentage points over the first quarter of 2000. Four
Company-operated restaurants have opened since the first quarter of 2000.

Interest, net:

Interest expense, as a percentage of revenues, increased 0.1 percentage points
over the first quarter of 2000. The increase is the result of the increased
average borrowings and higher variable interest rates on the Company's revolving
line of credit.

CAPITAL RESOURCES AND LIQUIDITY

The principal use of cash during the quarter ended April 22, 2001, was capital
expenditures. Capital expenditures consisted primarily of land, building and
equipment purchases for new Company-operated restaurants, restaurant maintenance
and costs related to remodels of existing restaurants. The Company's primary
source of funding was cash provided by operations.

The following table summarizes capital expenditures for the quarters ended April
22, 2001 and March 31, 2000 (in thousands):

<TABLE>
<CAPTION>
                                             Quarter Ended
                                        -----------------------
                                        April 22,     March 31,
                                           2001         2000
                                          ------       ------
<S>                                     <C>           <C>
         New restaurants                  $3,598       $7,279
         Maintenance                       1,103          360
         Remodeling and Reimaging            832        1,183
         Manufacturing                       125          117
         Other                               726        1,025
                                          ------       ------
         Total Capital Expenditures       $6,384       $9,964
                                          ======       ======
</TABLE>







                                       12
<PAGE>   13

The Company's capital budget for 2001 is $28.7 million which includes plans to
open eight additional Company-operated restaurants by year end. The remaining
capital budget will be primarily applied to remodels of existing restaurants,
restaurant maintenance and improvements to the Company's infrastructure
equipment. The primary source of funding for these projects is expected to be
cash provided by operations and borrowings under the Company's line of credit.
Capital spending could vary significantly from planned amounts as certain of
these expenditures are discretionary in nature.

The Company has a secured $50,000,000 revolving line of credit facility (the
"Credit Facility") with a sublimit for up to $5,000,000 of letters of credit.
The Credit Facility was amended on March 31, 2000 to modify covenant
requirements and extend the maturity date to January 1, 2005. As a result of
extending the maturity date and covenant modifications, borrowing rates were
increased to current market rates. All amounts under the facility will bear
interest at floating rates based on the agent's base rate or Eurodollar rates as
defined in the agreement. All indebtedness under the Credit Facility is secured
by a first priority lien on substantially all of the assets of the Company. As
of April 22, 2001, $14,000,000 in borrowings and approximately $1,065,000 of
letters of credit were outstanding under the facility.

The Company's ability to make scheduled payments of principal of, or to pay the
interest or liquidated damages, if any, on, or to refinance, its indebtedness,
or to fund planned capital expenditures will depend on the Company's future
performance, which, to a certain extent, is subject to general economic,
financial, competitive, legislative, regulatory and other factors that are
beyond its control. Based upon the current level of operations, management
believes that cash flow from operations and available cash, together with
available borrowings under the Credit Facility, will be adequate to meet the
Company's liquidity needs for the immediate future. The Company may, however,
need to recapitalize or refinance all or a portion of the principal of its
senior notes on or prior to maturity. There can be no assurance that the Company
will generate sufficient cash flow from operations, have access to capital
markets or that future borrowings will be available in an amount sufficient to
enable the Company to service its indebtedness or to fund its other liquidity
needs. In addition, there can be no assurance that the Company will be able to
effect any such recapitalization or refinancing on commercially reasonable terms
or at all.

SEASONALITY

Company revenues are subject to seasonal fluctuations. Customer counts (and
consequently revenues) are highest in the summer months and lowest during the
winter months because of the high proportion of restaurants located in states
where inclement weather adversely affects guest visits.

Forward-Looking Statements

This discussion contains forward-looking statements within the meaning of The
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements are based on current expectations that are subject to known and
unknown risks, uncertainties and other factors that could cause actual results
to differ materially from those contemplated by the forward-looking statements.
Such factors include, but are not limited to, the following: general economic
conditions, competitive factors, consumer taste and preferences and adverse
weather conditions. The Company does not undertake to publicly update or revise
the forward-looking statements even if experience or future changes make it
clear that the projected results expressed or implied therein will not be
realized.




                                       13
<PAGE>   14

ITEM 2A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk

The Company currently has market risk sensitive instruments related to interest
rates. The Company is not subject to significant exposure for changing interest
rates on its senior notes because the interest rates are fixed. The Company has
in place a $50,000,000 line of credit facility which matures on January 1, 2005.
All borrowings under the facility bear interest at floating rates based on the
agent's base rate or Eurodollar rates. The Company had $14,000,000 outstanding
under the line of credit facility at April 22, 2001. While changes in market
interest rates would affect the cost of funds borrowed in the future, the
Company believes that the effect, if any, of reasonably possible near-term
changes in interest rates on the Company's consolidated financial position,
results of operations or cash flows would not be material.

Commodity Price Risk

Many of the food products purchased by the Company are affected by commodity
pricing and are, therefore, subject to price volatility caused by weather,
production problems, delivery difficulties and other factors which are outside
the control of the Company. The Company's supplies and raw materials are
available from several sources and the Company is not dependent upon any single
source for these items. If any existing suppliers fail, or are unable to deliver
in quantities required by the Company, the Company believes that there are
sufficient other quality suppliers in the marketplace that its sources of supply
can be replaced as necessary. At times, the Company enters into purchase
contracts of one year or less or purchases bulk quantities for future use of
certain items in order to control commodity pricing risks. Certain significant
items that could be subject to price fluctuations are beef, pork, coffee, eggs,
wheat products and corn products. The Company believes it will be able to pass
through increased commodity costs by adjusting menu pricing in most cases.
Additionally, the Company's product offerings and marketing events are
relatively diverse. Therefore, the Company has the flexibility to adjust its
product mix to take advantage of or limit exposure to commodity cost
fluctuations. The Company believes that any changes in commodity pricing which
cannot be offset by changes in menu pricing, or other product delivery
strategies, would not be material.




                                       14
<PAGE>   15

PART II - OTHER INFORMATION

                    Item 6. Exhibits and Reports on Form 8-K

(a)    Exhibits - None

(b)    Reports on Form 8-K -  None

Signature

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.


                                    THE RESTAURANT COMPANY



DATE: June 6, 2001                  BY: /s/ Steven R. McClellan
      ------------                      ----------------------------------------
                                    Steven R. McClellan
                                    Executive Vice President, Chief
                                    Financial Officer and Director


                                    BY: /s/ Louis C. Jehl
                                       -----------------------------------------
                                    Louis C. Jehl
                                    Vice President and Controller