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                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549
                            ------------------------
                                   FORM 10-K
(MARK ONE)

<TABLE>
<C>        <S>
   /X/     ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
           SECURITIES EXCHANGE ACT OF 1934
</TABLE>

                   FOR THE FISCAL YEAR ENDED OCTOBER 1, 2000
                                       OR

<TABLE>
<C>        <S>
   / /     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
           SECURITIES EXCHANGE ACT OF 1934
</TABLE>

    FOR THE TRANSITION PERIOD FROM __________________ TO __________________

                         COMMISSION FILE NUMBER 1-9573
                         ------------------------------
                           UNO RESTAURANT CORPORATION

             (Exact name of registrant as specified in its charter)

<TABLE>
<S>                                                  <C>
                  DELAWARE                                            04-2953702
          (State of incorporation)                         (IRS Employer Identification No.)

100 CHARLES PARK ROAD, WEST ROXBURY, MA 02132                            02132
  (Address of principal executive offices)                            (zip code)
</TABLE>

                                 (617) 323-9200
              (Registrant's telephone number, including area code)

    Securities registered pursuant to Section 12(b) of the Act:

<TABLE>
<S>                                                  <C>
             TITLE OF EACH CLASS                       NAME OF EACH EXCHANGE ON WHICH REGISTERED
        Common Stock, $.01 par value                            New York Stock Exchange
</TABLE>

          Securities registered pursuant to Section 12(g) of the Act:
                                      NONE
                                (Title of Class)
                         ------------------------------

    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 / /

    Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. / /

    The aggregate market value of the registrant's Common Stock, $.01 par value,
held by non-affiliates of the registrant as of December 1, 2000, was $34,846,043
based on the closing price of $8.31 on that date on the New York Stock Exchange.
As of December 1, 2000, 10,988,596 shares of the registrant's Common Stock, $.01
par value, were outstanding. All share, per share and share price data included
in this report have been adjusted for a 10% stock dividend declared on
November 30, 1999 and paid on December 23, 1999 to shareholders of record on
December 13, 1999.

                      DOCUMENTS INCORPORATED BY REFERENCE

    Portions of the registrant's Proxy Statement for the Annual Meeting of
Stockholders to be held on February 28, 2001 which will be filed within
120 days after the end of the registrant's fiscal year, are incorporated by
reference in Part III of this report. Portions of the registrant's Registration
Statement on Form S-1 (Registration No. 33-13100) (the "1987 Registration
Statement"), the registrant's Annual Report on Form 10-K for the fiscal year
ended September 30, 1990, the registrant's Annual Report on Form 10-K for the
fiscal year ended September 29, 1991, the registrant's Annual Report on
Form 10-K for the fiscal year ended October 2, 1994, the registrant's Annual
Report on Form 10-K for the fiscal year ended October 1, 1995, the registrant's
Annual Report on Form 10-K for the fiscal year ended September 29, 1996, the
registrant's Annual Report on Form 10-K for the fiscal year ended September 28,
1997, the registrant's Annual Report on Form 10-K for the fiscal year ended
September 27, 1998, the registrant's Quarterly Report on Form 10-Q for the
fiscal quarter ended April 2, 1995, the registrant's Proxy Statement for the
Annual Meeting of Stockholders held on February 22, 1994, the registrant's Proxy
Statement for the Annual Meeting of Stockholders held on February 8, 1995, the
registrant's Proxy Statement for the Annual Meeting of Stockholders held on
February 26, 1997, the registrant's Proxy Statement for the Annual Meeting of
Stockholders held on February 26, 1998, the registrant's Proxy Statement for the
Annual Meeting of Stockholders held on February 23, 1999 and the registrant's
Registration Statement on Form S-2 (Registration No. 333-86765) (the "1999
Registration Statement") are incorporated by reference in Part IV of this
Report.

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                                     PART I

ITEM 1. BUSINESS

GENERAL AND DEVELOPMENTS DURING FISCAL YEAR 2000

    We currently own and operate 111 and franchise 66 casual dining,
full-service restaurants operating primarily under the name Pizzeria
Uno...Chicago Bar & Grill. Our restaurants offer a diverse, high quality menu at
moderate prices in a casual, friendly atmosphere. The restaurants feature our
signature Chicago-style, deep-dish pizza and a selection of baked, grilled and
sauteed entrees, including gourmet thin crust pizza, pasta, fajitas, ribs, steak
and chicken, as well as a variety of appetizers, salads, sandwiches and
desserts. Company-owned restaurants are located primarily in major metropolitan
markets from New England to Virginia, as well as Florida, Chicago and Denver,
and franchised restaurants are located throughout the United States and Puerto
Rico as well as Seoul, South Korea, Lahore, Pakistan and Dubai, United Arab
Emirates.

    The original "Pizzeria Uno" restaurant was founded in 1943 by the late Ike
Sewell at the corner of Ohio and Wabash Avenues in Chicago, Illinois.
Mr. Sewell is considered the originator of Chicago-style, deep-dish pizza. In
1979, we acquired the rights to the names "Uno," "Pizzeria Uno" and "Pizzeria
Due" from Mr. Sewell and opened our first Pizzeria Uno restaurant.

    In response to changing customer demands and preferences, our concept has
evolved over the years as we have strengthened our brand loyalty and leveraged
the appeal of our Chicago-style, deep-dish pizza. Beginning in 1994, we began
the process of repositioning our concept from Pizzeria Uno, primarily a
Chicago-style, deep-dish pizza concept, to Pizzeria Uno...Chicago Bar & Grill, a
full-service, casual dining restaurant which offers a diverse, high quality menu
at moderate prices with full bar service. The evolution of our concept,
substantially completed in fiscal 1998, has involved the successful
implementation of the following initiatives:

    - expanding our kitchen capabilities to improve the quality, breadth and
      appeal of our non-pizza menu items;

    - redesigning our restaurants to replicate the look and feel of an old
      Chicago warehouse to provide a more casual and relaxed dining environment;

    - changing the name of our restaurants from Pizzeria Uno to Pizzeria
      Uno...Chicago Bar & Grill to emphasize our positioning as a casual dining,
      full-service restaurant;

    - offering our guests an improved dining value by providing larger portions
      of higher quality food at moderate prices; and

    - expanding our target market to include both urban and suburban locations
      and middle to upper-middle income individuals and families.

    During the fiscal year ended October 1, 2000, we opened 12 full-service
Chicago Bar & Grill restaurants. Nine full-service Chicago Bar & Grill
franchised restaurants opened during the fiscal year and seven full-service
franchised restaurants closed. Of the seven franchised restaurants which were
closed, six were Pizzeria Uno restaurants which had not been repositioned as
Chicago Bar & Grill restaurants. During the fiscal year ending September 30,
2001, we anticipate opening seven to nine company-owned and 10 to 12 franchised
full-service Chicago Bar & Grill restaurants. The timing of these planned
openings is subject to various factors, including locating satisfactory sites
and negotiating leases and franchise agreements.

    On November 30, 1999, our board of directors declared a 10% stock dividend
on the outstanding shares of our common stock. The stock dividend was paid on
December 23, 1999 to shareholders of record as of December 13, 1999. All share,
per share and share price data included in this report have been adjusted for
the 10% stock dividend.

                                       2
<PAGE>
    On February 25, 2000, our board of directors amended its prior authorization
regarding the repurchase of our common stock. Under this amendment, we are
currently authorized to repurchase up to 1,500,000 shares of our common stock at
such times and at such prices as we deem appropriate. To date under this
authorization, we have repurchased 1,392,775 shares, of which 688,505 were
purchased during fiscal 2000.

    On June 14, 2000, we amended our $55 million credit facility to increase the
revolver component from $26.6 million to $36.6 million, leaving the remaining
original principal amounts of the term loans of the facility unchanged. The
maturity of the revolver has been extended to June 2005.

    In September 2000, we recorded a pre-tax charge of $8.6 million related to
asset impairment and store closing costs. This non-cash charge adjusted the
carrying value of eight full-service restaurants to their net realizable value
as required by Statement of Financial Accounting Standards 121, "Accounting for
Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of."

    On October 25, 2000, we announced that Aaron Spencer, chairman and principal
stockholder, and certain members of senior management submitted a proposal to
our board of directors to acquire all of the outstanding shares of common stock
not currently owned by them for a price of $8.75 per share. The offer will be
subject to a number of conditions, including receipt of financing on
satisfactory terms and ownership by the offerors of at least 90% of the
outstanding shares of common stock at the conclusion of the tender offer. A
special committee of outside directors, appointed by our board of directors, is
conducting a review of the proposal.

PIZZERIA UNO EVOLUTION AND CONCEPT

    Pizzeria Uno...Chicago Bar & Grill restaurants are full-service, casual
dining restaurants, featuring our signature Chicago-style deep-dish pizza and a
diverse menu of high quality, moderately-priced menu items. Our target market is
middle to upper-middle income individuals and families in the 17 to 49 year-old
age group and the restaurants are generally open from 11:00 a.m. to midnight,
seven days per week.

    In response to changing customer demands and preferences, our concept has
evolved over the years as we have strengthened our brand loyalty and leveraged
the appeal of our Chicago-style, deep-dish pizza. Beginning in 1994, we began
the process of repositioning our concept from Pizzeria Uno, primarily a
Chicago-style, deep-dish pizza concept to Pizzeria Uno...Chicago Bar & Grill, a
full-service, casual dining restaurant which offers a diverse, high quality menu
at moderate prices with full bar service. With this repositioning substantially
complete, the primary features of our concept are as follows:

    DISTINCTIVE BRAND.  We believe that our long-standing name, Pizzeria Uno,
and our signature Chicago-style, deep-dish pizza, give us a brand awareness that
distinguishes our restaurants from other casual dining concepts and generate
frequent customer visits and customer loyalty.

    CASUAL, FUN DINING ATMOSPHERE.  Our restaurants are designed and decorated
to create the comfortable and fun atmosphere guests expect of full-service,
casual dining restaurants, as distinguished from typical pizza restaurants. Our
latest prototype restaurants, which average 5,300 to 5,800 square feet, are
designed to replicate the look and feel of an old Chicago warehouse with exposed
ceilings, industrial lighting, cement floors, painted murals, crates of
beverages, vintage photographs of Chicago and similar artifacts.

    DIVERSE, HIGH QUALITY MENU.  We differentiate ourselves from quick service
pizza, pasta and full-service Italian restaurants by offering a diverse, high
quality menu, including some of the most popular casual dining appetizers,
entrees and desserts, which we believe are given a distinctive appeal

                                       3
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through our proprietary recipes. Non-pizza menu items represent approximately
68% of total food sales for company-owned restaurants.

    ENHANCED DINING VALUE.  Our new menu initiative provides our guests with
enhanced value through larger portions of higher quality, moderately-priced
food. Our menu entrees range in price from $7.89 to $15.99, which is comparable
to other casual dining restaurants, and, together with our larger portions, are
designed to enhance the value received by our guests.

OUR BUSINESS STRATEGY

    Our objective is to promote and develop the Pizzeria Uno brand in each of
our markets. We will strive to achieve this by offering our guests a distinctive
dining experience and a diverse, high quality menu at moderate prices. We have
developed the following strategies:

    ENSURE HIGH QUALITY GUEST EXPERIENCE.  We seek to provide a consistent, high
quality guest experience in order to generate frequent customer visits and
enhance customer loyalty. Through extensive training, experienced
restaurant-level management and rigorous operational and quality controls, we
seek to provide high quality menu items and to ensure prompt, friendly and high
energy service to our guests. We believe that by regularly testing new products
at our research and development center and adding new items to our menu, we are
able to offer our guests new reasons to dine at our restaurants. We believe our
restaurants are attractive for a wide variety of dining occasions, including
weekday and weekend lunches and dinners for a broad range of guests.

    ACHIEVE ATTRACTIVE RESTAURANT-LEVEL ECONOMICS.  The repositioning of our
concept has generated increased restaurant sales and improved profitability. We
believe that we have been and will continue to be able to improve operating
results from the broad appeal of our concept, careful site selection and
cost-effective development, consistent application of our management and
training programs, and strict cost and product quality controls. For the
12-month period ending October 1, 2000, our 12 current prototype restaurants,
which have been open for at least one year, have generated an average cash
return on investment of 25.7%.

    DEVELOPMENT OF COMPANY-OWNED RESTAURANTS.  We believe that we have
significant opportunities to open additional company-owned restaurants and,
accordingly, are implementing a controlled expansion strategy. In fiscal 2000,
we opened 12 restaurants for the year. We intend to continue opening
company-owned restaurants in three of our primary metropolitan markets, Boston,
New York and Baltimore/Washington, D.C. We also intend to expand in other
existing markets. In fiscal 2001, we expect to open approximately seven to nine
restaurants.

    CONTINUED FRANCHISE DEVELOPMENT.  In fiscal 2000, our franchisees opened
nine full-service restaurants in both existing and new markets. Reflecting our
continuing growth strategy, in fiscal 2001 we expect franchisees to open
approximately 10 to 12 restaurants. We plan to focus our franchise development
on an area development basis rather than on a single unit basis. In fiscal 2000,
we signed international development agreements for three units in Venezuela and
a two-unit agreement for Panama. Domestically we signed two area development
agreements totaling six units in Pennsylvania, an agreement for three to five
units in the Richmond, Virginia area and an agreement for an additional three
restaurants in Puerto Rico. We also completed two-unit agreements in
Saratoga/Glens Falls, New York and Scottsdale, Arizona. The terms for these new
agreements vary in length from two and one-half years to five years. We also
intend to pursue selected expansion opportunities worldwide, including Latin
America, the Caribbean, Mexico and Canada.

    ATTRACT AND RETAIN HIGH QUALITY RESTAURANT MANAGEMENT.  We believe we are
able to attract and retain high quality restaurant management because we offer a
competitive compensation and benefits program. In addition to salary and bonus,
our general managers are eligible for additional benefits,

                                       4
<PAGE>
which include vacation travel expense reimbursement, automobile lease payments
and longevity awards. To promote assistant manager retention, we have
implemented a work schedule providing assistant managers three days off every
other week. We believe this schedule allows our assistant managers to enjoy a
better quality of life than is typical in the restaurant industry.

    UTILIZE MANAGEMENT INFORMATION SYSTEMS EFFECTIVELY.  We believe that our
current management information systems have the features and capacity to support
our growth plan and to achieve attractive restaurant level economics. All of our
company-owned restaurants have personal computer and point-of-sale systems
integrated with our centralized management information and accounting systems.
We are able to monitor and control labor, food and other direct operating
expenses, and maintain efficient and quality restaurant service with hourly
guest traffic and sales volume forecasts for each restaurant. Our systems permit
restaurant and company management to manage sales, cost of sales and product mix
on a daily basis.

    EXPAND OUR CONSUMER PRODUCTS BUSINESS.  We plan to continue to expand our
consumer products business principally through the distribution of our branded
(Pizzeria Uno) and non-branded, Chicago-style deep-dish pizza, calzones, and
other pizza products in hotels, movie theater chains, supermarkets, food courts
and airports. We have established relationships with hotel chains to distribute
products in more than 450 hotel locations and movie theater chains representing
over 100 theaters. In addition, we have supplied American Airlines with our
pizza for service on selected domestic and international flights since fiscal
1993 and began serving three other major airlines in fiscal 2000. Our consumer
products operation, which historically has represented approximately 5% of our
sales, complements our restaurant business, increases our brand awareness and
enables people to enjoy Pizzeria Uno products in a wide variety of locations and
settings.

RESTAURANT DESIGN

    Our restaurants are designed and decorated to create the comfortable and fun
atmosphere guests expect of full-service, casual dining restaurants, as
distinguished from typical pizza restaurants. We upgraded the design and decor
of our restaurants which are now consistent with our theme as Pizzeria
Uno...Chicago Bar & Grill. The decor of most of our restaurants includes
different variations of wood, brick and brass, and warehouse related design
elements such as painted murals, crates of beverages, vintage photographs of
Chicago and similar artifacts. Our latest prototype restaurants are designed to
replicate the look and feel of an old Chicago warehouse with exposed ceilings,
industrial lighting and cement floors. This prototype occupies a range of
approximately 5,300 to 5,800 square feet, with seating capacity ranging from 180
to 210 guests. We have also developed several variations of our prototype to
allow for adaptations to specific new site locations. To date, we have opened 24
of these prototypes and franchisees have opened 10. We review all preliminary
exterior, interior and kitchen design for all company-owned and franchised
restaurants to ensure quality and compliance with our standards.

RESTAURANT EXPANSION AND SITE SELECTION

    COMPANY-OWNED RESTAURANT EXPANSION.  We believe that we have significant
opportunities to expand our company-owned restaurants and, accordingly, are
implementing a controlled expansion strategy. In fiscal 2000, we opened 12
restaurants for the year. We intend to continue opening company-owned
restaurants in three of our primary metropolitan markets, Boston, New York and
Baltimore/Washington, D.C. We also intend to expand in other existing markets.
In fiscal 2001, we expect to open approximately seven to nine restaurants.

    FRANCHISE RESTAURANT EXPANSION.  Reflecting our continuing growth strategy,
in fiscal 2001 we expect franchisees to open approximately 10 to 12 restaurants.
We plan to focus our franchise development on an area development basis rather
than by single unit development. In fiscal 2000, our franchisees opened nine
full-service restaurants in both existing and new markets. In fiscal 2000, we

                                       5
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signed international development agreements for three units in Venezuela and a
two-unit agreement for Panama. Domestically we signed two area development
agreements totaling six units in Pennsylvania, an agreement for three to five
units in the Richmond, Virginia area and an agreement for an additional three
restaurants in Puerto Rico. We also completed two-unit agreements in
Saratoga/Glens Falls, New York and Scottsdale, Arizona. The terms for these new
agreements vary in length from two and one-half years to five years. We also
intend to pursue selected expansion opportunities worldwide, including Latin
America, the Caribbean, Mexico and Canada.

    FACTORS WE CONSIDER IN SITE SELECTION.  We devote significant resources to
our investigation and evaluation of potential sites for our restaurants because
we believe that the specific location of a restaurant is critical to its
long-term success. One or more of our executive officers inspect and approve the
site for each company-owned and franchised restaurant. Within each target market
area, we evaluate population density and demographics, major retail and office
concentration and traffic patterns. In addition, we evaluate visibility,
accessibility, proximity to direct competition, proximity of shopping,
entertainment activities, office parks and tourist attractions, availability of
suitable parking and of restaurant level employees, and various other site
specific factors. Pizzeria Uno...Chicago Bar & Grill restaurants are located in
both urban and suburban markets, in free-standing buildings, strip centers and
malls. Restaurant development is currently targeted at high traffic,
free-standing locations.

    Generally, we lease most of our restaurants to minimize investment costs.
However, we have been selectively purchasing real estate to develop new
restaurants when the expected long-term cost of owning the real estate is less
than the cost of leasing. Of the 111 company-owned restaurants open as of
December 1, 2000, 88 are located in leased facilities and 23 are located on
properties we own.

                                       6
<PAGE>
RESTAURANT LOCATIONS

    The following tables provide the locations for Company-owned and franchised
restaurants as of December 1, 2000.

                        COMPANY-OWNED RESTAURANTS (111)

COLORADO (3)
Aurora
Greenwood (a)
Westminster

CONNECTICUT (5)
Danbury
Fairfield
Manchester
Milford
West Hartford
FLORIDA (7)
Altamonte Springs
Daytona Beach
Kissimmee
Lake Mary (a)
Orlando (3)(a)
ILLINOIS (9)
Aurora
Chicago (3)(a)(b)
Crestwood
Gurnee Mills (a)
Lombard
Schaumburg
Vernon Hills (a)
MAINE (2)
Bangor
Portland (a)

MARYLAND (8)
Baltimore
Bel Air
Bethesda
Ellicott City (a)
Frederick (a)
Hagerstown
St. Charles
Towson

MASSACHUSETTS (26)
Bellingham
Boston (5)
Braintree
Brockton
Burlington
Cambridge (2)
Danvers
Dedham
Framingham
Hanover
Haverhill
Hyannis (a)
Kingston
Leominster
Newton
Revere
Springfield
Sturbridge
Waltham
Westborough
Woburn

MISSOURI (2)
St. Louis (2)

NEW HAMPSHIRE (4)
Concord
Keene
Manchester
Nashua

NEW JERSEY (2)
Paramus
Woodbridge

NEW YORK (19)
Albany
Amherst (a)
Greece (a)
Henrietta
Latham
Lynbrook
Massapequa
New York City
Bayside
Bay Ridge
Forest Hills
Manhattan (5)
Syracuse
Vestal
Victor
Yonkers

OHIO (4)
Columbus (4)(a)

PENNSYLVANIA (4)
Philadelphia (2)(a)
Pittsburgh (2)(a)

RHODE ISLAND (2)
Providence
Warwick

TENNESSEE (1)
Maryville (a)

VERMONT (1)
Burlington (a)

VIRGINIA (10)
Ballston
Dulles
Fairfax
Falls Church
Merrifield
Newport News
Norfolk (a)
Potomac Mills (a)
Reston
Williamsburg (a)

WASHINGTON, DC (2)
Cleveland Park
Union Station

------------------------

See footnotes on next page

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                          FRANCHISED RESTAURANTS (71)
                                 DOMESTIC (65)

ARIZONA (3)
Mesa
Phoenix
Tempe
CALIFORNIA (9)
Chula Vista
Cupertino
Fremont
San Diego (2)
San Francisco (3)
Santa Clara

DELAWARE (1)
Dover

FLORIDA (1)
Orlando

ILLINOIS (1)
CHICAGO (C)
INDIANA (2)
Indianapolis
Merrillville
KANSAS (1)
Lawrence
KENTUCKY (1)
Louisville
MARYLAND (1)
Deep Creek

MASSACHUSETTS (3)
Holyoke
Springfield (2)(c)
MICHIGAN (2)
Birch Run
Bloomfield

MINNESOTA (1)
Edina

MISSOURI (1)
Kansas City

NEW JERSEY (4)
Cherry Hill
Secaucus
South Plainfield
Wayne

NEW MEXICO (1)
Las Cruces

NEW YORK (2)
Poughkeepsie
White Plains

NORTH CAROLINA (4)
Charlotte
Concord Mills
Greensboro
High Point

OHIO (6)
Cincinnati (4)
Dayton (2)

OKLAHOMA (1)
Tulsa

PENNSYLVANIA (6)
Doylestown
King of Prussia
Langhorne
Philadelphia (2)
Plymouth Meeting

PUERTO RICO (7)
Bayamon
Carolina
Mayaguez
San Juan (4)(c)

TEXAS (2)
Dallas
Ft. Worth

VIRGINA (1)
Richmond

WASHINGTON, DC (1)
Georgetown

WISCONSIN (3)
Madison (2)
Milwaukee

                               INTERNATIONAL (6)

SOUTH KOREA (3)
Seoul (3)(d)

PAKISTAN (1)
Lahore

UNITED ARAB EMIRATES (2)
Dubai (2)

------------------------

(a) Owned property

(b) Includes one Mexican restaurant.

(c) Includes one limited seating, take-out restaurant.

(d) Includes two limited seating, take-out restaurants.

                                       8
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UNIT ECONOMICS

    For the 12 month period ended October 1, 2000, the 96 company-owned
restaurants open for the entire period generated average restaurant sales of
approximately $2,034,000 and average restaurant operating cash flow of
approximately $400,000, or 19.7% of sales. Our current prototype restaurant
occupies a range of approximately 5,300 to 5,800 square feet, with a seating
capacity ranging from 180 to 210 guests. For the 12 month period ending
October 1, 2000, our 12 current prototype restaurants, which have been open for
at least one year, have generated average restaurant sales of approximately
$1,973,000 and average restaurant operating cash flow of approximately $436,000,
or 22.1% of sales. Based on an average investment of approximately
$1.7 million, excluding average land costs of approximately $819,000 and average
pre-opening costs of $131,000, these restaurants have generated an average cash
return on investment of 25.7% for the 12 month period ended October 1, 2000.

RESTAURANT OPERATIONS

    RESTAURANT MANAGEMENT.  The staff for a typical Pizzeria Uno...Chicago
Bar & Grill restaurant consists of one general manager, an assistant general
manager, two managers and approximately 50 to 70 hourly employees, many of whom
are part-time personnel. Managers of company-owned restaurants are compensated
with a salary plus a performance bonus based on several factors, including
restaurant sales and profits. To promote manager retention, we have implemented
a work schedule in which a manager is given three days off every other week. We
also offer our general managers vacation travel expense reimbursement,
automobile lease payments and longevity awards.

    Each company-owned restaurant manager and franchisee is required to comply
with an operations manual that contains detailed standards and specifications
for all elements of operations. Our management makes regular visits to our
restaurants to monitor system-wide compliance. We employ four divisional vice
presidents of operations and 19 regional operations directors. The regional
operations directors provide field supervision to both company-owned and
franchised restaurants. Their duties include regular visits and detailed
inspections of quality, service and sanitation. As additional restaurants are
opened, we intend to add qualified regional operations directors.

    Our restaurant management conducts quality control inspections twice a day.
Our food ingredients are tested for quality, freshness, age and temperature.
Menu items are also inspected for quality and presentation and we maintain a
toll-free telephone number for customer feedback. We conduct quarterly guest
surveys to monitor the level of guest satisfaction. Our divisional vice
presidents of operations are directly responsible for ensuring that all customer
comments are addressed.

    TRAINING.  We conduct an initial 10-week training program for all of our
restaurant managers that focuses on restaurant operations. We continuously train
company-owned restaurant managers through specialized training programs and
regular meetings that emphasize the areas of leadership, quality of food
preparation and service. These training programs are also offered to our
franchisees. We require our restaurant managers to participate in an
independent, nationally recognized training program to ensure the sanitary
preparation and service of food and require all alcohol-serving employees to
participate in an independent, nationally recognized program that provides
training in the responsible service of alcohol. In addition, all food-handling
personnel are required to undergo comprehensive internal training in the
preparation and service of food. We also conduct quarterly regional meetings and
an annual national meeting of franchisees and company restaurant managers that
focuses on continued training in marketing, new products, operating systems,
site selection and other aspects of business management.

FRANCHISE PROGRAM

    GENERAL.  As of December 1, 2000, we had 66 franchised restaurants operating
primarily as Pizzeria Uno...Chicago Bar & Grill and five Uno Pizza take-out
units operated by 35 franchisees

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located in 23 states, the District of Columbia, Puerto Rico, South Korea,
Pakistan and the United Arab Emirates. We have dedicated significant resources
to our franchise program and plan to continue to pursue domestic as well as
selective international expansion opportunities. We expect to grant additional
domestic and international franchises to qualified applicants with restaurant
related operating experience and requisite financial resources. Historically, we
granted franchises on a single unit basis. As part of our growth strategy, we
are currently pursuing area development agreements with franchisees for the
construction of multiple restaurants over time within specified geographic
areas.

    SIGNIFICANT FRANCHISE DEVELOPMENTS.  In fiscal 1999, we signed area
development agreements for the development of 10 restaurants in North Carolina
and South Carolina over the next six and one-half years and 10 restaurants in
southern New Jersey and Philadelphia over the next seven years. In fiscal 2000,
we signed international development agreements for three units in Venezuela and
a two-unit agreement for Panama. Domestically we signed two area development
agreements totaling six units in Pennsylvania, an agreement for three to five
units in the Richmond, Virginia area and an agreement for an additional three
restaurants in Puerto Rico. We also completed two-unit agreements in Saratoga/
Glens Falls, New York and Scottsdale, Arizona. The terms for these new
agreements vary in length from two and one-half years to five years.

    As we transitioned our company-owned restaurants into our new Pizzeria
Uno...Chicago Bar & Grill concept, some of our franchisees have upgraded and
redesigned their restaurants to be consistent with our new concept, but a number
of our franchisees have not and are not achieving satisfactory operating
results. Since the beginning of fiscal 1998, 26 of these franchised restaurants
have closed. As of December 1, 2000, seven full-service, non-Chicago Bar & Grill
restaurants remained in the franchise system.

    DEVELOPMENT AND FRANCHISE AGREEMENTS.  We require new domestic franchisees
to pay a non-refundable fee of $22,500 for each restaurant that the franchisee
commits to develop at the time a development agreement is signed. Of this
amount, $17,500 is applied to the initial franchise fee for each restaurant
committed to be developed. Our current franchise agreement also requires
franchisees to pay an initial franchise fee of $35,000 per restaurant when the
franchise agreement is signed and a continuing monthly royalty of 5% of adjusted
gross restaurant sales, which does not include certain items such as tips,
complimentary meals and employee discounts, but not less than $1,000 per month.
Royalties and franchise fees for international franchises are negotiated on an
individual basis. The royalties we received during fiscal 2000 averaged 4.4% of
franchised restaurant sales. For certain existing franchisees we have a variable
royalty plan that allows royalty rate reductions from contractual rates for
those franchised restaurants meeting certain criteria. This variable royalty
plan is available only to those franchised restaurants that do not achieve
minimum sales levels during their first five years of operation in relation to
their overall capital investment, including capitalized lease obligations. The
minimum royalty rate under the variable royalty plan is 3% and ranges up to 5%.
Seven franchised restaurants currently qualify for some degree of royalty rate
reduction under the variable royalty plan. This will be reduced to four units on
January 1, 2001. The variable royalty plan is not currently offered to new
franchisees.

    Our current franchise agreements have an initial term of 15 years with one
10-year renewal period at the option of the franchisee, provided that the
agreement has not previously been terminated by either party. As a condition of
each renewal, we may require a franchisee to sign a revised franchise agreement
and to make capital expenditures to renovate the restaurant.

    We retain the right to terminate a franchise agreement for a variety of
reasons, including significant and willful understatement of gross receipts,
failure to pay fees, material misrepresentation on an application for a
franchise, or material breach or default under the franchise agreement,
including failure to maintain our operating standards. Many state franchise laws
limit the ability of a franchisor to terminate or refuse to renew a franchise.
We have the right to audit and receive certain

                                       10
<PAGE>
monthly and annual financial and other information from franchisees. The
franchise agreements generally prohibit us from granting competing franchises or
opening competing restaurants within three miles of a franchised restaurant.

    TRAINING AND OVERSIGHT OF FRANCHISEES.  Our initial training program for
franchisees is similar to our training program for management trainees and
employees in company-owned restaurants. In order to ensure uniform quality
standards, we require franchisees to comply with our specifications as to space,
design and decor, menu items, principal food ingredients and day-to-day
operations, as set forth in our operations manual. Our executives or
field-service personnel visit each franchised location, on average, at least
four times per year. We receive weekly and monthly sales reports from our
franchisees. In addition, we conduct random sales audits of all our franchisees
on an ongoing basis.

    OUR LIMITED GUARANTEE OF EQUIPMENT AND LEASEHOLD FINANCING.  We guarantee
certain limited equipment and leasehold improvement financing to qualified
franchisees through an agreement with an unaffiliated finance company. This
program provides an aggregate of $25 million to our franchise system. Under this
agreement, we guarantee financing provided by the finance company up to the
greater of $2.5 million or 10% of the aggregate amount funded to qualified
franchisees. At October 1, 2000, there were approximately $564,000 of loans
outstanding to franchisees. We have also guaranteed up to a maximum of $400,000
of future lease payments in the event of default by a specific franchisee.

CONSUMER PRODUCTS

    We plan to continue to expand our consumer products business principally
through the distribution of our Pizzeria Uno brand, Chicago-style deep-dish
pizza, calzones, and other pizza products in hotels, movie theater chains,
supermarkets, food courts and airports.

    We have established relationships with hotel chains for distribution of
Pizzeria Uno brand pizzas and calzones to more than 450 hotel locations. We also
provide our Pizzeria Uno brand pizza products at the concession areas in over
100 movie theaters, representing six movie theater chains, and distribute fresh,
refrigerated pizzas to supermarket chains with more than 750 locations in the
Northeast. During fiscal 2000, we began providing Pizzeria Uno brand,
Chicago-style, deep-dish pizza for sale by a concession at the T. D. Waterhouse
Center in Orlando.

    Since fiscal 1993, we have been supplying frozen Pizzeria Uno brand,
Chicago-style, deep-dish pizza to American Airlines for service on its domestic
and international flights. In fiscal 2000 we expanded our presence in the
airline segment by supplying pizzas to three other major airlines. We continue
to expand this business by introducing new products on domestic and
international flights. In fiscal 2000 we sold three million pizzas to the
airline industry.

    Several branded tests are underway with additional hotel chains and major
food service providers as well as several retail grocers and club stores across
the country. We expect to continue to test other traditional and non-traditional
distribution channels for our consumer products. Our consumer products
operation, which represented approximately 5% of our sales during fiscal 2000,
complements our restaurant business, increases our brand awareness and enables
people to enjoy Pizzeria Uno products in a wide variety of locations and
settings.

PURCHASING

    We negotiate directly with suppliers for all primary food ingredients and
beverage products to ensure adequate supplies and to obtain competitive prices.
We seek competitive bids from suppliers on most of our primary food ingredients
on a periodic basis. We approve suppliers of these ingredients and products and
require our suppliers to adhere to our product specifications. Several of our
key ingredients are proprietary. They are manufactured for us under private
label and sold to authorized distributors for resale to company-owned
restaurants and franchisees. All essential food and beverage

                                       11
<PAGE>
products are available, or upon short notice can be made available, from
alternative qualified suppliers. In January 2000, we entered into a fixed price
contract with our supplier of mozzarella cheese, which has since been extended
through August 2001, to help minimize our exposure to the volatility in the
block cheese market.

    The manager of each company-owned restaurant determines the quantities of
food and beverage products required. We, along with our franchisees, purchase
substantially all food and beverage products from authorized local or national
distributors. In most cases, franchisees find it more economical to purchase
these products from the same distributors servicing the company-owned
restaurants in order to take advantage of volume discounts. In each of our
markets, franchisees pay distributors the same price as we do for our
company-owned restaurants. We do not derive any income from suppliers or
distributors on sales to franchisees.

MANAGEMENT INFORMATION SYSTEMS

    We believe that our current management information systems infrastructure
has the features and capacity to support our growth plan. All of our
company-owned restaurants have personal computer and point-of-sale systems
integrated with our centralized management information and accounting systems.
We are able to monitor and control labor, food and other direct operating
expenses, and maintain efficient and quality restaurant service with hourly
guest traffic and sales volume forecasts for each restaurant. Our systems permit
restaurant and company management to manage sales, cost of sales and product mix
on a daily basis. We also have access to daily financial and operating data for
every company-owned restaurant, which is an important tool in achieving
attractive restaurant level economics.

    Financial controls are maintained through a centralized accounting system,
which includes a sophisticated theoretical food cost program and a labor
scheduling and tracking program. This system enables us to schedule appropriate
wait staff and kitchen personnel for our restaurant guests. Physical inventories
of food and beverage items are taken on a weekly basis.

MARKETING AND ADVERTISING

    Our advertising is intended to increase our brand awareness, attract new
guests and build customer loyalty. We rely primarily on radio, direct mail and
print advertising. Our advertising strategy is designed to promote the quality
and variety of our menu items.

    Through an advertising cooperative fund, we prepare regional and local
advertising materials and also produce menus and promotional programs for both
franchised and company-owned restaurants. Franchisees are required to contribute
a fee of up to 1.0% of franchised restaurant sales to the advertising
cooperative fund. One-half of this fee is credited to the franchisee for local
marketing and advertising conducted by the franchisee. We contribute an equal
percentage of sales of each company-owned restaurant to the advertising
cooperative fund. Except for the materials we prepare and distribute through the
advertising cooperative fund, franchisees, with our support, are responsible for
the implementation of advertising and marketing for their respective
restaurants, subject to adherence to our established guidelines. In addition,
our franchise agreements require franchisees to spend at least 2% of franchised
restaurant sales each year on local advertising and public relations.

    For fiscal 2000, we spent approximately $5.2 million or 2.3% of restaurant
and consumer product sales on advertising and marketing, which includes the 1.0%
fee we contribute to the advertising cooperative fund for company-owned
restaurants.

                                       12
<PAGE>
COMPETITION

    The restaurant business is highly competitive with respect to price,
service, food quality, ambiance, and overall dining experience. Our competitive
position is often affected by changes in consumer tastes, preferences and
discretionary spending patterns, economic conditions and population and traffic
patterns. There is also intense competition for real estate sites, personnel and
qualified franchisees. We compete within each market with full-service casual
dining restaurants, which may be locally-owned, as well as with national and
regional restaurant chains. Some of our competitors operate more restaurants and
have greater financial resources and longer operating histories.

EMPLOYEES

    As of October 1, 2000, we had approximately 7,644 employees, 115 of whom
were corporate personnel and 416 of whom were field service or restaurant
managers and trainees. The remaining employees were restaurant personnel, many
of whom were part-time. Of the 115 corporate employees, 38 were in management
positions and 77 were general office employees.

    We consider our relations with our employees to be good. Generally, our
employees are not covered by collective bargaining agreements except for those
employees working in three of our restaurants in urban Chicago who are members
of the Hotel Employees and Restaurant Employees International Union of the
AFL-CIO, and with whom we are subject to a collective bargaining agreement
through November 30, 2004.

TRADEMARKS

    We regard our trademarks and service marks as having significant value and
as being an important factor in the marketing of our products. Our most
significant marks include "Uno," "Pizzeria Uno," "Pizzeria Due," and "Pizzeria
Uno...Chicago Bar & Grill." The registrations of our significant marks are
subject to renewal at various times from 2000 to 2008. We intend to renew our
registration of our marks prior to their expiration. Our policy is to pursue
registration of our marks whenever possible and to oppose strenuously any
infringement of our marks. We have also initiated efforts toward international
trademark registration in support of our plan to expand into international
markets. We have received one trademark registration in South Korea, where we
have a development agreement with an existing area licensee, and have received
several other international trademark registrations. In South Korea, Pakistan,
Indonesia, the United Arab Emirates and other countries in the Middle East, and
other countries, we have sought registration of a variety of marks, including
"Pizzeria Uno" and "Pizzeria Uno...Chicago Bar & Grill."

GOVERNMENT REGULATION

    GENERAL.  Various federal, state and local laws affect our business. Each of
our restaurants is subject to licensing and regulation by a number of
governmental authorities, which may include health, sanitation, building,
zoning, safety, fire, and alcoholic beverage control agencies in the state or
municipality in which the restaurant is located. These licensing and regulation
matters relate to environmental, building, construction and zoning requirements,
and the preparation and sale of food and alcoholic beverages. Difficulties or
failures in obtaining the required licenses or approvals and compliance with
application regulations could delay or prevent the development of a new
restaurant at a particular location.

    Our operations are also subject to federal and state laws governing such
matters as wages, working conditions, citizenship requirements and overtime.
Some states have set minimum wage requirements higher than the federal level.
Significant numbers of hourly personnel at our restaurants are paid at rates
related to the federal minimum wage and, accordingly, increases in the minimum
wage will increase labor costs. Other governmental initiatives such as mandated
health insurance, if implemented,

                                       13
<PAGE>
could adversely affect us as well as the restaurant industry in general. We are
subject to the Americans With Disabilities Act of 1990, which, among other
things, requires our restaurants to meet federally mandated requirements for the
disabled. In addition, our employment practices are subject to the requirements
of the Immigration and Naturalization Service relating to citizenship and
residency.

    ALCOHOLIC BEVERAGE CONTROL REGULATIONS.  Alcoholic beverage control
regulations require each of our restaurants to apply to a state authority and,
in certain locations, county and municipal authorities for a license or permit
to sell alcoholic beverages on the premises. Typically, licenses must be renewed
annually and may be revoked or suspended for cause at any time. Alcoholic
beverage control regulations relate to numerous aspects of the daily operations
of our restaurants, including minimum age of patrons and employees, hours of
operation, advertising, wholesale purchasing, inventory control, and handling,
storage and dispensing of alcoholic beverages.

    DRAM SHOP STATUTES.  We may be subject in certain states to "dram-shop"
statutes, which generally provide a person injured by an intoxicated person the
right to recover damages from an establishment which wrongfully served alcoholic
beverages to such person. We carry liquor liability coverage as part of our
existing comprehensive general liability insurance.

    FRANCHISING LAWS.  We are also subject to federal and a substantial number
of state laws regulating the offer and sale of franchises. These laws impose
registration and disclosure requirements on franchisors in the offer and sale of
franchises. These laws often also apply substantive standards to the
relationship between franchisor and franchisee and limit the ability of a
franchisor to terminate or refuse to renew a franchise.

    HEALTH AND SAFETY LAWS.  We are subject to the rules and regulations of
various federal, state and local health agencies, including the United States
Food and Drug Administration and the United States Department of Agriculture.
The FDA specifies standards for nutritional content claims and health claims
made in connection with food items offered in our restaurants. The FDA also
prescribes the format and content of nutritional information required to appear
on labels of certain products, including our line of fresh and frozen items sold
through supermarkets.

                                       14
<PAGE>
EXECUTIVE OFFICERS OF THE REGISTRANT

    Our executive officers and their ages are as follows:

<TABLE>
<CAPTION>
NAME                                    AGE                    POSITION                DIRECTOR SINCE
----                                  --------   ------------------------------------  --------------
<S>                                   <C>        <C>                                   <C>
Aaron D. Spencer....................     69      Chairman and Director                      1979
Craig S. Miller.....................     51      President, Chief Executive Officer         1985
                                                 and Director
Paul W. MacPhail....................     37      Executive Vice President, Chief              --
                                                 Operating Officer
Robert M. Brown.....................     53      Executive Vice President                     --
Alan M. Fox.........................     53      Executive Vice President,                    --
                                                 President--Uno Foods Inc.
Robert M. Vincent...................     48      Executive Vice President--Finance,           --
                                                 Chief Financial Officer
Mark A. Jones.......................     48      Senior Vice President--Development           --
George W. Herz II...................     45      Senior Vice President, General               --
                                                 Counsel, and Secretary
M. Heyward Whetsell, Jr.............     53      Senior Vice President--Marketing             --
</TABLE>

    The following is additional information regarding each of our executive
officers:

    Aaron D. Spencer, our founder, has been Chairman of the Board since 1986 and
previously served as our President until 1986 and as our Chief Executive Officer
until September 29, 1996. Mr. Spencer has 34 years of experience in the
restaurant industry. He was the founder and owner of our predecessor, which
operated a chain of 24 Kentucky Fried Chicken franchised restaurants at the time
the restaurants were sold.

    Craig S. Miller has been our President since 1986 and was appointed Chief
Executive Officer on September 30, 1996. From 1986 to December 1998, he also
served as our Chief Operating Officer. From 1984 to 1986, Mr. Miller served as
one of our Vice Presidents and then as Executive Vice President. Prior to 1984,
he spent 11 years with the General Mills, Inc. restaurant subsidiary, including
four years in various executive capacities with Casa Gallardo Mexican
restaurants and six years with the Red Lobster restaurant chain. Mr. Miller has
a total of 32 years of experience in the restaurant industry.

    Paul W. MacPhail was appointed Executive Vice President and Chief Operating
Officer on October 23, 2000. Previously Mr. MacPhail served as Executive Vice
President and Chief Operating Officer from December 1998 to April 2000 and was
our Senior Vice President-Operations from January 1997 to November 1998. From
October 1994 to January 1997, he served as Divisional Vice President-Operations
and from November 1992 to October 1994, he served as a Regional Director of
Operations. From 1990 to 1992, Mr. MacPhail served as a General Manager and
Senior Operations Manager. Prior to joining us, Mr. MacPhail served for eight
years as a general manager with Ground Round, Inc. Mr. MacPhail has a total of
16 years of experience in the restaurant industry.

    Robert M. Brown was appointed Executive Vice President on November 30, 1999
and was our Senior Vice President-Administration from 1997 to 1999. He was
Senior Vice President-Finance from 1988 until 1997 and served as our Chief
Financial Officer and Treasurer from 1987 to 1997. From 1987 to 1988, he was our
Vice President-Finance. Prior to joining us, from 1984 to 1987, he served as
vice president, treasurer and chief financial officer of the waste management
subsidiary of Genstar Corporation and was employed by SCA Services, Inc. from
1980 to 1984, most recently as assistant controller. He is a certified public
accountant and has worked in accounting and finance, since 1969.

                                       15
<PAGE>
    Alan M. Fox was appointed Executive Vice President on November 30, 1999 and
has been President of Uno Foods Inc., our subsidiary responsible for consumer
products distribution, since 1990. From 1990 to 1999, Mr. Fox was our Senior
Vice President-Purchasing. Mr. Fox served as Senior Vice President-Purchasing
and Development from 1989 to 1990, and served as Vice President of Purchasing
from 1988 to 1989. Prior to joining us, from 1971 to 1988, Mr. Fox served as
Vice President-Purchasing at Worcester Quality Foods, Inc., a wholesale food
service distributor. Mr. Fox has a total of 29 years of experience in the
restaurant and food service industries.

    Robert M. Vincent was appointed Executive Vice President, Chief Financial
Officer and Treasurer in April 2000 and was our Senior Vice President-Finance,
Chief Financial Officer and Treasurer from July 1997 to March 2000. Prior to
that, he served as Vice President-Finance and Controller from November 1992 to
June 1997 and was our Controller from April 1992 to October 1992. Prior to
joining us, Mr. Vincent served as chief financial officer and vice
president-finance at Omega Corporation from 1988 to 1992, and vice
president-finance at Boston Restaurant Associates from 1985 to 1988. From 1976
to 1985, Mr. Vincent worked at Ogden Corporation in a variety of finance
positions. Mr. Vincent has 24 years experience in accounting and finance.

    Mark A. Jones was appointed Senior Vice President-Development in
November 1999. Prior to joining us, Mr. Jones served for 20 years for Darden
Restaurants in a variety of positions. From 1992 to 1998 he was the vice
president of market development and real estate and from 1987 to 1992 he was the
vice president of construction and facilities. Mr. Jones served as the director
of construction from 1986 to 1987 and as the national manager of new designs and
remodels from 1982 to 1986. Prior to that he was the manager of expansion and
remodeling from 1979 to 1982. Mr. Jones has a total of 21 years of experience in
the restaurant industry.

    George W. Herz II was appointed Senior Vice President, General Counsel and
Secretary in February 2000. He served as Vice President, General Counsel and
Secretary from November 1999 to February 2000. Prior to joining us, Mr. Herz
served as vice president and general counsel for Sbarro, Inc. from
November 1995 to November 1999. From 1993 to 1995 Mr. Herz was general counsel
for Minuteman Press International, and from 1983 to 1993 he served as corporate
counsel for that company.

    M. Heyward Whetsell, Jr. was appointed Senior Vice President-Marketing in
June 2000. Before joining us, Mr. Whetsell was senior vice president-marketing
for TCBY Systems from March 1998 to June 2000. From 1996 to 1997 he was vice
president-advertising for Extended Stay America, Inc., and from 1995 to 1996 he
served as director-marketing for the Shoney's Division of TPI Restaurants, Inc.
Prior to that, Mr. Whetsell worked in the advertising industry for 22 years,
serving in a variety of positions.

    See also "ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT,"
"ITEM 11. EXECUTIVE COMPENSATION," "ITEM 12. SECURITY OWNERSHIP OF CERTAIN
BENEFICIAL OWNERS AND MANAGEMENT," and "ITEM 13. CERTAIN RELATIONSHIPS AND
RELATED TRANSACTIONS."

ITEM 2. PROPERTIES

    RESTAURANT LOCATIONS.  As of December 1, 2000, we leased 88 and owned 23 of
our restaurant locations. The leases for company-owned restaurants typically
have initial terms of 20 years with certain renewal options and provide for a
base rent plus real estate taxes, insurance and other expenses, plus additional
percentage rents based on revenues of the restaurant. One of our company-owned
restaurants in Boston, Massachusetts is located on the first floor of a
six-story office building owned by Aaron D. Spencer, our Chairman. All of our
franchised restaurants are in space leased from parties unaffiliated with us.
Franchised restaurant leases typically have lease terms through the initial term
of the franchise agreements.

                                       16
<PAGE>
    PRODUCTION PLANT.  We own an approximately 38,000 square foot production
plant in Brockton, Massachusetts. The plant produces frozen products for service
aboard airline flights and at concession areas in theaters and hotels, as well
as fresh, refrigerated pizzas that are sold in more than 750 supermarkets
throughout the Northeast. This facility provides sufficient capacity to support
significant growth in our business in the years ahead.

    EXECUTIVE OFFICES.  Our executive offices are located in two adjacent
buildings in West Roxbury, Massachusetts. The first, a three-story building
owned by Charles Park Road, LLC, a Massachusetts limited liability company owned
by Aaron D. Spencer, our Chairman, and his two adult children, is leased to us
pursuant to a 10-year lease, commencing on March 30, 1987, with an option to
renew for an additional five-year term. Currently we are in the five-year option
term. We also lease the adjacent facility, a two-story building owned by Charles
Park Road, LLC, pursuant to a 15-year lease with the option to renew for three
additional five-year periods. This lease commenced on February 1, 1990. The two
buildings consist of approximately 25,000 square feet and house our executive,
administrative and clerical offices.

    We also own a 12,000 square foot facility in Norwood, Massachusetts which
houses the company's test kitchen, Research & Development offices and training
center. The facility also provides warehouse space.

ITEM 3. LEGAL PROCEEDINGS

    On October 25, 2000, a class action complaint (the "Complaint") was filed in
the Court of Chancery of the State of Delaware for New Castle County by Bruce
Cox against the Company, Aaron D. Spencer and each of the current directors and
an officer who is a former director of the Company. The Complaint alleges that
Mr. Spencer and certain members of senior management of the Company timed a
proposed acquisition of the outstanding shares of the Company not currently
owned by them to freeze out the Company's public shareholders in order to
capture for themselves the Company's future potential without paying an adequate
or fair price to the Company's public shareholders and that, through their
proposal, the defendants have breached their fiduciary duties to the plaintiff.
The plaintiff seeks to have the action maintained as a class action, seeks to
have the defendants enjoined from proceeding with or closing the proposed
transaction and further seeks to recover unspecified costs of the action. The
class is alleged to include all public shareholders of the Company, excluding
the defendants and their affiliates. The Company has filed a motion to dismiss
on the basis of ripeness and intends to defend vigorously against the Complaint.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

    None.

                                       17
<PAGE>
                                    PART II

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

MARKET INFORMATION

    The Company's Common Stock, $.01 par value, is listed on the New York Stock
Exchange under the symbol "UNO." The table below sets forth the range of high
and low sales prices on the New York Stock Exchange for the period from
September 28, 1998 to October 1, 2000, adjusted for the 10% stock dividend
declared on November 30, 1999 and paid on December 23, 1999 to shareholders of
record on December 13, 1999:

<TABLE>
<CAPTION>
                                                                 COMMON STOCK
                                                                     PRICE
                                                              -------------------
                                                                HIGH       LOW
                                                              --------   --------
<S>                                                           <C>        <C>
FISCAL YEAR ENDED OCTOBER 3, 1999

First Quarter...............................................  $ 6.648     $5.284
Second Quarter..............................................  $ 7.614     $6.136
Third Quarter...............................................  $ 7.955     $6.250
Fourth Quarter..............................................  $13.466     $8.011

FISCAL YEAR ENDED OCTOBER 1, 2000

First Quarter...............................................  $11.125     $9.602
Second Quarter..............................................  $12.563     $9.563
Third Quarter...............................................  $12.438     $9.875
Fourth Quarter..............................................  $12.625     $6.625
</TABLE>

NUMBER OF STOCKHOLDERS

    As of October 1, 2000, there were approximately 2,200 beneficial owners of
the Company's Common Stock.

DIVIDENDS

    We have never paid cash dividends on our common stock, and we do not
anticipate paying cash dividends in the foreseeable future. Our current policy
is to retain all of our earnings to finance our future development and growth.
We may reconsider this policy from time to time in light of conditions then
existing, including our earnings performance, financial condition and capital
requirements. We are subject to various financial and operating covenants,
including limitations on the payment of cash dividends under our $55 million
credit facility.

    On November 30, 1999 our board of directors declared a 10% stock dividend on
the outstanding shares of our common stock. The stock dividend was paid on
December 23, 1999 to shareholders of record as of December 13, 1999.

                                       18
<PAGE>
ITEM 6. SELECTED FINANCIAL DATA

<TABLE>
<CAPTION>
                                                              FISCAL YEAR ENDED
                                                              -----------------
                                                (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
                                             OCT. 1      OCT. 3     SEPT. 27   SEPT. 28   SEPT. 29
                                              2000        1999        1998       1997       1996
                                            --------   ----------   --------   --------   --------
                                                       (53 WEEKS)
<S>                                         <C>        <C>          <C>        <C>        <C>
INCOME STATEMENT DATA:
REVENUES
  Restaurant sales........................  $213,715    $198,560    $177,343   $164,389   $159,581
  Consumer product sales..................    11,772      10,568       9,384      9,115      8,351
  Franchise income........................     5,683       5,105       4,549      4,516      4,209
                                            --------    --------    --------   --------   --------
                                             231,170     214,233     191,276    178,020    172,141
COSTS AND EXPENSES
  Cost of food and beverages..............    57,679      54,683      48,567     43,994     44,064
  Labor and benefits......................    70,922      64,700      58,139     54,183     51,868
  Occupancy costs.........................    30,974      29,199      27,988     27,045     26,339
  Other operating costs...................    19,468      17,739      17,148     15,244     14,323
  General and administrative..............    19,521      16,629      13,661     13,384     12,155
  Depreciation and amortization...........    13,098      12,702      12,183     12,469     12,964
  Pre-opening costs.......................     2,137         594         938        823      1,567
  Special charges.........................     8,588                              4,000      3,937
                                            --------    --------    --------   --------   --------
                                             222,387     196,246     178,624    171,142    167,217
                                            --------    --------    --------   --------   --------
OPERATING INCOME..........................     8,783      17,987      12,652      6,878      4,924
INTEREST AND OTHER EXPENSE................     3,019       3,139       3,661      2,827      2,481
                                            --------    --------    --------   --------   --------
INCOME BEFORE INCOME TAXES................     5,764      14,848       8,991      4,051      2,443
Provision for income taxes................     1,729       5,048       2,968      1,378        757
                                            --------    --------    --------   --------   --------
INCOME BEFORE CUMULATIVE EFFECT OF CHANGE
  IN ACCOUNTING PRINCIPLE.................     4,035       9,800       6,023      2,673      1,686
Cumulative effect of change in accounting
  principle for pre-opening costs, net of
  income tax benefit of $313..............                               636
                                            --------    --------    --------   --------   --------
NET INCOME................................  $  4,035    $  9,800    $  5,387   $  2,673   $  1,686
                                            ========    ========    ========   ========   ========
NET INCOME PER COMMON SHARE:
  Income before cumulative effect of
    change in accounting principle........  $   0.36    $   0.87    $   0.50   $   0.20   $   0.12
  Cumulative effect of change in
    accounting principle..................                             (0.05)
                                            --------    --------    --------   --------   --------
Basic net income per common share.........  $   0.36    $   0.87    $   0.45   $   0.20   $   0.12
                                            ========    ========    ========   ========   ========
Diluted net income per common share.......  $   0.34    $   0.84    $   0.45   $   0.20   $   0.12
                                            ========    ========    ========   ========   ========
WEIGHTED-AVERAGE SHARES OUTSTANDING
  Basic...................................    11,162      11,313      11,960     13,146     13,963
                                            ========    ========    ========   ========   ========
  Diluted.................................    11,844      11,610      12,025     13,209     14,032
                                            ========    ========    ========   ========   ========
</TABLE>

Certain amounts in prior fiscal years have been reclassified to permit
comparison.

                                       19
<PAGE>
    Franchised restaurants which have been upgraded and redesigned to conform
with, or opened as, our Pizzeria Uno...Chicago Bar & Grill concept are included
in the table below for all periods presented. Franchised restaurants which have
not been upgraded and redesigned are included under the caption "Other" for all
periods presented. The information under Average Annual Restaurant Sales and
Comparable Restaurant Sales Change, under the caption "Other", only includes
those franchised restaurants which have not been upgraded and redesigned. The
table does not include quick-service units, our SuCasa Mexican restaurant in
Chicago or our former Bay Street Grill restaurants.

<TABLE>
<CAPTION>
                                                              FISCAL YEAR ENDED
                                                              -----------------
                                             (AMOUNTS IN THOUSANDS, EXCEPT NUMBER OF RESTAURANTS)
                                             OCT. 1      OCT. 3     SEPT. 27   SEPT. 28   SEPT. 29
                                              2000        1999        1998       1997       1996
                                            --------   ----------   --------   --------   --------
                                                       (53 WEEKS)
<S>                                         <C>        <C>          <C>        <C>        <C>
OPERATING DATA:
NUMBER OF RESTAURANTS
FULL-SERVICE PIZZERIA UNO...CHICAGO BAR &
  GRILL
Company-owned.............................       110          98          94         92         86
Franchised................................        55          47          42         39         35
OTHER
Company-owned.............................         1           1           3          5          6
Franchised................................        13          18          24         30         32
                                            --------    --------    --------   --------   --------
TOTAL AT YEAR END.........................       179         164         163        166        159
                                            ========    ========    ========   ========   ========

SYSTEM-WIDE RESTAURANT SALES
FULL-SERVICE PIZZERIA UNO...CHICAGO BAR &
  GRILL
Company-owned.............................  $211,626    $196,353    $174,716   $160,045   $151,178
Franchised................................   104,564      92,447      75,338     68,861     60,816
OTHER
Company-owned.............................     1,723       2,207       2,627      4,344      8,403
Franchised................................    16,648      25,687      30,212     33,986     35,273
                                            --------    --------    --------   --------   --------
TOTAL.....................................  $334,561    $316,694    $282,893   $267,236   $255,670
                                            ========    ========    ========   ========   ========

AVERAGE ANNUAL RESTAURANT SALES
FULL-SERVICE PIZZERIA UNO...CHICAGO BAR &
  GRILL
Company-owned.............................  $  2,052    $  1,972    $  1,854   $  1,818   $  1,846
Franchised................................     2,071       2,002       1,881      1,858      1,819
OTHER
Franchised................................     1,297       1,132       1,207      1,199      1,223

COMPARABLE RESTAURANT SALES CHANGE
FULL-SERVICE PIZZERIA UNO...CHICAGO BAR &
  GRILL
Company-owned.............................       3.0%        6.1%        1.3%      (1.7)%     (1.3)%
Franchised................................       1.9%        5.0%        1.8%       0.7%      (1.1)%
OTHER
Franchised................................      (1.8)%      (5.5)%      (5.1)%     (2.9)%     (1.0)%

BALANCE SHEET DATA:
Total assets..............................  $168,476    $149,612    $143,195   $143,732   $135,065
Long-term debt, net of current portion....    50,900      31,612      38,676     42,516     37,085
Capital lease obligations, net of current
  portion.................................       453         489         666        867      1,056
Treasury stock............................    33,237      26,826      22,616     19,877     10,653
Total shareholders' equity................    81,714      80,979      73,669     70,880     77,136
</TABLE>

                                       20
<PAGE>
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

RESULTS OF OPERATIONS

    The following table sets forth the percentage relationship to total
revenues, unless otherwise indicated, of certain items included in the Company's
income statements and operating data for the periods indicated:

<TABLE>
<CAPTION>
                                                              52 WEEKS   53 WEEKS   52 WEEKS
                                                               ENDED      ENDED      ENDED
                                                              10/01/00   10/03/99   9/27/98
                                                              --------   --------   --------
<S>                                                           <C>        <C>        <C>
REVENUES:
  Restaurant sales..........................................    92.4%      92.7%      92.7%
  Consumer product sales....................................     5.1        4.9        4.9
  Franchise income..........................................     2.5        2.4        2.4
                                                               -----      -----      -----
    Total...................................................   100.0      100.0      100.0

COSTS AND EXPENSES:
  Cost of food and beverages (1)............................    25.6       26.1       26.0
  Labor and benefits (1)....................................    31.5       30.9       31.1
  Occupancy costs (1).......................................    13.7       14.0       15.0
  Other operating costs (1).................................     8.6        8.5        9.2
  General and administrative................................     8.4        7.8        7.1
  Depreciation and amortization (1).........................     5.8        6.1        6.5
  Pre-opening costs (2).....................................     1.0        0.3        0.5
  Special charges (2).......................................     4.0

OPERATING INCOME............................................     3.8        8.4        6.6

INTEREST AND OTHER EXPENSE..................................    (1.3)      (1.5)      (1.9)
                                                               -----      -----      -----

INCOME BEFORE INCOME TAXES..................................     2.5        6.9        4.7
  Provision for income taxes................................     0.8        2.3        1.6
                                                               -----      -----      -----
INCOME BEFORE CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING
  PRINCIPLE.................................................     1.7        4.6        3.1
  Cumulative effect of change in accounting principle for
    pre-opening costs, net of income tax benefit............                            .3
                                                               -----      -----      -----
NET INCOME..................................................     1.7%       4.6%       2.8%
                                                               =====      =====      =====
</TABLE>

------------------------

(1) Percentage of restaurant and consumer product sales

(2) Percentage of restaurant sales

                                       21
<PAGE>
FISCAL YEAR ENDED OCTOBER 1, 2000 (52 WEEKS) COMPARED TO FISCAL YEAR ENDED
OCTOBER 3, 1999 (53 WEEKS)

    TOTAL REVENUES.  Total revenues increased 7.9% to $231.2 million in fiscal
2000 from $214.2 million in fiscal 1999.

    RESTAURANT SALES.  Company-owned restaurant sales for the period rose 7.6%
to $213.7 million from $198.6 million in fiscal 1999 due in part to a 3.0%
increase in comparable store sales. Average weekly sales, which includes sales
at comparable stores as well as new restaurants, increased 4.1% over the prior
year, as the 12 company-operated restaurants opened in fiscal 2000 generated
sales volumes approximately 25% higher than our comparable restaurant average.
Operating weeks of full-service Pizzeria Uno...Chicago Bar & Grill restaurants
increased 3.6% in fiscal 2000.

    CONSUMER PRODUCT SALES.  Consumer product sales increased 11.4% to
$11.8 million in fiscal 2000 from $10.6 million in fiscal 1999. Sales in the
contract food service category grew 15.1%, primarily as a result of increased
shipments to airline and hotel accounts. Sales in the supermarket category
increased 0.8% over the same period last year as a 7.4% increase in Pizzeria Uno
branded sales to retail grocers offset a reduction in private label and
wholesale club store sales.

    FRANCHISE INCOME.  Franchise income, which includes royalty income and
initial franchise fees, increased 11.3% to $5.7 million in fiscal 2000 from
$5.1 million in fiscal 1999. Royalty income increased 6.0% to $5.2 million in
fiscal 2000 from $4.9 million in fiscal 1999. The growth in royalty income was
primarily due to a 9.5% increase in average weekly sales for full-service
franchised restaurants. Franchise fees of $442,000 were recorded in fiscal 2000,
including approximately $180,000 from a non-refundable deposit forfeiture,
compared to $160,000 in fiscal 1999. Nine full-service franchised restaurants
opened and seven full-service franchised restaurants closed during fiscal 2000,
including six non-Chicago Bar & Grill restaurants.

    COST OF FOOD AND BEVERAGES.  Cost of food and beverage as a percentage of
restaurant and consumer product sales decreased to 25.6% in fiscal 2000 from
26.1% last year. The decrease reflects the impact of cost savings from lower
contract prices on commodities along with modest menu price increases during the
year.

    LABOR AND BENEFITS.  Labor costs as a percentage of restaurant and consumer
product sales rose to 31.5% in fiscal 2000 from 30.9% in fiscal 1999. The growth
in restaurant labor costs reflects an increase in the average wage rate,
slightly lower direct labor productivity and higher management staffing levels
while consumer product labor expense rose due to higher wage rates and increased
benefits costs.

    OCCUPANCY COSTS.  Occupancy costs as a percentage of restaurant and consumer
product sales declined to 13.7% in fiscal 2000 from 14.0% in fiscal 1999 due to
sales leverage gains.

    OTHER OPERATING COSTS.  Other operating costs as a percentage of restaurant
and consumer product sales increased slightly to 8.6% in fiscal 2000 from 8.5%
in fiscal 1999 due to higher bank processing fees.

    GENERAL AND ADMINISTRATIVE EXPENSES.  General and administrative expenses as
a percentage of total revenues increased to 8.4% in fiscal 2000 from 7.8% in
fiscal 1999. The increase primarily reflects growth in salaries, recruitment and
trainee labor costs, and legal and professional fees.

    DEPRECIATION AND AMORTIZATION EXPENSE.  Depreciation and amortization
expense as a percentage of restaurant and consumer product sales declined to
5.8% in fiscal 2000 from 6.1% in fiscal 1999 due to sales leverage gains.

    PRE-OPENING COSTS.  Pre-opening costs as a percentage of restaurant sales
increased to 1.0% in fiscal 2000 from 0.3% in fiscal 1999, reflecting the
opening of 12 new restaurants in fiscal 2000

                                       22
<PAGE>
compared with five new restaurants in fiscal 1999. Pre-opening costs for two
existing company restaurants that underwent major facilities upgrades in fiscal
2000 also contributed to the increase.

    SPECIAL CHARGES.  With a chain of 111 full-service Company-owned
restaurants, the Company periodically reviews the carrying value of its
long-lived assets (primarily property, equipment and leasehold improvements) to
assess the recoverability of these assets. The Company records impairment losses
on long-lived assets used in operations when events and circumstances indicate
that the assets might be impaired and the undiscounted cash flows estimated to
be generated by those assets are less than the carrying amount of those assets.

    During the fourth quarter of fiscal 2000, the Company recorded a charge in
the amount of $8.6 million, consisting of an asset impairment charge of
$8.1 million and store closing costs of $.5 million. The $8.1 million asset
impairment charge was recorded to reduce the carrying value of equipment and
leaseholds at eight full-service Uno restaurants to their fair market value.
Based upon current operating and cash flow results, management believed that
these units would likely continue to generate operating and cash flow losses
over the related remaining lease terms and therefore reduced the carrying value
of the impaired assets to fair market value. The store closure costs represent
estimated settlement costs associated with two full-service units, which the
Company decided to close in the fourth quarter of fiscal 2000. The Company has
already closed one of the two units and expects to close the other in fiscal
2001.

    The Company has not accrued any potential lease settlement costs for the
remaining six impaired units since no decision has been made as to closing the
sites. The decision to continue to operate or close the units will depend on
events during the next 12 months. Any store closure costs will be recognized
only upon a decision, if any, to close the units.

    OPERATING INCOME.  Operating income for fiscal 2000 was $8.8 million, which
represents an operating margin of 3.8%. Operating income for fiscal 1999 was
$18.0 million, which represents an operating margin of 8.4%. Operating income,
exclusive of the special charges, was $17.4 million in fiscal 2000, representing
an operating margin of 7.5%. The decline in operating income and operating
margin in fiscal 2000 was primarily due to increased labor, general and
administrative, and pre-opening costs.

    INTEREST AND OTHER EXPENSE.  Interest and other expense decreased to
$3.0 million, or 1.3% of total revenues in fiscal 2000 from $3.1 million, or
1.5% of total revenues in fiscal 1999. The reduction is attributable to
increased other income and higher interest capitalization, partially offset by
higher debt levels and a small increase in borrowing rates.

    PROVISION FOR INCOME TAXES.  The effective tax rate in fiscal 2000 was 30%,
down from 34% in fiscal 1999 due to the impact of tax credits, which remained
consistent with fiscal 1999, being applied against a lower pre-tax income.

    NET INCOME.  Net income decreased to $4.0 million in fiscal 2000 from
$9.8 million in fiscal 1999 based on the factors noted above.

FISCAL YEAR ENDED OCTOBER 3, 1999 (53 WEEKS) COMPARED TO FISCAL YEAR ENDED
SEPTEMBER 27, 1998 (52 WEEKS)

    TOTAL REVENUES.  Total revenues increased 12.0% to $214.2 million in fiscal
1999 from $191.3 million in fiscal 1998.

    RESTAURANT SALES.  Company-owned restaurant sales for the period rose 12.0%
to $198.6 million from $177.3 million in fiscal 1998 due primarily to a 6.1%
increase in comparable store sales. Average weekly sales, which includes sales
at comparable stores as well as new restaurants, increased 6.4% over

                                       23
<PAGE>
the prior year, as the latest variation of our new prototype restaurants (P5)
generated sales volumes approximately 10% higher than our non-prototype
restaurant average. Growth in operating weeks of full-service Pizzeria
Uno...Chicago Bar & Grill restaurants increased by 5.7% resulting from the
addition of five restaurants during fiscal 1999.

    CONSUMER PRODUCT SALES.  Consumer product sales increased 12.6% to
$10.6 million in fiscal 1999 from $9.4 million in fiscal 1998. Sales in the
contract food service category grew 38.0%, primarily as a result of increased
shipments to American Airlines, including initial shipments for new service on
American Airlines international flights, and hotel accounts. Sales in the
supermarket category decreased 18.8% over the same period last year as a 7.5%
increase in Pizzeria Uno branded sales to retail grocers was offset by the
elimination of a large international account and a reduction in wholesale club
store sales.

    FRANCHISE INCOME.  Franchise income, which includes royalty income and
initial franchise fees, increased 12.2% to $5.1 million from $4.5 million in
fiscal 1998. Royalty income increased 12.0% to $4.9 million in fiscal 1999 from
$4.4 million in fiscal 1998. The increase in royalty income was primarily due to
an 8.1% increase in average weekly sales for full-service franchised
restaurants. Franchise fees of $160,000 were recorded for fiscal 1999 compared
to $133,000 for fiscal 1998. Eight full-service franchised restaurants opened
and 11 full-service franchised restaurants closed during fiscal 1999, including
10 non-Chicago Bar & Grill restaurants.

    COST OF FOOD AND BEVERAGES.  Cost of food and beverage as a percentage of
restaurant and consumer product sales increased to 26.1% for fiscal 1999
compared to 26.0% for the same period last year. This increase was due in part
to cost increases associated with the company-wide rollout of the new menu
initiative and slightly higher cheese costs, which were partially offset by
modest menu price increases during the year. In March 1999 we entered into a
fixed price cheese contract with our cheese supplier for our mozzarella cheese
to help minimize our exposure from the volatility in the block cheese market
which reached record heights during the summer months.

    LABOR AND BENEFITS.  Labor costs as a percentage of restaurant and consumer
product sales were down slightly to 30.9% in fiscal 1999 from 31.1% in fiscal
1998 as an increase in the average wage rate was absorbed by a higher check
average and lower consumer product labor expense.

    OCCUPANCY COSTS.  Occupancy costs as a percentage of restaurant and consumer
product sales declined to 14.0% in fiscal 1999 from 15.0% in fiscal 1998 due to
sales leverage gains.

    OTHER OPERATING COSTS.  Other operating costs as a percentage of restaurant
and consumer product sales declined to 8.5% in fiscal 1999 from 9.2% in fiscal
1998 due to lower advertising expense.

    GENERAL AND ADMINISTRATIVE EXPENSES.  General and administrative expenses as
a percentage of total revenues increased to 7.8% in fiscal 1999 from 7.1% in
fiscal 1998. This increase was primarily due to higher incentive compensation
expense as a result of the company's strong performance, and increased legal and
professional expense.

    DEPRECIATION AND AMORTIZATION EXPENSE.  Depreciation and amortization
expense as a percentage of restaurant and consumer product sales was down to
6.1% in fiscal 1999 compared to 6.5% in fiscal 1998 due to sales leverage gains.

    PRE-OPENING COSTS.  Pre-opening costs as a percentage of restaurant sales
declined to 0.3% in fiscal 1999 from 0.5% in fiscal 1998, primarily due to sales
leverage gains.

    OPERATING INCOME.  Operating income for fiscal 1999 was $18.0 million, which
represents an operating margin of 8.4%. Operating income for fiscal 1998 was
$12.7 million, which represents an operating margin of 6.6%.

                                       24
<PAGE>
    INTEREST AND OTHER EXPENSE.  Interest and other expense decreased to
$3.1 million, or 1.5% of total revenues in fiscal 1999 from $3.7 million, or
1.9% of total revenues in fiscal 1998. Interest expense decreased to
$3.2 million in fiscal 1999 from $3.5 million in fiscal 1998 due to a slightly
lower borrowing rate and a lower debt level.

    PROVISION FOR INCOME TAXES.  The effective tax rate increased in fiscal 1999
to 34% from 33% in fiscal 1998 due to higher pre-tax profits that shifted us
into a higher tax bracket and the diminished impact of tax credits, which
remained relatively consistent from fiscal 1998, being applied against a higher
pre-tax income amount.

    NET INCOME.  Net income increased to $9.8 million in fiscal 1999 from
$5.4 million in fiscal 1998 based on the factors noted above, as 1998 results
reflect the adoption of SOP 98-5 "Reporting on the Costs of Start-up
Activities." The cumulative effect of this change in accounting principle was
$636,000, net of income taxes.

LIQUIDITY AND SOURCES OF CAPITAL

    Historically, we have leased most of our restaurant locations and pursued a
strategy of controlled growth, financing our expansion principally from
operating cash flow, public equity offerings, the sale of senior, unsecured
notes, and revolving lines of credit. The following table presents a summary of
our cash flows for the 52 weeks ended October 1, 2000 (in thousands).

<TABLE>
<S>                                                           <C>
Net cash provided by operating activities...................  $ 20,825
Net cash used in investing activities.......................   (36,382)
Net cash provided by financing activities...................    15,593
                                                              --------
Increase in cash............................................  $     36
                                                              ========
</TABLE>

    Cash increased from $752,000 at October 3, 1999 to $788,000 at October 1,
2000. Net cash provided by operations of $20.8 million for fiscal 2000 resulted
primarily from $4.0 million of net income plus $13.2 million in depreciation and
amortization, along with $8.6 million of non-cash special charges, including
$8.1 million of asset impairment charges for eight units and $.5 million of
estimated lease settlement costs for two units the Company has decided to close.
This was partially offset by an increase in deferred income taxes in the amount
of $4.2 million and an increase in accounts receivable in the amount of
$1.5 million.

    The Company's investing activities utilized $36.4 million of net cash during
fiscal 2000 primarily for purchases of property and equipment for existing units
and for the addition of 12 new units.

    The Company's financing activities generated $15.6 million in net cash
during fiscal 2000 due to proceeds from the Company's revolving line of credit
of $19.1 million and exercise of stock options of $2.5 million, offset by the
purchase of treasury stock of $6.0 million.

    In fiscal 2000, we opened 12 new restaurants. In fiscal 2001, we currently
expect to open approximately seven to nine restaurants. We project that the
average cash investment required in fiscal 2001 to open a full-service Pizzeria
Uno...Chicago Bar and Grill restaurant, excluding land and pre-opening costs,
will be approximately $1.7 million. The expected capital expenditures for fiscal
2001 are estimated to be approximately $23.0 million, of which approximately
$15.0 million is expected to be expended for the opening of new restaurants.

    As of October 1, 2000, we had outstanding indebtedness of $50.4 million
under our $55 million credit facility, $488,000 in capital lease obligations and
$4.4 million under our mortgage financing. Advances under the revolving credit
facility will accrue interest at the lender's prime rate plus 0-50 basis points,
or alternatively, 75-175 basis points above LIBOR, depending upon our level of
indebtedness. In June 2000, we amended our $55 million credit facility to
increase the revolver

                                       25
<PAGE>
component from $26.6 million to $36.6 million, leaving the remaining original
principal amounts of the term loans of the facility unchanged. The maturity of
the revolver is now June 2005. We anticipate using the revolving credit facility
in the future for the development of additional restaurants and for working
capital.

    On November 30, 1999 our board of directors declared a 10% stock dividend on
the outstanding shares of our common stock. The stock dividend was paid on
December 23, 1999 to shareholders of record as of December 13, 1999. All share,
per share and share price data included in this report have been adjusted for
the 10% stock dividend.

    On February 25, 2000, our board of directors amended its prior authorization
regarding the repurchase of our common stock. Under this amendment, we are
currently authorized to repurchase up to 1,500,000 shares of our common stock at
such times and at such prices as we deem appropriate. To date under this
authorization, we have repurchased 1,392,775 shares, of which 688,505 were
purchased during fiscal 2000.

    We believe that existing cash balances, cash generated from operations and
borrowings under our revolving line of credit will be sufficient to fund our
capital requirements for the foreseeable future.

    We are currently obligated under 105 leases, including 101 leases for
company-owned restaurants, two leases for our executive offices, one lease for
an office building containing one of our restaurants and one lease for a mill
shop.

YEAR 2000 COMPLIANCE

    The Year 2000 problem is a result of computer programs being written using
two digits rather than four to define the applicable year. Any of our programs
that have time sensitive software may recognize the date using "00" as the year
1900 rather than the year 2000, which could result in system failures or
miscalculations using existing software. We did not experience any significant
disruptions of business as a result of the Year 2000 problem. Business affairs
with our major vendors and food distributors, our credit card processor and our
franchisees continued without any critical interruptions. However, if
unanticipated problems arise from systems or equipment in the future, there
could be material adverse effects on our consolidated financial position,
results of operations and cash flows.

    We expensed all maintenance and modification costs as we incurred them. We
capitalized and depreciated the cost of new software, if material, over its
expected useful life. We incurred costs of approximately $150,000 in testing and
remediation of all our systems and applications. Approximately $60,000 of the
total cost of testing and remediation relates to repair issues and the remainder
to replacement of equipment. All costs were budgeted and funded by cash flows
from operations. No information technology projects were deferred due to Year
2000 compliance efforts. We did not pursue independent verification of our
systems because we believe that any effort would have been as costly as the
remediation effort and was not warranted. The costs related to the Year 2000
compliance project were not material to our financial position or results of
operations.

IMPACT OF INFLATION

    Inflation has not been a major factor in our business for the last several
years. We believe we have historically been able to pass on increased costs
through menu price increases, but there can be no assurance that we will be able
to do so in the future. Future increases in local area construction costs could
adversely affect our ability to expand.

                                       26
<PAGE>
SEASONALITY

    Our business is seasonal in nature, with revenues and, to a greater degree,
operating income being lower in the first and second fiscal quarters than in
other quarters. Our seasonal business pattern is due to our concentration of
restaurants in the Northeast, and the resulting lower winter volumes.

FORWARD-LOOKING INFORMATION

    Certain information in this Annual Report on Form 10-K including, but not
limited to, statements found in this "Item 7. Management's Discussion and
Analysis of Financial Condition and Results of Operations," may be
forward-looking statements. Actual results might differ materially from those
projected in such forward-looking statements. Among the factors that could cause
actual results to differ materially are: the Company's ability to open new
restaurants and operate new and existing restaurants profitably, which will
depend upon a number of factors including the availability of suitable sites,
the negotiation of acceptable lease or purchase terms, the securing of required
governmental permits and approvals, the hiring, training and retaining of
skilled management, and the availability of adequate financing; changes in
local, regional and national economic conditions, especially economic conditions
in the areas in which the Company's restaurants are concentrated; increasingly
intense competition in the restaurant industry; changes in consumer tastes and
eating habits; increases in food, labor, employee benefits and similar costs;
and other risks identified from time to time in the Company's periodic reports
and the more detailed factors discussed in the Company's Registration Statement
on Form S-2 (Reg. No. 333-86765), each as filed with the Securities and Exchange
Commission.

                                       27
<PAGE>
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISKS

    We have market risk exposure to interest rates on our fixed and variable
rate debt obligations and manage this exposure through the use of interest rate
swaps. We do not enter into contracts for trading purposes. The information
below summarizes our market risk associated with debt obligations and derivative
financial instruments as of October 1, 2000. For debt obligations, the table
presents principal cash flows and related average interest rates by expected
fiscal year of maturity. For variable rate debt obligations, the average
variable rates are based on implied forward rates as derived from appropriate
quarterly spot rate observations as of the fiscal year end. For interest rate
swaps, the table presents the notional amounts and related weighted average
interest rates by fiscal year of maturity. The average variable rates are the
implied forward rates as derived from appropriate quarterly spot rate
observations as of the fiscal year end.

<TABLE>
<CAPTION>
                                                                EXPECTED FISCAL YEAR OF MATURITY
                                 ----------------------------------------------------------------------------------------------
                                                                                                                    FAIR VALUE
                                   2001          2002          2003          2004          2005        THEREAFTER   OCT 1, 2000
                                 --------      --------      --------      --------      --------      ----------   -----------
                                                         (AMOUNTS IN MILLIONS, EXCEPT FOR PERCENTAGES)
<S>                              <C>           <C>           <C>           <C>           <C>           <C>          <C>
LIABILITIES:
Fixed rate.....................   $ 0.24        $0.26         $0.28         $0.31         $ 0.34          $2.95       $ 4.38
Average interest rate..........     8.75%        8.75%         8.75%         8.75%          8.75%            --           --
Variable rate..................   $ 3.68        $3.68         $2.42         $2.00         $38.66             --       $50.44
Average interest rate..........     7.79%        7.63%         7.84%         8.03%          8.20%            --           --

INTEREST RATE SWAPS:
Receive variable/
Pay fixed:.....................   $30.00           --            --            --             --             --       $ 0.08
Weighted average pay rate......     5.84%          --            --            --             --             --           --
Average receive rate...........     6.41%          --            --            --             --             --           --
</TABLE>

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

    The financial statements and supplementary data are listed under Part IV,
Item 14 in this Report.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
        FINANCIAL DISCLOSURE

    None.

                                       28
<PAGE>
                                    PART III

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

    The information required by this Item 10 is hereby incorporated by reference
to the text appearing under Part I, Item 1--Business, under the caption
"Executive Officers of the Registrant" at page 14 of this Report, and by
reference to the Company's definitive Proxy Statement which is expected to be
filed by the Company within 120 days after the close of its fiscal year.

ITEM 11. EXECUTIVE COMPENSATION

    The information required by this Item 11 is hereby incorporated by reference
to the Company's definitive Proxy Statement which is expected to be filed by the
Company within 120 days after the close of its fiscal year.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

    The information required by this Item 12 is hereby incorporated by reference
to the Company's definitive Proxy Statement which is expected to be filed by the
Company within 120 days after the close of its fiscal year.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

    The information required by this Item 13 is hereby incorporated by reference
to the Company's definitive Proxy Statement which is expected to be filed by the
Company within 120 days after the close of its fiscal year.

                                       29
<PAGE>
                                    PART IV

ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K

(A) 1.  INDEX TO FINANCIAL STATEMENTS

<TABLE>
<CAPTION>
                                                                PAGE
                                                              --------
<S>                                                           <C>
Report of Independent Auditors..............................     34
Consolidated Balance Sheets--October 1, 2000 and October 3,
  1999......................................................     36
Consolidated Statements of Income--Years ended October 1,
  2000, October 3, 1999, and September 27, 1998.............     37
Consolidated Statements of Shareholders' Equity--Years ended
  October 1, 2000,
  October 3, 1999, and September 27, 1998...................     38
Consolidated Statements of Cash Flows--Years ended October
  1, 2000, October 3, 1999, and September 27, 1998..........     39
Notes to Consolidated Financial Statements..................     40
</TABLE>

2.  FINANCIAL STATEMENT SCHEDULES

    All schedules for which provision is made in the applicable accounting
regulations of the Securities and Exchange Commission are not required under the
related instructions or are inapplicable and, therefore, have been omitted.

3.  EXHIBITS

<TABLE>
<CAPTION>
       EXHIBIT
       NUMBER                                   DESCRIPTION
---------------------   ------------------------------------------------------------
<C>                     <S>
          3.1           Restated Certificate of Incorporation, as amended, filed as
                        Exhibit 3.1 to the Company's Quarterly Report on Form 10-Q
                        for the fiscal quarter ended April 2, 1995 (the "April 2,
                        1995 Form 10-Q").*
          3.2           Amended and Restated By-laws filed as Exhibit 3.2 to the
                        April 2, 1995 Form 10-Q.*
          4.1           Specimen Certificate of Common Stock, filed as Exhibit 4.1
                        to the Company's Registration Statement on Form S-2
                        (Registration No. 333-86765) ("1999 Registration
                        Statement").*
         10.1           Lease between Uno Restaurants, Inc. and Aaron D. Spencer
                        dated March 30, 1987 for premises in Boston, Massachusetts,
                        filed as Exhibit 10.3 to the Company's Registration
                        Statement on Form S-1 (Registration No. 33-13100) ("1987
                        Registration Statement").*
         10.2           Lease between Uno Restaurants, Inc. and Aaron D. Spencer
                        dated March 30, 1987 for premises in West Roxbury,
                        Massachusetts, filed as Exhibit 10.2 to the 1987
                        Registration Statement.*
         10.3           Amendment to Lease dated November 17, 1992 for premises in
                        West Roxbury, Massachusetts, filed as Exhibit 10.3 to the
                        1999 Registration Statement.*
         10.4           Lease Between Uno Restaurants, Inc. and Lisa S. Cohen and
                        Mark N. Spencer dated February 1, 1990 for premises in West
                        Roxbury, Massachusetts, filed as Exhibit 10.4 to the 1999
                        Registration Statement.*
         10.5           Quitclaim Deed between Aaron D. Spencer, Lisa S. Cohen and
                        Mark N. Spencer and Charles Park Road, LLC dated August 10,
                        1998, filed as Exhibit 10.5 to the 1999 Registration
                        Statement.*
         10.6           Form of Franchise Agreement and Area Franchise Agreement,
                        filed as Exhibit 10(d) to the Company's Annual Report on
                        Form 10-K for fiscal year ended September 29, 1996 (the
                        "1996 Annual Report on Form 10-K").*
</TABLE>

                                       30
<PAGE>

<TABLE>
<CAPTION>
       EXHIBIT
       NUMBER                                   DESCRIPTION
---------------------   ------------------------------------------------------------
<C>                     <S>
         10.7           1999 Uniform Franchisee Offering Circular, including Current
                        Form of Franchise Agreement, filed as Exhibit 10(d) on the
                        Company's Annual Report on Form 10-Q for the fiscal quarter
                        ended June 27, 1999 (the "June 27, 1999 Form 10-Q").*
         10.8           Uno Restaurant Corporation 1987 Employee Stock Option Plan,
                        as amended, filed as Exhibit 10.8 to the 1999 Registration
                        Statement.*  **
         10.9           Uno Restaurant Corporation 1989 Non-Qualified Stock Option
                        Plan for Non-Employee Directors, filed as Exhibit A to the
                        Company's Proxy Statement for the Annual Meeting of
                        Stockholders held on February 8, 1995.*  **
        10.10           Uno Restaurant Corporation 1993 Non-Qualified Stock Option
                        Plan for Non-Employee Directors, as amended, filed as
                        Exhibit 10(g) to the Company's Annual Report on Form 10-K
                        for the fiscal year ended September 28, 1997 (the "1997
                        Annual Report on Form 10-K").*  **
        10.11           Uno Restaurant Corporation 1997 Employee Stock Option Plan,
                        filed as Exhibit A to the Company's Proxy Statement for the
                        Annual Meeting of Stockholders held on February 26,
                        1997.*  **
        10.12           Uno Restaurant Corporation 1997 Key Officer Stock Option
                        Plan, filed as Exhibit A to the Company's Proxy Statement
                        for the Annual Meeting of Stockholders held on February 26,
                        1998.*  **
        10.13           Uno Restaurant Corporation 1997 Non-Qualified Stock Option
                        Plan for Non-Employee Directors, filed as Exhibit B to the
                        Company's Proxy Statement for the Annual Meeting of
                        Stockholders held on February 26, 1998.*  **
        10.14           Form of Indemnification Agreement between the Company and
                        its Officers, filed as Exhibit 10.6 to the 1987 Registration
                        Statement.*  **
        10.15           Interest Rate Swap Agreement between Fleet Bank of
                        Massachusetts, N.A. and Uno Restaurants, Inc. dated
                        October 25, 1995, filed as Exhibit 10(k) to the Company's
                        Annual Report on Form 10-K for the fiscal year ended
                        October 1, 1995 (the "1995 Annual Report on Form 10-K").*
        10.16           Interest Rate Swap Agreement between Fleet Bank of
                        Massachusetts, N.A. and Uno Restaurants, Inc. dated
                        July 21, 1998, filed as Exhibit 10(n) to the Company's
                        Annual Report on Form 10-K for the fiscal year ended
                        September 27, 1998 (the "1998 Annual Report on Form 10-K).*
        10.17           Note between the Company and Craig S. Miller dated April 1,
                        1997, filed as Exhibit 10(r) to the Company's 1997 Annual
                        Report on Form 10-K.*  **
        10.18           Amendment to Promissory Note and Revised Debt Agreement
                        dated April 7, 1998, and Second Amendment to Promissory Note
                        and Revised Debt Agreement dated September 27, 1998, each
                        between the Company and Craig S. Miller, filed as
                        Exhibit 10(p) to the 1998 Annual Report on Form 10- K.*  **
        10.19           Third Amendment to Promissory Note and Revised Debt
                        Agreement dated August 3, 1999, each between the Company and
                        Craig S. Miller, filed as Exhibit 10(p) to the June 27, 1999
                        Form 10-Q.*  **
        10.20           Form of Change in Control Protection Agreements between Uno
                        Restaurant Corporation and Mr. Spencer and Mr. Miller, filed
                        as Exhibit 10(m) to the 1997 Annual Report on
                        Form 10-K.*  **
        10.21           Form of Change in Control Protection Agreements between Uno
                        Restaurant Corporation and Senior Vice Presidents, filed as
                        Exhibit 10(n) to the 1997 Annual Report on Form 10-K.*  **
        10.22           Form of Change in Control Protection Agreements between Uno
                        Restaurant Corporation and its other officers, filed as
                        Exhibit 10(o) to the 1997 Annual Report on Form 10-K.*  **
</TABLE>

                                       31
<PAGE>

<TABLE>
<CAPTION>
       EXHIBIT
       NUMBER                                   DESCRIPTION
---------------------   ------------------------------------------------------------
<C>                     <S>
        10.23           Master Lease-Purchase Agreement between ORIX Credit
                        Alliance, Inc., as Lessor, and Massachusetts Industrial
                        Finance Agency, as Lessee, dated April 19, 1994, and Master
                        Sublease-Purchase Agreement between Massachusetts Industrial
                        Finance Agency, as Sublessor, and Uno Foods, Inc. as
                        Sublessee, dated April 19, 1994, filed as Exhibit 10(s) to
                        the Company's Annual Report on Form 10-K for the fiscal year
                        ended October 2, 1994.*
        10.24           MetLife Capital Financial Corporation Mortgage Notes:
                        $1,875,000 8.75% Note dated December 23, 1996 of 8250
                        International Drive Corporation, $825,000 8.75% Note dated
                        December 23, 1996 of Saxet Corporation, $900,000 8.75% Note
                        dated December 23, 1996 of Saxet Corporation, $675,000 8.75%
                        Note dated January 30, 1997 of Saxet Corporation, $825,000
                        8.75% Note dated February 27, 1997 of Saxet Corporation,
                        each payable to the order of MetLife Capital Financial
                        Corporation, filed as Exhibit 10(q) to the 1997 Annual
                        Report on Form 10-K.*
        10.25           $55,000,000 Amended and Restated Revolving Credit and Term
                        Loan Agreement ("Revolving Credit and Term Loan Agreement")
                        dated as of November 4, 1997 by and among Uno
                        Restaurants, Inc. and Saxet Corp., as Borrowers, Uno
                        Foods, Inc., Pizzeria Uno Corporation, URC Holding
                        Company, Inc. and Uno Restaurant Corporation, as Guarantors,
                        and Fleet National Bank, as Agent and BankBoston, N.A. as
                        Co-Agent (without exhibits), filed as Exhibit 10(s) to the
                        1997 Annual Report on Form 10-K.*
        10.26           Amendment to Revolving Credit and Loan Agreement dated
                        September 28, 1998, filed as Exhibit 10.26 to the 1999
                        Registration Statement.*
        10.27           Executive Employment Agreement dated October 1, 1997, as
                        amended, by and between the Company and Paul MacPhail, filed
                        as Exhibit 10.27 to the 1999 Registration Statement.*  **
        10.28           Executive Employment Agreement dated October 1, 1997, as
                        amended, by and between the Company and Robert Brown, filed
                        as Exhibit 10.28 to the 1999 Registration Statement.*  **
        10.29           Executive Employment Agreement dated October 1, 1997, as
                        amended, by and between the Company and Robert Vincent,
                        filed as Exhibit 10.29 to the 1999 Registration
                        Statement.*  **
        10.30           Executive Employment Agreement dated October 1, 1997, as
                        amended, by and between the Company and Alan Fox, filed as
                        Exhibit 10.30 to the 1999 Registration Statement.*  **
        10.31           Contract with Beatrice Cheese, Inc. dated March 18, 1999,
                        filed as Exhibit 10.31 to the 1999 Registration Statement.*
        10.32           Promissory Note between the Company and Aaron D. Spencer
                        dated August 26, 1999, filed as Exhibit 10.32 to the 1999
                        Registration Statement.*  **
        10.33           Form of Indemnification Agreement between the Company and
                        its Directors as of October 2000.**
        10.34           First Amendment to Amended and Restated Revolving Credit and
                        Term Loan Agreement dated June 14, 2000 with Fleet National
                        Bank and SunTrust Bank.
        10.35           Contract with Beatrice Cheese, Inc. dated September 29,
                        2000.
         21.1           Subsidiaries of the Registrant.
         23.2           Consent of Ernst & Young LLP.
         27.1           Financial Data Schedule.
</TABLE>

------------------------

*   In accordance with Rule 12b-23 and Rule 12b-32 under the Securities Exchange
    Act of 1934, as amended, reference is made to the documents previously filed
    with the Securities and Exchange Commission, which documents are
    incorporated by reference.

**  Management Contract.

(b) Reports on Form 8-K

    During the fiscal quarter ended October 1, 2000, we did not file any Current
Reports on Form 8-K.

                                       32
<PAGE>
                                   SIGNATURES

    Pursuant to the requirements of Section 13 or 15(d) 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.

<TABLE>
<S>                                                    <C>  <C>
                                                       UNO RESTAURANT CORPORATION

                                                       BY:            /S/ ROBERT M. VINCENT
                                                            -----------------------------------------
                                                                        Robert M. Vincent,
                                                                     EXECUTIVE VICE PRESIDENT

                                                            Date: December 22, 2000
</TABLE>

    Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the date indicated.

<TABLE>
<CAPTION>
                      NAME                                     TITLE                      DATE
                      ----                                     -----                      ----
<C>                                               <S>                               <C>
              /s/ AARON D. SPENCER                Chairman and Director
     --------------------------------------                                         December 22, 2000
                Aaron D. Spencer

              /s/ CRAIG S. MILLER                 President, Chief Executive
     --------------------------------------         Officer and Director            December 22, 2000
                Craig S. Miller                     (Principal Executive Officer)

             /s/ ROBERT M. VINCENT                Executive Vice President-Finance
     --------------------------------------         and Chief Financial Officer     December 22, 2000
               Robert M. Vincent                    (Principal Financial Officer)

              /s/ JOHN T. GERLACH                 Director
     --------------------------------------                                         December 22, 2000
                John T. Gerlach

              /s/ JAMES F. CARLIN                 Director
     --------------------------------------                                         December 22, 2000
                James F. Carlin

              /s/ TAMARA P. DAVIS                 Director
     --------------------------------------                                         December 22, 2000
                Tamara P. Davis

            /s/ JAMES J. KERASIOTES               Director
     --------------------------------------                                         December 22, 2000
              James J. Kerasiotes

              /s/ KENNETH D. HILL                 Director
     --------------------------------------                                         December 22, 2000
                Kenneth D. Hill
</TABLE>

                                       33
<PAGE>
                         REPORT OF INDEPENDENT AUDITORS

The Board of Directors
Uno Restaurant Corporation

    We have audited the accompanying consolidated balance sheets of Uno
Restaurant Corporation and subsidiaries as of October 1, 2000 and October 3,
1999, and the related consolidated statements of income, shareholders' equity,
and cash flows for each of the three years in the period ended October 1, 2000.
These financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements based
on our audits.

    We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.

    In our opinion, the financial statements referred to above present fairly,
in all material respects, the consolidated financial position of Uno Restaurant
Corporation and subsidiaries at October 1, 2000 and October 3, 1999, and the
consolidated results of their operations and their cash flows for each of the
three years in the period ended October 1, 2000, in conformity with accounting
principles generally accepted in the United States.

                                          /s/ Ernst & Young LLP

Boston, Massachusetts
November 3, 2000

                                       34
<PAGE>
                  UNO RESTAURANT CORPORATION AND SUBSIDIARIES

                   AUDITED CONSOLIDATED FINANCIAL STATEMENTS

                  YEARS ENDED OCTOBER 1, 2000, OCTOBER 3, 1999
                             AND SEPTEMBER 27, 1998

                                    CONTENTS

<TABLE>
<S>                                                           <C>
Report of Independent Auditors..............................     34

Audited Consolidated Financial Statements

Consolidated Balance Sheets.................................     36
Consolidated Statements of Income...........................     37
Consolidated Statements of Shareholders' Equity.............     38
Consolidated Statements of Cash Flows.......................     39
Notes to Consolidated Financial Statements..................     40
</TABLE>

                                       35
<PAGE>
                  UNO RESTAURANT CORPORATION AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                OCTOBER 1       OCTOBER 3
                                                                  2000            1999
                                                              -------------   -------------
                                                              (AMOUNTS IN THOUSANDS, EXCEPT
                                                                     PER SHARE DATA)
<S>                                                           <C>             <C>
ASSETS
Current assets:
  Cash......................................................     $    788        $    752
  Accounts receivable, net..................................        3,530           2,398
  Inventories...............................................        2,497           2,436
  Prepaid expenses..........................................        1,999           1,757
                                                                 --------        --------
Total current assets........................................        8,814           7,343

Property, equipment and leasehold improvements, net.........      141,992         128,746

Deferred income taxes.......................................       14,132          10,020

Liquor licenses and other assets............................        3,538           3,503
                                                                 --------        --------
                                                                 $168,476        $149,612
                                                                 ========        ========

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
  Accounts payable..........................................     $  9,851        $  7,798
  Accrued expenses..........................................        8,459           8,668
  Accrued compensation and taxes............................        2,889           3,369
  Income taxes payable......................................          558           2,914
  Current portions of long-term debt and capital lease
    obligations.............................................        3,953           4,075
                                                                 --------        --------
Total current liabilities...................................       25,710          26,824

Long-term debt, net of current portion......................       50,900          31,612
Capital lease obligations, net of current portion...........          453             489
Other liabilities...........................................        9,699           9,708

Commitments and contingencies

Shareholders' equity:
  Preferred Stock, $1.00 par value; 1,000 shares authorized;
    no shares issued or outstanding
  Common Stock, $.01 par value, 25,000 shares authorized;
    15,744 shares in 2000 and 15,375 shares in 1999
    issued..................................................          158             154
  Additional paid-in capital................................       58,755          55,648
  Retained earnings.........................................       56,038          52,003
                                                                 --------        --------
                                                                  114,951         107,805
  Treasury Stock (4,784 shares in 2000
    and 4,100 shares in 1999) at cost.......................      (33,237)        (26,826)
                                                                 --------        --------
Total shareholders' equity..................................       81,714          80,979
                                                                 --------        --------
                                                                 $168,476        $149,612
                                                                 ========        ========
</TABLE>

                            See accompanying notes.

                                       36
<PAGE>
                  UNO RESTAURANT CORPORATION AND SUBSIDIARIES
                       CONSOLIDATED STATEMENTS OF INCOME

<TABLE>
<CAPTION>
                                                                            YEAR ENDED
                                                              ---------------------------------------
                                                              OCTOBER 1    OCTOBER 3    SEPTEMBER 27
                                                                 2000         1999          1998
                                                              ----------   ----------   -------------
                                                                 (AMOUNTS IN THOUSANDS, EXCEPT PER
                                                                            SHARE DATA)
                                                                            (53 WEEKS)
<S>                                                           <C>          <C>          <C>
Revenues:
  Restaurant sales..........................................   $213,715     $198,560       $177,343
  Consumer product sales....................................     11,772       10,568          9,384
  Franchise income..........................................      5,683        5,105          4,549
                                                               --------     --------       --------
                                                                231,170      214,233        191,276
Costs and expenses:
  Cost of food and beverages................................     57,679       54,683         48,567
  Labor and benefits........................................     70,922       64,700         58,139
  Occupancy costs...........................................     30,974       29,199         27,988
  Other operating costs.....................................     19,468       17,739         17,148
  General and administrative................................     19,521       16,629         13,661
  Depreciation and amortization.............................     13,098       12,702         12,183
  Pre-opening costs.........................................      2,137          594            938
  Special charges...........................................      8,588
                                                               --------     --------       --------
                                                                222,387      196,246        178,624
                                                               --------     --------       --------
Operating income............................................      8,783       17,987         12,652

Other expense (income):
  Interest expense..........................................      3,189        3,160          3,527
  Other expense (income)....................................       (170)         (21)           134
                                                               --------     --------       --------
                                                                  3,019        3,139          3,661
                                                               --------     --------       --------
Income before income taxes..................................      5,764       14,848          8,991

Provision for income taxes..................................      1,729        5,048          2,968
                                                               --------     --------       --------
Income before cumulative effect of change in accounting
  principle.................................................      4,035        9,800          6,023
Cumulative effect of change in accounting principle for
  pre-opening costs, net of income tax benefit of $313......                                    636
                                                               --------     --------       --------
Net income..................................................   $  4,035     $  9,800       $  5,387
                                                               ========     ========       ========
Basic earnings per share:
  Earnings before cumulative effect of change in accounting
    principle...............................................   $    .36     $    .87       $    .50
  Cumulative effect of change in accounting principle.......                                   (.05)
                                                               --------     --------       --------
                                                               $    .36     $    .87       $    .45
                                                               ========     ========       ========
Diluted earnings per share:
  Earnings before cumulative effect of change in accounting
    principle...............................................   $    .34     $    .84       $    .50
  Cumulative effect of change in accounting principle.......                                   (.05)
                                                               --------     --------       --------
                                                               $    .34     $    .84       $    .45
                                                               ========     ========       ========
Basic weighted average shares outstanding...................     11,162       11,313         11,960
                                                               ========     ========       ========
Diluted weighted average shares outstanding.................     11,844       11,610         12,025
                                                               ========     ========       ========
</TABLE>

                            See accompanying notes.

                                       37
<PAGE>
                  UNO RESTAURANT CORPORATION AND SUBSIDIARIES

                CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

<TABLE>
<CAPTION>
                                                COMMON STOCK       ADDITIONAL
                                             -------------------    PAID-IN     RETAINED   TREASURY
                                              SHARES     AMOUNT     CAPITAL     EARNINGS    STOCK      TOTAL
                                             --------   --------   ----------   --------   --------   --------
                                                                  (AMOUNTS IN THOUSANDS)
<S>                                          <C>        <C>        <C>          <C>        <C>        <C>
Balance at September 28, 1997.............    15,130      $152       $53,789    $36,816    $(19,877)  $70,880
  Net income..............................                                        5,387                 5,387
  Exercise of stock options...............        23                     127                              127
  Purchase of Treasury Stock..............                                                   (2,791)   (2,791)
  Contribution of Treasury Stock to 401(k)
    Savings and Employee Stock Ownership
    Retirement Plan.......................                                 2                     52        54
  Tax benefit from exercise of
    nonqualified stock options............                                12                               12
                                              ------      ----       -------    -------    --------   -------
Balance at September 27, 1998.............    15,153       152        53,930     42,203     (22,616)   73,669
  Net income (53 weeks)...................                                        9,800                 9,800
  Exercise of stock options...............       222         2         1,515                            1,517
  Purchase of Treasury Stock..............                                                   (4,382)   (4,382)
  Contribution of Treasury Stock to 401(k)
    Savings and Employee Stock Ownership
    Retirement Plan.......................                                 3                    172       175
  Tax benefit from exercise of
    nonqualified stock options............                               200                              200
                                              ------      ----       -------    -------    --------   -------
Balance at October 3, 1999................    15,375       154        55,648     52,003     (26,826)   80,979
  Net income..............................                                        4,035                 4,035
  Exercise of stock options...............       369         4         2,519                            2,523
  Purchase of Treasury Stock..............                                                   (6,445)   (6,445)
  Contribution of Treasury Stock to 401(k)
    Savings and Employee Stock Ownership
    Retirement Plan.......................                                21                     34        55
  Tax benefit from exercise of
    nonqualified stock options............                               567                              567
                                              ------      ----       -------    -------    --------   -------
Balance at October 1, 2000................    15,744      $158       $58,755    $56,038    $(33,237)  $81,714
                                              ======      ====       =======    =======    ========   =======
</TABLE>

                            See accompanying notes.

                                       38
<PAGE>
                  UNO RESTAURANT CORPORATION AND SUBSIDIARIES

                     CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                           YEAR ENDED
                                                              ------------------------------------
                                                              OCTOBER 1   OCTOBER 3   SEPTEMBER 27
                                                                2000        1999          1998
                                                              ---------   ---------   ------------
                                                                         (IN THOUSANDS)
<S>                                                           <C>         <C>         <C>
OPERATING ACTIVITIES
Net income..................................................  $  4,035    $  9,800      $  5,387
Adjustments to reconcile net income to net cash provided by
  operating activities:
  Cumulative effect of change in accounting principle.......                                 636
  Depreciation and amortization.............................    13,233      12,823        12,292
  Deferred income taxes.....................................    (4,112)     (2,570)         (851)
  Tax benefit from exercise of non-qualified stock
    options.................................................       567         200            12
  Contribution to employee benefit programs.................        55         175            54
  Provision for deferred rent...............................       335         184           147
  Loss (gain) on disposal of equipment......................       428         (62)          (26)
  Special charges...........................................     8,588
  Changes in operating assets and liabilities:
    Accounts receivable.....................................    (1,517)       (614)        1,039
    Inventories.............................................       (61)       (140)           30
    Prepaid expenses and other assets.......................      (390)     (1,071)         (237)
    Accounts payable and other liabilities..................     2,020       4,320           700
    Income taxes payable....................................    (2,356)      1,919          (768)
                                                              --------    --------      --------
Net cash provided by operating activities...................    20,825      24,964        18,415

INVESTING ACTIVITIES
Additions to property, equipment and leasehold
  improvements..............................................   (36,430)    (18,860)      (12,141)
Proceeds from sale of fixed assets..........................        48       2,730            26
                                                              --------    --------      --------
Net cash used in investing activities.......................   (36,382)    (16,130)      (12,115)

FINANCING ACTIVITIES
Proceeds from revolving line of credit......................    83,123      72,243        50,790
Principal payments on debt and capital lease obligations....   (63,993)    (79,490)      (53,882)
Purchase of Treasury Stock..................................    (6,060)     (4,421)       (2,791)
Exercise of stock options...................................     2,523       1,556           127
                                                              --------    --------      --------
Net cash provided by (used in) financing activities.........    15,593     (10,112)       (5,756)
                                                              --------    --------      --------
Increase (decrease) in cash.................................        36      (1,278)          544
Cash at beginning of year...................................       752       2,030         1,486
                                                              --------    --------      --------
Cash at end of year.........................................  $    788    $    752      $  2,030
                                                              ========    ========      ========
</TABLE>

                            See accompanying notes.

                                       39
<PAGE>
                  UNO RESTAURANT CORPORATION AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                OCTOBER 1, 2000

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

DESCRIPTION OF BUSINESS

    The Company owns and operates 110 "Pizzeria Uno...Chicago Bar & Grill"
casual dining, full-service restaurants primarily from New England to Virginia,
as well as Florida, Chicago and Denver, and operates a Mexican restaurant in
Chicago. The company also franchises 55 "Pizzeria Uno...Chicago Bar & Grill" and
7 Pizzeria Uno Restaurant & Bar restaurants in 30 states, the District of
Columbia, Puerto Rico, Seoul, South Korea, and Dubai, U.A.E.   The Company under
its Uno Foods subsidiary operates a consumer foods business, which supplies
airlines, movie theaters, hotel restaurants and supermarkets with both frozen
and refrigerated branded and non branded products.

BASIS OF PRESENTATION

    The consolidated financial statements include the accounts of Uno Restaurant
Corporation and its wholly-owned subsidiaries (the Company). All intercompany
accounts and transactions have been eliminated in consolidation.

FISCAL YEAR

    The Company's fiscal year ends on the close of business on the Sunday
closest to September 30 in each year. The fiscal year ended October 3, 1999
consisted of 53 weeks.

INVENTORIES

    Inventory, which consists of food, beverages and supplies, is stated at the
lower of cost (first-in, first-out method) or market.

PROPERTY, EQUIPMENT AND LEASEHOLD IMPROVEMENTS

    Property, equipment and leasehold improvements are recorded at cost. The
Company provides for depreciation of buildings and equipment using the
straight-line method over 25 and 7 years, respectively. Leasehold improvements
are amortized over the shorter of their estimated useful lives or the term of
the lease (generally 20 years) using the straight-line method.

IMPAIRMENT OF LONG-LIVED ASSETS

    The Company periodically reviews the carrying value of its long-lived assets
(primarily property, equipment and leasehold improvements) to assess the
recoverability of these assets. The Company records impairment losses on
long-lived assets used in operations when events and circumstances indicate that
the assets might be impaired and the undiscounted cash flows estimated to be
generated by those assets are less than the carrying amount of those assets.

REVENUE RECOGNITION

    The Company defers franchise fees until the franchisee opens the restaurant
and all services have been substantially performed; at that time, the fee is
recorded as income. Royalty income is recorded as earned based on rates provided
by the respective franchise agreements. Expenses related to franchise
activities, included in general and administrative expense in the accompanying
statements of income,

                                       40
<PAGE>
                  UNO RESTAURANT CORPORATION AND SUBSIDIARIES

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                OCTOBER 1, 2000

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
amounted to approximately $4,302,000, $3,895,000 and $3,280,000 in fiscal years
2000, 1999 and 1998, respectively.

    A summary of full-service franchise unit activity is as follows:

<TABLE>
<CAPTION>
                                                             YEAR ENDED
                                               ---------------------------------------
                                               OCTOBER 1    OCTOBER 3    SEPTEMBER 27
                                                  2000         1999          1998
                                               ----------   ----------   -------------
<S>                                            <C>          <C>          <C>
Units operating at beginning of year.........      60            63           66
Units opened.................................       9             8            5
Units closed.................................      (7)          (11)          (8)
                                                   --           ---           --
Units operating at end of year...............      62            60           63
                                                   ==           ===           ==
</TABLE>

INCOME TAXES

    Deferred income taxes are determined utilizing the liability method. Under
this method, deferred tax assets and liabilities are determined based on
differences between financial reporting and tax basis of assets and liabilities
and are measured using the enacted tax rates and laws that will be in effect
when the differences are expected to reverse.

ADVERTISING

    The Company records advertising expense as incurred. Advertising expense was
$5,189,000, $5,054,000 and $5,257,000 for fiscal years 2000, 1999 and 1998,
respectively.

EARNINGS PER SHARE

    Basic earnings per share represents net income divided by the weighted
average shares of common stock outstanding during the period. Weighted average
shares used in diluted earnings per share include 682,000, 297,000 and 65,000
for fiscal years 2000, 1999 and 1998, respectively, of common stock equivalents
arising from stock options using the treasury stock method.

USE OF ESTIMATES

    The preparation of the consolidated financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
the disclosure of contingent assets and liabilities at the date of the
consolidated financial statements and the reported amounts of revenues and costs
and expenses during the reporting period. Actual results could differ from those
estimates.

STOCK-BASED COMPENSATION

    The Company has elected to follow Accounting Principles Board Opinion (APB)
No. 25, "Accounting for Stock Issued to Employees" in accounting for its
stock-based compensation plans, rather than the alternative fair value
accounting method provided for under Statement of Financial Accounting Standard
(SFAS) No. 123, "Accounting for Stock-Based Compensation," as this alternative

                                       41
<PAGE>
                  UNO RESTAURANT CORPORATION AND SUBSIDIARIES

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                OCTOBER 1, 2000

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
requires the use of option valuation models that were not developed for use in
valuing employee stock options. Under APB No. 25, since the exercise price of
options granted under these plans equals the market price of the underlying
stock on the date of grant, no compensation expense is recognized.

ACCOUNTING PRONOUNCEMENTS

    In June 1998, the Financial Accounting Standards Board (FASB) issued SFAS
No. 133, "Accounting for Derivative Instruments and Hedging Activities," which
is effective for fiscal year 2001. This statement requires all derivatives to be
carried on the balance sheet as assets or liabilities at fair value. The
accounting for changes in the fair value of the derivatives would depend on the
hedging relationship and would be reported in the income statement, or as a
component of comprehensive income. The Company believes that the adoption of
this new accounting standard will not have a material impact on the Company's
consolidated financial statements.

    In March 2000, the FASB issued Interpretation No. 44, ACCOUNTING FOR CERTAIN
TRANSACTIONS INVOLVING STOCK COMPENSATION (the Interpretation). This
Interpretation clarifies how companies should apply the Accounting Principles
Board's Opinion No. 25, ACCOUNTING FOR STOCK ISSUED TO EMPLOYEES. The
Interpretation will be applied prospectively to new awards, modifications to
outstanding awards, and changes in employee status on or after July 1, 2000,
except as follows: the definition of an employee applies to awards granted after
December 15, 1998; the Interpretation applies to modifications that reduce the
exercise price of an award after December 15, 1998; and the Interpretation
applies to modifications that add a reload feature to an award made after
January 12, 2000. There were no awards granted by the Company, which resulted in
an adjustment as a result of this Interpretation.

    In December 1999, the Securities and Exchange Commission (SEC) issued Staff
Accounting Bulletin (SAB) 101, REVENUE RECOGNITION IN FINANCIAL STATEMENTS. SAB
101 clarifies the SEC staff's views on applying generally accepted accounting
principles to revenue recognition in financial statements. The Company is
required to adopt SAB 101 in the fourth quarter of fiscal 2001, and believes
that the adoption of this pronouncement will not have an impact on the Company's
consolidated financial statements.

RECLASSIFICATIONS

    Certain amounts in the accompanying financial statements have been
reclassified to conform with the 2000 presentation.

PRE-OPENING COSTS

    In the third quarter of fiscal 1998, the Company adopted Statement of
Position (SOP) 98-5 "Reporting the Costs of Start-up Activities" which requires
that pre-opening costs be expensed as incurred. In accordance with SOP 98-5, the
adoption is reported as a cumulative effect of a change in accounting principle
and has been recognized retroactively to the first quarter of fiscal 1998. The
cumulative effect of the change in accounting principle was $636,000, net of the
income tax benefit of $313,000.

                                       42
<PAGE>
                  UNO RESTAURANT CORPORATION AND SUBSIDIARIES

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                OCTOBER 1, 2000

2. SPECIAL CHARGES

    During the fourth quarter of fiscal 2000, the Company recorded a pre-tax
charge in the amount of $8.6 million, consisting of an asset impairment charge
of $8.1 million and store closing costs of $.5 million. The $8.1 million asset
impairment charge was recorded to reduce the carrying value of equipment and
leaseholds at eight full-service Uno restaurants to their fair market value.
Based upon current operating and cash flow results, management believed that
these units would likely continue to generate operating and cash flow losses and
therefore reduced the carrying value of the impaired assets to fair market
value. The store closure costs represent estimated settlement costs associated
with two full-service units, which the Company decided to close in the fourth
quarter of fiscal 2000. The Company expects to close the units in fiscal 2001.

3. PROPERTY, EQUIPMENT AND LEASEHOLD IMPROVEMENTS

    Property, equipment and leasehold improvements consist of the following:

<TABLE>
<CAPTION>
                                                          OCTOBER 1    OCTOBER 3
                                                             2000         1999
                                                          ----------   ----------
                                                              (IN THOUSANDS)
<S>                                                       <C>          <C>
Land....................................................   $ 19,640     $ 17,143
Buildings...............................................     35,215       28,920
Equipment...............................................     64,385       58,576
Leasehold improvements..................................    106,342      101,326
Construction in progress................................      3,029        2,930
                                                           --------     --------
                                                            228,611      208,895
Less allowances for depreciation and amortization.......     86,619       80,149
                                                           --------     --------
                                                           $141,992     $128,746
                                                           ========     ========
</TABLE>

4. RELATED-PARTY TRANSACTIONS

    The Company leases three buildings from its principal shareholder for a
restaurant and corporate office space. Rent expense in the amount of
approximately $535,000, $515,000, and $505,000 was charged to operations in
fiscal year 2000, 1999, and 1998 respectively. The Company believes that the
terms of these leases approximate fair rental value. Additionally, the Company's
Chief Executive Officer and his brother own and operate three franchised
restaurants and pay royalties to the Company under standard franchise
agreements.

5. LEASES

    The Company conducts the majority of its operations in leased facilities,
which are accounted for as capital or operating leases. The leases typically
provide for a base rent plus real estate taxes, insurance and other expenses,
plus additional contingent rent based upon revenues of the restaurant. Assets
held under capital leases were $2,439,000 at October 1, 2000 and $2,881,000 at
October 3, 1999. Accumulated amortization amounted to $767,000 at October 1,
2000 and $880,000 at October 3, 1999. Capital lease asset amortization is
included in depreciation and amortization. At October 1, 2000, the

                                       43
<PAGE>
                  UNO RESTAURANT CORPORATION AND SUBSIDIARIES

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                OCTOBER 1, 2000

5. LEASES (CONTINUED)
minimum rental commitments under all noncancelable capital and operating leases
with initial or remaining terms of more than one year are as follows:

<TABLE>
<CAPTION>
                                                            CAPITAL    OPERATING
FISCAL YEAR                                                  LEASES     LEASES
-----------                                                 --------   ---------
                                                               (IN THOUSANDS)
<S>                                                         <C>        <C>
2001......................................................   $   74    $ 10,967
2002......................................................       42      11,026
2003......................................................       42      10,680
2004......................................................       42      10,565
2005......................................................       42       9,881
Thereafter................................................    1,084      80,887
                                                             ------    --------
                                                              1,326    $134,006
                                                                       ========
Less amount representing interest.........................      838
                                                             ------
Present value of net minimum lease payments...............      488
Less current portion of obligation under capital leases...       35
                                                             ------
Long-term obligation under capital leases.................   $  453
                                                             ======
</TABLE>

    Total expenses, including real estate taxes, for all operating leases were
as follows:

<TABLE>
<CAPTION>
                                                  MINIMUM      CONTINGENT
FISCAL YEAR                                    LEASE RENTALS    RENTALS      TOTAL
-----------                                    -------------   ----------   --------
                                                          (IN THOUSANDS)
<S>                                            <C>             <C>          <C>
2000.........................................     $13,858         $676      $14,534
1999.........................................      13,542          607       14,149
1998.........................................      13,010          689       13,699
</TABLE>

    Certain operating lease agreements contain free rent inducements and
scheduled rent increases which are being amortized over the terms of the
agreements, ranging from 15 to 20 years, using the straight-line method. The
deferred rent liability, included in other liabilities, amounted to $5,262,000
at October 1, 2000 and $4,927,000 at October 3, 1999.

6. FINANCING ARRANGEMENTS

    Long-term debt consists of the following:

<TABLE>
<CAPTION>
                                                           OCTOBER 1   OCTOBER 3
                                                             2000        1999
                                                           ---------   ---------
                                                              (IN THOUSANDS)
<S>                                                        <C>         <C>
Revolving credit and note agreement......................   $50,440     $30,915
8.75%, 15-year secured mortgage notes payable............     4,378       4,595
                                                            -------     -------
                                                             54,818      35,510
Less current portion.....................................     3,918       3,898
                                                            -------     -------
                                                            $50,900     $31,612
                                                            =======     =======
</TABLE>

                                       44
<PAGE>
                  UNO RESTAURANT CORPORATION AND SUBSIDIARIES

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                OCTOBER 1, 2000

6. FINANCING ARRANGEMENTS (CONTINUED)
    In June 2000, the Company amended its $55 million credit facility to expand
the revolver component from $26.6 million to $36.6 million, leaving the
remaining term loans of the facility unchanged, except for the maturity of the
revolver, which was extended to June 2005. The Company is entitled to borrow, at
its discretion, amounts, which accrue interest at variable rates based on either
the LIBOR or prime rate. Amounts borrowed under the credit facility are secured
by certain real properties owned by the Company. At October 1, 2000, interest
rates on outstanding borrowings under the revolving line of credit ranged from
7.87% to 9.50%. A commitment fee of approximately 0.38% is accrued on unused
borrowings under the new credit agreement. The note agreements contain certain
financial and operating covenants, including maintenance of certain levels of
net worth and income. The Company did not meet its profitability covenant due to
the special charges recorded in fiscal 2000, and therefore, was not in
compliance at October 1, 2000. The Company has obtained an appropriate waiver
from its lending institution for the period under violation. At October 1, 2000,
the carrying value of the Company's long-term debt approximated fair market
value.

    Annual principal payments of debt are as follows (in thousands):

<TABLE>
<CAPTION>
FISCAL YEAR
-----------
<S>                                                           <C>
2001........................................................  $ 3,918
2002........................................................    3,940
2003........................................................    2,703
2004........................................................    2,309
2005........................................................   38,998
Thereafter..................................................    2,950
                                                              -------
                                                              $54,818
                                                              =======
</TABLE>

    The Company has two interest rate swap agreements which convert a portion of
its floating rate debt to a fixed-rate basis, thereby reducing the potential
impact of interest rate increases on future income. The notional amounts and
fair market value under the swap agreements amount to $30 million and $76,000,
respectively, at October 1, 2000. The original terms range from three to five
years with fixed interest rates ranging from 5.80% to 6.04% and the agreements
expire in October 2000 and July 2001. The differentials to be paid or received
are accrued as interest rates change and are recognized as an adjustment to
interest expense related to the debt.

    The Company made interest payments of $3,637,000, $3,540,000 and $3,598,000
during fiscal years 2000, 1999 and 1998, respectively. The Company capitalized
interest during the construction period of new restaurants which amounted to
$411,000 in fiscal year 2000, $157,000 in fiscal year 1999 and $127,000 in
fiscal year 1998 and included those amounts in leasehold improvements.

    The Company provides certain limited lease financing to qualified
franchisees through an agreement with an unaffiliated finance company. The
Company's maximum guarantee under the agreement was $564,000 at October 1, 2000.
The Company has also guaranteed up to a maximum of $400,000 of future lease
payments in the event of default by a specific franchisee.

                                       45
<PAGE>
                  UNO RESTAURANT CORPORATION AND SUBSIDIARIES

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                OCTOBER 1, 2000

7. CONTINGENCIES

    The Company is subject to legal proceedings and claims, which arise in the
ordinary course of its business. The Company believes that although there can be
no assurance as to the disposition of these proceedings, based upon information
available at this time, the expected outcome of these matters will not have a
material adverse effect on the Company's results of operations and financial
condition of the Company.

8. PREPAID EXPENSES

    Prepaid expenses consist of the following:

<TABLE>
<CAPTION>
                                                           OCTOBER 1   OCTOBER 3
                                                             2000        1999
                                                           ---------   ---------
                                                              (IN THOUSANDS)
<S>                                                        <C>         <C>
Prepaid rent.............................................   $1,500      $1,430
Prepaid operating costs..................................      445         269
Prepaid insurance........................................       54          58
                                                            ------      ------
                                                            $1,999      $1,757
                                                            ======      ======
</TABLE>

9. ACCRUED EXPENSES

    Accrued expenses consist of the following:

<TABLE>
<CAPTION>
                                                           OCTOBER 1   OCTOBER 3
                                                             2000        1999
                                                           ---------   ---------
                                                              (IN THOUSANDS)
<S>                                                        <C>         <C>
Accrued insurance........................................   $1,672      $1,627
Accrued rent.............................................    1,194       1,483
Accrued store closure....................................    1,186       2,197
Accrued utilities........................................      632         653
Accrued vacation.........................................      799         737
Accrued advertising......................................      640         482
Franchise fee and other deposits.........................    1,011         531
Other....................................................    1,325         958
                                                            ------      ------
                                                            $8,459      $8,668
                                                            ======      ======
</TABLE>

10. SHAREHOLDERS' EQUITY

    On November 30, 1999, the Company declared a 10% Common Stock dividend
payable on December 23, 1999 to stockholders of record as of December 13, 1999.
All share and per share data in the accompanying financial statements have been
retroactively adjusted to reflect the stock dividend.

11. EMPLOYEE BENEFIT PLANS

    The Company maintains a 401(k) Savings and Employee Stock Ownership
Retirement Plan (the Plan) for all of its eligible employees. The Plan is
maintained in accordance with the provisions of

                                       46
<PAGE>
                  UNO RESTAURANT CORPORATION AND SUBSIDIARIES

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                OCTOBER 1, 2000

11. EMPLOYEE BENEFIT PLANS (CONTINUED)
Section 401(k) of the Internal Revenue Code and allows all employees with at
least one year of service to make annual tax-deferred voluntary contributions up
to 15% of their salary. Under the Plan, the Company matches a specified
percentage of the employees contributions, subject to certain limitations. Total
contributions made to the plan were $282,000, $225,000 and $214,000 in fiscal
years 2000, 1999 and 1998, respectively. In fiscal years 2000, 1999 and 1998
respectively, contributions included $55,000, $175,000 and $54,000 of the
Company's common stock previously held in Treasury.

    The Company sponsors a Deferred Compensation Plan which allows officers to
defer up to 20% of their annual compensation. These assets are placed in a
"rabbi trust" and are presented as assets of the Company in the accompanying
balance sheet as they are available to the general creditors of the Company in
the event of the Company's insolvency. The related liability of $1,111,000 at
October 1, 2000 and $1,308,000 at October 3, 1999 is included in other
liabilities in the accompanying balance sheet. Total contributions to this plan
were $182,000, $211,000 and $170,000 in fiscal years 2000, 1999 and 1998,
respectively.

12. INCOME TAXES

    Deferred taxes are attributable to the following temporary differences:

<TABLE>
<CAPTION>
                                                           OCTOBER 1   OCTOBER 3
                                                             2000        1999
                                                           ---------   ---------
                                                              (IN THOUSANDS)
<S>                                                        <C>         <C>
Deferred tax assets:
  Excess book over tax depreciation......................   $ 5,021     $ 4,035
  Deferred rent..........................................     2,010       1,914
  Accrued expenses.......................................     2,280       1,910
  Asset impairment charge................................     3,861       1,043
  Franchise fees.........................................       898         900
  Other..................................................       420         769
                                                            -------     -------
Total deferred tax assets................................    14,490      10,571
Deferred tax liabilities:
  Other..................................................       358         551
                                                            -------     -------
Total deferred tax liabilities...........................       358         551
                                                            -------     -------
Net deferred tax assets..................................   $14,132     $10,020
                                                            =======     =======
</TABLE>

                                       47
<PAGE>
                  UNO RESTAURANT CORPORATION AND SUBSIDIARIES

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                OCTOBER 1, 2000

12. INCOME TAXES (CONTINUED)
    The provision (credit) for income taxes consisted of the following:

<TABLE>
<CAPTION>
                                                            YEAR ENDED
                                               ------------------------------------
                                               OCTOBER 1   OCTOBER 3   SEPTEMBER 27
                                                 2000        1999          1998
                                               ---------   ---------   ------------
                                                          (IN THOUSANDS)
<S>                                            <C>         <C>         <C>
Current:
  Federal....................................   $ 4,906     $ 6,302       $2,941
  State......................................       935       1,316          878
                                                -------     -------       ------
                                                  5,841       7,618        3,819
Deferred:
  Federal....................................    (3,958)     (2,069)        (713)
  State......................................      (154)       (501)        (138)
                                                -------     -------       ------
                                                 (4,112)     (2,570)        (851)
                                                -------     -------       ------
Income tax expense...........................   $ 1,729     $ 5,048       $2,968
                                                =======     =======       ======
</TABLE>

12. INCOME TAXES (CONTINUED)

    A reconciliation of the effective tax rates with the federal statutory rates
is as follows:

<TABLE>
<CAPTION>
                                                           YEAR ENDED
                                              ------------------------------------
                                              OCTOBER 1   OCTOBER 3   SEPTEMBER 27
                                                2000        1999          1998
                                              ---------   ---------   ------------
<S>                                           <C>         <C>         <C>
Federal statutory rate......................     34.0%      34.3%         34.0%
State income taxes, net of federal income
  tax benefit...............................      5.6        4.6           4.6
Tax credits.................................    (14.4)      (5.1)         (6.5)
Other.......................................      4.8         .2            .9
                                                -----       ----          ----
Effective income tax rate...................     30.0%      34.0%         33.0%
                                                =====       ====          ====
</TABLE>

    The Company made income tax payments of $7,686,000, $5,598,000 and
$4,545,000 during fiscal years 2000, 1999 and 1998, respectively.

13. STOCK-BASED COMPENSATION

    During 1998, the Company's shareholders ratified the 1997 Key Officer Stock
Option Plan (the Key Officer Plan) under which options were granted for
1.1 million shares of Common Stock at an exercise price of $6.82 per share,
which are fully vested at October 3, 1999. The Key Officer Plan will terminate
on August 25, 2007.

    During 1998, the Company also established the 1997 Non Qualified Stock
Option Plan for Non-Employee Directors (the 1997 Directors' Plan) which provides
for the granting of options to purchase up to 82,500 shares of Common Stock.
Options are to be granted at an exercise price equal

                                       48
<PAGE>
                  UNO RESTAURANT CORPORATION AND SUBSIDIARIES

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                OCTOBER 1, 2000

13. STOCK-BASED COMPENSATION (CONTINUED)
to the fair market value of the shares of Common Stock at the date of grant and
vest one year after date of grant. The 1997 Directors' Plan will terminate on
February 26, 2008.

    The Company also has the 1997 Employee Stock Option Plan (the Employee Plan)
which provides for the granting of options to purchase up to 1.1 million shares
of Common Stock. Options may be granted at an exercise price not less than fair
market value on the date of grant. All options vest at a rate of 20% per year
beginning one year after the date of grant. All options terminate ten years
after the date of grant.

    The Company's 1987 Employee Stock Option Plan which contains similar
provisions to the 1997 Plan was terminated during fiscal 1997. The 1.4 million
options granted under that plan will continue to vest at a rate of 20% per year
beginning one year after the date of grant, with the exception of 103,125
options granted to the President of the Company, which vested immediately at the
date of grant. All options terminate ten years after the date of grant.

    The 1989 and 1993 Non-Qualified Stock Option Plans for Non-Employee
Directors (the Directors' Plans) provide for up to 111,719 shares of Common
Stock issuable upon exercise of options granted under the Directors' Plans. The
1989 and 1993 Directors' Plans terminate(d) on November 10, 1999 and August 17,
2002, but such termination shall not affect the validity of options granted
prior to the dates of termination. Options are granted at an exercise price
equal to the fair market value of the shares of Common Stock at the date of
grant. Options granted under the Directors' Plans may be exercised commencing
one year after the date of grant and ending ten years from the date of grant.

    Information regarding the Company's stock option plans is summarized below:

<TABLE>
<CAPTION>
                                                                YEAR ENDED
                                   ---------------------------------------------------------------------
                                         OCTOBER 1               OCTOBER 3             SEPTEMBER 27
                                           2000                    1999                    1998
                                   ---------------------   ---------------------   ---------------------
                                               WEIGHTED-               WEIGHTED-               WEIGHTED-
                                                AVERAGE                 AVERAGE                 AVERAGE
                                               EXERCISE                EXERCISE                EXERCISE
                                    OPTIONS      PRICE      OPTIONS      PRICE      OPTIONS      PRICE
                                   ---------   ---------   ---------   ---------   ---------   ---------
<S>                                <C>         <C>         <C>         <C>         <C>         <C>
Outstanding at Beginning of
  Period.........................  2,450,631    $ 7.17     2,748,410    $ 6.70     1,361,146     $6.66
Granted..........................    244,004     10.64       281,416     11.09     1,519,908      6.69
Exercised........................   (350,810)     6.77      (221,444)     6.85     (20,255)       6.83
Canceled.........................   (193,819)     8.28      (357,751)     6.85     (112,389)      6.21
                                   ---------    ------     ---------    ------     ---------     -----
Outstanding at End of period.....  2,150,006    $ 7.53     2,450,631    $ 7.17     2,748,410     $6.70
                                   =========    ======     =========    ======     =========     =====
Options exercisable at end
  of period......................  1,548,824               1,725,237               1,032,061
                                   =========               =========               =========
Options available for grant at
  end of period..................    462,174                 728,309               651,974
                                   =========               =========               =========
</TABLE>

    The weighted-average fair value of options granted during fiscal years 2000,
1999 and 1998, were $4.53, $4.54 and $2.74, respectively. The Company has
2.6 million shares of common stock reserved at October 1, 2000 for the exercise
of stock options.

                                       49
<PAGE>
                  UNO RESTAURANT CORPORATION AND SUBSIDIARIES

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                OCTOBER 1, 2000

13. STOCK-BASED COMPENSATION (CONTINUED)
    The following table presents information about significant option groups
outstanding at October 1, 2000:

<TABLE>
<CAPTION>
                                                 WEIGHTED-                      WEIGHTED-
                                                  AVERAGE                        AVERAGE
                                  OPTIONS        REMAINING         OPTIONS     EXERCISABLE
EXERCISE PRICE                  OUTSTANDING   CONTRACTUAL LIFE   EXERCISABLE      PRICE
--------------                  -----------   ----------------   -----------   -----------
<S>                             <C>           <C>                <C>           <C>
$5.27 - $ 6.59................     688,304        6.0 years         447,756       $5.95
$6.82 - $12.13................   1,461,702        7.1 years       1,101,068       $7.34
</TABLE>

    Pursuant to the requirements of SFAS No. 123, the following are the pro
forma net income and earnings per share for fiscal year 2000, 1999 and 1998 as
if the compensation cost for the stock option plans had been determined based on
the fair value at the grant date for grants in fiscal year 2000, 1999 and 1998:

<TABLE>
<CAPTION>
                                                            YEAR ENDED
                                               ------------------------------------
                                               OCTOBER 1   OCTOBER 3   SEPTEMBER 27
                                                 2000        1999          1998
                                               ---------   ---------   ------------
                                                 (IN THOUSANDS, EXCEPT PER SHARE
                                                           INFORMATION)
<S>                                            <C>         <C>         <C>
Net income--as reported......................   $4,035      $9,800        $5,387
Basic earnings per share--as Reported........   $  .36      $  .87        $  .45
Diluted earnings per share--as Reported......   $  .34      $  .84        $  .45
Net income--pro forma........................   $3,407      $9,331        $4,934
Basic earnings per share--pro Forma..........   $  .31      $  .82        $  .41
Diluted earnings per share--pro Forma........   $  .29      $  .80        $  .41
</TABLE>

    The fair value for these options was estimated at the date of grant using
the Black-Scholes option pricing model with the following weighted average
assumptions for fiscal years 2000, 1999 and 1998, respectively: risk-free
interest rates of 6.6%, 6.3% and 5.0%; no dividend yield; the volatility factors
of the expected market price of the Company's common stock was 36%, 34% and 37%;
and a weighted-average expected life of the options of five years.

    The effects on fiscal year 2000, 1999 and 1998 pro forma net income and
earnings per share of expensing the fair value of stock options are not
necessarily representative of the effects on reported results of operations for
future years as the periods presented include only three, two and one years,
respectively, of option grants under the Company's plans.

                                       50
<PAGE>
                  UNO RESTAURANT CORPORATION AND SUBSIDIARIES

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                                OCTOBER 1, 2000

14. QUARTERLY FINANCIAL DATA (UNAUDITED)

<TABLE>
<CAPTION>
                                                        QUARTER ENDED
                                         -------------------------------------------
                                         JANUARY 2   APRIL 2     JULY 2    OCTOBER 1
                                           2000        2000       2000       2000
                                         ---------   --------   --------   ---------
                                           (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE
                                                        INFORMATION.)
<S>                                      <C>         <C>        <C>        <C>
Revenues...............................   $53,146    $54,661    $59,194     $64,169
Gross profit(1)........................    11,147     11,345     13,308      13,696
Operating income (loss)(2).............     3,934      3,844      4,875      (3,870)
Income (loss) before income taxes......     3,294      3,102      4,069      (4,701)
Net income (loss)......................     2,174      2,047      2,686      (2,872)
Basic earnings (loss) per common
  share................................       .19        .18        .24        (.26)
Diluted earnings (loss) per common
  share................................       .18        .17        .23        (.26)
</TABLE>

<TABLE>
<CAPTION>
                                                       QUARTER ENDED
                                       ---------------------------------------------
                                       DECEMBER 27   MARCH 28   JUNE 27    OCTOBER 3
                                          1998         1999       1999      1999(3)
                                       -----------   --------   --------   ---------
                                          (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE
                                                       INFORMATION.)
<S>                                    <C>           <C>        <C>        <C>
Revenues.............................    $48,747     $50,251    $53,548     $61,687
Gross profit(1)......................      9,237      10,037     12,163      15,830
Operating income.....................      3,001       3,082      4,576       7,328
Income before taxes..................      2,154       2,229      3,715       6,750
Net income...........................      1,443       1,494      2,488       4,375
Basic earnings per common share:.....        .13         .13        .22         .39
Diluted earnings per common share....        .13         .13        .22         .36
</TABLE>

------------------------

(1) Restaurant and consumer product sales, less cost of food and beverages,
    labor and benefits, occupancy and other operating expenses, excluding
    advertising expenses.

(2) Includes special charges in the amount of $8,588 in the fourth quarter of
    fiscal 2000

(3) The quarter ended October 3, 1999 consisted of 14 weeks compared with 13
    weeks

    for the other quarters presented.

                                       51