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GOOD TIMES RESTAURANTS INC. SIGNS LETTER OF INTENT FOR LEASE AND CONTINGENT SALE OF UP TO FOUR LOW VOLUME UNITS

Straight From Philly Steakout To Take Over And Convert Good Times Units

WESTMINSTER, Colo., March 8 /PRNewswire/ -- Good Times Restaurants Inc. (Nasdaq: GTIM) today announced it has signed a letter of intent to lease up to four underperforming Good Times Drive Thru units to Las Vegas-based Straight From Philly Steakout (Steakout). Under terms of the agreement, 90 days after the conversion date, Good Times can either sell the restaurants to Steakout or, based upon their performance, re- acquire and operate them under the new concept. Additionally, Good Times holds the rights to become a master franchisee of Steakout in Colorado and in Boise, Idaho.

Steakout previously purchased and converted four Good Times restaurants in Las Vegas, Nevada, and Steakout reports the new restaurants have been well received by consumers in that market.

"The Denver restaurants we are leasing to Steakout are our lowest sales volume Good Times units and are all in secondary locations," said Boyd Hoback, president and CEO of Good Times. "This transaction will have an immediate, positive impact on our margins and cash flow. It also will provide us with an opportunity to evaluate for three months the performance and profitability of another restaurant concept. If the concept is successful, we can utilize it to supplement the expansion of Good Times in Colorado."

Hoback said Good Times plans to expand its Colorado operations by focusing on development of key, high-return locations. "This transaction not only eliminates underperforming restaurants, but also allows us to generate a positive return on certain assets that are currently not profitable," he said.

Good Times also announced today that Tom Gordon, who has served the Company as executive vice president, chief financial officer and director, has left Good Times and will join Steakout. Gordon will be responsible for Steakout's development efforts.

"Tom has played an integral role in our transaction with Steakout, so the timing of his transition has been ideal, especially given our push to restructure our operations and reduce overhead," Hoback said. "We look forward to working with Tom and Steakout in the development of their concept in the Colorado market."

Good Times recently announced it had completed a major restructuring and had eliminated more than $500,000 in annual, non-restaurant related expenses. Management is taking aggressive steps to bring the Company to profitability and improve its market share in the Colorado market."

Good Times currently owns and operates eight Good Times double- drive-thru-hamburger restaurants, nine joint venture Good Times units and has eight franchise Good Times units in the state of Colorado. The Company also has a joint venture Good Times restaurant in Boise, Idaho.
 -0- 3/8/96


/CONTACT: Boyd E. Hoback, President and CEO, Good Times Restaurants Inc., 303-427-4221, ext. 111/

(GTIM)

CO: Good Times Restaurants Inc.; Straight From Philly Steakout ST: Colorado, Idaho, Nevada IN: RST SU:

MO-SK -- LAF017 -- 1565 03/08/96 11:39 EST
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Publication:PR Newswire
Date:Mar 8, 1996
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