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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">SECURITIES
      AND EXCHANGE COMMISSION</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Washington,
      D.C. 20549</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">FORM
      8-K</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">CURRENT
      REPORT</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to Section 13 or 15(d) of the</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Securities
      Exchange Act of 1934</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
      of
      report (Date of earliest event reported): September 1, 2006</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">GRILL
      CONCEPTS, INC.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
      name of registrant as specified in Charter)</font></div>
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                or other jurisdiction of incorporation or organization)</font></div>
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                File No.)</font></div>
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                Employer Identification No.)</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11661
      San
      Vicente Blvd., Suite 404</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Los
      Angeles, California 90049</u></font></div>
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      of Principal Executive Offices)(Zip Code)</font></div>
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      name or former address, if changed since last report)</font></div>
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      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligations of the registrant under any of the following
      provisions (see General Instruction A.2. below):</font></div>
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      Written communications
      pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></div>
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      Soliciting material pursuant to Rule 14a-12 under the
      Exchange Act (17 CFR 240.14a-12)</font></div>
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      Pre-commencement communications pursuant to Rule
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      CFR 240.14d-2(b))</font></div>
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      Pre-commencement communications pursuant to Rule
      13e-4(c) under the Exchange Act </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(17
      CFR
      240.13e-4(c))</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">1</font></div>
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        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
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    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
      1.01.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 36.8pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Entry
      into a Material Definitive Agreement.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      September 1, 2006, Grill Concepts, Inc., and its subsidiary Grill Concepts
      Management, Inc. (collectively, the &#8220;Company&#8221;), entered into an Agreement for
      Purchase and Sale of Assets (the &#8220;Purchase Agreement&#8221;) with Hotel Restaurant
      Properties, Inc. (&#8220;HRP&#8221;), Hotel Restaurant Properties II, Inc., Hotel Restaurant
      Properties II Management, Inc., Keith Wolff and Adam Keller (collectively,
      the
&#8220;Sellers&#8221;).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the terms of the Purchase Agreement, the Sellers agreed to sell to the
      Company and the Company agreed to purchase from the Sellers certain rights
      and
      interests of the Sellers relating to the current and future operation of Company
      restaurants in hotel properties pursuant to the terms of an Agreement, dated
      August 27, 1998, as amended (the &#8220;HRP Agreement&#8221;). Under the terms of the HRP
      Agreement, the Sellers had the exclusive right to obtain hotel-based locations
      for Company restaurants and were entitled to receive a portion of the net
      income, management fees, licensing fees or similar fees of the Company from
      the
      operation of such hotel-based restaurants. The Company, at the date of the
      Purchase Agreement, operated seven restaurants subject to the HRP Agreement
      in
      Skokie, Illinois, San Francisco, California, Houston, Texas, Washington, D.C.,
      Burbank, California, Portland, Oregon and Long Beach, California.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
      the
      Purchase Agreement, the Sellers agreed to transfer to the Company all of the
      rights in the management agreements (the &#8220;Transferred Agreements&#8221;) relating to
      the San Francisco, Houston, Washington, D.C. and Portland restaurants as well
      as
      ownership of the Houston liquor license.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the Purchase Agreement, the HRP Agreement was amended, effective June 30,
      2006 (the &#8220;Effective Date&#8221;), to eliminate exclusivity provisions under which the
      Company would use the Sellers as the exclusive parties to identify potential
      hotel restaurant locations and to eliminate certain provisions under which
      the
      Sellers could cause the Company to purchase HRP and the Company could acquire
      HRP. Under the Purchase Agreement, the Sellers also agreed to relinquish any
      rights to fees or other compensation relating to Company restaurants opened
      in
      hotels pursuant to management, license or lease agreements entered on or after
      March 29, 2006, including any fees relating to restaurants proposed to be opened
      in Memphis, Tennessee and Seattle, Washington.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Sellers will retain their rights in the management contracts relating to the
      Burbank, Skokie and Long Beach restaurants subject to the continuing terms
      of
      the HRP Agreement, as amended, and subject to the rights of the Company to
      terminate operations of the Skokie and Long Beach restaurants.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      purchase price of the acquired assets under the Purchase Agreement is $2,771,133
      (the &#8220;Purchase Price&#8221;). Closing of the purchase and sale shall occur, and the
      Purchase Price is payable, on the earlier of June 30, 2007 (the &#8220;Outside Closing
      Date&#8221;) or a mutually agreeable date not more than 10 days after the date on
      which the aggregate payments (the &#8220;Income Stream Payments&#8221;) received by the
      Sellers, after the Effective Date and prior to closing, under the Transferred
      Agreements equal $294,151 (the &#8220;Maximum Income Stream Payments&#8221;). From and after
      the Effective Date the Income Stream Payments shall not exceed the Maximum
      Income Stream Payments after the payment of which no further payments shall
      be
      made to the Sellers with respect to the Transferred Agreements. In the event
      that the Sellers shall not have received the Maximum Income Stream Payments
      by
      the closing date, the Purchase Price shall be increased by the excess of the
      Maximum Income Stream Payments over the actual Income Stream Payments as of
      the
      closing date.</font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">2</font></div>
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          <hr style="COLOR: black" noshade size="2">
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      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      the
      closing date, the HRP Agreement will be further amended to eliminate the license
      granted thereunder for the Sellers to operate managed outlets under the HRP
      Agreement, eliminate restrictions on the Sellers&#8217; ability to provide similar
      hotel restaurant location services to parties other than the Company and to
      eliminate other provisions relating to the Transferred Agreements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
      closing, the Sellers shall enter into a Non-Competition Agreement pursuant
      to
      which the Sellers, for a period of 5 years from the closing date, will not
      assist any owner, operator, franchisor or franchisee of a branded restaurant
      in
      entering into a lease, license or management agreement to operate a restaurant,
      provide room service or provide food for banquet room events at any hotel (the
      &#8220;Restricted Business&#8221;), provided, however, that the Sellers shall not be
      prohibited from (i) owning up to 10% of any publicly traded company engaged
      in
      the Restricted Business, (ii) engaging in the Restricted Business with respect
      to hotel properties owned by the Sellers or affiliates of the Sellers and
      managed by the Sellers or the affiliates of the Sellers or (iii) engaging in
      the
      Restricted Business with up to 3 additional hotels. Branded restaurants, for
      purposes of the Non-Competition Agreement, mean a restaurant concept operated
      in
      ten or more locations under a single brand name.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the Purchase Agreement, the Company has agreed to indemnify the Sellers
      with
      respect to any additional tax that may be incurred, as well as related penalties
      and interest, in the event that the goodwill allocated to the sale is reduced
      for tax purposes on audit or other adjustment.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Closing
      of the purchase and sale is subject to satisfaction of various conditions,
      including delivery of the purchase price, execution and delivery of the
      Non-Competition Agreement, the delivery of all required consents, assignments,
      releases and other documents, the accuracy of representations and warranties,
      the absence of litigation contesting the transaction and other standard
      commercial conditions.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      foregoing is qualified in its entirety by reference to the Purchase Agreement
      filed herewith as Exhibit 10.1.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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      1.02.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Termination
      of a Material Definitive Agreement.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">See
      Item
      1.01.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
      2.03.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Creation
      of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet
      Arrangement of a Registrant.</font></div>
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      Item
      1.01.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
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            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.1</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Agreement
                for Purchase and Sale of Assets, dated as of September1, 2006, between
                Hotel Restaurant Properties, Inc., Hotel Restaurant Properties II,
                Inc.,
                Hotel Restaurant Properties II Management, Inc., Keith Wolff, Adam
                Keller,
                Grill Concepts, Inc. and Grill Concepts Management,
                Inc.</font></div>
            </td>
          </tr>

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    <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SIGNATURES</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Exchange Act of 1934, the Registrant
      has
      duly caused this Report to be signed on its behalf by the undersigned hereunto
      duly authorized.</font></div>
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                CONCEPTS, INC.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="55%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="top" width="45%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="55%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dated:
                September 5, 2006</font></div>
            </td>
            <td align="left" valign="top" width="45%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="55%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="top" width="45%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:
                /s/ Philip Gay</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="55%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="top" width="45%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Philip
                Gay</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="55%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="top" width="45%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">President
                and</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="55%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="top" width="45%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
                Executive Officer</font></div>
            </td>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">4</font></div>
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{"company-data": {"conformed-name": "GRILL CONCEPTS INC", "cik": "0000895041", "assigned-sic": "5812", "irs-number": "133319172", "state-of-incorporation": "DE", "fiscal-year-end": "1227"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-23326", "film-number": "061073855"}, "business-address": {"street1": "11661 SAN VICENTE BLVD STE 404", "city": "LOS ANGELES", "state": "CA", "zip": "90049", "phone": "3108205559"}, "mail-address": {"street1": "11661 SAN VICENTE BLVD", "street2": "SUITE 404", "city": "LOS ANGELES", "state": "CA", "zip": "90049"}, "former-company": {"former-conformed-name": "MAGELLAN RESTAURANT SYSTEMS INC", "date-changed": "19940531"}}
Unassociated Document
SECURITIES
      AND EXCHANGE COMMISSION
Washington,
      D.C. 20549
FORM
      8-K
CURRENT
      REPORT
Pursuant
      to Section 13 or 15(d) of the
Securities
      Exchange Act of 1934
Date
      of
      report (Date of earliest event reported): September 1, 2006
GRILL
      CONCEPTS, INC.
(Exact
      name of registrant as specified in Charter)
Delaware
0-23226
13-3319172
(State
                or other jurisdiction of incorporation or organization)
(Commission
                File No.)
(IRS
                Employer Identification No.)
11661
      San
      Vicente Blvd., Suite 404
Los
      Angeles, California 90049
(Address
      of Principal Executive Offices)(Zip Code)
310-820-5559
(Issuer
      Telephone number)
(Former
      name or former address, if changed since last report)
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligations of the registrant under any of the following
      provisions (see General Instruction A.2. below):
o
Written communications
      pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the
      Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule
      14d-2(b) under the Exchange Act
(17
      CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule
      13e-4(c) under the Exchange Act
(17
      CFR
      240.13e-4(c))
1
Item
      1.01.
Entry
      into a Material Definitive Agreement.
On
      September 1, 2006, Grill Concepts, Inc., and its subsidiary Grill Concepts
      Management, Inc. (collectively, the "Company"), entered into an Agreement for
      Purchase and Sale of Assets (the "Purchase Agreement") with Hotel Restaurant
      Properties, Inc. ("HRP"), Hotel Restaurant Properties II, Inc., Hotel Restaurant
      Properties II Management, Inc., Keith Wolff and Adam Keller (collectively,
      the
"Sellers").
Pursuant
      to the terms of the Purchase Agreement, the Sellers agreed to sell to the
      Company and the Company agreed to purchase from the Sellers certain rights
      and
      interests of the Sellers relating to the current and future operation of Company
      restaurants in hotel properties pursuant to the terms of an Agreement, dated
      August 27, 1998, as amended (the "HRP Agreement"). Under the terms of the HRP
      Agreement, the Sellers had the exclusive right to obtain hotel-based locations
      for Company restaurants and were entitled to receive a portion of the net
      income, management fees, licensing fees or similar fees of the Company from
      the
      operation of such hotel-based restaurants. The Company, at the date of the
      Purchase Agreement, operated seven restaurants subject to the HRP Agreement
      in
      Skokie, Illinois, San Francisco, California, Houston, Texas, Washington, D.C.,
      Burbank, California, Portland, Oregon and Long Beach, California.
Under
      the
      Purchase Agreement, the Sellers agreed to transfer to the Company all of the
      rights in the management agreements (the "Transferred Agreements") relating to
      the San Francisco, Houston, Washington, D.C. and Portland restaurants as well
      as
      ownership of the Houston liquor license.
Pursuant
      to the Purchase Agreement, the HRP Agreement was amended, effective June 30,
      2006 (the "Effective Date"), to eliminate exclusivity provisions under which the
      Company would use the Sellers as the exclusive parties to identify potential
      hotel restaurant locations and to eliminate certain provisions under which
      the
      Sellers could cause the Company to purchase HRP and the Company could acquire
      HRP. Under the Purchase Agreement, the Sellers also agreed to relinquish any
      rights to fees or other compensation relating to Company restaurants opened
      in
      hotels pursuant to management, license or lease agreements entered on or after
      March 29, 2006, including any fees relating to restaurants proposed to be opened
      in Memphis, Tennessee and Seattle, Washington.
The
      Sellers will retain their rights in the management contracts relating to the
      Burbank, Skokie and Long Beach restaurants subject to the continuing terms
      of
      the HRP Agreement, as amended, and subject to the rights of the Company to
      terminate operations of the Skokie and Long Beach restaurants.
The
      purchase price of the acquired assets under the Purchase Agreement is $2,771,133
      (the "Purchase Price"). Closing of the purchase and sale shall occur, and the
      Purchase Price is payable, on the earlier of June 30, 2007 (the "Outside Closing
      Date") or a mutually agreeable date not more than 10 days after the date on
      which the aggregate payments (the "Income Stream Payments") received by the
      Sellers, after the Effective Date and prior to closing, under the Transferred
      Agreements equal $294,151 (the "Maximum Income Stream Payments"). From and after
      the Effective Date the Income Stream Payments shall not exceed the Maximum
      Income Stream Payments after the payment of which no further payments shall
      be
      made to the Sellers with respect to the Transferred Agreements. In the event
      that the Sellers shall not have received the Maximum Income Stream Payments
      by
      the closing date, the Purchase Price shall be increased by the excess of the
      Maximum Income Stream Payments over the actual Income Stream Payments as of
      the
      closing date.
2
On
      the
      closing date, the HRP Agreement will be further amended to eliminate the license
      granted thereunder for the Sellers to operate managed outlets under the HRP
      Agreement, eliminate restrictions on the Sellers' ability to provide similar
      hotel restaurant location services to parties other than the Company and to
      eliminate other provisions relating to the Transferred Agreements.
At
      closing, the Sellers shall enter into a Non-Competition Agreement pursuant
      to
      which the Sellers, for a period of 5 years from the closing date, will not
      assist any owner, operator, franchisor or franchisee of a branded restaurant
      in
      entering into a lease, license or management agreement to operate a restaurant,
      provide room service or provide food for banquet room events at any hotel (the
      "Restricted Business"), provided, however, that the Sellers shall not be
      prohibited from (i) owning up to 10% of any publicly traded company engaged
      in
      the Restricted Business, (ii) engaging in the Restricted Business with respect
      to hotel properties owned by the Sellers or affiliates of the Sellers and
      managed by the Sellers or the affiliates of the Sellers or (iii) engaging in
      the
      Restricted Business with up to 3 additional hotels. Branded restaurants, for
      purposes of the Non-Competition Agreement, mean a restaurant concept operated
      in
      ten or more locations under a single brand name.
Pursuant
      to the Purchase Agreement, the Company has agreed to indemnify the Sellers
      with
      respect to any additional tax that may be incurred, as well as related penalties
      and interest, in the event that the goodwill allocated to the sale is reduced
      for tax purposes on audit or other adjustment.
Closing
      of the purchase and sale is subject to satisfaction of various conditions,
      including delivery of the purchase price, execution and delivery of the
      Non-Competition Agreement, the delivery of all required consents, assignments,
      releases and other documents, the accuracy of representations and warranties,
      the absence of litigation contesting the transaction and other standard
      commercial conditions.
The
      foregoing is qualified in its entirety by reference to the Purchase Agreement
      filed herewith as Exhibit 10.1.
Item
      1.02.
Termination
      of a Material Definitive Agreement.
See
      Item
      1.01.
Item
      2.03.
Creation
      of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet
      Arrangement of a Registrant.
See
      Item
      1.01.
3
Item
      9.01.
Financial
      Statements and Exhibits.
(c)
Exhibits
10.1
Agreement
                for Purchase and Sale of Assets, dated as of September1, 2006, between
                Hotel Restaurant Properties, Inc., Hotel Restaurant Properties II,
                Inc.,
                Hotel Restaurant Properties II Management, Inc., Keith Wolff, Adam
                Keller,
                Grill Concepts, Inc. and Grill Concepts Management,
                Inc.
SIGNATURES
Pursuant
      to the requirements of the Securities Exchange Act of 1934, the Registrant
      has
      duly caused this Report to be signed on its behalf by the undersigned hereunto
      duly authorized.
GRILL
                CONCEPTS, INC.
Dated:
                September 5, 2006
By:
                /s/ Philip Gay
Philip
                Gay
President
                and
Chief
                Executive Officer
4