INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Taxes

The provision for income taxes consists of the following:

	Year Ended
	September 30, 2023		October 1, 2022
	(in thousands)
Current provision (benefit):
Federal	$	319	$	817
State and local	237		49
	556		866
Deferred provision (benefit):
Federal	(237)		173
State and local	(383)		409
	(620)		582
	$	(64)	$	1,448

Schedule of Effective Tax Rate Reconciliation

The effective tax rate differs from the U.S. income tax rate as follows:

	Year Ended
	September 30, 2023		October 1, 2022
	(in thousands)
Provision at federal statutory rate (21%)	$	(1,139)	$	2,440
State and local income taxes, net of tax benefits	(241)		275
Goodwill impairment	419		—
Gain on forgiveness of PPP Loans	(57)		(432)
Tax credits	(961)		(998)
Income (loss) attributable to non-controlling interest	(120)		(188)
Changes in tax rates	49		22
Change in valuation allowance	1,866		149
Other	120		180
	$	(64)	$	1,448

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows:

	September 30, 2023		October 1, 2022
	(in thousands)
Deferred tax assets:
State net operating loss carryforwards	$	5,170	$	5,293
Lease liabilities	22,072		22,570
Deferred compensation	376		336
Tax credits	2,483		2,269
Other	511		604
Deferred tax assets, before valuation allowance	30,612		31,072
Valuation allowance	(3,273)		(1,407)
Deferred tax assets, net of valuation allowance	27,339		29,665
Deferred tax liabilities:
Depreciation and amortization	(23,065)		(25,886)
Partnership investments	(188)		(271)
Prepaid expenses	(348)		(390)
Deferred tax liabilities	(23,601)		(26,547)
Net deferred tax assets	$	3,738	$	3,118

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits excluding interest and penalties is as follows:

	September 30, 2023		October 1, 2022
	(in thousands)
Balance at beginning of year	$	159	$	120
Additions based on tax positions taken in current and prior years	26		39
Decreases based on tax positions taken in prior years	—		—
Balance at end of year	$	185	$	159