our wholly-owned Irish subsidiary. Our policy is to protect and defend vigorously our rights to this intellectual property. See "Risk FactorsRisks Related to
Our Business and IndustryWe may not be able to adequately protect our intellectual property, which could harm the value of our brands and adversely affect our business."
Governmental Regulation and Environmental Matters
Government Regulation. We're subject to extensive and varied federal, state and local government regulation, including
regulations relating to public health and safety, zoning and fire codes. We operate each of our stores in accordance with standards and procedures designed to comply with applicable codes and
regulations. However, if we could not obtain or retain food or other licenses, it would adversely affect our operations. Although we have not experienced, and do not anticipate, any significant
difficulties, delays or failures in obtaining required licenses, permits or approvals, any such problem could delay or prevent the opening of, or adversely impact the viability of, a particular store
or group of stores.
addition, in order to develop and construct more stores, we'll need to comply with applicable zoning, land use and environmental regulations. Federal and state environmental
regulations have not had a material effect on our operations to date, but more stringent and varied requirements of local governmental bodies with respect to zoning, land use and environmental factors
could delay or even prevent construction and increase development costs for new stores. We're also required to comply with the accessibility standards mandated by the U.S. Americans with Disabilities
Act, which generally prohibits discrimination in accommodation or employment based on disability. We may in the future have to modify stores, for example by adding access ramps or redesigning certain
architectural fixtures, to provide service to or make reasonable accommodations for disabled persons. While these expenses could be material, our current expectation is that any such actions will not
require us to expend substantial funds.
In 2004 and the first nine months of 2005, less than 1% of our restaurant sales were attributable to the sale of alcoholic beverages. Alcoholic beverage control regulations require each
of our stores to apply to a state authority and, in certain locations, county or municipal authorities for a license that must be renewed annually and may be revoked or suspended for cause at any
time. Alcoholic beverage control regulations affect numerous aspects of our operations, including minimum age of patrons and employees, hours of operation, advertising, wholesale purchasing, inventory
control and handling, storage and dispensing of alcoholic beverages. We're also 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 that wrongfully served alcoholic beverages to the intoxicated person. We carry up to $1 million in liquor liability coverage as part of our
existing $2 million comprehensive general liability insurance, which has a $100,000 deductible, as well as excess umbrella coverage of up to $500 million, with no additional deductible.
In addition, we're subject to the U.S. Fair Labor Standards Act, the U.S. Immigration Reform and Control Act of 1986 and various federal and state laws governing various matters
including minimum wages, overtime and other working conditions. We pay a significant number of our hourly staff at rates consistent with but higher than the applicable federal or state minimum wage.
Accordingly, increases in the minimum wage would increase our labor cost. We're also subject to various laws and regulations relating to our current and any future franchise operations. See "Risk
Related to Our Business and IndustryGovernmental regulation may adversely affect our ability to open new stores or otherwise adversely affect our existing and future operations and
Environmental Matters. We are subject to federal, state and local environmental laws and regulations concerning the
discharge, storage, handling, release and disposal of hazardous or toxic substances ("environmental laws"). These environmental laws provide for significant fines, penalties and liabilities, sometimes
without regard to whether the owner or operator of the property knew of, or was responsible for, the release or presence of the hazardous or toxic substances. Third parties may also make claims
against owners or operators of properties for personal injuries and property damage associated with releases of, or actual or alleged exposure to, such substances. We cannot predict what environmental