1039889--2/11/2009--P_F_CHANGS_CHINA_BISTRO_INC

related topics
{condition, economic, financial}
{regulation, change, law}
{cost, regulation, environmental}
{personnel, key, retain}
{cost, contract, operation}
{cost, operation, labor}
{product, market, service}
{financial, litigation, operation}
{competitive, industry, competition}
Changes in general economic and political conditions affect consumer spending and may harm our revenues, operating results or liquidity. Our initiatives to improve the operating performance of our Pei Wei concept may not be successful and could adversely impact the financial results of the Company. Changes in food costs could negatively impact our revenues and results of operations. We are highly dependent on the financial performance of restaurants concentrated in certain geographic areas. Litigation could have a material adverse effect on our business. Our inability to retain key personnel could negatively impact our business. Potential labor shortages may delay planned openings or damage customer relations. Changes in government legislation may increase our labor costs and have a material adverse effect on our business and financial results. Intense competition in the restaurant industry could prevent us from increasing or sustaining our revenues and profitability. Our federal, state and local tax returns may, from time to time, be selected for audit by the taxing authorities, which may result in tax assessments or penalties that could have a material adverse impact on our results of operations and financial position. Fluctuating insurance requirements and costs could negatively impact our profitability and projections. The inability to develop and construct our restaurants within projected budgets and time periods will adversely affect our business and financial condition. Development is critical to our long-term success. Our failure to comply with governmental regulations could harm our business and our reputation. Our financial results may also fluctuate significantly as a result of our accounting for certain aspects of our partnership program.

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