Carrols Restaurant Group (TAST)

Future Restaurant Closures

We evaluate the performance of our Burger King restaurants on an ongoing basis including assessment of the current and future operating results of the restaurant, and in relation to Burger King franchise agreement renewals and the cost of required capital improvements. We may elect to close restaurants based on such evaluation. In 2008, we closed eight Burger King restaurants, not including restaurants relocated within the same market area. We currently anticipate that we will close an additional four Burger King restaurants in 2009, excluding Burger King restaurants which we may close and relocate.

We closed three underperforming Taco Cabana restaurants in 2008 and closed two underperforming Taco Cabana restaurants in the first quarter of 2009. In the first quarter of 2009 we also closed an underperforming Pollo Tropical restaurant in Florida. We currently do not anticipate any additional Pollo Tropical or Taco Cabana restaurant closures in 2009 although there can be no assurance in this regard.

We do not believe that the future impact on our consolidated results of operations from such restaurant closures will be material, although there can be no assurance in this regard. Our determination of whether to close restaurants in the future is subject to further evaluation and may change.

We are also considering other strategic alternatives with respect to our Burger King restaurants, including the possible future sale of some or all of such restaurants. Such determination is subject to ongoing evaluation. To date, we have no current understandings, commitments or agreements with respect to the foregoing and there can be no assurance that we will enter into any such arrangements in the future.

Future Restaurant Closures

We evaluate the performance of our restaurants on an ongoing basis including assessments of current and future operating results, location of the restaurant, and in relation to Burger King franchise agreement renewals, the cost of required capital improvements. We may elect to close restaurants based on such evaluation.

In 2008 we closed eight Burger King restaurants, not including three restaurants that were or will be relocated within the same market area. We currently anticipate that we will close an additional four Burger King restaurants in 2009, excluding two Burger King restaurants which we may close and relocate.

We closed three underperforming Taco Cabana restaurants in 2008, closed one underperforming Taco Cabana restaurant in the first quarter of 2009 and currently anticipate the closing of one additional Taco Cabana restaurant in 2009. In the first quarter of 2009 we also closed an underperforming Pollo Tropical restaurant in Florida. We currently do not anticipate any additional Pollo Tropical restaurant closures in 2009.

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We do not believe that the future impact on our consolidated results of operations from such restaurant closures will be material, although there can be no assurance in this regard. Our determination of whether to close restaurants in the future is subject to further evaluation and may change.

We are also considering strategic alternatives with respect to our Burger King restaurants, including the possible future sale of some or all of such restaurants. Such determination is subject to ongoing evaluation. To date, we have no current understandings, commitments or agreements with respect to the foregoing and there can be no assurance that we will enter into any such arrangements in the future.

Future Restaurant Closures