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): March 31, 2006

                              GRILL CONCEPTS, INC.
               (Exact name of registrant as specified in Charter)

               Delaware              0-23226         13-3319172
    ------------------------------  -----------  -------------------
   (State or other jurisdiction of  (Commission    (IRS Employer
    incorporation or organization)    File No.)   Identification No.)

                       11661 San Vicente Blvd., Suite 404
                         Los Angeles, California 90049
               (Address of Principal Executive Offices)(Zip Code)

                           (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):

[ ]  Written communications pursuant to Rule 425 under the Securities Act (17
     CFR 230.425)

[ ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
     CFR 240.14a-12)

[ ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the
     Exchange Act (17 CFR 240.14d-2(b))

[ ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the
     Exchange Act (17 CFR 240.13e-4(c))


Item 2.03.     Creation of a Direct Financial Obligation or an Obligation under
               an Off-Balance Sheet Arrangement of a Registrant.

On March 31, 2006, Grill Concepts, Inc. (the "Company") borrowed $1 million
under the terms of the existing Credit Agreement, entered into on March 10,
2006, with Diamond Creek Investment Partners LLC.  The borrowed funds were
primarily used to retire $930,132 of collateralized subordinated notes and
manditorily redeemable capital obligations owed to The Michigan Avenue Group
("MAG") by the Company's subsidiary Chicago - The Grill on the Alley LLC
("Chicago Grill LLC)", and guaranteed by the Company, with the balance used for
general working capital.  The retired obligations related to the initial funding
provided by MAG, as a member/investor in Chicago Grill LLC, with respect to the
Company's The Grill on the Alley restaurant in Chicago.

See the Company's Current Report on Form 8-K, dated March 10, 2006 and filed
with the SEC on March 15, 2006, for a description of the terms of the Credit


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:  April 3, 2006

                                      By: /s/ Philip Gay
                                          Philip Gay
                                          Executive Vice President and
                                          Chief Financial Officer