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 10, 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.)      Indetification 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 1.01.   Entry into a Material Definitive Agreement.

On  March  10,  2006, Grill Concepts, Inc. (the "Company") entered into a credit
agreement  (the  "Credit  Agreement") with Diamond Creek Investment Partners LLC
(the  "Lender").

The  Credit  Agreement  provides  for  a revolving term loan (the "Loan") to the
Company  of  the  lesser  of  (1)  $8.0 million, or (2) 2.25 times the Company's
trailing  12  month  EBITDA.  Funds  may be borrowed under the Credit Agreement,
subject  to  satisfaction  of  all  conditions  of  funding,  in minimum monthly
advances  of  $500,000.  Proceeds of the Loan may be used to pay expenses of the
Loan  and  for  general corporate purposes. The interest rate on the Loan is, at
the option of the Company and subject to certain limitations on the use of LIBOR
based  loans, equivalent to either (1) prime rate, but not less than 7%, plus an
applicable  margin,  or (2) the London Interbank Offered Rate, but not less than
4%,  plus  an applicable margin. The margin, in each case, varies based upon the
Company's  leverage  ratio  (funded  debt to EBITDA, each as defined) and ranges
from  2.75%  to  3.50%  with respect to prime rate loans and 5.50% to 6.25% with
respect  to LIBOR loans. The current interest rate is equal to 10.5% and will be
adjusted  quarterly  commencing  in  the  fourth  quarter  of  2006.

The Credit Agreement provides that the Company will pay all expenses incurred in
connection with the Loan, including expenses incurred by the Lender. By separate
agreement,  the  Company  agreed  to  pay certain fees associated with the Loan,
including  a  loan  fee  of  $120,000,  an unused line fee of 0.5% of the unused
portion  of  the credit facility payable monthly, a loan servicing fee of $3,000
per  month.

The Loan matures, and is payable in full, on March 9, 2011 subject to mandatory
prepayment  to the extent, if any, that the outstanding principal balance of the
Loan  exceeds  2.25  times  trailing  12  month EBITDA or upon the occurrence of
certain defined extraordinary events. The Company may prepay amounts owing under
the  Credit  Agreement subject to payment of a prepayment premium of (1) 3% with
respect  to  prepayments  occurring on or before March 9, 2007, and (2) 1% with
respect to prepayments occurring after March 9, 2007 and on or before March 9,

The Company's obligations under the Credit Agreement are secured by a first lien
on  all  of  the  Company's assets, including all of the capital stock and other
equity  interests  held  by the Company in its subsidiaries, subject to existing
liens  on  such  assets.  The  Loan  requires the Company to comply with certain
ordinary  lending  covenants.  These  include, among others, financial covenants
relating  to  maximum  debt  to EBITDA ratio, minimum EBITDA and maximum capital
expenditures.  The  Company  must  also  comply  with  certain  information
requirements,  including providing periodic financial statements and projections
as  well  as  notices  of defaults, litigation and other matters, maintenance of
insurance  and  compliance  with  laws  as  well  as  limitations  on  liens and
encumbrances,  indebtedness,  dispositions,  dividends and retirement of capital
stock,  consolidations  and  mergers,  changes  in  nature of business and other
operating,  financial  and  structural  limitations.

Events of default in the Credit Agreement include, among others, (a) the failure
to  pay  when  due  the  obligations  owing  under the Credit Agreement, (b) the
failure  to  perform  and not timely remedy certain covenants, (c) certain cross
defaults  or cross accelerations, (d) the occurrence of bankruptcy or insolvency
events,  (e)  the failure to make certain payments, or the occurrence of certain
events,  relating to retirement plans, (f) certain adverse judgments against the
Company  or  any  of  its  subsidiaries, (g) certain changes in ownership of the
Company's stock or the board of directors, or (h) the occurrence of, and failure
to  remedy, a Material Adverse Effect (as defined in the Credit Agreement). Upon
the  occurrence  of  an  event  of  default,  the  Lender may terminate the loan
commitment  and  declare  the  Loan  due  and  payable  in  full.

The foregoing is qualified in its entirety by reference to the Credit Agreement
filed herewith as Exhibit 10.1.

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

See Item 1.01.

Item 9.01.   Financial Statements and Exhibits.

        (c)  Exhibits

             10.1  Credit  Agreement,  dated  as  of  March  10,  2006, between
                   Grill  Concepts, Inc. and Diamond Creek Investment Partners,

             10.2  Fee Letter, dated March 10, 2006, between Grill Concepts,
                   Inc. and Diamond Creek Investment Partners LLC


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:  March 10, 2006
                             By:     /s/ Philip Gay
                                     Philip Gay
                                     Executive Vice President and
                                     Chief Financial Officer