0001564590-21-056423 | 10-K | XBRL Viewer

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Aug. 31, 2021	Nov. 05, 2021	Feb. 26, 2021
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Aug. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	FY
Title of 12(b) Security	Class A Common Stock, $0.001 par value per share
Trading Symbol	KRUS
Security Exchange Name	NASDAQ
Entity Registrant Name	KURA SUSHI USA, INC.
Entity Central Index Key	0001772177
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Current Fiscal Year End Date	--08-31
Entity Filer Category	Accelerated Filer
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity File Number	001-39012
Entity Tax Identification Number	26-3808434
Entity Address, Address Line One	17461 Derian Avenue
Entity Address, Address Line Two	Suite 200
Entity Address, City or Town	Irvine
Entity Address, State or Province	CA
Entity Incorporation, State or Country Code	DE
Entity Address, Postal Zip Code	92614
City Area Code	657
Local Phone Number	333-4100
Document Annual Report	true
ICFR Auditor Attestation Flag	false
Document Transition Report	false
Entity Public Float			$ 99.8
Documents Incorporated by Reference	DOCUMENTS INCORPORATED BY REFERENCE The information required by Part III of this Form 10-K, to the extent not set forth herein, is incorporated by reference from the registrant’s definitive proxy statement for the 2022 annual meeting of stockholders, which will be filed no later than 120 days after the close of the registrant’s fiscal year ended August 31, 2021.
Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		8,702,224
Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		1,000,050

Balance Sheets - USD ($) $ in Thousands	Aug. 31, 2021	Aug. 31, 2020
Current assets:
Cash and cash equivalents	$ 40,430	$ 9,259
Accounts and other receivables	2,019	2,130
Inventories	733	367
Due from affiliate	329	12
Prepaid expenses and other current assets	13,957	3,010
Total current assets	57,468	14,778
Non-current assets:
Property and equipment – net	53,885	45,541
Operating lease right-of-use assets	64,158	56,119
Deposits and other assets	2,158	1,941
Total assets	177,669	118,379
Current liabilities:
Accounts payable	4,920	4,919
Accrued expenses and other current liabilities	2,820	720
Salaries and wages payable	4,612	1,786
Finance leases – current	932	1,004
Operating lease liabilities – current	5,650	5,106
Due to affiliate	244	201
Sales tax payable	869	189
Total current liabilities	20,047	13,925
Non-current liabilities:
Finance leases – non-current	546	1,481
Operating lease liabilities – non-current	65,834	56,918
Other liabilities	398	342
Total liabilities	86,825	72,666
Commitments and contingencies (Note 9)
Stockholders' equity:
Preferred stock, $0.001 par value; 1,000 shares authorized, no shares issued or outstanding
Additional paid-in capital	115,756	60,332
Accumulated deficit	(24,922)	(14,627)
Total stockholders' equity	90,844	45,713
Total liabilities and stockholders' equity	177,669	118,379
Class A
Stockholders' equity:
Common stock	9	7
Class B
Stockholders' equity:
Common stock	$ 1	$ 1

Balance Sheets (Parenthetical) - $ / shares	Aug. 31, 2021	Aug. 31, 2020
Preferred stock, par value	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	1,000,000	1,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Class A
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common Stock, Shares, Issued	8,700,000	7,342,000
Common stock, shares outstanding	8,700,000	7,342,000
Class B
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	10,000,000	10,000,000
Common Stock, Shares, Issued	1,000,000	1,000,000
Common stock, shares outstanding	1,000,000	1,000,000

Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Sales	$ 64,891	$ 45,168	$ 64,245
Restaurant operating costs:
Depreciation and amortization expenses	4,126	2,980	2,055
Other costs	10,448	6,705	7,088
Total restaurant operating costs	58,783	49,422	54,726
General and administrative expenses	15,701	12,064	7,748
Depreciation and amortization expenses	396	180	110
Total operating expenses	74,880	61,666	62,584
Operating (loss) income	(9,989)	(16,498)	1,661
Other expense (income):
Interest expense	220	136	188
Interest income	(20)	(450)	(51)
(Loss) income before income taxes	(10,189)	(16,184)	1,524
Income tax expense	106	1,174	68
Net (loss) income	$ (10,295)	$ (17,358)	$ 1,456
Net (loss) income per Class A and Class B shares
Basic	$ (1.21)	$ (2.08)	$ 0.28
Diluted	$ (1.21)	$ (2.08)	$ 0.26
Weighted average Class A and Class B shares
Basic	8,528	8,338	5,283
Diluted	8,528	8,338	5,512
Food and Beverage Costs
Restaurant operating costs:
Cost of goods and services sold	$ 20,686	$ 14,709	$ 21,048
Labor and Related Costs
Restaurant operating costs:
Cost of goods and services sold	16,430	18,669	19,942
Occupancy and Related Expenses
Restaurant operating costs:
Cost of goods and services sold	$ 7,093	$ 6,359	$ 4,593

Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Class A	Class B	Common Stock Class A	Common Stock Class B	Additional Paid-in Capital	Retained Earnings (Accumulated Deficit)
Beginning balances at Aug. 31, 2018	$ 21,505			$ 4	$ 1	$ 20,225	$ 1,275
Beginning balance, shares at Aug. 31, 2018				4,000	1,000
Stock-based compensation	590					590
Issuance of common stock in connection with initial/follow-on public offering, net of underwriter discounts and issuance costs	38,630			$ 3		38,627
Issuance of common stock in connection with initial/follow-on public offering, net of underwriter discounts and issuance costs, shares				3,335
Net income (loss)	1,456						1,456
Ending balances at Aug. 31, 2019	62,181			$ 7	$ 1	59,442	2,731
Ending balance, shares at Aug. 31, 2019				7,335	1,000
Stock-based compensation	860					860
Exercise of stock options	30					30
Exercise of stock options, shares				7
Net income (loss)	(17,358)						(17,358)
Ending balances at Aug. 31, 2020	45,713			$ 7	$ 1	60,332	(14,627)
Ending balance, shares at Aug. 31, 2020		7,342	1,000	7,342	1,000
Stock-based compensation	1,409					1,409
Exercise of stock options	515					515
Exercise of stock options, shares				93
Issuance of common stock in connection with initial/follow-on public offering, net of underwriter discounts and issuance costs	53,502			$ 2		53,500
Issuance of common stock in connection with initial/follow-on public offering, net of underwriter discounts and issuance costs, shares				1,265
Net income (loss)	(10,295)						(10,295)
Ending balances at Aug. 31, 2021	$ 90,844			$ 9	$ 1	$ 115,756	$ (24,922)
Ending balance, shares at Aug. 31, 2021		8,700	1,000	8,700	1,000

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

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Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
Statements of Cash Flows - USD ($) $ in Thousands	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Cash flows from operating activities
Net (loss) income	$ (10,295)	$ (17,358)	$ 1,456
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities
Depreciation and amortization	4,522	3,160	2,165
Stock-based compensation	1,409	860	590
Loss on disposal of property and equipment	111	47
Deferred income taxes		1,121	(61)
Noncash lease expense	2,663	2,326
Inventory write-downs		50
Changes in operating assets and liabilities:
Accounts and other receivables	(264)	629	(427)
Inventories	(366)	122	(155)
Due from affiliate	(317)	214	(222)
Prepaid expenses and other current assets	(10,946)	(1,320)	(1,082)
Deposits and other assets	(61)	(548)	(816)
Accounts payable	908	(614)	1,646
Accrued expenses and other current liabilities	2,312	(1,024)	1,135
Salary and wages payable	2,827	438	531
Operating lease liabilities	(411)	(714)
Due to affiliate	82	(35)	(38)
Sales tax payable	680	(358)	152
Deferred rent and tenant allowances			1,119
Net cash (used in) provided by operating activities	(7,146)	(13,004)	5,993
Cash flows from investing activities
Payments for property and equipment	(14,076)	(14,400)	(10,726)
Payments for initial direct costs	(436)	(319)
Payments for purchases of liquor licenses	(156)	(58)	(529)
Net cash used in investing activities	(14,668)	(14,777)	(11,255)
Cash flows from financing activities
Proceeds from the initial public offering, net of discounts and commissions			43,422
Payments of costs related to the initial public offering			(4,792)
Proceeds from borrowings of debt			3,921
Repayment of debt			(3,921)
Proceeds from PPP loan		5,983
Repayment of PPP loan		(5,983)
Repayment of principal on finance leases	(1,032)	(1,034)	(1,035)
Proceeds from stock option exercises	515	30
Proceeds from loan from affiliate	17,000
Repayment of loan from affiliate	(17,000)
Proceeds from the follow-on public offering, net of discounts and commissions	54,108
Payments of costs related to the follow-on offering	(606)
Net cash provided by (used in) financing activities	52,985	(1,004)	37,595
Increase (decrease) in cash and cash equivalents	31,171	(28,785)	32,333
Cash and cash equivalents, beginning of year	9,259	38,044	5,711
Cash and cash equivalents, end of year	40,430	9,259	38,044
Supplemental disclosures of cash flow information
Cash paid for interest	81	8	189
Cash paid for income taxes (net of refunds)	148	132	56
Noncash investing activities
Acquisition of finance leases	27	101
Amounts unpaid for purchases of property and equipment	$ 1,094	$ 2,219	$ 142

Organization and Description of Business

12 Months Ended

Aug. 31, 2021

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization and Description of Business

Note 1—Organization and Description of Business

Kura Sushi USA, Inc. (the “Company”) is a technology-enabled Japanese restaurant concept that provides guests with a distinctive dining experience by serving authentic Japanese cuisine through an engaging revolving sushi service model, which the Company refers to as the “Kura Experience.” Kura Sushi encourages healthy lifestyles by serving freshly prepared Japanese cuisine using high-quality ingredients that are free from artificial seasonings, sweeteners, colorings, and preservatives. Kura Sushi aims to make quality Japanese cuisine accessible to its guests across the United States through affordable prices and an inviting atmosphere.

Initial Public Offering

On August 5, 2019, the Company completed the initial public offering of its Class A common stock at a public offering price of $14.00 per share. The Company issued 3,335,000 shares, including 435,000 shares sold to the underwriters pursuant to their over-allotment option. After underwriter discounts and commissions and offering expenses, net proceeds from the offering were $38.6 million. No payments were made by the Company to directors, officers or persons owning 10% or more of the Company’s common stock or to their associates, or to the Company’s affiliates.

Follow-On Offering

On July 23, 2021, the Company completed a follow-on offering and sold an aggregate of 1,265,000 shares of Class A common stock, including the exercise in full of the underwriters’ option to purchase 165,000 additional shares, at the price of $45.00 per share less an underwriting discount of $2.48 per share. The Company received aggregate net proceeds of $53.5 million after deducting the underwriting discounts and commissions and offering expenses payable by the Company. The Company used a portion of the net proceeds to repay all of the $17.0 million borrowings outstanding under the Company’s credit facility with Kura Japan, with the remaining proceeds to be used to support new unit growth, for working capital and general corporate purposes. No payments were made by the Company to directors, officers or persons owning 10% or more of the Company’s common stock or to their associates, or to the Company’s affiliates.

Effects of COVID-19

The negative effects of the COVID-19 pandemic on the Company’s business have been significant. In March 2020, the World Health Organization declared the novel strain of coronavirus COVID-19 a global pandemic. This contagious virus, which has continued to spread, has adversely affected workforces, customers, economies and financial markets globally. In response to this outbreak, many state and local authorities mandated the temporary closure of non-essential businesses and dine-in restaurant activity or limited indoor dining capacities. COVID-19 and the government measures taken to control it have caused a significant disruption to the Company’s business operation. As of fiscal year-end August 31, 2021, the Company had all of its 32 restaurants operating at 100% indoor dining capacity. In October 2021, the Company opened one new restaurant in San Francisco, California. As of the filing date of this Annual Report on Form 10-K, the Company had all of its 33 restaurants operating at 100% indoor dining capacity.

In response to the ongoing COVID-19 pandemic, the Company has prioritized taking steps to protect the health and safety of its employees and customers. The Company has maintained cleaning and sanitizing protocols of its restaurants and has implemented additional training and operational manuals for its restaurant employees, as well as increased handwashing procedures. The Company also provides each restaurant employee with face masks and gloves, and requires each employee to pass a health screening process, which includes a temperature check, before the start of each shift.

The reduced capacities at the Company’s restaurants have caused a substantial decline in its sales in the most recently completed fiscal year compared to pre-pandemic levels. In response to the ongoing challenges posed by the COVID-19 pandemic, the Company is focused on maximizing its in-restaurant dining capacity as permitted by the jurisdictions where it operates, continuing to provide a safe environment for its employees and customers, maintaining its operational efficiencies as much as possible and preserving its liquidity. Currently, with the lift of all indoor dining restrictions at all of its restaurants, the Company has experienced a staffing shortage and has provided certain employee retention and new hire bonuses. In line with the Company’s long-term growth strategy, the Company expects to continue to open new restaurants at locations where it believes they have the potential to achieve profitability. The future sales levels of the Company’s restaurants and its ability to implement its growth strategy, however, remain highly uncertain, as the full impact and duration of the COVID-19 pandemic continues to evolve as of the date of this Annual Report on Form 10-K.

Recent Events Concerning the Company’s Financial Position

On April 10, 2020, the Company and Kura Sushi, Inc. (“Kura Japan”), the majority stockholder of the Company, entered into a Revolving Credit Agreement (the “Revolving Credit Agreement”) whereby Kura Japan agreed to make available to the Company loans on a revolving credit basis in the principal amount of up to $20 million as evidenced by that certain Promissory Note dated as of the same date with the Company as maker and made payable to Kura Japan (the “Revolving Credit Note”). On September 2, 2020, the Company and Kura Japan entered into a First Amendment to Revolving Credit Agreement (the “First Amendment”) to (i) increase the maximum credit amount under the credit line from $20 million to $35 million, (ii) extend the maturity date for each advance from 12 months to 60 months from the date of disbursement and (iii) extend the last day of the period of availability for the advances under the credit line from March 31, 2024 to April 10, 2025. On April 9, 2021, the Company and Kura Japan entered into a Second Amendment to Revolving Credit Agreement (the “Second Amendment”) to increase the maximum credit amount under the credit line from $35 million to $45 million. In connection with the First Amendment and Second Amendment, the Revolving Credit Note under the Revolving Credit Agreement was also amended by incorporating the same amendments as provided under the First Amendment and Second Amendment, as well as amendments to the interest rate. For additional information, see “Note 4. Related Party Transactions” and “Note 6. Debt.”

Under the provisions of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) signed into law on March 27, 2020 and the subsequent extension of the CARES Act, the Company was eligible for a refundable employee retention credit subject to certain criteria. The Company recognized a $10.3 million employee retention credit and a $1.8 million employee retention credit during the fiscal years 2021 and 2020, respectively. For fiscal year 2021, $9.3 million is included in labor and related costs and $1.0 million is included in general and administrative expenses in the statements of operations. For fiscal year 2020, $1.7 million is included in labor and related costs and $0.1 million is included in general and administrative expenses in the statements of operations. The Company has filed for refunds of the employee retention credits and subsequent to August 31, 2021 and as of the date of this Annual Report on Form 10-K, has received $8.0 million in refunds and cannot reasonably estimate when it will receive any or all of the remaining refunds. As of August 31, 2021, the Company is no longer eligible to receive refundable employee retention credits.

The Company has received rent concessions from its landlords for certain of its restaurants in the form of rent abatements and rent deferrals which were immaterial for fiscal year 2021. Due to a staffing shortage, the Company provided certain employee retention and new hire bonuses totaling $1.2 million in the fiscal year 2021.

Due to the impact of COVID-19, the Company assessed its long-lived assets for potential impairment, which resulted in no impairment charges recorded as of August 31, 2021. The Company also assessed the realizability of its deferred tax assets and, as of August 31, 2021, had a total valuation allowance of $8.4 million. See “Note 10. Income Taxes”.

Basis of Presentation and Summary of Significant Accounting Policies

12 Months Ended

Aug. 31, 2021

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

Note 2—Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company’s fiscal year begins on September 1 and ends on August 31 and references made to “fiscal year 2021”, “fiscal year 2020” and “fiscal year 2019” refer to the Company’s fiscal years ended August 31, 2021, August 31, 2020 and August 31, 2019, respectively.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods presented.

Significant items subject to such estimates include asset retirement obligations, stock-based compensation, the useful lives of assets, the assessment of the recoverability of long-lived assets, and income taxes. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates and assumptions.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash and cash equivalents. The Company maintains its cash and cash equivalents with financial institutions and, at times, the balance may exceed the Federal Deposit Insurance Corporation federally insured limits. The Company has never experienced any losses related to these balances.

Concentration of Significant Suppliers

The Company relies on third parties for specified food products and supplies. In instances where these parties fail to perform their obligations, the Company may be unable to find alternative suppliers. The Company is subject to supplier concentration risk as JFC International Inc., a subsidiary of Kikkoman Corporation and the Company’s largest supplier, accounted for 58%, 59%, and 55% of total food and beverage costs for fiscal years 2021, 2020, and 2019, respectively. The Company’s spend with Wismettac Asian Foods, Inc. was 27% of total food and beverage cost for fiscal years 2021 and 2020, and 28% for fiscal year 2019.

Segment Information

Management has determined that the Company has one operating segment and therefore one reportable segment. The Company’s chief operating decision maker, its Chief Executive Officer, reviews financial performance and allocates resources. All of the Company’s sales are derived in the United States of America.

Cash and Cash Equivalents

Cash and cash equivalents consist primarily of cash on hand, deposits with banks, money market funds and term deposits. As of August 31, 2021 and August 31, 2020, cash equivalents were $36.1 and $8.8 million, respectively. Due to the short-term maturities and their relatively low interest rates, the carrying value of the money market funds approximates their fair value. Cash and cash equivalents are maintained at financial institutions with strong credit ratings. The Company considers all highly liquid investments with an original maturity at the date of purchase of three months or less to be cash equivalents.

Accounts and Other Receivables

Accounts and other receivables consist primarily of receivables from landlords for tenant allowances and credit card receivables. The Company does not extend credit to guests and thus does not have credit risk from guests. Accounts and other receivables balances are stated at the amounts management expects to collect from balances outstanding at fiscal year-end, and no allowance for doubtful accounts is recorded as of August 31, 2021 and August 31, 2020.

Inventories

Inventories consist of food and beverages and are stated at the lower of cost or net realizable value, with cost determined on an average cost basis.

Property and Equipment

Property and equipment consists of computer equipment, vehicles, software, furniture and fixtures, leasehold improvements and leased assets. Property and equipment are carried at cost, less accumulated depreciation and amortization. Depreciation and amortization on property and equipment is calculated using the straight-line method over the estimated useful lives of the respective assets, ranging from three to 20 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the remaining lease term or estimated life of the improvements. The following table represents the various types of property and equipment and their respective useful lives:

Property and Equipment		Useful Life
Computer equipment		3 – 5 years
Vehicles		5 years
Software		5 years
Furniture and fixtures		10 years
Leasehold improvements		Shorter of useful life or remaining lease term
Lease assets		Fixed lease term

Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the related carrying amount may be impaired. If an impairment loss has occurred, a charge is recorded to reduce the carrying amount of the asset to its estimated fair value.

Liquor Licenses

Liquor licenses are deemed to have indefinite useful lives and are subject to annual impairment testing. Liquor licenses are included in deposits and other assets in the accompanying balance sheets.

Asset Retirement Obligations

Asset retirement obligations (“ARO”) represents the estimated present value of future expenses the Company expects to incur at the end of a lease to restore the location to its original condition. The ARO is recorded as a liability at its estimated present value at inception with an offsetting increase in the carrying amount of the related property and equipment in the accompanying balance sheet. Periodic accretion of the discount of the estimated liability is recorded as interest expense in the accompanying statements of operations. Asset retirement obligations are amortized on a straight-line basis over the shorter of the remaining lease term or estimated life of the leasehold improvements. The Company’s ARO liability is $0.4 million and $0.3 million as of August 31, 2021 and August 31, 2020, respectively and is included in other liabilities in the accompanying balance sheets.

Impairment of Long-lived Assets

The Company assesses potential impairments of its long-lived assets, which includes property and equipment and operating lease right-of-use assets, in accordance with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360—Property, Plant and Equipment. An impairment test is performed on an annual basis or whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. In determining the recoverability of the asset value, an analysis is performed at the individual restaurant level. Assets are grouped at the individual restaurant level for purposes of the impairment assessment because a restaurant represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability of an asset group is measured by a comparison of the carrying amount of an asset group to its estimated undiscounted forecasted restaurant cash flows expected to be generated by the asset group. Factors considered by the Company in estimating future cash flows include but are not limited to: significant underperformance relative to expected historical or projected future operating results; significant changes in the manner of use of the acquired assets; and significant negative industry or economic trends. The estimated undiscounted forecasted cash flows include assumptions made by management regarding certain items such as revenue, food and beverage costs, labor costs, occupancy costs, and other restaurant operating costs and therefore are subject to uncertainty as the Company’s actual results may differ from its estimates. If the carrying amount of the asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized as the amount by which the carrying amount of the asset exceeds the fair value of the asset.

The assumptions and estimated undiscounted forecasted cash flows used in the estimate have not changed materially during the year, and no impairment loss was recognized during fiscal years ended August 31, 2021, August 31, 2020, and August 31, 2019.

Income Taxes

The provision for income taxes, income taxes payable, and deferred income taxes are determined using the asset and liability method. Deferred income tax assets and liabilities are determined based on temporary differences between the financial carrying amounts and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future. Such deferred income tax asset and liability computations are based on enacted tax laws and rates applicable to periods in which the differences are expected to reverse. The Company establishes a valuation allowance to the extent that it is more likely than not that deferred tax assets will not be recoverable against future taxable income. Income tax expense or benefit is the income tax payable or refundable for the period, plus or minus the change during the period to deferred income tax assets and liabilities.

The Company regularly evaluates the likelihood of realizing the benefit for income tax positions it has taken in federal and state filings by considering all facts, circumstances, and information available. For those benefits that the Company believes it is more likely than not will be sustained, it recognizes the largest amount it believes is cumulatively greater than 50% likely to be realized.

Revenue Recognition

Revenue from sales is recognized when food and beverages are sold to customers. Sales are presented net of discounts and sales taxes collected from customers.

Sales Taxes

Sales taxes are imposed by state, county, and city governmental authorities, collected from customers and remitted to the appropriate governmental agency. The Company’s policy is to record the sales taxes collected as a liability on the books and then remove the liability when the sales tax is remitted. There is no impact on the statements of operations as restaurant sales are recorded net of sales tax.

Operating and Finance Leases

At inception of a contract, the Company assesses whether the contract is a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Lease classification, measurement, and recognition are determined at lease commencement, which is the date the underlying asset is available for use by the Company. The accounting classification of a lease is based on whether the arrangement is effectively a financed purchase of the underlying asset (finance lease) or not (operating lease). The Company has operating and finance leases for its corporate office, restaurant locations, office equipment, kitchen equipment and automobiles. The leases have remaining lease terms of less than 1 year to 20 years, some of which include options to extend the leases. For leases with renewal periods at the Company’s option, the Company determines the expected lease period based on whether the renewal of any options is reasonably assured at the inception of the lease.

Operating leases are accounted for on the balance sheet with the right-of-use (“ROU”) assets and lease liabilities recognized in “Operating lease right-of-use assets,” “Operating lease liabilities - current" and "Operating lease liabilities - noncurrent" on the balance sheet, respectively. Finance leases are accounted for on the balance sheet with ROU assets and lease liabilities recognized in "Property and equipment – net,” “Finance lease - current" and "Finance lease - noncurrent" on the balance sheet, respectively.

Lease assets and liabilities are recognized at the lease commencement date. All lease liabilities are measured at the present value of the lease payments not yet paid. To determine the present value of lease payments not yet paid, the Company estimates incremental borrowing rates corresponding to the maturities of the leases. As the Company has no outstanding debt, it estimates this rate based on prevailing financial market conditions, comparable company and credit analysis, and management judgment. ROU assets, for both operating and finance leases, are initially measured based on the lease liability, adjusted for initial direct costs, prepaid or deferred rent, and lease incentives. The operating lease ROU assets are subsequently measured at the carrying amount of the lease liability adjusted for initial direct costs, prepaid or accrued lease payments, and lease incentives. Depreciation of the finance lease ROU assets are subsequently calculated using the straight-line method over the shorter of the estimated useful lives or the expected lease terms and recorded in "Depreciation and amortization expense" on the statement of operations.

The Company accounts for lease and non-lease components as a single component for its entire population of operating lease assets. The Company recognizes the short-term lease exemption for all applicable classes of underlying assets. Short-term disclosures include only those leases with a term greater than one month and twelve months or less, and expense is recognized on a straight-line basis over the lease term. Leases with an initial term of twelve months or less, that do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise, are not recorded on the balance sheet.

The Company recognizes expense for these leases on a straight-line basis over the lease term. In addition to the fixed minimum payments required under the lease arrangements, certain leases require variable lease payments, such as common area maintenance, insurance and real estate taxes, which are recognized when the associated activity occurs. Additionally, contingent rental payments based on sales thresholds for certain of its restaurants are accrued based on estimated sales.

Other Costs

Other costs in restaurant operating costs in the accompanying statements of operations include utilities, repairs and maintenance, credit card fees, royalty payments, stock-based compensation for restaurant-level employees, and other restaurant-level expenses. The Company incurred $10.4 million, $6.7 million and $7.1 million in other costs for the fiscal years ended August 31, 2021, August 31, 2020 and August 31, 2019, respectively.

Advertising Costs

Advertising costs are expensed as incurred and are included in other costs in the accompanying statements of operations. The Company incurred $0.6 million, $0.3 million and $0.4 million in advertising expenses for the fiscal years ended August 31, 2021, August 31, 2020 and August 31, 2019, respectively.

Fair Value Measurements

The Company defines fair value as the exchange price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value measurement accounting guidance creates a fair value hierarchy to prioritize the inputs used to measure fair value into three categories. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input significant to the fair value measurement, where Level 1 is the highest and Level 3 is the lowest. The three levels are defined as follows:

Level 1 – Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets. Active markets are those in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2 – Observable inputs other than Level 1 prices, such as unadjusted quoted prices for similar assets or liabilities in active markets, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. These inputs are based on the Company’s own assumptions used to measure assets and liabilities at fair value and require significant management judgment or estimation.

The Company’s financial statements include cash and cash equivalents, accounts and other receivables, accounts payable, accrued expenses and other current liabilities, and salaries and wages payable for which the carrying amounts approximate fair value due to their short-term maturity. The fair value of payments due to or from Kura Japan is not determinable due to its related-party nature.

Stock-based Compensation

Stock-based compensation consists of stock options issued to employees and non-employees. The Company measures and recognizes stock-based compensation for the estimated fair value of stock options based on the grant date fair value of the award. The fair value of stock options is estimated using the Black-Scholes option-pricing model and is impacted by the fair value of the Company’s common stock, as well as changes in assumptions regarding certain subjective variables. These variables include, but are not limited to, the expected common stock price volatility over the term of the stock option awards, the expected term of the awards, risk-free interest rates and the expected dividend yield.

For stock options that are based on a service requirement, the cost is recognized on a straight-line basis over the requisite service period, which is typically the vesting period. Stock options granted in fiscal year 2021 have vesting periods ranging from 12 months to 48 months. Stock options granted in fiscal year 2020 have vesting periods ranging from 9 months to 46 months. The majority of stock options granted in fiscal 2019 have a vesting period of approximately 45 months.

Comprehensive Income (Loss)

Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income (loss) is the same as net income (loss) for all periods presented. Therefore, a separate statement of comprehensive income (loss) is not included in the accompanying financial statements.

Earnings (Loss) Per Share

Earnings (loss) per share is calculated by dividing net income (loss) by the weighted average shares outstanding during the period, without consideration of common stock equivalents. Diluted earnings per share assumes the conversion, exercise or issuance of all potential dilutive common stock equivalents outstanding for the period. For the purposes of this calculation, options are considered to be common stock equivalents and are only included in the calculation of diluted earnings per share when their effect is dilutive. Diluted earnings per share is calculated by adjusting weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period, determined using the treasury-stock method.

Recently Adopted Accounting Pronouncements

On September 1, 2019, the Company adopted ASU 2016-02, “Leases (Topic 842)” (“Topic 842”), along with related clarifications and improvements. As a result of the adoption of Topic 842, the accompanying balance sheets and fiscal years 2021 and 2020 statement of operations and statement of cash flows reflect the adoption; however, the fiscal year 2019 statement of operations and statement of cash flows are presented on the basis of ASC Topic 840: “Leases.” The adoption of Topic 842 had an immaterial impact on the statement of operations and statement of cash flows.

Recently Issued Accounting Pronouncements

In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” which is intended to simplify various aspects related to accounting for income taxes. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. ASU 2019-12 is effective for the Company beginning in fiscal year 2022. The Company is currently in the process of evaluating the effects of this pronouncement on its financial statements.

Balance Sheet Components

12 Months Ended

Aug. 31, 2021

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Components

Note 3—Balance Sheet Components

Accounts and Other Receivables

Accounts and other receivables as of August 31, 2021 and August 31, 2020 consists of the following:

	As of August 31,
	2021		2020
	(amounts in thousands)
Lease receivables	$	1,431	$	1,811
Credit card receivables		575		281
Other receivables		13		38
Total accounts and other receivables	$	2,019	$	2,130

Inventories

Inventories as of August 31, 2021 and August 31, 2020 consists of the following:

	As of August 31,
	2021		2020
	(amounts in thousands)
Food	$	659	$	320
Beverages		74		47
Total inventories	$	733	$	367

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets as of August 31, 2021 and August 31, 2020 consists of the following:

	As of August 31,
	2021		2020
	(amounts in thousands)
Employee retention credit	$	12,007	$	1,750
Prepaid expenses		1,732		885
Other current assets		218		375
Total prepaid expenses and other current assets	$	13,957	$	3,010

Property and Equipment, net

Property and equipment, net as of August 31, 2021 and August 31, 2020 consists of the following:

	As of August 31,
	2021			2020
	(amounts in thousands)
Leasehold improvements	$	43,181		$	30,497
Lease assets		6,128			6,117
Furniture and fixtures		13,324			7,908
Computer equipment		905			696
Vehicles		110			88
Software		773			689
Construction in progress		3,907			9,558
Property and equipment – gross		68,328			55,553
Less: accumulated depreciation and amortization		(14,443	)		(10,012	)

Total property and equipment – net	$	53,885		$	45,541

Depreciation and amortization expense for property and equipment was $4.5 million, $3.2 million and $2.2 million for the fiscal years ended August 31, 2021, August 31, 2020, and August 31, 2019, respectively. For amortization expense related to leased assets for the fiscal years ended August 31, 2021 and August 31, 2020, please see “Note 4. Leases.”

Deposits and Other Assets

Deposits and other assets, as of August 31, 2021 and August 31, 2020 consists of the following:

	As of August 31,
	2021		2020
	(amounts in thousands)
Deposits	$	1,306	$	1,245
Liquor license		852		696
Total deposits and other assets	$	2,158	$	1,941

Leases

12 Months Ended

Aug. 31, 2021

Leases [Abstract]

Leases

Note 4—Leases

As a result of the COVID-19 pandemic and the economic uncertainty in the restaurant industry that has resulted, the Company contacted each of its landlords to potentially negotiate accommodations to preserve cash, and for certain leases was able to modify existing payment terms, in some cases through deferral of existing payments until future periods and in some cases through a reduction in payments due during this period.

Lease related costs recognized in the statements of operations for fiscal years 2021 and 2020 are as follows:

		Fiscal Years Ended August 31,
		2021		2020
		(amounts in thousands)
Finance lease cost	Classification
Amortization of right-of-use assets	Depreciation and amortization expense	$	600	$	552
Interest on lease liabilities	Interest expense		84		120
Total finance lease cost		$	684	$	672


		Fiscal Years Ended August 31,
		2021		2020
		(amounts in thousands)
Operating lease cost	Classification
Operating lease cost	Occupancy and related expenses, and general and administrative expenses	$	6,280	$	5,194
Variable lease cost	Occupancy and related expenses, and general and administrative expenses		1,166		1,059
Total operating lease cost		$	7,446	$	6,253

Supplemental balance sheet information related to leases is as follows:

Operating Leases

	As of August 31,
	2021		2020
	(amounts in thousands)
Right-of-use assets	$	64,158	$	56,119

Lease liabilities – current	$	5,650	$	5,106
Lease liabilities – non-current		65,834		56,918
Total lease liabilities	$	71,484	$	62,024

Finance Lease Assets, net

	As of August 31,
	2021			2020
	(amounts in thousands)
Property and equipment	$	6,128		$	6,117
Accumulated depreciation		(2,778	)		(2,178	)
Total property and equipment – net	$	3,350		$	3,939

Finance Leases Liabilities

	As of August 31,
	2021		2020
	(amounts in thousands)
Finance lease – current	$	932	$	1,004
Finance lease – non-current		546		1,481
Total finance lease liabilities	$	1,478	$	2,485

	As of August 31,
	2021			2020
Weighted Average Remaining Lease Term (Years)
Operating leases		16.4			16.3
Finance leases		1.5			2.4

Weighted Average Discount Rate
Operating leases		6.5	%		6.2	%
Finance leases		4.5	%		4.4	%

Supplemental disclosures of cash flow information related to leases are as follows:

	Fiscal Years Ended August 31,
	2021		2020
	(amounts in thousands)
Operating cash flows paid for operating lease liabilities	$	4,647	$	4,570
Operating right-of-use assets obtained in exchange for new operating lease liabilities	$	11,566	$	21,203

As of August 31, 2021, the Company has additional operating leases related to restaurants of which the Company has not yet taken possession of $18.0 million. These operating leases will commence in fiscal year 2022 with lease terms of 20 years. Subsequent to August 31, 2021, the Company entered into additional operating leases related to restaurants of which the Company has not yet taken possession. The lease liabilities associated with the leases are $11.5 million. The operating leases are expected to commence in fiscal years 2022 and 2023 with lease terms of 20 years.

Lease expense was $7.2 million and $6.4 million, including contingent rent expenses of $0.1 million for each of the fiscal years ended August 31, 2021 and August 31, 2020.

Maturities of lease liabilities are as follows as of August 31, 2021:

	Operating Leases			Finance Leases
	(amounts in thousands)
2022	$	3,990		$	1,007
2023		6,556			492
2024		6,840			24
2025		6,966			2
2026		6,865			—
Thereafter		85,470			—
Total lease payments		116,687			1,525
Less: imputed interest		(45,203	)		(47	)
Present value of lease liabilities	$	71,484		$	1,478

Related Party Transactions

12 Months Ended

Aug. 31, 2021

Related Party Transactions

Note 5—Related Party Transactions

Kura Sushi, Inc. (“Kura Japan”) is the majority stakeholder of the Company, and is incorporated and headquartered in Japan. In August 2019, the Company entered into a Shared Services Agreement with Kura Japan, pursuant to which Kura Japan provides the Company with certain strategic, operational and other support services, including assigning certain employees to work for the Company as expatriates to provide support to the Company’s operations, sending its employees to the Company on a short-term basis to provide support for the opening of new restaurants or renovation of existing restaurants, and providing the Company with certain supplies, parts and equipment for use in the Company’s restaurants. In addition, the Company has agreed to continue to provide Kura Japan with certain translational support services, and market research. In exchange for such services, supplies, parts and equipment, the parties pay fees to each other as set forth under the Shared Services Agreement. A right of setoff is not required; however, from time to time, either party will net settle transactions as needed. Purchases of administrative supplies, expatriate salaries and travel and other administrative expenses payable to Kura Japan are included in general and administrative expenses in the accompanying statement of operations. Purchases of equipment from Kura Japan are included in property and equipment in the accompanying balance sheets.

In August 2019, the Company entered into an Amended and Restated Exclusive License Agreement (the “License Agreement”) with Kura Japan. Pursuant to the License Agreement, the Company pays Kura Japan a royalty fee of 0.5% of the Company’s net sales in exchange for an exclusive, royalty-bearing license for use of certain of Kura Japan’s intellectual property rights, including, but not limited to, Kura Japan’s trademarks “Kura Sushi” and “Kura Revolving Sushi Bar,” and patents for a food management system and the Mr. Fresh protective dome, among other intellectual property rights necessary to continue operation of the Company’s restaurants. Royalty payments to Kura Japan are included in other costs at the restaurant-level in the accompanying statements of operations.

On April 10, 2020, the Company and Kura Japan entered into a Revolving Credit Agreement, which was subsequently amended on September 2, 2020 and April 9, 2021, to provide the Company a line of credit of $45 million. For additional information, see “Note 7 - Debt”.

Balances with Kura Japan as of August 31, 2021 and August 31, 2020 are as follows:

	As of August 31,
	2021		2020
	(amounts in thousands)
Due from affiliate	$	329	$	12
Due to affiliate	$	244	$	201

Reimbursements and other payments by the Company to Kura Japan for fiscal years ended August 31, 2021, August 31, 2020, and August 31, 2019 are as follows:

	Fiscal Years Ended August 31,
	2021		2020		2019
	(amounts in thousands)
Related party transactions:
Purchases of administrative supplies	$	90	$	53	$	46
Expatriate salaries expense		133		141		147
Royalty payments		325		226		321
Travel and other administrative expenses		63		73		49
Purchases of equipment		1,173		1,129		685
Interest expense		98		—		—

Total related party transactions	$	1,882	$	1,622	$	1,248

Reimbursements by Kura Japan to the Company were $0.3 million, $0.1 million, and $0.3 million for fiscal years ended August 31, 2021, August 31, 2020, and August 31, 2019, respectively. The reimbursements were primarily for D&O insurance and other administrative expenses.

Incentive Compensation Plan

12 Months Ended

Aug. 31, 2021

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Incentive Compensation Plan

Note 6—Incentive Compensation Plan

The Company has a 2018 Incentive Compensation Plan (the “Stock Incentive Plan”), as amended. Under the Stock Incentive Plan, the Company may grant stock options, stock appreciation rights, restricted stock, restricted stock units, and performance awards in the form of shares and cash. Stock options granted under the Stock Incentive Plan include both incentive stock options and non-qualified stock options. This plan authorizes 1,350,000 shares to be granted. The Company issued seven thousand restricted stock awards during fiscal year 2021 in addition to the option awards stated above, amounting to an expense of $0.1 million during fiscal year 2021. No restricted stock awards were issues during the fiscal year 2020.

Activity under the Stock Incentive Plan is as follows:

	Options Outstanding
	Number of shares underlying outstanding options			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
								(amounts in thousands)
Outstanding—August 31, 2019		405,302		$	4.46		8.8	$	8,353
Options granted		157,539			22.08
Options exercised		(7,012	)		4.26
Options canceled/forfeited		(24,082	)		8.26
Outstanding—August 31, 2020		531,747		$	9.51		8.3	$	1,441
Options granted		221,260			29.60
Options exercised		(93,378	)		5.52
Options canceled/forfeited		(34,251	)		10.99
Outstanding—August 31, 2021		625,378		$	17.13		4.9	$	21,060
Options exercisable		238,788		$	8.25		7.1	$	10,163

Stock-based compensation related to the stock options issued under the Stock Incentive Plan was $1.4 million, $0.9 million, and $0.6 million for the fiscal years ended August 31, 2021, August 31, 2020, and August 31, 2019 respectively, and is included in restaurant operating costs and general and administrative expenses on the accompanying statements of operations. The total intrinsic value of stock options exercised during fiscal year 2021 was $0.4 million.

The total fair value of options vested was $0.7 million, $0.6 million, and $0.6 million for the fiscal years ended August 31, 2021, August 31, 2020, and August 31, 2019, respectively. As of August 31, 2021, unrecognized stock-based compensation of $4.1 million related to unvested stock options is expected to be recognized on a straight-line basis over a weighted average period of 3.1 years.

Stock-based Compensation Expense

Stock-based compensation for restaurant-level employees is included in other costs and stock-based compensation for corporate-level employees is included in general and administrative expenses in the statements of operations. The total stock-based compensation recognized under the Stock Incentive Plan in the statements of operations is as follows:

	Fiscal Years Ended August 31,
	2021		2020		2019
	(amounts in thousands)
Other Costs	$	118	$	86	$	80
General and administrative expenses		1,291		774		510
Total stock-based compensation	$	1,409	$	860	$	590

Determination of Fair Value

For the fiscal years ended August 31, 2021, August 31, 2020, and August 31, 2019, the fair value of stock options was estimated on the grant date using the Black-Scholes valuation model with the following assumptions:

	Fiscal Years Ended August 31,
	2021		2020		2019
Expected term (in years)	5.50 - 6.11		5.23 - 5.98			5.96
Expected volatility	61.7% - 62.7%		48% - 58.5%			64	%
Risk-free interest rate	0.47% - 1.16%		0.40% - 1.67%			2.77	%
Dividend rate		—		—		—
Weighted average grant date fair value	$	16.66	$	11.01	$	6.91

Expected Term - The expected term represents the period that the Company’s stock-based awards are expected to be outstanding. For option grants that are considered to be “plain vanilla,” the Company determines the expected term using the simplified method. The simplified method deems the term to be the average of the time-to-vesting and the contractual life of the options.

Expected Volatility - Since the Company does not have a trading history of its common stock equivalent to the expected term of the stock option grants, the expected volatility is derived from the average historical stock volatilities of several unrelated public companies within the Company’s industry that the Company considers to be comparable to its business over a period equivalent to the expected term of the stock option grants.

Risk-Free Interest Rate - The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero-coupon U.S. Treasury notes with maturities approximately equal to the option’s expected term.

Dividend Rate - The expected dividend is assumed to be zero as the Company has never paid dividends and has no current plans to do so.

Fair Value of Common Stock - Given the absence of a public trading market prior to the IPO, the Company’s board of directors considered numerous objective and subjective factors to determine the fair value of its common stock at each grant date, which was $10.75 for the fiscal year 2019. These factors included, but were not limited to (i) independent contemporaneous third-party valuations of common stock; (ii) the lack of marketability of its common stock; and (iii) the likelihood of achieving a liquidity event, such as an initial public offering of the Company, given prevailing market conditions. Subsequent to the IPO, the fair value of common stock is based on the closing price of the Company’s common stock, as reported on The Nasdaq Global Market.

Debt

12 Months Ended

Aug. 31, 2021

Debt Disclosure [Abstract]

Debt

Note 7—Debt

On April 10, 2020, the Company and Kura Japan entered into a Revolving Credit Agreement establishing a $20 million revolving credit line for the Company. On September 2, 2020, the Company and Kura Japan entered into a First Amendment to Revolving Credit Agreement (the “First Amendment”) to (i) increase the maximum credit amount under the credit line from $20 million to $35 million, (ii) extend the maturity date for each advance from 12 months to 60 months from the date of disbursement and (iii) extend the last day of the period of availability for the advances under the credit line from March 31, 2024 to April 10, 2025. On April 9, 2021, the Company and Kura Japan entered into a Second Amendment to Revolving Credit agreement (the “Second Amendment”) to increase the maximum credit amount under the credit line from $35 million to $45 million.

In connection with the First Amendment and Second Amendment, the Revolving Credit Note under the Revolving Credit Agreement was also amended by incorporating the same amendments as provided under the First Amendment and Second Amendment, and additionally, amending the interest rate for advances disbursed prior to April 10, 2021 to be fixed at 1.1% and the interest rate for advances disbursed on or after April 10, 2021 to be fixed at 130% of the Annual Compounding Long-Term Applicable Federal Rate (“AFR”) on the date such advance is made. The AFR as of August 31, 2021 was 2.45%. There are no financial covenants under the Revolving Credit Agreement with which the Company must comply.

During fiscal year 2021, the Company borrowed $17 million under the revolving credit line and subsequently repaid the amount in full. As of August 31, 2021, the Company had no outstanding balance on the revolving credit line. Interest expense for fiscal year 2021 was immaterial. As of August 31, 2021, the Company had $45.0 million of availability remaining under the Revolving Credit Agreement. For further discussion, please see “Note 1. Organization and Basis of Presentation” and “Note 5. Related Party Transactions.”

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

Earnings (Loss) Per Share

12 Months Ended

Aug. 31, 2021

Earnings Per Share [Abstract]

Earnings (Loss) Per Share

Note 8—Earnings (Loss) Per Share

The net income (loss) per share attributable to common stockholder is allocated based on the contractual participation rights of the Class A common stock and Class B common stock as if the income for the year has been distributed. As the liquidation and dividend rights for Class A and Class B common stock are identical, the net income (loss) attributable to common stockholder is allocated on a proportionate basis.

The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share:

	Fiscal Years Ended August 31,
	2021						2020						2019
	Class A			Class B			Class A			Class B			Class A		Class B
		(amounts in thousands, except per share data)
Net income (loss) attributable to common stockholders - basic	$	(9,088	)	$	(1,207	)	$	(15,276	)	$	(2,082	)	$	1,180	$	276
Weighted average common shares outstanding - basic		7,528			1,000			7,338			1,000			4,283		1,000
Net income (loss) per share attributable to common stockholders - basic	$	(1.21	)	$	(1.21	)	$	(2.08	)	$	(2.08	)	$	0.28	$	0.28
Net income (loss) attributable to common stockholders - diluted	$	(9,088	)	$	(1,207	)	$	(15,276	)	$	(2,082	)	$	1,192	$	264
Weighted average shares outstanding - basic		7,528			1,000			7,338			1,000			4,283		1,000
Options to purchase common stock		—			—			—			—			229		—
Weighted average shares outstanding - diluted		7,528			1,000			7,338			1,000			4,512		1,000
Net income (loss) per share attributable to common stockholders - diluted	$	(1.21	)	$	(1.21	)	$	(2.08	)	$	(2.08	)	$	0.26	$	0.26

The Company computes basic income (loss) per common share using net income and the weighted average number of common shares outstanding during the period. Diluted income (loss) per common share is computed using net income and the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include dilutive outstanding employee stock options.

For the fiscal years ended August 31, 2021 and August 31, 2020, there were 625 thousand and 532 thousand outstanding employee stock options, respectively, that were excluded from the calculation of diluted loss per share because their inclusion would have been anti-dilutive. There was no antidilutive effect from stock options during the fiscal year ended August 31, 2019.

Commitments and Contingencies

12 Months Ended

Aug. 31, 2021

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 9—Commitments and Contingencies

On May 31, 2019, a putative class action complaint was filed by a former employee, Brandy Gomes, in Los Angeles County Superior Court, alleging violations of California wage and hour laws. On July 9, 2020, plaintiff’s counsel filed a first amended class action complaint to add Jamar Spencer, another former employee, as a plaintiff to this action. In addition, the first amended class action complaint added new causes of action alleging violations of California wage and hour laws including a cause of action brought under the California Private Attorney General Act. On August 7, 2020, the Company filed its answer to the first amended complaint, generally denying the allegations in the complaint. In May 2021, a joint stipulation was filed requesting a delay in the class certification hearing date to March 3, 2022, and a mediation was scheduled for September 24, 2021. During the mediation, a settlement was agreed upon in the amount of $1.75 million. The Company recorded an accrued liability of $1.78 million, including an estimated $30 thousand in employer payroll taxes, related to this settlement within general and administrative expenses in the statements of operations during the fiscal year ended August 31, 2021. A court hearing to seek preliminary approval of the settlement has been scheduled for May 9, 2022.

The Company is involved from time to time in various legal proceedings that arise in the ordinary course of business, including but not limited to commercial disputes, environmental matters, employee related claims, intellectual property disputes and litigation in connection with transactions including acquisitions and divestitures. In the opinion of management, the Company does not believe that such litigation, claims, and administrative proceedings, excluding the putative class action matter referenced above, will have a material adverse effect on its business, financial position, results of operations or cash flows. However, a significant increase in the number of these claims or an increase in amounts owing under successful claims, including the putative class action referenced above, could materially and adversely affect its business, financial condition, results of operations or cash flows. The Company records a liability when a loss is considered probable, and the amount can be reasonably estimated.

Income Taxes

12 Months Ended

Aug. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Note 10—Income Taxes

The components of loss before provision for income taxes are as follows:

	Fiscal Years Ended August 31,
	2021			2020			2019
	(amounts in thousands)
US	$	(10,189	)	$	(16,184	)	$	1,524
Total	$	(10,189	)	$	(16,184	)	$	1,524

The components of the provision for income taxes are as follows:

	Fiscal Years Ended August 31,
	2021		2020		2019
	(amounts in thousands)
Current:
Federal	$	—	$	—	$	—
State		106		53		129
Total current		106		53		129
Deferred:
Federal		—		1,047		(47	)
State		—		74		(14	)
Total deferred		—		1,121		(61	)
Total	$	106	$	1,174	$	68

The Company had an effective tax rate of (1.0)%, (7.3)%, and 4.5% for the fiscal years ended August 31, 2021, August 31, 2020, and August 31, 2019, respectively. The reconciliation of the statutory federal income tax rate to the Company’s effective tax rate was as follows:

	Fiscal Years Ended August 31,
	2021			2020			2019
Tax at federal statutory rate		21.0	%		21.0	%		21.0	%
Employer tip credit		3.8			0.9			(20.2	)
Stock-based compensation		(0.2	)		(0.8	)		—
Change in valuation allowance		(24.7	)		(28.3	)		—
Other items		(0.1	)		0.5			(2.2	)
State tax, net of federal benefit		(0.8	)		(0.6	)		5.9
Effective tax rate		(1.0	)%		(7.3	)%		4.5	%

The Company recorded an income tax provision for the years ended August 31, 2021, 2020 and 2019 of $106 thousand, $1.2 million, and $68 thousand, respectively. The primary difference between the effective tax rate and the federal statutory tax rate relates to the recognition of valuation allowance against deferred tax assets, federal tax liabilities offset by employer tip credits, and non-deductible stock-based compensation.

The deferred income taxes reflect the tax effects of the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes.

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities are as follows:

	As of August 31,
	2021			2020
	(amounts in thousands)
Deferred tax assets:
NOL carryover	$	7,324		$	6,472
General business credit		2,496			2,003
Lease liabilities		18,807			16,635
State tax deduction		22			12
Other		1,089			535
Gross deferred tax assets		29,738			25,657
Deferred tax liabilities:
Basis difference on fixed assets		(4,477	)		(4,593	)
Right-of-use assets		(16,880	)		(15,496	)
Gross deferred tax liabilities		(21,357	)		(20,089	)
Valuation allowance		(8,381	)		(5,568	)
Net deferred tax	$	—		$	—

As of August 31, 2021, the Company has U.S. federal net operating loss (“NOL”) carryover of $28.9 million and federal tax credit carryover of $2.5 million. If not utilized, $25.5 million of the federal NOL can be carried forward indefinitely, and the remainder will begin to expire in the fiscal year ending August 31, 2032. The federal tax credit will begin to expire in the fiscal year ending August 31, 2032. Utilization of the Company’s NOL and federal tax credit carryover may be subject to a substantial annual limitation due to ownership change limitations that may have occurred or that could occur in the future, as required by Sections 382 and 383 of the Internal Revenue Code of 1986, as amended.

The Company has not recorded any unrecognized tax benefits as of August 31, 2021. Tax benefits of uncertain tax positions are recognized only if it is more likely than not that the Company will be able to sustain a position taken on an income tax return. The Company has no liability for uncertain positions. Interest and penalties, if any, related to unrecognized tax benefits would be recognized as income tax expense.

The Company evaluates the realizability of its deferred tax assets on a quarterly basis and establish valuation allowance when it is more likely than not that all or a portion of a deferred tax asset may not be realized. During the fiscal year ended August 31, 2021, the adverse effects of the COVID-19 pandemic have caused the Company to continue the need for valuation allowances against deferred tax assets. The total amount of the valuation allowances was $8.4 million.

On December 27, 2020, Congress passed, and the President signed into law, the Consolidated Appropriations Act, 2021 (the “Act”), which includes certain business tax provisions. The Act did not have a material impact on the Company’s effective tax rate or income tax expense for the fiscal year ended August 31, 2021.

On March 11, 2021, Congress passed, and the President signed into law, the American Rescue Plan Act, 2021 (the “ARP”), which includes certain business tax provisions. The ARP did not have a material impact on the Company’s effective tax rate or income tax expense for the fiscal year ended August 31, 2021.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Basis of Presentation and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Aug. 31, 2021

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Initial Public Offering

Follow-On Offering

Effects of COVID-19

Recent Events Concerning the Company's Financial Position

Recent Events Concerning the Company’s Financial Position

Basis of Presentation

Use of Estimates

Concentration of Credit Risk

Concentration of Significant Suppliers

Segment Information

Cash and Cash Equivalents

Accounts and Other Receivables

Inventories

Inventories consist of food and beverages and are stated at the lower of cost or net realizable value, with cost determined on an average cost basis.

Property and Equipment

Property and Equipment		Useful Life
Computer equipment		3 – 5 years
Vehicles		5 years
Software		5 years
Furniture and fixtures		10 years
Leasehold improvements		Shorter of useful life or remaining lease term
Lease assets		Fixed lease term

Liquor Licenses

Liquor licenses are deemed to have indefinite useful lives and are subject to annual impairment testing. Liquor licenses are included in deposits and other assets in the accompanying balance sheets.

Asset Retirement Obligations

Impairment of Long-lived Assets

Income Taxes

Revenue Recognition

Revenue from sales is recognized when food and beverages are sold to customers. Sales are presented net of discounts and sales taxes collected from customers.

Sales Taxes

Operating and Finance Leases

Other Costs

Advertising Costs

Fair Value Measurements

Stock-based Compensation

Comprehensive Income (Loss)

Earnings (Loss) Per Share

Recently Adopted Accounting Pronouncements

Recently Issued Accounting Pronouncements

Basis of Presentation and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Aug. 31, 2021

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Schedule of Various Types of Property and Equipment and Their Useful Lives

The following table represents the various types of property and equipment and their respective useful lives:

Property and Equipment		Useful Life
Computer equipment		3 – 5 years
Vehicles		5 years
Software		5 years
Furniture and fixtures		10 years
Leasehold improvements		Shorter of useful life or remaining lease term
Lease assets		Fixed lease term

Balance Sheet Components (Tables)

12 Months Ended

Aug. 31, 2021

Property Plant And Equipment Net [Abstract]

Schedule of Accounts and Other Receivables

Accounts and Other Receivables

Accounts and other receivables as of August 31, 2021 and August 31, 2020 consists of the following:

	As of August 31,
	2021		2020
	(amounts in thousands)
Lease receivables	$	1,431	$	1,811
Credit card receivables		575		281
Other receivables		13		38
Total accounts and other receivables	$	2,019	$	2,130

Schedule of Inventories

Inventories

Inventories as of August 31, 2021 and August 31, 2020 consists of the following:

	As of August 31,
	2021		2020
	(amounts in thousands)
Food	$	659	$	320
Beverages		74		47
Total inventories	$	733	$	367

Schedule of Prepaid Expenses and Other Current Assets

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets as of August 31, 2021 and August 31, 2020 consists of the following:

	As of August 31,
	2021		2020
	(amounts in thousands)
Employee retention credit	$	12,007	$	1,750
Prepaid expenses		1,732		885
Other current assets		218		375
Total prepaid expenses and other current assets	$	13,957	$	3,010

Schedule of Property and Equipment, Net

Property and Equipment, net

Property and equipment, net as of August 31, 2021 and August 31, 2020 consists of the following:

	As of August 31,
	2021			2020
	(amounts in thousands)
Leasehold improvements	$	43,181		$	30,497
Lease assets		6,128			6,117
Furniture and fixtures		13,324			7,908
Computer equipment		905			696
Vehicles		110			88
Software		773			689
Construction in progress		3,907			9,558
Property and equipment – gross		68,328			55,553
Less: accumulated depreciation and amortization		(14,443	)		(10,012	)

Total property and equipment – net	$	53,885		$	45,541

Schedule of Deposits and Other Assets

Deposits and Other Assets

Deposits and other assets, as of August 31, 2021 and August 31, 2020 consists of the following:

	As of August 31,
	2021		2020
	(amounts in thousands)
Deposits	$	1,306	$	1,245
Liquor license		852		696
Total deposits and other assets	$	2,158	$	1,941

Leases (Tables)

12 Months Ended

Aug. 31, 2021

Leases [Abstract]

Summary of Lease Related Costs

Lease related costs recognized in the statements of operations for fiscal years 2021 and 2020 are as follows:

		Fiscal Years Ended August 31,
		2021		2020
		(amounts in thousands)
Finance lease cost	Classification
Amortization of right-of-use assets	Depreciation and amortization expense	$	600	$	552
Interest on lease liabilities	Interest expense		84		120
Total finance lease cost		$	684	$	672


		Fiscal Years Ended August 31,
		2021		2020
		(amounts in thousands)
Operating lease cost	Classification
Operating lease cost	Occupancy and related expenses, and general and administrative expenses	$	6,280	$	5,194
Variable lease cost	Occupancy and related expenses, and general and administrative expenses		1,166		1,059
Total operating lease cost		$	7,446	$	6,253

Summary of Supplemental Balance Sheet Information

Supplemental balance sheet information related to leases is as follows:

Operating Leases

	As of August 31,
	2021		2020
	(amounts in thousands)
Right-of-use assets	$	64,158	$	56,119

Lease liabilities – current	$	5,650	$	5,106
Lease liabilities – non-current		65,834		56,918
Total lease liabilities	$	71,484	$	62,024

Finance Lease Assets, net

	As of August 31,
	2021			2020
	(amounts in thousands)
Property and equipment	$	6,128		$	6,117
Accumulated depreciation		(2,778	)		(2,178	)
Total property and equipment – net	$	3,350		$	3,939

Finance Leases Liabilities

	As of August 31,
	2021		2020
	(amounts in thousands)
Finance lease – current	$	932	$	1,004
Finance lease – non-current		546		1,481
Total finance lease liabilities	$	1,478	$	2,485

	As of August 31,
	2021			2020
Weighted Average Remaining Lease Term (Years)
Operating leases		16.4			16.3
Finance leases		1.5			2.4

Weighted Average Discount Rate
Operating leases		6.5	%		6.2	%
Finance leases		4.5	%		4.4	%

Summary of Supplemental Disclosures of Cash Flow Information Related to Leases

Supplemental disclosures of cash flow information related to leases are as follows:

	Fiscal Years Ended August 31,
	2021		2020
	(amounts in thousands)
Operating cash flows paid for operating lease liabilities	$	4,647	$	4,570
Operating right-of-use assets obtained in exchange for new operating lease liabilities	$	11,566	$	21,203

Summary of Maturities of Lease Liabilities

Maturities of lease liabilities are as follows as of August 31, 2021:

	Operating Leases			Finance Leases
	(amounts in thousands)
2022	$	3,990		$	1,007
2023		6,556			492
2024		6,840			24
2025		6,966			2
2026		6,865			—
Thereafter		85,470			—
Total lease payments		116,687			1,525
Less: imputed interest		(45,203	)		(47	)
Present value of lease liabilities	$	71,484		$	1,478

Related Party Transactions (Tables)

12 Months Ended

Aug. 31, 2021

Balances with Kura Japan as of August 31, 2021 and August 31, 2020 are as follows:

	As of August 31,
	2021		2020
	(amounts in thousands)
Due from affiliate	$	329	$	12
Due to affiliate	$	244	$	201

Reimbursements and other payments by the Company to Kura Japan for fiscal years ended August 31, 2021, August 31, 2020, and August 31, 2019 are as follows:

	Fiscal Years Ended August 31,
	2021		2020		2019
	(amounts in thousands)
Related party transactions:
Purchases of administrative supplies	$	90	$	53	$	46
Expatriate salaries expense		133		141		147
Royalty payments		325		226		321
Travel and other administrative expenses		63		73		49
Purchases of equipment		1,173		1,129		685
Interest expense		98		—		—

Total related party transactions	$	1,882	$	1,622	$	1,248

Incentive Compensation Plan (Tables)

12 Months Ended

Aug. 31, 2021

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Activity under Stock Incentive Plan

Activity under the Stock Incentive Plan is as follows:

	Options Outstanding
	Number of shares underlying outstanding options			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
								(amounts in thousands)
Outstanding—August 31, 2019		405,302		$	4.46		8.8	$	8,353
Options granted		157,539			22.08
Options exercised		(7,012	)		4.26
Options canceled/forfeited		(24,082	)		8.26
Outstanding—August 31, 2020		531,747		$	9.51		8.3	$	1,441
Options granted		221,260			29.60
Options exercised		(93,378	)		5.52
Options canceled/forfeited		(34,251	)		10.99
Outstanding—August 31, 2021		625,378		$	17.13		4.9	$	21,060
Options exercisable		238,788		$	8.25		7.1	$	10,163

Summary of Stock Based Compensation Expense Recognized under Stock Incentive Plan

The total stock-based compensation recognized under the Stock Incentive Plan in the statements of operations is as follows:

	Fiscal Years Ended August 31,
	2021		2020		2019
	(amounts in thousands)
Other Costs	$	118	$	86	$	80
General and administrative expenses		1,291		774		510
Total stock-based compensation	$	1,409	$	860	$	590

Fair Value of Stock Options Estimated on Grant Date

Determination of Fair Value

	Fiscal Years Ended August 31,
	2021		2020		2019
Expected term (in years)	5.50 - 6.11		5.23 - 5.98			5.96
Expected volatility	61.7% - 62.7%		48% - 58.5%			64	%
Risk-free interest rate	0.47% - 1.16%		0.40% - 1.67%			2.77	%
Dividend rate		—		—		—
Weighted average grant date fair value	$	16.66	$	11.01	$	6.91

Earnings (Loss) Per Share (Tables)

12 Months Ended

Aug. 31, 2021

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Income (Loss) Per Share

The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share:

	Fiscal Years Ended August 31,
	2021						2020						2019
	Class A			Class B			Class A			Class B			Class A		Class B
		(amounts in thousands, except per share data)
Net income (loss) attributable to common stockholders - basic	$	(9,088	)	$	(1,207	)	$	(15,276	)	$	(2,082	)	$	1,180	$	276
Weighted average common shares outstanding - basic		7,528			1,000			7,338			1,000			4,283		1,000
Net income (loss) per share attributable to common stockholders - basic	$	(1.21	)	$	(1.21	)	$	(2.08	)	$	(2.08	)	$	0.28	$	0.28
Net income (loss) attributable to common stockholders - diluted	$	(9,088	)	$	(1,207	)	$	(15,276	)	$	(2,082	)	$	1,192	$	264
Weighted average shares outstanding - basic		7,528			1,000			7,338			1,000			4,283		1,000
Options to purchase common stock		—			—			—			—			229		—
Weighted average shares outstanding - diluted		7,528			1,000			7,338			1,000			4,512		1,000
Net income (loss) per share attributable to common stockholders - diluted	$	(1.21	)	$	(1.21	)	$	(2.08	)	$	(2.08	)	$	0.26	$	0.26

Income Taxes (Tables)

12 Months Ended

Aug. 31, 2021

Income Tax Disclosure [Abstract]

Summary of Components of Loss Before Provision for Income Taxes

The components of loss before provision for income taxes are as follows:

	Fiscal Years Ended August 31,
	2021			2020			2019
	(amounts in thousands)
US	$	(10,189	)	$	(16,184	)	$	1,524
Total	$	(10,189	)	$	(16,184	)	$	1,524

Summary of Components of Provision for Income Taxes

The components of the provision for income taxes are as follows:

	Fiscal Years Ended August 31,
	2021		2020		2019
	(amounts in thousands)
Current:
Federal	$	—	$	—	$	—
State		106		53		129
Total current		106		53		129
Deferred:
Federal		—		1,047		(47	)
State		—		74		(14	)
Total deferred		—		1,121		(61	)
Total	$	106	$	1,174	$	68

Summary of Reconciliation of Statutory Federal Income Tax Rate

The reconciliation of the statutory federal income tax rate to the Company’s effective tax rate was as follows:

	Fiscal Years Ended August 31,
	2021			2020			2019
Tax at federal statutory rate		21.0	%		21.0	%		21.0	%
Employer tip credit		3.8			0.9			(20.2	)
Stock-based compensation		(0.2	)		(0.8	)		—
Change in valuation allowance		(24.7	)		(28.3	)		—
Other items		(0.1	)		0.5			(2.2	)
State tax, net of federal benefit		(0.8	)		(0.6	)		5.9
Effective tax rate		(1.0	)%		(7.3	)%		4.5	%

Summary of Deferred Income Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities are as follows:

	As of August 31,
	2021			2020
	(amounts in thousands)
Deferred tax assets:
NOL carryover	$	7,324		$	6,472
General business credit		2,496			2,003
Lease liabilities		18,807			16,635
State tax deduction		22			12
Other		1,089			535
Gross deferred tax assets		29,738			25,657
Deferred tax liabilities:
Basis difference on fixed assets		(4,477	)		(4,593	)
Right-of-use assets		(16,880	)		(15,496	)
Gross deferred tax liabilities		(21,357	)		(20,089	)
Valuation allowance		(8,381	)		(5,568	)
Net deferred tax	$	—		$	—

Organization and Description of Business - Additional Information (Details)						12 Months Ended
	Nov. 12, 2021 Restaurant	Jul. 23, 2021 USD ($) $ / shares shares	Sep. 02, 2020 USD ($)	Apr. 10, 2020 USD ($)	Aug. 05, 2019 USD ($) $ / shares shares	Aug. 31, 2021 USD ($) Restaurant shares	Aug. 31, 2020 USD ($)	Aug. 31, 2019 USD ($) shares	Oct. 31, 2021 Restaurant	Apr. 09, 2021 USD ($)
Organization and Basis of Presentation [Line Items]
Payments to directors, officers or persons owning 10% or more of common stock to associates or affiliates								$ 4,792,000
Repayment of borrowings outstanding								3,921,000
Impairment of long-lived assets						$ 0	$ 0	$ 0
Valuation allowance recorded						8,381,000	5,568,000
COVID-19
Organization and Basis of Presentation [Line Items]
Employee retention and new hire bonuses						1,200,000
Impairment of long-lived assets						0
Valuation allowance recorded						8,400,000
COVID-19 \| Kura Japan
Organization and Basis of Presentation [Line Items]
Revolving credit line				$ 20,000,000
CARES Act
Organization and Basis of Presentation [Line Items]
Employee retention credit						10,300,000	1,800,000
Employee retention credits refunds						8,000,000
CARES Act \| General and Administrative Expenses
Organization and Basis of Presentation [Line Items]
Employee retention credit						1,000,000	100,000
CARES Act \| Labor and Related Costs
Organization and Basis of Presentation [Line Items]
Employee retention credit						$ 9,300,000	$ 1,700,000
Local Government Requirements \| COVID-19 \| Kura Japan
Organization and Basis of Presentation [Line Items]
Number of restaurants opened with indoor dining \| Restaurant						32
Percentage of indoor dining capacity						100.00%
Local Government Requirements \| Subsequent Event \| COVID-19 \| Kura Japan
Organization and Basis of Presentation [Line Items]
Number of restaurants opened with indoor dining \| Restaurant	33
Percentage of indoor dining capacity	100.00%
Local Government Requirements \| Subsequent Event \| COVID-19 \| San Francisco, California \| Kura Japan
Organization and Basis of Presentation [Line Items]
Number of restaurants opened \| Restaurant									1
Revolving Credit Facility Agreement
Organization and Basis of Presentation [Line Items]
Revolving credit line						$ 45,000,000
Revolving Credit Facility Agreement \| Kura Japan
Organization and Basis of Presentation [Line Items]
Credit facility maximum borrowing capacity				$ 20,000,000
Revolving credit line, termination date				Mar. 31, 2024
Revolving Credit Facility Agreement \| COVID-19 \| Kura Japan
Organization and Basis of Presentation [Line Items]
Credit facility maximum borrowing capacity										$ 45,000,000
First Amendment \| Kura Japan
Organization and Basis of Presentation [Line Items]
Credit facility maximum borrowing capacity			$ 35,000,000
Revolving credit line, termination date			Apr. 10, 2025
Revolving credit line, maturity date description						(i) increase the maximum credit amount under the credit line from $20 million to $35 million, (ii) extend the maturity date for each advance from 12 months to 60 months from the date of disbursement and (iii) extend the last day of the period of availability for the advances under the credit line from March 31, 2024 to April 10, 2025.
Second Amendment \| Kura Japan
Organization and Basis of Presentation [Line Items]
Credit facility maximum borrowing capacity										$ 45,000,000
Follow-On Offering \| Class A
Organization and Basis of Presentation [Line Items]
Shares issued \| shares		1,265,000
Proceeds from offering		$ 53,500,000
Payments to directors, officers or persons owning 10% or more of common stock to associates or affiliates		$ 0
Percentage of common stock owned by directors, officers or persons		10.00%
Follow-On Offering \| Class A \| Credit Facility with Kura Japan
Organization and Basis of Presentation [Line Items]
Repayment of borrowings outstanding		$ 17,000,000
Common Stock \| Class A
Organization and Basis of Presentation [Line Items]
Issuance of common stock in connection with initial/follow-on public offering, net of underwriter discounts and issuance costs, shares \| shares						1,265,000		3,335,000
Common Stock \| Initial Public Offering
Organization and Basis of Presentation [Line Items]
Sale of stock, price per share \| $ / shares					$ 14.00
Shares issued \| shares					3,335,000
Issuance of common stock in connection with initial/follow-on public offering, net of underwriter discounts and issuance costs, shares \| shares					435,000
Proceeds from offering					$ 38,600,000
Payments to directors, officers or persons owning 10% or more of common stock to associates or affiliates					$ 0
Percentage of common stock owned by directors, officers or persons					10.00%
Underwrites \| Follow-On Offering \| Class A
Organization and Basis of Presentation [Line Items]
Sale of stock, price per share \| $ / shares		$ 45.00
Issuance of common stock in connection with initial/follow-on public offering, net of underwriter discounts and issuance costs, shares \| shares		165,000
Underwriting discount per share \| $ / shares		$ 2.48

Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details)	12 Months Ended
	Aug. 31, 2021 USD ($) Segment	Aug. 31, 2020 USD ($)	Aug. 31, 2019 USD ($)
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Lease, practical expedients, package	true
Lease, practical expedient, use of hindsight	true
Number of operating segment \| Segment	1
Number of reportable segment \| Segment	1
Cash and cash equivalents	$ 40,430,000	$ 9,259,000
Allowance for doubtful accounts	$ 0	0
Description of depreciation and amortization on property and equipment	Depreciation and amortization on property and equipment is calculated using the straight-line method over the estimated useful lives of the respective assets, ranging from three to 20 years.
Depreciation and amortization on property and equipment calculated method	straight-line method
Impairment of long-lived assets	$ 0	0	$ 0
Operating and finance leases, remaining lease start range terms description	less than 1 year
Outstanding borrowings	$ 0
Other costs	10,448,000	6,705,000	7,088,000
Advertising expenses	600,000	300,000	$ 400,000
Stock options granted, vesting period			45 months
Other Liabilities
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Asset retirement obligation liability	$ 400,000	$ 300,000
Minimum
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives	3 years
Income tax benefit being realized	50.00%
Short-term lease, term of contract	1 month
Stock options granted, vesting period	12 months	9 months
Maximum
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives	20 years
Operating and finance leases, remaining lease terms	20 years
Short-term lease, term of contract	12 months
Short-term lease initial term	12 months
Stock options granted, vesting period	48 months	46 months
Money Market Funds and Term Deposits
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Cash and cash equivalents	$ 36,100,000	$ 8,800,000
Product Concentration Risk \| Sales Revenue Net \| Food and Beverage Costs \| JFC International Inc.
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage	58.00%	59.00%	55.00%
Product Concentration Risk \| Sales Revenue Net \| Food and Beverage Costs \| Wismettac Asian Foods, Inc.
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage	27.00%	27.00%	28.00%

Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Various Types of Property and Equipment and Their Useful Lives (Details)	12 Months Ended
	Aug. 31, 2021
Minimum
Property Plant And Equipment [Line Items]
Property and equipment, useful life	3 years
Maximum
Property Plant And Equipment [Line Items]
Property and equipment, useful life	20 years
Computer Equipment \| Minimum
Property Plant And Equipment [Line Items]
Property and equipment, useful life	3 years
Computer Equipment \| Maximum
Property Plant And Equipment [Line Items]
Property and equipment, useful life	5 years
Vehicles
Property Plant And Equipment [Line Items]
Property and equipment, useful life	5 years
Software
Property Plant And Equipment [Line Items]
Property and equipment, useful life	5 years
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Property and equipment, useful life	10 years
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property and equipment, estimated useful life	Shorter of useful life or remaining lease term
Lease Assets
Property Plant And Equipment [Line Items]
Property and equipment, estimated useful life	Fixed lease term

Balance Sheet Components - Schedule of Accounts and Other Receivables (Details) - USD ($) $ in Thousands	Aug. 31, 2021	Aug. 31, 2020
Receivables Net Current [Line Items]
Accounts and other receivables	$ 2,019	$ 2,130
Lease Receivables
Receivables Net Current [Line Items]
Accounts and other receivables	1,431	1,811
Credit Card Receivables
Receivables Net Current [Line Items]
Accounts and other receivables	575	281
Other Receivables
Receivables Net Current [Line Items]
Accounts and other receivables	$ 13	$ 38

Balance Sheet Components - Schedule of Inventories (Details) - USD ($) $ in Thousands	Aug. 31, 2021	Aug. 31, 2020
Inventory [Line Items]
Total inventories	$ 733	$ 367
Food
Inventory [Line Items]
Total inventories	659	320
Beverages
Inventory [Line Items]
Total inventories	$ 74	$ 47

Balance Sheet Components - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Aug. 31, 2021	Aug. 31, 2020
Prepaid Expense And Other Assets Current [Abstract]
Employee retention credit	$ 12,007	$ 1,750
Prepaid expenses	1,732	885
Other current assets	218	375
Total prepaid expenses and other current assets	$ 13,957	$ 3,010

Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Aug. 31, 2021	Aug. 31, 2020
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 68,328	$ 55,553
Less: accumulated depreciation and amortization	(14,443)	(10,012)
Total property and equipment – net	53,885	45,541
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property and equipment, gross	43,181	30,497
Lease Assets
Property Plant And Equipment [Line Items]
Property and equipment, gross	6,128	6,117
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Property and equipment, gross	13,324	7,908
Computer Equipment
Property Plant And Equipment [Line Items]
Property and equipment, gross	905	696
Vehicles
Property Plant And Equipment [Line Items]
Property and equipment, gross	110	88
Software
Property Plant And Equipment [Line Items]
Property and equipment, gross	773	689
Construction in Progress
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 3,907	$ 9,558

Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Property Plant And Equipment Net [Abstract]
Depreciation and amortization expenses	$ 4,522	$ 3,160	$ 2,165

Balance Sheet Components - Schedule of Deposits and Other Assets (Details) - USD ($) $ in Thousands	Aug. 31, 2021	Aug. 31, 2020
Deposits And Other Assets [Line Items]
Total deposits and other assets	$ 2,158	$ 1,941
Deposits
Deposits And Other Assets [Line Items]
Total deposits and other assets	1,306	1,245
Liquor License
Deposits And Other Assets [Line Items]
Total deposits and other assets	$ 852	$ 696

Leases - Summary of Lease Related Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020
Finance lease cost
Amortization of right-of-use assets	$ 600	$ 552
Interest on lease liabilities	84	120
Total finance lease cost	684	672
Operating lease cost
Operating lease cost	6,280	5,194
Variable lease cost	1,166	1,059
Total operating lease cost	$ 7,446	$ 6,253

Leases - Summary of Operating Leases (Details) - USD ($) $ in Thousands	Aug. 31, 2021	Aug. 31, 2020
Leases [Abstract]
Right-of-use assets	$ 64,158	$ 56,119
Lease liabilities – current	5,650	5,106
Lease liabilities – non-current	65,834	56,918
Total lease liabilities	$ 71,484	$ 62,024

Leases - Summary of Finance Lease Assets, Net (Details) - USD ($) $ in Thousands	Aug. 31, 2021	Aug. 31, 2020
Lessee Lease Description [Line Items]
Property and equipment, gross	$ 68,328	$ 55,553
Accumulated depreciation	(14,443)	(10,012)
Total property and equipment – net	53,885	45,541
Finance Lease Assets
Lessee Lease Description [Line Items]
Property and equipment, gross	6,128	6,117
Accumulated depreciation	(2,778)	(2,178)
Total property and equipment – net	$ 3,350	$ 3,939

Leases - Summary of Finance Leases Liabilities (Details) - USD ($) $ in Thousands	Aug. 31, 2021	Aug. 31, 2020
Leases [Abstract]
Finance lease – current	$ 932	$ 1,004
Finance lease – non-current	546	1,481
Total finance lease liabilities	$ 1,478	$ 2,485

Leases - Summary of Weighted Average Remaining Lease Term and Weighted Average Discount Rate (Details)	Aug. 31, 2021	Aug. 31, 2020
Weighted Average Remaining Lease Term (Years)
Operating leases	16 years 4 months 24 days	16 years 3 months 18 days
Finance leases	1 year 6 months	2 years 4 months 24 days
Weighted Average Discount Rate
Operating leases	6.50%	6.20%
Finance leases	4.50%	4.40%

Leases - Summary of Supplemental Disclosures of Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020
Leases [Abstract]
Operating cash flows paid for operating lease liabilities	$ 4,647	$ 4,570
Operating right-of-use assets obtained in exchange for new operating lease liabilities	$ 11,566	$ 21,203

Leases - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Sep. 01, 2021
Lessee Lease Description [Line Items]
Operating leases not yet commenced, liability	$ 18.0
Operating lease liabilities not yet commenced, lease term	20 years
Lease expense	$ 7.2	$ 6.4
Contingent rent expense	$ 0.1	$ 0.1
Subsequent Event
Lessee Lease Description [Line Items]
Operating leases not yet commenced, liability			$ 11.5
Operating lease liabilities not yet commenced, lease term			20 years

Leases - Summary of Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Aug. 31, 2021	Aug. 31, 2020
Operating Leases
2022	$ 3,990
2023	6,556
2024	6,840
2025	6,966
2026	6,865
Thereafter	85,470
Total lease payments	116,687
Less: imputed interest	(45,203)
Present value of lease liabilities	71,484	$ 62,024
Finance Leases
2022	1,007
2023	492
2024	24
2025	2
Total lease payments	1,525
Less: imputed interest	(47)
Present value of lease liabilities	$ 1,478	$ 2,485

Related Party Transactions - Additional Information (Details) - Kura Japan - USD ($)	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019	Apr. 09, 2021	Apr. 10, 2020
D&O Expenses
Related Party Transaction [Line Items]
Reimbursements by related party	$ 300,000	$ 100,000	$ 300,000
Revolving Credit Facility Agreement
Related Party Transaction [Line Items]
Credit facility maximum borrowing capacity					$ 20,000,000
Revolving Credit Facility Agreement \| COVID-19
Related Party Transaction [Line Items]
Credit facility maximum borrowing capacity				$ 45,000,000
Amended and Restated Exclusive License Agreement
Related Party Transaction [Line Items]
Royalty fee of net sales			0.50%

Related Party Transactions - Schedule of Related Party Transactions Due to and from Affiliates (Details) - USD ($) $ in Thousands	Aug. 31, 2021	Aug. 31, 2020
Related Party Transaction [Line Items]
Due from affiliate	$ 329	$ 12
Due to affiliate	244	201
Kura Japan
Related Party Transaction [Line Items]
Due from affiliate	329	12
Due to affiliate	$ 244	$ 201

Related Party Transactions - Schedule of Related Party Reimbursements and Other Payments (Details) - Kura Japan - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Related Party Transaction [Line Items]
Total related party transactions	$ 1,882	$ 1,622	$ 1,248
Purchases of Administrative Supplies
Related Party Transaction [Line Items]
Total related party transactions	90	53	46
Expatriate Salaries Expense
Related Party Transaction [Line Items]
Total related party transactions	133	141	147
Royalty Payments
Related Party Transaction [Line Items]
Total related party transactions	325	226	321
Travel and Other Administrative Expenses
Related Party Transaction [Line Items]
Total related party transactions	63	73	49
Purchases of Equipment
Related Party Transaction [Line Items]
Total related party transactions	1,173	$ 1,129	$ 685
Interest Expense
Related Party Transaction [Line Items]
Total related party transactions	$ 98

Incentive Compensation Plan - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019	Jan. 31, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total intrinsic value of stock options exercised	$ 400
Expected dividend	0.00%
Fair value of common stock			$ 10.75
Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 100
Stock Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Plan authorized shares to be granted				1,350,000
Stock-based compensation expense	$ 1,409	$ 860	$ 590
Stock options outstanding	625,378	531,747	405,302
Weighted average grant date fair value of options granted	$ 16.66	$ 11.01	$ 6.91
Fair value of options vested	$ 700	$ 600	$ 600
Unrecognized stock-based compensation	$ 4,100
Unvested stock options expected to be recognized on a straight-line basis over a weighted average period	3 years 1 month 6 days
Stock Incentive Plan \| Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares issued	7	0

Incentive Compensation Plan - Summary of Activity under Stock Incentive Plan (Details) - Stock Incentive Plan - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options Outstanding, Number of shares underlying outstanding options, Beginning balance	531,747	405,302
Options Outstanding, Number of shares underlying outstanding options, Options granted	221,260	157,539
Options Outstanding, Number of shares underlying outstanding options, Options exercised	(93,378)	(7,012)
Options Outstanding, Number of shares underlying outstanding options, Options canceled/forfeited	(34,251)	(24,082)
Options Outstanding, Number of shares underlying outstanding options, Ending balance	625,378	531,747	405,302
Options Outstanding, Number of shares underlying outstanding options, Options exercisable	238,788
Options Outstanding, Weighted Average Exercise Price Per Share, Beginning balance	$ 9.51	$ 4.46
Options Outstanding, Weighted Average Exercise Price Per Share, Options granted	29.60	22.08
Options Outstanding, Weighted Average Exercise Price Per Share, Options exercised	5.52	4.26
Options Outstanding, Weighted Average Exercise Price Per Share, Options canceled/forfeited	10.99	8.26
Options Outstanding, Weighted Average Exercise Price Per Share, Ending balance	17.13	$ 9.51	$ 4.46
Options Outstanding, Weighted Average Exercise Price Per Share, Options exercisable	$ 8.25
Options Outstanding, Weighted Average Remaining Contractual Term (Years)	4 years 10 months 24 days	8 years 3 months 18 days	8 years 9 months 18 days
Options Outstanding, Weighted Average Remaining Contractual Term, Options exercisable (Years)	7 years 1 month 6 days
Options Outstanding, Aggregate Intrinsic Value	$ 21,060	$ 1,441	$ 8,353
Options Outstanding, Aggregate Intrinsic Value, Options exercisable	$ 10,163

Incentive Compensation Plan - Summary of Stock Based Compensation Expense Recognized under Stock Incentive Plan (Details) - Stock Incentive Plan - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	$ 1,409	$ 860	$ 590
Other Costs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	118	86	80
General and Administrative Expenses
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation	$ 1,291	$ 774	$ 510

Incentive Compensation Plan - Fair Value of Stock Options Estimated on Grant Date (Details) - $ / shares	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Dividend rate	0.00%
Stock Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (in years)			5 years 11 months 15 days
Expected volatility			64.00%
Expected volatility, Minimum	61.70%	48.00%
Expected volatility, Maximum	62.70%	58.50%
Risk-free interest rate			2.77%
Risk-free interest rate, Minimum	0.47%	0.40%
Risk-free interest rate, Maximum	1.16%	1.67%
Weighted average grant date fair value	$ 16.66	$ 11.01	$ 6.91
Stock Incentive Plan \| Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (in years)	5 years 6 months	5 years 2 months 23 days
Stock Incentive Plan \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (in years)	6 years 1 month 9 days	5 years 11 months 23 days

Debt - Additional Information (Details) - USD ($)					12 Months Ended
Debt - Additional Information (Details) - USD ($)	Apr. 11, 2021	Apr. 09, 2021	Sep. 02, 2020	Apr. 10, 2020	Aug. 31, 2021	Apr. 30, 2020
Debt Instrument [Line Items]
Revolving credit line					$ 0
Revolving Credit Facility Agreement
Debt Instrument [Line Items]
Revolving credit line					17,000,000
Outstanding balance					0
Remaining availability under credit agreement					$ 45,000,000
Revolving Credit Facility Agreement \| Kura Japan
Debt Instrument [Line Items]
Revolving credit line						$ 20,000,000
Credit facility maximum borrowing capacity				$ 20,000,000
Revolving credit line, termination date				Mar. 31, 2024
First Amendment \| Kura Japan
Debt Instrument [Line Items]
Credit facility maximum borrowing capacity			$ 35,000,000
Revolving credit line, termination date			Apr. 10, 2025
Revolving credit line, maturity date description					(i) increase the maximum credit amount under the credit line from $20 million to $35 million, (ii) extend the maturity date for each advance from 12 months to 60 months from the date of disbursement and (iii) extend the last day of the period of availability for the advances under the credit line from March 31, 2024 to April 10, 2025.
Second Amendment \| Kura Japan
Debt Instrument [Line Items]
Credit facility maximum borrowing capacity		$ 45,000,000
First Amendment and Second Amendment
Debt Instrument [Line Items]
Revolving credit line interest rate	130.00%	1.10%
Applicable Federal Rate					2.45%

Earnings (Loss) Per Share - Computation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Earnings Per Share Diluted [Line Items]
Weighted average common shares outstanding - basic	8,528	8,338	5,283
Net income (loss) per share attributable to common stockholders - basic	$ (1.21)	$ (2.08)	$ 0.28
Weighted average shares outstanding - diluted	8,528	8,338	5,512
Net income (loss) per share attributable to common stockholders - diluted	$ (1.21)	$ (2.08)	$ 0.26
Class A
Earnings Per Share Diluted [Line Items]
Net income (loss) attributable to common stockholders - basic	$ (9,088)	$ (15,276)	$ 1,180
Weighted average common shares outstanding - basic	7,528	7,338	4,283
Net income (loss) per share attributable to common stockholders - basic	$ (1.21)	$ (2.08)	$ 0.28
Net income (loss) attributable to common stockholders - diluted	$ (9,088)	$ (15,276)	$ 1,192
Options to purchase common stock			229
Weighted average shares outstanding - diluted	7,528	7,338	4,512
Net income (loss) per share attributable to common stockholders - diluted	$ (1.21)	$ (2.08)	$ 0.26
Class B
Earnings Per Share Diluted [Line Items]
Net income (loss) attributable to common stockholders - basic	$ (1,207)	$ (2,082)	$ 276
Weighted average common shares outstanding - basic	1,000	1,000	1,000
Net income (loss) per share attributable to common stockholders - basic	$ (1.21)	$ (2.08)	$ 0.28
Net income (loss) attributable to common stockholders - diluted	$ (1,207)	$ (2,082)	$ 264
Weighted average shares outstanding - diluted	1,000	1,000	1,000
Net income (loss) per share attributable to common stockholders - diluted	$ (1.21)	$ (2.08)	$ 0.26

Earnings (Loss) Per Share - Additional Information (Details) - shares	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Employee Stock Option
Earnings Per Share [Line Items]
Outstanding employee stock options that were excluded from the calculation of diluted loss per share	625,000	532,000	0

Commitments and Contingencies - Additional Information (Details) $ in Thousands	12 Months Ended
	Aug. 31, 2021 USD ($)
Loss Contingencies [Line Items]
Settlement amount	$ 1,750
General and Administrative Expenses
Loss Contingencies [Line Items]
Accrued liability	1,780
Payroll taxes	$ 30

Income Taxes - Additional Information (Details) - USD ($)	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Operating Loss Carryforwards [Line Items]
Effective income tax rate, federal tax rate	21.00%	21.00%	21.00%
Effective tax rate	(1.00%)	(7.30%)	4.50%
Income tax provision	$ 106,000	$ 1,174,000	$ 68,000
Federal net operating loss (“NOL”) carryover	28,900,000
Federal tax credit carryover	2,500,000
Unrecognized tax benefits	0
Valuation allowance recorded	8,381,000	$ 5,568,000
Federal
Operating Loss Carryforwards [Line Items]
Federal NOL carried forward indefinitely, if not utilized	$ 25,500,000
Federal NOL carryforward remainder amount expiration date		Aug. 31, 2032
Federal tax credit expiration date		Aug. 31, 2032

Income Taxes - Summary of Components of Loss Before Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments [Abstract]
US	$ (10,189)	$ (16,184)	$ 1,524
Total	$ (10,189)	$ (16,184)	$ 1,524

Income Taxes - Summary of Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Current:
State	$ 106	$ 53	$ 129
Total current	106	53	129
Deferred:
Federal		1,047	(47)
State		74	(14)
Total deferred		1,121	(61)
Total	$ 106	$ 1,174	$ 68

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax Rate (Details)	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Income Tax Disclosure [Abstract]
Tax at federal statutory rate	21.00%	21.00%	21.00%
Employer tip credit	3.80%	0.90%	(20.20%)
Stock-based compensation	(0.20%)	(0.80%)
Change in valuation allowance	(24.70%)	(28.30%)
Other items	(0.10%)	0.50%	(2.20%)
State tax, net of federal benefit	(0.80%)	(0.60%)	5.90%
Effective tax rate	(1.00%)	(7.30%)	4.50%

Income Taxes - Summary of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Aug. 31, 2021	Aug. 31, 2020
Deferred tax assets:
NOL carryover	$ 7,324	$ 6,472
General business credit	2,496	2,003
Lease liabilities	18,807	16,635
State tax deduction	22	12
Other	1,089	535
Gross deferred tax assets	29,738	25,657
Deferred tax liabilities:
Basis difference on fixed assets	(4,477)	(4,593)
Right-of-use assets	(16,880)	(15,496)
Gross deferred tax liabilities	(21,357)	(20,089)
Valuation allowance	$ (8,381)	$ (5,568)