Leases

3 Months Ended

Mar. 31, 2026

The Company leases its stores, roasting and warehouse facilities, and corporate offices under operating leases, typically with initial terms of 10 to 15 years and multiple renewal options for additional periods of up to five years. Renewal options are generally not recognized as a part of the right-of-use assets and lease liabilities as it is not reasonably certain at the commencement date that the Company would exercise the renewal options.

The components of net lease costs, included in occupancy and related expenses, pre-opening costs as well as selling, general and administrative expenses in the condensed consolidated statement of operations, were as follows:


	Three Months Ended March 31,
(in thousands)	2026		2025
Operating lease cost	$	4,822	$	3,770
Variable lease cost	269		219
Less sublease income	(27)		(27)
Total lease cost	$	5,064	$	3,962

Supplemental cash flow information related to leases is as follows for the periods presented:


	Three Months Ended March 31,
(in thousands)	2026		2025
Cash paid for amounts included in the measurement of operating lease liabilities	$	4,171	$	3,430
Operating lease right-of-use assets obtained in exchange for lease obligations	9,523		8,433

As of March 31, 2026, future minimum lease payments for operating leases consisted of the following:


(in thousands)
Remainder of 2026	$	12,829
2027	19,187
2028	18,783
2029	18,171
2030	17,614
Thereafter	119,299
Total lease payments	205,883
Less imputed interest	(61,103)
Total operating lease liabilities	144,780
Less current portion	(9,091)
Total operating lease liability, net of current portion	$	135,689