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 June 30,				Six Months Ended June 30,
(in thousands)	2026		2025		2026		2025
Operating lease cost	$	5,136	$	4,228	$	9,958	$	7,998
Variable lease cost	369		311		638		530
Less sublease income	(27)		(27)		(54)		(54)
Total lease cost	$	5,478	$	4,512	$	10,542	$	8,474

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


	Six Months Ended June 30,
(in thousands)	2026		2025
Cash paid for amounts included in the measurement of operating lease liabilities	$	7,938	$	5,698
Operating lease right-of-use assets obtained in exchange for lease obligations	26,729		19,485

As of June 30, 2026, future minimum lease payments for operating leases consisted of the following:


(in thousands)
Remainder of 2026	$	9,036
2027	20,826
2028	20,781
2029	20,183
2030	19,637
Thereafter	139,635
Total lease payments	230,098
Less imputed interest	(69,644)
Total operating lease liabilities	160,454
Less current portion	(9,722)
Total operating lease liability, net of current portion	$	150,732