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Segment Reporting
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Segment Reporting
NOTE 18 — Segment Reporting
Segment information is prepared on the same basis that the Company’s Chief Executive Officer (CEO), who is the chief operating decision maker (CODM), manages the segments, evaluates financial results and makes key operating decisions. The Company’s CEO evaluates the financial performance of the Company based on two operating segments: Company-operated shops and Franchising and other. The Company-operated shops segment includes coffee shop sales to customers. The Franchising and other segment includes bean and product sales to franchisees and includes the initial franchise fees, royalties, and marketing fees.
The CODM reviews segment performance and allocates resources based upon segment contribution, which is defined as segment gross profit before depreciation and amortization.
All segment revenue is earned in the United States, and there are no intersegment revenues. As the CODM is not provided with asset information by segment, assets are reported only on a consolidated basis.
Selling, general and administrative expenses primarily consist of the Company’s unallocated corporate expenses. Unallocated corporate expenses include corporate administrative functions that support the segments but are not directly attributable to or managed by any segment and are not included in the reported financial results of the segments.
No changes have been made to the Company’s segments during the three and nine months ended September 30, 2022. In addition, no customer represents 10% or more of total accounts receivable or revenues as of and for the three and nine months ended September 30, 2022 and 2021.
Financial information for the Company’s reportable segments was as follows for the periods presented:
 Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)20222021 ¹20222021 ¹
Revenues:
Company-operated shops$173,501 $108,661 $464,200 $289,548 
Franchising and other25,147 21,142 72,985 68,248 
Total revenues198,648 129,803 537,185 357,796 
Cost of sales:
Company-operated shops138,781 85,550 381,623 219,407 
Franchising and other9,311 5,229 29,006 19,347 
Total cost of sales148,092 90,779 410,629 238,754 
Segment contribution:
Company-operated shops44,344 27,405 107,648 81,179 
Franchising and other17,314 17,616 48,319 53,629 
Total segment contribution$61,658 $45,021 $155,967 $134,808 
Depreciation and amortization:
Company-operated shops9,624 4,294 25,071 11,038 
Franchising and other1,478 1,703 4,340 4,728 
Total depreciation and amortization11,102 5,997 29,411 15,766 
Selling, general and administrative(45,378)(153,700)(132,934)(223,174)
Interest expense, net(5,011)(2,393)(11,096)(5,248)
Other expense, net(1,944)(1,041)(1,662)(1,099)
Loss before income taxes$(1,777)$(118,110)$(19,136)$(110,479)
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1    The Company identified immaterial corrections related to the accrual of employee sick leave and the application of ASC 710, Compensation - General, which resulted in revisions to prior period reported amounts with impacted line items presented below for the three and nine months ended September 30, 2021, respectively.
•Decrease in company-operated shops cost of sales (labor costs) of $0.3 million and $1.1 million
•Decrease in total cost of sales of $0.3 million and $1.1 million
•Increase in company-operated shops gross profit of $0.3 million and $1.1 million
•Increase in company-operated shops segment contribution of $0.3 million and $1.1 million
•Increase in total gross profit of $0.3 million and $1.1 million
•Increase in total segment contribution of $0.3 million and $1.1 million
•Decrease in selling, general and administrative expenses of less than $0.1 million and $0.4 million
•Increase in income before income taxes of