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Revenue
 12 Months Ended
Dec. 27, 2020
Revenue From Contract With Customer [Abstract]  
Revenue

(3) Revenue

Potbelly primarily earns revenue at a point in time through sales at our sandwich shop locations and records such revenue net of sales-related taxes collected from customers. The payment on these sales is generally due at the time of the customer’s purchase. The Company also has other revenue generating activities, including franchise revenue, gift card redemptions / breakage revenue, and loyalty programs as described in Note 2.

For the fiscal year ended December 27, 2020, revenue recognized from all revenue sources on point in time sales was $290.7 million, and revenue recognized from sales over time was $0.6 million. For the fiscal year ended December 29, 2019, revenue recognized from all revenue sources on point in time sales was $408.8 million, and revenue recognized from sales over time was $0.9 million.

The Company recognized gift card breakage income of $0.2 million, $0.2 million and $0.3 million for the fiscal years ended 2020, 2019 and 2018, respectively, which is recorded within net sandwich shop sales in the consolidated statements of operations

 

Contract Liabilities

 

As described in Note 2, the Company records current and noncurrent contract liabilities for initial franchise fees, gift cards, and loyalty programs. There are no other contract liabilities or contract assets recorded by the Company. The opening and closing balances of the Company’s current and noncurrent contract liabilities from contracts with customers were as follows:

 

 

 

Current Contract

Liability

 

 

Noncurrent Contract

Liability

 

 

 

(Thousands)

 

 

(Thousands)

 

Beginning balance as of December 29, 2019

 

$

(1,594

)

 

$

(2,054

)

Ending balance as of December 27, 2020

 

 

(3,138

)

 

 

(1,707

)

Increase (decrease) in contract liability

 

$

1,544

 

 

$

(347)

))

 

The aggregate value of remaining performance obligations on outstanding contracts was $4.8 million as of December 27, 2020. The overall increase in the liability during the 52 weeks ended December 27, 2020 was a result of purchases of new gift cards and addition of the loyalty programs in 2020 partially offset by gift card redemptions. The Company expects to recognize revenue related to contract liabilities as follows (in thousands), which may vary based upon franchise activity, and gift card and loyalty program redemption patterns:

 

Years Ending

 

Amount

 

2021

 

$

1,854

 

2022

 

 

1,194

 

2023

 

 

240

 

2024

 

 

202

 

2025

 

 

465

 

Thereafter

 

 

890

 

Total revenue recognized

 

$

4,845

 

 

For the 52 weeks ended December 27, 2020, the amount of revenue recognized related to the December 29, 2019 liability ending balance was $1.1 million. For the 52 weeks ended December 29, 2019, the amount of revenue recognized related to the January 1, 2018 liability ending balance was $2.2 million. This revenue related to the recognition of gift card redemptions and upfront franchise fees. For the year ended December 27, 2020 and December 29, 2019, the Company did not recognize any revenue from obligations satisfied (or partially satisfied) in prior periods.