(7) Leases The Company leases the property for its corporate headquarters, most of its Company-owned stores, and certain office and restaurant equipment. The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of use (“ROU”) assets, current portion of operating lease liabilities, and operating lease liabilities in its consolidated balance sheets. Lease expense for lease payments is recognized on a straight-line basis over the lease term and is included in operating expenses and general and administrative expenses on the statement of operations. The components of lease expense for the period presented is as follows: | | | | | | | | | | | | | | | | Three Months Ended | | Three Months Ended | | | Six Months Ended | | Six Months Ended | (in thousands) | | July 4, 2021 | | June 28, 2020 | | | July 4, 2021 | | June 28, 2020 | Operating lease cost | | $ | 2,527 | | $ | 2,352 | | | $ | 4,969 | | $ | 3,948 | Short-term lease cost | | | 166 | | | 106 | | | | 262 | | | 137 | Variable lease cost | | | 130 | | | 194 | | | | 498 | | | 194 | Sublease income | | | (30) | | | - | | | | (74) | | | - | Total lease cost | | $ | 2,793 | | $ | 2,652 | | | $ | 5,655 | | $ | 4,279 |
Supplemental cash flow information related to leases for the period presented is as follows: | | | | | | | | | | | | | | | | | | | | | | Six Months Ended | | Six Months Ended | | (in thousands) | | | | | | | July 4, 2021 | | June 28, 2020 | | Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | | | | | | | | | Operating cash flows from operating leases | | | | | | | | | $ | 4,517 | | $ | 3,774 | | Right-of-use assets obtained in exchange for new operating lease liabilities | | | | | | | | | | 1,163 | | | 51,682 | | Weighted-average remaining lease term of operating leases (in years) | | | | | | | | | | 10.0 | | | 11.0 | | Weighted-average discount rate of operating leases | | | | | | | | | | 5.31 | % | | 5.24 | % |
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