REVENUE RECOGNITION |
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| REVENUE RECOGNITION | REVENUE RECOGNITION Nature of products and services The Company has one revenue stream. See Note 1 for a description of the revenue recognition policies. The following table presents the Company’s revenue for the fiscal years ended December 31, 2023, December 25, 2022 and December 26, 2021 disaggregated by significant revenue channel:
Gift Cards Gift card liability included in gift card within the accompanying consolidated balance sheet was as follows:
Revenue recognized from the redemption of gift cards that was included in gift card and loyalty liability at the beginning of the year was as follows:
Sweetpass During the second quarter of fiscal 2023, the Company launched its Sweetpass and Sweetpass + loyalty program nationwide. Prior to the introduction of Sweetpass, the Company had a loyalty program called Sweetgreen Rewards, which was terminated during fiscal year 2021 and all revenue related to performance obligations for Sweetgreen Rewards was satisfied as of December 26, 2021. Sweetpass is the Company’s loyalty program where customers can earn rewards, birthday treats, menu exclusives and more. All customers that create a digital account will automatically be enrolled in this free program. For additional perks like a daily $3 off, customers can upgrade to Sweetpass+ for $10 per month. In both the Sweetpass and Sweetpass + program, customers can earn rewards for completing challenges which are generally earned by customers when they purchase certain goods within established time periods of one to two weeks. (“Rewards”). The Rewards generally provide customers with future discounts or free goods, and typically expire within one week to two weeks after they are issued. The Company defers revenue associated with the estimated standalone selling price of the Rewards, which is based on the value of the product to which the reward is related to and incorporates the estimate of the likelihood that the Rewards will be redeemed. The Rewards are recognized as revenue when the customer redeems the Rewards or it expires. Due to the insignificant nature of outstanding Rewards as of December 31, 2023, no revenue was deferred for the fiscal year ended December 31, 2023 related to the Rewards. The costs associated with Rewards redeemed are primarily included within food, beverage and packaging costs.
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