Note 12 - Commitments and Contingencies

Operating leases

The Company leases office space, restaurant space and certain equipment under operating leases having terms that expire at various dates through 2036. The restaurant leases have renewal clauses of 1 to 5 years at the Company’s option. Some of the Company’s leases also have provisions for contingent rent based upon a percentage of gross sales, as defined in the leases. Rent expense for 2017 and 2016 (inclusive of contingent rent of $1.2 million and $0.8 million, respectively) was $9.5 million and $9.0 million in 2017 and 2016, respectively.

As of December 31, 2017, future minimum rental payments under operating leases were as follows (in thousands):

The Company subleases a portion of its office space to a related party on leases where it does not need the entire space for its operations (see Note 9). As of December 31, 2017, minimum sublease rentals to be received in the future under non-cancelable subleases were $2.3 million. The Company’s sublease income, which is recorded as an offset to rent expense, was $0.7 million for each of 2017 and 2016.

In 2017, the Company determined that it would not open venues in Austin and Dallas, Texas. For the year ended December 31, 2017, the Company has accrued for approximately $1.5 million of future lease payments, net of expected sublease income. These charges are included in lease termination expenses and asset write-offs on the consolidated statements of operations and comprehensive loss. These charges are not specifically allocated to our reportable segments.