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Noodles & Company Closing 10% of Restaurants; Specific List Not Yet Announced

Fri February 10 2017 2:56 pm  http://www.arlingtoncardinal.com/?p=82059
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Noodles & Company, announced it will close 55 underperforming locations, or 10 percent of restaurant, citing underperforming restaurants with declining sales.

Noodles & Company (NDLS 3.88 -0.57 3:34 PM ET) did not yet say which specific restaurants among 510 restaurants will will be closed. Noodles & Company reports the closures, expected to occur during the first half of 2017, will “eliminate the negative cash flow of these restaurants and improve overall performance.

“We will be disclosing more information about affected restaurants in the coming weeks,”

— Lauren Adrich, company spokeswoman

The company is continuing with plans for restaurants that were planned to open this year, but ironically most of the restaurant that will be placed on the closure list are restaurants that have opened in the last two to three years where brand awareness in newer markets is not as strong, according to Noodles & Company.

The closings and other financial initiatives “are critical to the long term success of Noodles & Company. These initiatives focus on our strong go-forward restaurant portfolio, shore up our balance sheet and give us the financial flexibility to further our in-restaurant operational and culinary initiatives.”

— Dave Boennighausen, interim CEO of Noodles & Company

Boennighausen, also chief financial officer at the eatery chain, took command as interim CEO in July when Keith Kinsey, then president and chief operating officer, left Noodles & Company to head Portillo’s in Oak Brook. Noodles & Company headquarters is located in Broomfield, Colorado.




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Noodles & Company also anticipates recording a charge during the fiscal quarter ended January 3, 2017 of approximately $11.0 million for estimated liabilities arising from the data security incident that occurred in 2016.”

On July 25, 2016 at 6:30 p.m. at the Noodles & Company at 3105 Duke Street Alexandria, Virginia, employees refused to serve a uniformed female police officer.

The police officer reported that as she was waiting to place her order, she saw a cook walk to the cashier and saying, “I’m not cooking for that one.” She also said that the employees laughed and said something she couldn’t hear. The police officer left the restaurant and reported the incident, which gained regional news coverage.

Noodles and Company issued an apology and terminated the employees involved in the incident. According to a representative with the International Union Police of Associations, the police officer went to the Noodles & Company at 3105 Duke Street at 6:30 p.m. Monday.

Noodles & Company, founded by Aaron Kennedy, offered noodle and pasta dishes when it opened its first restaurant in Denver, Colorado in 1995. Company revenue rose from $300,000 in 1996 to $300 million in 2013 when Noodles & Company went public.

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