Jump to content
  • Sign Up
×
×
  • Create New...
New feature: 1 Vote = 0.10€ for server Owner!

Popular restaurant announces more closures despite rising sales

Pelican Press

By Pelican Press,
in World News

 Share

Recommended Posts

  • Diamond Member
Pelican Press Warlord

Pelican Press 0

Posted
  • Diamond Member
Posted

This is the hidden content, please

Popular restaurant announces more closures despite rising sales

A fancy dish doesn’t always equate to tasty food. Sometimes a simple bowl of mac and cheese is all that’s needed to satisfy one’s cravings.

Whether it’s the microwavable kind or the nicer restaurant version, no one loves mac and cheese more than Americans, and a restaurant chain might have found a way to use it to its advantage.    

This is the hidden content, please
This is the hidden content, please
This is the hidden content, please
/applications/core/interface/js/spacer.png">

The slowdown in consumer spending and inflation has started to affect even the most popular restaurant chains, causing many to initiate mass closures due to underperformance and continuous sales declines.

This is the hidden content, please

Companies tend to make this move as a last resort to mitigate financial strain and reduce costs that have become burdens rather than beneficial investments.

However, when sales get back on track and turn around for the better, continuing to close locations may seem contradictory.

Noodles & Company announces more store closures.Image source: Shutterstock

Noodles & Company  (NDLS)  has faced challenges over the last few years with continuous sales declines and mass restaurant closures.

However, it decided enough was enough and enacted a menu relaunch in March, rolling out three new mac and cheese dishes and other innovative additions to better meet consumer demands.

This menu transformation was the best decision Noodles & Company could’ve made because it resonated well with consumers, driving an increase in sales during its last reported quarter.

“This sustained and significant improvement in our sales trends demonstrates to us that the execution of our previously announced strategic priorities have gained traction, especially while coming during a ******* when the industry has been impacted by lower consumer sentiment,” said Noodles & Company CEO Drew Madsen in an earnings call. “We are certainly excited about the guest response to our new menu after seven weeks, including sales of our new mac and cheese dishes, which have significantly exceeded expectations,” he added.

Related: McDonald’s menu adds experimental new items fans will love

Noodles & Company also upped its marketing and launched the “We Know Noodles” campaign, which it claims increased brand awareness, store traffic, and app usage by double digits. The campaign also fostered customer engagement, which improved loyalty and transactions.

In the first quarter of 2025, the company’s total revenues were up 2% compared to the prior year. Same-store sales increased 4.7% at company-owned restaurants and 4.4% system-wide.

Story Continues

However, despite improving its overall financial health, the restaurant chain continues to close more locations than it opens.

Noodles & Company delivered a great quarter, but one aspect of its business continues to decline.

The chain ended the quarter with 369 company-owned restaurants, 11 fewer than last year’s 380. In the quarter, it opened one company-owned restaurant but closed three, plus one franchise location, causing its restaurant-level contribution margin to decrease 10.3%.

More Food News:

Although many factors, such as debt, impact restaurant chains’ overall financial health, an increase in sales sometimes precedes the addition of new locations. Noodles & Company, however, has made a startling revelation.

The chain expects to close approximately 13 to 17 company-owned and four franchise restaurants in 2025. It attributes these continuous closures to higher food costs and increased marketing expenses.

The company plans to open two new restaurants this year, one in January and the other in June. However, more than two existing locations are expected to close.

Related: Veteran fund manager unveils eye-popping S&P 500 forecast



This is the hidden content, please

#Popular #restaurant #announces #closures #rising #sales

This is the hidden content, please

This is the hidden content, please

0

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Unfortunately, your content contains terms that we do not allow. Please edit your content to remove the highlighted words below.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
 Share
Go to topic listing

  • Vote for the server

    To vote for this server you must login.

    Jim Carrey Flirting GIF

  • Recently Browsing   0 members

    • No registered users viewing this page.

Important Information

Privacy Notice: We utilize cookies to optimize your browsing experience and analyze website traffic. By consenting, you acknowledge and agree to our Cookie Policy, ensuring your privacy preferences are respected.

  I accept