Noodles & Company to close 55 restaurants
Noodles & Company, struggling with declining sales at its restaurants, said it will close 55 underperforming locations, or 1 in 10 of its eateries.
The fast-casual restaurant chain would not say which of its 510 restaurants will close.
“We will be disclosing more information about affected restaurants in the coming weeks,” said company spokeswoman Lauren Adrich. She added the company is moving forward with stores that were planned to open this year.
The closure of the company-owned stores will “eliminate the negative cash flow of these restaurants and improve overall performance,” the Broomfield, Colorado-based retailer said in an announcement.
The restaurants are expected to close during the first half of this year. Those on the list are in most cases the ones that have opened in the last two to three years in newer markets where brand awareness is not as strong, the company said.
The closings and other financial initiatives “are critical to the long term success of Noodles & Company,” said Dave Boennighausen, interim CEO 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,” he added.
There has been some movement in recent months of the top positions at the company. Boennighausen, also chief financial officer at the eatery chain, has been interim CEO since July. It was at that time that Keith Kinsey, president and chief operating officer, left the restaurant chain to head Portillo's Hot Dogs, based in Oak Brook.
Noodles & Company opened its first restaurant in Denver, Colorado, in 1995, offering noodle and pasta dishes, from pad thai to the popular mac and cheese.