A BELOVED Italian restaurant chain is conducting mass shutdowns after financial woes.
Over 30 locations will close by the end of the year, forcing fans to head elsewhere for some of their favorite dishes.
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A popular fast-casual restaurant chain is closing locations (stock image)Credit: Getty Images – Getty
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Noodles & Company confirmed the plans earlier this month (stock image)Credit: Alamy
Noodles & Company confirmed on August 14 that between 28 and 32 company-owned restaurants would be affected, per a second-quarter earnings release.
By 2026, it plans to close up to 17 more, but will open two new locations at the time time.
After first opening in 1995, the Colorado-based brand quickly expanded over the years to its current store count of over 450 nationwide.
It specializes in quick-service pasta dishes like the “delicious duo,” one of its signature combos that comes with a small entree, choice of protein, and side for $9.95.
DINING DIFFICULTIES
In its recent earnings release, Noodles & Company cited a net loss of $17.6 million.
This was about a $4 million increase from the same time in 2024 at a reported loss of $13.6 million.
Revenue also dipped by 0.7% to $126.4 million from last year’s $127.4 million.
Noodles & Company’s CEO, Drew Madsen, blamed the difficulties on “slower guest adoption of the upgrades made to some of our historic menu items” and a “strong value-conscious climate” in a statement.
“We’ve been moving decisively to address these factors, particularly around guest value perception,” he continued.
Madsen also announced that he would be stepping down as CEO, with current COO Joe Christiana taking the helm.
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“Joe Christina is absolutely the right leader to guide this brand forward,” Madsen emphasized.
Noodles & Company’s outlook of up to 32 closures for 2025 is also an increase from its initial maximum estimate in May of 21.
That included “13 to 17 company-owned restaurants (previously 12 to 15) and four franchised restaurants,” per a press release at the time.
In 2024, Noodles & Company axed nine locations from its footprint.
Restaurant closures in 2025
Denny’s – Denny’s has confirmed that up to 150 locations are set to close in the US by the end of the year as many of them are no longer profitable.
Red Lobster – The chain has said that it plans to close over 100 stores across the country this year as new CEO Damola Adamolekun takes over.
TGI Friday’s – TGI Friday’s is still being forced to shutter locations thanks to a bankruptcy filing, including 30 in April alone.
Applebee’s – This chain is projecting a loss of 20 to 35 Applebee’s spots in 2025 but is teaming up with IHOP to introduce dual-branded locations with a curated menu of the two’s best items.
Noodles & Company – This emporium is set to close between 17 and 21 locations in 2025 following a difficult 2024.
MENU PROMISE
As Madsen noted in the earnings report, the brand did launch a new menu earlier this spring to draw in more consumers.
They included a Buffalo & Cheese pasta dish, Garlic Bacon Crunch, Pulled Pork BBQ Mac & Cheese, Cajun Shrimp Fettuccine, Lemon Parmesan Broccoli, and the Green Goddess, among others.
The CEO said the dishes had “more sauce, vegetables, and premium ingredients to elevate flavor, pushing ourselves to exceed expectations as consumer tastes evolve while simultaneously extending our reach and attracting new customers.”
There was also positive response for the new menu offerings, according to the May press release.
Madsen said comparable sales went up by about 5% only a month after they were introduced.
“We believe we have positioned the Company to capitalize on the significant growth opportunities we see ahead,” he added.
Other restaurants are also facing struggles this year.
At least three massive chains have filed for bankruptcy and are restructuring their operations.
A beloved restaurant brand with Caribbean-inspired dishes also confirmed in June it would “sell off” all its remaining spots.
Dining and Cooking