Noodles & Company

Noodles & Company is an American fast-casual restaurant that offers international and American noodle dishes and pasta in addition to soups and salads. Noodles & Company was founded in 1995 by Aaron Kennedy and is headquartered in Broomfield, Colorado. The company went public in 2013 and recorded a $457 million revenue in 2017.[4] In late 2018, there were 460 Noodles & Company locations across 29 states and Washington, D.C.[5]

Noodles & Company
Public
Traded asNASDAQ: NDLS (Class A)
Russell 2000 Index component
IndustryFast Casual
Founded1995 (1995) in Cherry Creek, Denver, Colorado
FounderAaron Kennedy
HeadquartersBroomfield, Colorado, US
Number of locations
410[1]
Area served
United States

Canada Europe Asia India Latin America

Africa
Key people
Dave Boennighausen (CEO)[2]
ProductsPasta
Salads
Soups
Appetizers
& Other food products
Revenue $456.5 million USD[1]
US$16.052 million (2012)[3]
US$5.639 million (2012)[3]
Total assets US$156.99 million (2012)[3]
Total equity US$10.4 million (2012)[3]
Number of employees
7,000+
Websitewww.noodles.com

History

Origins

The idea for Noodles & Company was conceived by former Pepsi marketing executive Aaron Kennedy, after eating at Mamie's Asian Noodle Shop[6] in Greenwich Village, New York.[7] He felt there were not enough restaurants that served noodle dishes, which are a staple for many international foods.[7][8] Kennedy started developing recipes out of his mother-in-law's kitchen with the future COO, Joe Serafin, and head chef, Ross Kamens, in 1994.[9]

Kennedy raised $72,000 ($126 thousand in 2019 dollars) in personal funds and $200,000 ($345 thousand in 2019 dollars) in investments from 24 friends and family members.[10][11] The first Noodles & Company was opened in October 1995, in the Cherry Creek neighborhood of Denver, Colorado.[6][11][12][13] Kennedy was joined by partner and real estate developer Tom Weigand, whom he had met at Augustana College.[11][14] They opened a second location in Madison, Wisconsin, the following March.[6][11][15]

Early history

In the first three months, Noodles & Company lost $42,000($68.5 thousand in 2019 dollars),[8] and almost went out of business in 1996 after a reporter with the Wisconsin State Journal published a negative review.[16] He said Noodles & Company was "a killer idea"[17] but "criticized nearly every dish he'd tried."[18] The Denver Post[19] and other newspapers[20] had published similar reviews. In response, Kennedy started a "Redefine Noodles & Company" campaign "to redefine and refine nearly every aspect of the operation."[16][18]

In mid-1996, the management team went to Chicago to observe other noodle restaurants[18][7] and, the night of their return, the basement flooded at the Madison location.[21] The next day, Kennedy made a list of 15 areas for improvement.[16] Rocky Mountain News said "the team completely revamped the Noodles concept, overhauling the menu, the prices, the decor and more. It worked."[8] The restaurant implemented a warmer color scheme. Steam tables to keep food warm were replaced with saute lines to cook each dish as it is ordered.[7][18] Two new managers were hired and an executive chef re-worked the menu.[18] According to Inc. Magazine, within sixty days "the food had improved dramatically."[16]

Growth
View of the saute line from the customer counter at a Noodles & Company restaurant

From 1996–2000, Noodles & Company's revenues grew from $330,000 ($538 thousand in 2019 dollars) to $13 million ($19.3 million in 2019 dollars).[22] Local food critics in many cities began naming Noodles & Company as the best fast-food restaurant in the city and it was frequently listed as a "company to watch."[6] It won a Hot Concept! award from Nation's Restaurant News.[23] $1 million ($1.57 million in 2019 dollars) in stock was sold in 1998, which was followed by a $2.5 million ($3.92 million in 2019 dollars) round of funding and a $5 million round in 2000.[8] ($7.42 million in 2019 dollars)

The restaurant had 37 locations in 2002,[9] 65 in 2003, and 142 by 2007. The company started franchising in 2003 and by 2007, 22 of its stores were franchises.[9][24][25] The restaurants were redesigned in 2004 with lighter colors, new packaging, a greater emphasis on carryout orders and a floorplan that emphasized an open kitchen, where the saute line was visible to customers.[26]

According to Rocky Mountain News, the company was growing "so fast that it has had to move every two years."[27] In 2006, its headquarters were moved from Boulder to Broomfield, Colorado.[28][29] The company's founder, Aaron Kennedy, stepped down from his position as CEO that same year and was replaced by Kevin Reddy.[30] The number of Noodles & Company locations grew threefold from the beginning of the financial crisis of 2007–08 to 2013, reaching 339 locations.[31]

Recent history

In 2010, a majority interest in Noodles & Company was acquired by an investment group led by Catterton Partners.[28][32][33] In January 2013, bankers told the Financial Times that Noodles & Company was scouting for underwriters for an initial public offering (IPO).[34][35] Two months later, the intent for a public offering was confirmed with a filing with the U.S. Securities and Exchange Commission for $75 million in stock. Around this time, the company had reached 339 locations, 51 of which were franchises, and $300.4 million in revenues.[1] Within a day following Noodles & Company's IPO on June 27, the stock price doubled. Fast Company and The Daily Beast called it "the hottest IPO of the year" and compared it to Chipotle's IPO.[36][37]

On November 16, 2015, Noodles & Company announced that it had pulled out of Central Texas, closing all five of its locations in the Austin area. Restaurants in a handful of other cities had closed or were planned to close within the coming weeks, including locations in Lubbock and the Washington, D.C., area, according to published reports.[38] Ultimately, 16 locations were closed by the end of the year.[39]

On July 25, 2016, in Alexandria, Virginia, two Noodles & Company employees refused to serve a uniformed police officer. The officer left the restaurant and reported the incident, which gained regional news coverage. The company issued an apology and terminated the employees involved in the incident.[40]

In 2017, the company planned to close 55 underperforming restaurants, but also planned to open 14 to 17 new locations.[41]

A Wisconsin macaroni and cheese from Noodles & Company

Noodles & Company offers international and American noodle dishes, as well as soups, salads, and pasta.[42] Most pasta entrees come vegetarian, but have optional protein toppings such as tofu, chicken, beef or shrimp.[6] It also sells baguettes and desserts like Rice Krispies Treats.[10][23]

Customers order at the counter and are served at their table,[11] usually within five to seven minutes.[43] The average check is approximately $8 per person.[44] The restaurants use soft lighting, furniture made from recycled bamboo and have bench seating and community tables.[45] Orders can be made online, to dine-in, or to-go.[42]

Seasonal items were first introduced to supplement the menu in 2002.[9] Two years later, noodle-less entrees were added in response to the trend for low-carb diets.[46][47] The following year it introduced a whole-grain Tuscan fettuccine.[48][49] Naturally raised pork was added as a meat option in 2012.[50] Three seasonal items and a gluten-free fusilli were added in April 2013.[51][52]

In 2015, Noodles & Company debuted customizable kids’ meals.[53]

Sometime between July 2016[54] and October 2016,[55] sandwiches were quietly removed from the Noodles website, with the last web snapshot that recorded the inclusion of sandwiches on the menu having occurred at the end of that July.[54]

Although they offer gluten-free and vegan options, they warn that cross-contamination may occur.[56]

Advertising

From 1997 to 2002, Noodles & Company sponsored outdoor and print ads. By 2002 it had a $1.3 million advertising budget and began airing ads on major television networks. One was of a "snake charmer" using a flute to charm noodles and the other was a noodles dish as a landing UFO, from which noodles emerged. Both ads carried the slogan "We're going to get you."[57] Afterwards, in the early 2000s, the company reduced its advertising resources, before a rebranding effort that started in 2008.[58]

The slogan "Your World Kitchen" was introduced in 2013. The largest component of Noodles & Company's advertising is in outdoor ads like billboards, but it also invests in radio, digital media and news sites. The billboards emphasize the global cuisine. One points to a parking lot and says "Recipes imported from more countries than these cars."[59][60]

Operations and franchises
Location in Sheboygan, Wisconsin

Many Noodles & Company restaurants are owned and operated by Noodles & Company Incorporated, but some are operated in a franchise model. Franchise locations are operated by an independent franchisee that is trained by Noodles & Company and uses the same menu, pricing and branding as corporate-owned stores.[24] As of 2010, the average Noodles & Company store generated more than $1 million in annual revenue, with a profit of 21 percent.[61] Takeout orders account for approximately 25 percent of revenues.[11] According to Inc. Magazine, Noodles & Company is more selective in franchise partners than other franchise-based restaurants, and has a higher ratio of corporate-owned stores than most franchising restaurants.[62]

gollark: According to science, so am* I.
gollark: Intel has QuickSync, Nvidia has NVENC/NVDEC.
gollark: Most modern GPUs have some sort of VPU aboard.
gollark: Or SAU (Stupid Audio Unit).
gollark: SPU and SGU?

References
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  3. United States Securities and Exchange Commission. Form 424B4 filed to the SEC before IPO, June 27, 2013. Noodles & Company (Report). June 27, 2013. Archived from the original on October 13, 2016. Retrieved April 20, 2020.
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Further reading
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