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That statement says more than corporate spin ever could. These restaurants were losing money and dragging the company down.
According to company data, only about 30 percent of customers from closed locations end up visiting another nearby Noodles restaurant. That means roughly 70 percent simply disappear, either heading to competitors or abandoning restaurant dining altogether.
This is not a new problem
Noodles & Company’s struggles did not begin in 2025.
The Colorado-based chain has been shutting down failing locations for years. Back in 2017, the company closed 55 restaurants in just six months, wiping out roughly 10 percent of its footprint at the time.
Current CEO Joe Christina attempted to frame the latest closures as a forward-looking strategy.
“These closures are never easy, but they are the right ones for the long-term health of the brand,”
He added:
“By tightening our portfolio and focusing on high-performing restaurants and markets, we can strengthen operations, elevate the guest experience, and focus on innovation that drives continued growth in sales and margin.”
What those comments leave out is the growing reality that the chain is running out of locations to cut.
At the end of 2024, Noodles operated 371 company-owned restaurants and 92 franchised units. By the end of 2025, company-owned locations are expected to fall to around 340. Management has already signaled another 12 to 17 closures coming in 2026.
Menu changes cannot fix a broken economy
In recent years, the company has tried nearly everything to reverse its decline.
Executives rolled out a revamped menu that replaced about 70 percent of existing items. They introduced value-focused combo deals starting at $9.95. They even pointed to an 8 percent jump in October same-store sales as evidence of progress.
But rising sales at fewer stores do not erase the deeper problem.
When dozens of restaurants vanish from the map, traffic growth at remaining locations tells only part of the story.
A nationwide restaurant collapse
Noodles & Company is far from alone.
Across the country, restaurant chains are being crushed by rising costs and shrinking consumer budgets.
TGI Fridays filed for Chapter 11 bankruptcy after closing more than 100 locations.
Red Lobster shut down 131 restaurants before seeking bankruptcy protection.
Denny’s closed 88 locations in 2024 and plans to shutter as many as 150 total.
Applebee’s has been closing more restaurants than it opens for nine consecutive years.
These brands all target the same demographic. Middle-class families who once dined out regularly are now cooking at home or trading down to cheaper options.
Costs are exploding while customers disappear
Food and labor costs for restaurants have each surged roughly 35 percent over the past five years.
Industry data shows 87 percent of restaurant operators faced higher food prices in 2024, while 88 percent reported rising labor expenses.
With margins already razor-thin, there is little room to absorb these increases.
According to Bank of America data, traffic at quick-service restaurants dropped 3.6 percent in December 2024. Meanwhile, the National Restaurant Association found that 75 percent of restaurant traffic now comes from takeout orders rather than dine-in customers.
Fast-casual chains like Noodles are stuck in the middle. They cost more than fast food but offer less experience than sit-down dining. Inflation has pushed many families to abandon that middle ground entirely.
A shaky financial future
Noodles & Company’s stock performance reflects the struggle.
The company has received delisting warnings from Nasdaq after failing to maintain minimum share price requirements. Former CEO Drew Madsen stepped down in August 2025 following mounting financial pressure.
In its third-quarter 2025 report, the company disclosed $5.3 million in impairment charges tied to planned closures. That money is gone for good.
Despite downsizing, the chain still carries $108.3 million in debt and ended the second quarter with just $2.3 million in cash.
Research suggests that closing unprofitable locations can help stabilize companies. But there is a hard limit to how much a business can shrink before there is nothing left to save.
Noodles & Company is betting its future on menu changes and branding slogans. But customers already understand the real problem.
Inflation has turned restaurant meals into a luxury many Americans simply cannot afford anymore.
