Noodles & Company

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 $72,000 ($ in dollars) in personal funds and $200,000 ($ in dollars) in investments from 24 friends and family members.[10] 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 $42,000 ($ in dollars),[8] and almost went out of business in 1996 after a reporter with the Wisconsin State Journal published a negative review.[16] The reviewer 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

From 1996 to 2000, Noodles & Company's revenues grew from $330,000 ($ in dollars) to $13 million ($ in 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] $1 million ($ in dollars) in stock was sold in 1998, which was followed by a $2.5 million ($ in dollars) round of funding and a $5 million round in 2000.[8] ($ in 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 2008 financial crisis 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 a sale of $75 million in stock on NASDAQ OMX Group's NASDAQ stock exchange. Around this time, the company had reached 339 locations, 51 of which were franchises, and $300.4 million in revenues.[36] Within a day following Noodles & Company's (ticker symbol: NDLS) 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.[37][38]

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.[39] Ultimately, 16 locations were closed by the end of the year.[40]

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.[41]

In 2017, the company planned to close 55 underperforming restaurants, but also planned to open 14 to 17 new locations.[42] It also launched a pilot test in the Colorado Springs and Kansas City markets.[43] The test included a new name, Noodles World Kitchen,[44] as well as new menu items, customizations, rapid pick-up service, and a rewards program.[45]

In September 2025, the company announced it would consider strategic alternatives including refinancing of existing debt, refranchising or a sale of all or part of the business.[46] Since the company began trading publicly on June 28, 2013, shares had lost over 98% of their value leading up to the announcement of the strategic review.[47]