Noodles & Company is a casual dining restaurant located in Broomfield, Colorado. The chain was established on the 15th of May in 1995 on the 15th of May.
With the help of Aaron Kennedy, the chain was able to overcome challenges in its early times and then began to grow quickly. After a modest start of $300,000 in 1995, profits climbed to over $300 million by 2013. There are currently 339 locations in the United States for Noodles & Company, some of which are franchises.
The background of Noodles and Company was started by Aaron Kennedy, a former marketing manager for Pepsi. After a meal at Mamie’s Asian Noodle Shop in New York’s Greenwich Village, he immediately thought of the idea for the restaurant.
According to Kennedy, the reason for this was that there was a need for it due to the fact that there weren’t enough eateries or restaurants that offered noodles. Alongside Joe Serafin, who would be the future COO of the company, Kennedy began developing recipes that drew inspiration from his mother-in-law’s cooking.
Kennedy could generate $73,000 of his own money, and another $200,000 was sourced from friends and relatives. The first outlet was opened in Cherry Creek in Denver, Colorado in the month of October 1995, and a second store opened in March of the following year.
Noodles and Company is a casual dining restaurant located in Broomfield, Colorado. It was founded on the 15th of May in 1995. With the help of Aaron Kennedy, the chain was able to overcome challenges in its early times and then began to grow rapidly. From a revenue of $300,000 in 1995, profits climbed to over $300 million by 2013. As of now, there are 339 locations of Noodles & Company, some of which are franchises.
Early Struggles and Revamp
During the first 3 years of operation, Noodles & Company lost $42,000. Then, in 1996, the company was in danger of closing due to negative reviews about the restaurant by The Wisconsin State Journal and the Denver Post. Instead of closing, however, Kennedy began a campaign to revamp and reorganize the entire business.
The middle of the year 1996 saw Kennedy, along with a group of managers, travel to Chicago to study the things that successful noodle restaurants were doing. After returning, however, the lower level of Noodles & Company was flooded. Unfazed, Kennedy went on to make a list of 15 items that the business needed to improve upon. The list stressed that it was necessary to upgrade the menu, update the design, and also make the prices more appealing to customers.
The revamp included the use of warmer hues for the restaurant’s decor. Additionally, saute lines were added to cook dishes according to how the customers ordered them, replacing steam tables of the past. In addition, an executive chef was appointed to redesign the menu, and two additional managers were employed to supervise the process.
While a number of changes were being implemented but they were put in swiftly. According to industry experts, it took just two months for these drastic changes and improvements to become effective.
Success and Growth
The changes implemented were a massive blow to Noodles & Company. In spite of revenue loss, the restaurant started to make profits, ranging from $300,000 to over $13 million. In the meantime, food critics started taking notice, and the restaurant gained the reputation of being a great restaurant to dine at after work.
In 2002, Noodles and Company was home to 37 restaurants. It grew to 65 by the year 2003, and in 2007, the total was 142. In 2007, it was when the restaurant began franchising. The franchises that were franchised carried the latest packaging and color changes that were launched in 2004. Noodles & Company has also focused more on takeaway orders and also revamped the restaurants to ensure that the saute line became more prominent.
Then, in 2006, the corporate headquarters of Noodles and Company relocated to Broomfield, Colorado from Boulder in the same year. In the same year, Kennedy was removed as the CEO to be replaced by Kevin Reddy. Despite the changes and the financial turmoil in 2007–2008, Noodles & Company continued growing, with 339 branches.
In addition to the growth, a significant stake in Noodles and Company was bought from Catterton Partners and a group of investors. The month of January 2013 was announced that Noodles & Company was planning for an IPO and just two days after the stock sale was announced, the cost of Noodles Company shares doubled.
Franchises and Operations
A majority of Noodles and Company restaurants are operated through the corporation. However, there are a few that are currently franchising. The franchises are run by a franchisee that Noodles & Company trains. To ensure the highest quality food, the menu, logo, and pricing are exactly the same as the locations where the company operates.
The 2010 data shows that each Noodle and Company restaurant has one million dollars in annual sales. million, with an average profit of 21. Based on the most recent figures, takeout orders account for over 25% of revenues. Although franchising is on the rise, Noodles & Company is noted as being selective about franchise partners. This is the reason for the higher proportion of stores that belong to the corporation.
Although Noodles & Company has undergone many modifications, the most significant changes are related to its menu. At present, the restaurant serves pasta, sandwiches, salads, soups, and salads, as well as American and international cuisines.
Most of their pasta offerings are vegetarian. However, choices for shrimp, tofu, chicken, and beef are also offered. Furthermore, Noodles & Company is well-known for its affordable meals, with the majority of menu items costing just $8 per person. Additionally, Noodles & Company is also known for its use of recycled bamboo furniture.