Wondering who’s behind that colorful bowl of noodles you enjoy? Noodles & Company has an interesting ownership story.
The fast-casual restaurant chain that specializes in noodle dishes was founded in 1995 by Aaron Kennedy. He started with $250,000 raised from 25 private investors, including friends and family.
Today, Noodles & Company operates under a mixed ownership model. Many locations are owned by Noodles & Company Incorporated, while others function as franchises.
In a significant ownership change, investment group L Catterton acquired a controlling interest in the company. They brought their consumer brand expertise to the noodle business.
The company continues to expand its franchise model. This growth strategy allows Noodles & Company to maintain its mission of nourishing and inspiring team members, guests, and communities since its founding.
Key Takeaways
- Noodles & Company uses both corporate-owned and franchise business models to operate its restaurants.
- Investment group L Catterton holds a controlling interest in the company.
- The company actively expands through partnerships with experienced restaurant operators as franchise partners.
Overview of Noodles & Company
Noodles & Company stands out in the fast-casual restaurant industry with its unique menu of global noodle dishes and pasta offerings. The company has experienced significant growth since its founding and has changed ownership several times throughout its history.
History and Expansion
Noodles & Company was founded in 1995 by Aaron Kennedy, who started the company at age 33. Kennedy raised $250,000 from 25 private investors, including friends and family, to launch the business. The concept was simple yet innovative – offering various noodle dishes from around the world in a fast-casual setting.
The restaurant quickly gained popularity, leading to impressive expansion. Under Kennedy’s leadership, the company implemented an aggressive growth strategy resulting in double-digit unit growth year after year. This expansion strategy doubled the number of restaurant locations within a relatively short period.
Before founding Noodles & Company, Kennedy had worked on other successful food brands. He helped launch Lunchables and worked on Pepsi’s branding, creating the “taste of a new generation” campaign.
Corporate Structure
Noodles & Company’s ownership has changed hands several times throughout its history. A significant change occurred when Catterton Partners acquired a controlling interest in the company. This investment group saw potential in the fast-casual concept and helped accelerate its expansion plans.
Today, the company is publicly traded but maintains a strong corporate leadership team. The executive team includes financial experts like Mike Hynes, who brings 25 years of finance and accounting experience to his role. Before joining Noodles & Company, he worked at Ruth’s Hospitality Group.
The company continues to focus on systemwide sales growth through both company-owned and franchised locations. Their mission statement emphasizes their commitment to “nourish and inspire every team member, guest and community” they serve, reflecting their friendly approach to both business and customer service.
Ownership Details
Noodles & Company has had various owners throughout its history, with both private equity involvement and public trading periods. The company currently works with key partners for regional growth.
Warner Foods Partnership
Noodles & Company has partnered with Warner Foods as a major franchise partner. This relationship helps expand the brand’s footprint in specific regions.
Warner Foods has significant experience in the restaurant industry. They’ve become one of the most important franchise partners for Noodles & Company.
The partnership allows the pasta chain to grow without directly owning all locations. This strategic relationship began after Noodles & Company started expanding its franchise model to accelerate growth.
Franchise Model
Noodles & Company operates with a mixed ownership structure that includes both company-owned and franchised restaurants. Catterton Partners once acquired a controlling interest in the company, helping fuel significant growth.
The franchise program has expanded over time, appearing in Franchise Times as a notable opportunity in the fast-casual sector.
Recently, investment firm Hoak & Co. has emerged as a significant investor, owning more than 9% of the company. They’ve even placed a representative on the company’s board.
The franchise system continues to evolve as the company balances direct ownership with partner-operated locations.
Market Presence and Strategy
Noodles & Company has built a strong presence in the fast-casual restaurant industry with a strategic approach to growth. The company focuses on both corporate-owned locations and an expanding franchise model to reach new markets across the United States.
Regional Focus and Expansion
Noodles & Company is actively growing its footprint across various regions in the United States. The company has shown particular interest in developing markets like Texas, where they see strong potential for their unique food offerings. Recently, they’ve been working to enter new territories through strategic partnerships with experienced restaurateurs.
The brand is making moves into El Paso as part of their southwestern expansion efforts. This push demonstrates their commitment to bringing their diverse noodle dishes to previously untapped areas.
Their growth isn’t random – they carefully select regions based on demographics, local food preferences, and market potential. California remains an important market, with new franchisees like NorCal Noodles signing agreements to open multiple locations.
Franchising Opportunities and Growth Plan
Franchising has become a central part of Noodles & Company’s growth strategy. The company has welcomed new seasoned multi-unit franchise owners who are collectively opening 24 new Noodles locations across different markets.
Their franchise model appeals to experienced restaurant operators looking to diversify their portfolios. The company offers comprehensive support including site selection, training, and marketing assistance to help franchisees succeed.
Business owners like Paven Sandhu and her husband Navi have joined the Noodles family as part of this expansion effort. These partnerships help the company extend their reach while maintaining their brand standards.
The company’s growth plan includes a mix of corporate and franchise locations, with a focus on multi-unit deals that can quickly establish a presence in new regions. This balanced approach allows them to maintain quality control while accelerating their nationwide expansion.
Diversity and Inclusivity Initiatives
Noodles & Company has made significant commitments to diversity and inclusion, creating a workplace that values different perspectives and experiences. Their efforts have earned them recognition from major publications and organizations.
Workplace Diversity
Noodles & Company has taken concrete steps to promote diversity within its organization. In a notable move, CEO Dave Boennighausen joined the CEO Action Pledge. He aligned with nearly 2,000 other business leaders committed to advancing diversity and inclusion.
The company doesn’t just talk about diversity – they tie executive incentives to diversity goals, showing they’re serious about creating change. This approach ensures leadership remains accountable for progress in this area.
Sue Petersen, who leads diversity and inclusion efforts at Noodles & Company, has helped implement various programs to create a more inclusive workplace. The company actively works to create an environment where all employees feel valued and respected.
Best Places to Work Recognition
Noodles & Company’s commitment to diversity has earned them impressive accolades. In 2022, Forbes named them one of America’s Best Employers for Diversity, a testament to their ongoing efforts.
The company also received recognition as one of America’s Best Employers for Women in 2021. This achievement highlights their success in creating opportunities for women in leadership roles.
The Denver Business Journal has recognized Noodles & Company’s positive workplace culture as well. Their “Women in the Lead” certification further demonstrates their commitment to gender equality in the workplace.
These honors reflect the company’s genuine efforts to build a diverse team and inclusive culture, making them stand out in the restaurant industry.
Partnerships and Industry Relations
Noodles & Company has built strong business relationships throughout the restaurant industry that have supported its growth and expansion. These strategic partnerships have helped the company grow from a small regional chain to a nationwide brand with hundreds of locations.
Strategic Collaborations
Noodles & Company has developed several important partnerships in recent years. In 2023, the company welcomed a new franchise partner, DND Group Inc.. This relationship expands the company’s franchise footprint.
The company has also maintained longstanding franchise relationships, such as with River City Restaurant Group (RCRG). This partnership began in 2004, and recently RCRG purchased four additional company-owned locations to expand their operation.
On the ownership side, Noodles & Company was acquired by an investment group led by private equity firm Catterton Partners. This acquisition provided the financial backing needed for continued expansion.
Unlike competitors such as Panera Bread and Jack in the Box, Noodles & Company has focused on strategic franchise partnerships rather than pursuing major corporate acquisitions to fuel growth.
Menu and Culinary Development
Noodles & Company has significantly evolved its menu over the years to meet changing customer tastes and preferences. Their culinary team constantly works to blend traditional pasta dishes with innovative new offerings.
Innovation in Menu Offerings
Noodles & Company has embraced menu innovation as a core strategy for growth. Recently, CEO Drew Madsen has made menu overhaul a top priority to help drive customer traffic.
After becoming the permanent CEO in March 2024, Madsen outlined plans to revitalize the chain’s offerings.
The company has introduced creative pasta combinations that blend international flavors. Their Japanese Pan Noodles and Pad Thai showcase their global approach to noodle dishes.
One of their most successful innovations has been Zoodles (zucchini noodles), which debuted as a low-carb alternative to traditional pasta. This vegetable-based option helped them reach new customers looking for lighter meals.
The company regularly introduces seasonal specials and limited-time offers to keep the menu fresh and exciting for repeat customers.
Health-Conscious Choices
Noodles & Company has responded to growing health awareness by adding numerous nutritious options. Their menu now features protein-rich dishes and vegetable-forward options to accommodate various dietary needs.
The introduction of Zoodles marked a significant step toward offering lower-carb alternatives. They’ve also added cauliflower-infused noodles as another vegetable-based option.
Most menu items can be customized with extra vegetables or lean proteins like grilled chicken or tofu. This flexibility helps customers create meals that fit their specific health goals.
The company provides detailed nutritional information for all menu items, making it easier for health-conscious diners to make informed choices. They clearly mark gluten-sensitive and vegetarian options on their menu.
Many locations offer “Buff Bowls” which replace noodles with fresh spinach for customers seeking higher protein, lower carb meals.
Customer Engagement and Loyalty Programs
Noodles & Company has invested heavily in building customer relationships through its rewards program, which has evolved significantly since its launch in 2017. The company uses these digital initiatives to turn casual diners into loyal customers.
Loyalty Member Benefits
Noodles Rewards members enjoy a variety of perks designed to increase repeat visits. Members receive daily ‘Extra Goodness’ discounts and upgrades that make dining more affordable and enjoyable.
These special offers help the restaurant chain maintain customer engagement between visits.
The program initially focused on “surprise and delight” experiences for customers, but has since evolved into a more data-driven approach. This strategy helps Noodles & Company better understand their customers’ preferences and dining habits.
In response to declining sales, the company has doubled down on its loyalty program as a key part of its growth strategy.
Executives consider their rewards program among the best in the industry and have made it a focus of renewed innovation.
Noodles & Company uses its data platform to transform existing fans into regular customers, creating a stable revenue source while building meaningful relationships with diners.
Financial Performance
Noodles & Company has faced mixed financial results in recent quarters, showing both growth and challenges in their operations.
Sales Trends and Figures
In the fourth quarter of 2024, Noodles & Company reported that their total revenue decreased 2.0% to $121.8 million compared to $124.3 million in the same period previously. Despite this overall revenue decline, they achieved a modest 0.8% increase in systemwide comparable restaurant sales.
The first quarter of 2024 showed more significant challenges, with total revenue dropping 3.7% to $121.4 million from $126.1 million year-over-year. During this period, comparable restaurant sales decreased by 5.4% across their system.
Noodles & Company has been working to address these fluctuations through menu innovations and operational adjustments. The company has a significant market presence with hundreds of locations across the United States, generating substantial annual revenue despite recent challenges.
Franchise Investment Information
Investing in a Noodles & Company franchise requires substantial capital commitment and ongoing financial obligations.
Initial and Ongoing Costs
The total investment required to open a Noodles & Company franchise ranges from $747,000 to $1,423,000 per restaurant. This includes a $35,000 franchise fee that grants partners the right to operate under the Noodles & Company brand name.
According to more recent information, the investment range may extend higher, with some sources indicating costs could reach up to $2,064,000 depending on location, size, and market conditions.
Ongoing fees for franchise partners typically include royalty payments and contributions to marketing funds. These recurring costs help maintain brand consistency and support system-wide promotional efforts.
Franchise partners should also budget for inventory, equipment, real estate, and staffing expenses that vary by location.
Support and Training for Franchisees
Noodles & Company provides comprehensive training and support to help franchise partners succeed in the fast-casual segment.
New franchisees receive thorough operational training. This covers the company’s unique food preparation methods and service standards.
The company offers site selection assistance to help franchise partners identify optimal locations. This includes demographic analysis and traffic pattern studies to maximize customer potential.
Marketing support includes access to national advertising campaigns and local marketing strategies. Franchise partners benefit from the established brand recognition while receiving guidance on regional promotion techniques.
Ongoing operational support includes regular visits from field consultants who provide guidance on maintaining quality standards. These experts help franchise partners troubleshoot issues and implement best practices.
Noodles & Company also provides technology systems for inventory management and point-of-sale operations. This helps to streamline daily restaurant functions.
