What expenses are included in the Labor costs for a Noodles & Company restaurant?

According to Noodles & Company's 2025 Franchise Disclosure Document, the labor costs for a restaurant include several components related to employee compensation and benefits. Specifically, these costs encompass wages paid to both management and employees working at the restaurant level. This includes restaurant managers and shift supervisors.

In addition to wages, the labor costs also account for management bonuses, which can fluctuate based on performance and other factors. Payroll taxes, which are statutory obligations, are also factored into the labor expenses. Furthermore, the cost of providing health insurance to eligible employees is included, as well as workers' compensation insurance, which covers employees in case of work-related injuries or illnesses.

Labor costs also incorporate expenses related to employee time off, such as vacation pay, and any other employee benefits offered by the restaurant. It is important to note that this figure does not include any wages or overhead from the Noodles & Company Central Support Office, meaning it is strictly limited to restaurant-level personnel and associated costs. For the company-owned restaurants, the average labor cost was $433,858, representing 33.3% of net sales, while the median labor cost was $408,913, representing 50.0% of net sales.