What was the labor cost for Noodles & Company in 2022 (in thousands)?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
from operations to evaluate performance and make key operating decisions, such as deciding the rate at which we invest resources into the segment.
The following table presents selected financial information with respect to our single reportable segment regularly reviewed by our CODM for 2024, 2023 and 2022 (in thousands):
| 2024 | 2023 | 2022 | ||
|---|---|---|---|---|
| Revenue: | ||||
| Restaurant revenue | $ 483,097 | $ | 492,648 | $ 498,359 |
| Franchising royalties and fees, and other | 10,174 | 10,757 | 11,121 | |
| Total segment revenue | 493,271 | 503,405 | 509,480 | |
| Less: | ||||
| Cost of sales | 123,692 | 124,102 | 137,859 | |
| Labor | 154,258 | 157,608 | 155,023 | |
| Occupancy | 46,366 | 45,925 | 45,213 | |
| Other restaurant operating costs | 95,032 | 91,559 | 91,220 | |
| General and administrative | 50,824 | 51,833 | 49,903 | |
| Depreciation and amortization | 29,066 | 26,792 | 23,268 | |
| Pre-opening | 1,543 | 2,215 | 1,662 | |
| Restaurant impairments, closure costs and asset disposals | 20,268 | 8,400 | 6,164 | |
| Total segment expenses | 521,049 | 508,434 | 510,312 | |
| Segment loss from operations | $ (27,778) $ | (5, |
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the labor costs for their company-operated restaurants in 2022 totaled $155,023,000. This figure is part of the consolidated statements of operations, reflecting the expenses associated with employee wages, salaries, and related benefits at Noodles & Company's restaurants.
For a prospective franchisee, understanding these labor costs is crucial for financial planning. It provides a benchmark against which they can compare their own labor expenses and assess the efficiency of their restaurant's operations. While this number reflects company-operated restaurants, it can offer insights into potential labor costs franchisees might face.
It's important to note that labor costs can fluctuate based on factors such as location, minimum wage laws, and staffing levels. Franchisees should conduct thorough market research and consider local economic conditions to accurately estimate their labor expenses. Additionally, efficient management practices and employee training programs can help optimize labor costs and improve profitability.
This data point is a key component of the overall financial health of Noodles & Company and serves as a valuable reference for potential franchisees as they evaluate the financial viability of investing in a franchise.