What was the labor cost for Noodles & Company in 2023 (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 company's labor costs for 2023 were $157,608,000. This figure is part of the consolidated statements of operations and includes all company-owned and franchise locations. This number is significant for prospective franchisees as it provides insight into the operational expenses of Noodles & Company.
Understanding labor costs is crucial for assessing the financial viability of a Noodles & Company franchise. Franchisees need to consider factors such as local wage rates, staffing levels, and employee training programs, all of which can impact labor expenses. Efficient labor management is essential for maximizing profitability and maintaining a competitive edge in the fast-casual dining market.
It's also important to note that these figures are based on past performance and may not be indicative of future results. Changes in economic conditions, labor laws, and company policies can all influence labor costs. Therefore, prospective franchisees should conduct their own due diligence and consult with financial advisors to develop realistic financial projections for their specific location and business plan. The FDD also provides labor costs for 2024 ($154,258,000) and 2022 ($155,023,000), which can be used to analyze trends.