What was the labor cost for Noodles & Company in 2024 (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 the fiscal year 2024 totaled $154,258 thousand. This figure is part of the consolidated statements of operations, reflecting the expenses associated with employee wages and related costs across all company-owned and franchised locations. Understanding labor costs is crucial for prospective franchisees as it represents a significant portion of the operating expenses.
For comparison, the labor costs for Noodles & Company in 2023 were $157,608 thousand and in 2022 were $155,023 thousand. The 2024 figure indicates a slight decrease from 2023 but remains comparable to 2022. These fluctuations can be influenced by factors such as changes in staffing levels, wage rates, and employee benefits.
Prospective franchisees should carefully consider these historical labor costs when developing their financial projections. It's important to factor in local wage rates, staffing requirements, and any potential changes in labor laws that could impact expenses. Additionally, franchisees should inquire about Noodles & Company's strategies for managing labor costs, such as employee training programs, scheduling optimization, and technology solutions aimed at improving efficiency. Understanding these factors will help franchisees better assess the profitability and sustainability of their investment.