What was the pre-opening 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 pre-opening costs for the fiscal year 2023 were $2,215,000. This figure represents the expenses Noodles & Company incurred before opening new restaurants. These costs include rent, wages, benefits, travel for training and opening teams, food, beverage, and other restaurant operating costs, all of which are expensed as they are incurred prior to the restaurant's opening for business.
For a prospective franchisee, understanding pre-opening costs is crucial because it provides insight into the financial investments Noodles & Company makes to prepare a new location for launch. While this specific figure reflects Noodles & Company's expenses, franchisees can expect to incur their own pre-opening expenses as well, although these are detailed separately in Item 7 of the FDD.
It's also important to note that these pre-opening costs are expensed as incurred, meaning they are recognized on the income statement in the period they occur rather than being capitalized and depreciated over time. This accounting treatment can impact the company's profitability in the short term, particularly when Noodles & Company is opening a significant number of new locations.