What was the pre-opening 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 pre-opening costs for 2024 were $1.543 million. This figure includes expenses like rent, wages, benefits, travel for training and opening teams, food, beverage, and other restaurant operating costs incurred before the restaurant opens for business. These costs are expensed as they are incurred.
For a prospective franchisee, this means that Noodles & Company considers all expenses from the moment the location is secured until the doors open to the public as pre-opening costs. These costs are not capitalized or amortized but are fully expensed in the year they occur. This accounting practice can impact the franchisee's initial financial statements, showing a higher expense in the opening year.
It's important to note that advertising and marketing costs are also expensed as incurred and are included in restaurant operating costs, general and administrative expenses, and pre-opening costs, depending on the nature of the expense. In 2024, advertising and marketing costs totaled $12.7 million for Noodles & Company, but this figure represents the total spent by the company and is not specific to pre-opening expenses for individual franchise locations.
Understanding these pre-opening costs is crucial for budgeting and financial planning. A potential franchisee should carefully review all components of these expenses to ensure they have sufficient capital to cover these costs before opening their Noodles & Company restaurant.