What was the total amount spent on labor for Noodles & Company restaurants in 2024?
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 total labor costs for Noodles & Company restaurants in 2024 amounted to $154,258. This figure is part of the broader financial overview presented in the document, which also includes data from previous years for comparison. The FDD indicates that this number represents the total expenditure on labor for all Noodles & Company restaurants, encompassing both company-owned and franchised locations.
For a prospective franchisee, understanding labor costs is crucial for projecting profitability and managing operational expenses. Labor is typically one of the most significant costs in the restaurant business, and this figure provides a benchmark for evaluating the efficiency of Noodles & Company's labor model. It is important to note that this is a system-wide number, and individual restaurant labor costs may vary based on location, sales volume, and management practices.
Furthermore, the FDD provides labor costs for 2023 and 2022, which were $157,608 and $155,023, respectively. Comparing these figures allows potential franchisees to identify trends and assess how labor costs have changed over time. A significant increase in labor costs without a corresponding increase in revenue could indicate operational inefficiencies or external factors such as minimum wage increases.
In summary, the $154,258 labor cost figure for 2024 is a key data point for anyone considering investing in a Noodles & Company franchise. It is essential to analyze this number in conjunction with other financial data in the FDD, such as revenue, cost of sales, and occupancy costs, to develop a comprehensive understanding of the franchise's financial performance and potential profitability.