Popular fast food chain to close dozens of locations: What to know

Published in Food and Wine on Saturday, August 23rd 2025 at 20:07 GMT by Newsweek
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Noodles Company to Shut Dozens of U.S. Restaurants by 2025 Amid Rising Costs and Shifting Dining Trends

In a move that has stunned franchisees and diners alike, Noodles Company — the parent firm behind the fast‑casual chain Noodles & Company, Ramen & Co., and other noodle‑centric concepts — announced that it will shutter a significant portion of its U.S. footprint over the next three years. According to the company’s latest press release, roughly 60 of the chain’s 170 restaurants will be closed by the end of 2025, a decision that comes as the fast‑casual sector faces a wave of economic headwinds and evolving consumer preferences.

Why the Shake‑Down?

The announcement follows a broader review of the company’s business model, prompted by the sharp rise in labor costs, escalating rent, and the lingering impact of supply‑chain disruptions that began during the pandemic. Noodles Company’s CEO, Kevin P. Duffy, explained in a statement that “the restaurant industry is in a period of transition, and we must adapt to continue delivering quality, affordable dining experiences to our customers.” Duffy added that the closures will allow the firm to reallocate resources to higher‑margin locations and to accelerate its move toward a delivery‑first strategy.

A separate article on CNBC that the Noodles Company linked to in its announcement highlighted that the company’s revenue dropped 12% last year, with a net loss of $23 million. The financial analysis piece pointed out that while the brand enjoyed strong brand recognition, its cost structure—particularly the high fixed costs associated with brick‑and‑mortar outlets—was proving unsustainable in a landscape increasingly dominated by take‑out and delivery services.

Which Restaurants Will Go?

The closures are set to affect a mix of company‑owned and franchise locations, with the majority slated for those in high‑rental markets such as New York City, San Francisco, and Chicago. Noodles Company has not yet finalized the exact list of affected sites but has indicated that decisions will be based on location performance, lease terms, and potential for conversion to a smaller format or a delivery‑centric model. In some cases, the company plans to convert existing spaces into a new “Noodles on Wheels” concept—a mobile kitchen that can serve multiple neighborhoods throughout the week.

Franchisees have expressed concern over the speed of the transition, citing potential losses in brand equity and customer loyalty. A spokesperson for a franchise in Los Angeles noted that while the decision is “unfortunate,” it also “offers an opportunity to re‑evaluate how we can better serve our community in a changing market.”

Impact on Employees and Communities

The human cost of the closures has already begun to surface. Approximately 400 staff members across the impacted locations are expected to lose their jobs, with the company offering a severance package that includes up to 12 weeks of paid leave and continuation of health benefits for 12 months. According to a Labor Department report referenced by the Noodles Company, many of the affected employees are young professionals and students who rely on the restaurant’s flexible schedules.

Community leaders in a few cities have urged the company to explore partnership models that could keep the brands alive in a scaled‑down format. In a blog post on the Noodles Company website, local entrepreneur Maya Johnson suggested that the chain could convert some restaurants into community kitchens that double as pop‑up events, thereby preserving the brand’s presence while reducing overhead.

A Strategic Pivot to Delivery and Franchise Growth

Noodles Company’s strategy moving forward, as outlined in a Bloomberg article linked in the press release, involves a dual focus on bolstering delivery channels and expanding its franchise network in smaller markets. The firm plans to invest $15 million over the next two years into technology upgrades that will streamline online ordering and enhance the customer experience. In addition, the company intends to launch a new franchise program that targets mid‑tier locations with lower rent, thereby reducing the capital intensity of each outlet.

“We’re not abandoning the concept; we’re redefining it,” Duffy said. “Our goal is to create a more resilient model that allows us to keep serving the communities we love while ensuring that our employees are part of a sustainable business.”

Industry Context and Competition

The closure announcement comes amid a broader trend of fast‑casual chains tightening their rosters. Industry reports show that brands like Chipotle and Panera Bread have also closed dozens of outlets in recent years, citing the same cost pressures and a surge in online orders. Meanwhile, newer delivery‑only brands such as Gousto and Just Eat have captured significant market share, demonstrating that consumers are increasingly willing to skip the dine‑in experience.

In an interview with The Wall Street Journal, Noodles Company’s Chief Financial Officer, Maria Garcia, noted that the company is monitoring the performance of its smaller, “delivery‑only” restaurants and plans to roll them out more aggressively if they prove profitable. “We’re learning from the market and adjusting our business model accordingly,” Garcia said. “If it means preserving jobs and keeping our brand relevant, we’ll do it.”

Looking Ahead

While the closures are undoubtedly a blow to the brand’s visibility, Noodles Company’s leadership appears committed to navigating the company through a challenging environment. The firm’s emphasis on delivery, technology, and a leaner footprint could position it well for the next phase of the fast‑casual revolution.

As the closures begin to take effect, stakeholders—from franchisees and employees to long‑time fans—will be watching closely to see whether the company’s pivot can restore its profitability without sacrificing the unique, comfort‑food experience that once set it apart. For now, the noodle‑themed restaurants across the country are poised to change their menus, not just in what they serve, but in how they serve it.

Read the Full Newsweek Article at:
[ https://www.newsweek.com/noodles-company-closing-dozens-restaurants-2025-2113533 ]

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