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Noodles & Company

Financing

High chicken prices give Noodles & Company a headache

The noodle chain’s profits missed expectations as inflation ate into margins, but company executives believe that commodity prices have peaked.

Marketing

Noodles & Company responds to high inflation with a new value menu

The fast-casual chain has launched a new $7 menu, saying its customers have started demanding lower prices.

Marketing Bites: Noodles & Company embraces Uncommon Goodness, Sweetgreen lands a new athlete ambassador, and chains get creative for Cinco de Mayo and Mother’s Day.

The pasta chain, where half of all customers order a dish with chicken, is adding a temporary $1 surcharge to those items because of soaring protein costs.

The combined impacts of the delta and omicron surges cost the fast casual $8 million in estimated revenue from temporary closures and reduced hours during the fourth quarter.

LEANguini launched earlier this month, but Chef Nick Graff and his team spent two years on R&D to perfect the pasta.

The slowdown comes as the fast casual posted record average unit volumes and 16.3% same-store sales growth for its third quarter.

The fast-casual chain released its first impact report Thursday, noting that both management turnover and hourly employee turnover have decreased.

The fast-casual noodle chain is raising prices 3% starting next week, on top of 2.5% pricing taken earlier this year.

Taste Tracker: Old Chicago and Oath launch new pizzas; salads with global flavors debut at Noodles & Co. and Saladworks; bubbles pop at Dunkin’; and more menu news of the week.

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