With plummeting stocks and store closures plaguing the chain, Noodles and Company has some considerable work to do if it wants to maintain its position as the go-to location for an international assortment of carb bowls. Here are some legitimate reasons why this restaurant is struggling.
In February of 2017, Noodles and Company announced it was shutting down 55 locations, which was more than 10% of its restaurants at the time. The company cited underperformance, claiming its overall earnings would have increased by $7.3 million if not for those 55 dead weights.
So why did they need to take such drastic measures?
Chain restaurants are so not hot right now. With a growing preference for local, sustainable food, a lot of younger consumers are shunning chain restaurants in favor of dining at home.
This shift in tastes has left a lot of restaurants reeling, but Noodles and Company is in a particularly vulnerable position because of the wide variety of global dishes they offer. In an attempt to appeal to everyone, you can risk appealing to no one. And it also drives up costs.
According to a Forbes write-up,
"...localizing a global menu may be a great idea, but it requires too many employees, making the product too costly to deliver."
Especially when it might be cheaper to stay home…
Watch the video to see why Noodles and Company is struggling to stay open!
Massive shutdowns | #
Chain restaurants are old news | #
Quality versus cost | #
Legal woes | #
The cross-contamination issue | #
Zoodles: friend or foe? | #