Noodles & Company is an American fast-casual restaurant that offers international and American noodle dishes in addition to soups and salads. Noodles & Company was founded in 1995 by Aaron Kennedy and is headquartered in Broomfield, Colorado. The company went public in 2013 and recorded a $457 million revenue in 2017. In mid-2022, there were 458 Noodles & Company locations across 31 states.
History
Origins
The idea for Noodles & Company was conceived by former Pepsi marketing executive Aaron Kennedy, after eating at Mamie's Asian Noodle Shop in Greenwich Village, New York. He felt there were not enough restaurants that served noodle dishes, which are a staple for many international foods. Kennedy started developing recipes out of his mother-in-law's kitchen with the future COO, Joe Serafin, and head chef, Ross Kamens, in 1994.
Kennedy raised $72,000 ($ in dollars) in personal funds and $200,000 ($ in dollars) in investments from 24 friends and family members. The first Noodles & Company was opened in October 1995, in the Cherry Creek neighborhood of Denver, Colorado. Kennedy was joined by partner and real estate developer Tom Weigand, whom he had met at Augustana College. They opened a second location in Madison, Wisconsin, the following March.
Early history
In the first three months, Noodles & Company lost $42,000 ($ in dollars), and almost went out of business in 1996 after a reporter with the Wisconsin State Journal published a negative review. The reviewer said Noodles & Company was "a killer idea" but "criticized nearly every dish he'd tried." The Denver Post and other newspapers had published similar reviews. In response, Kennedy started a "Redefine Noodles & Company" campaign "to redefine and refine nearly every aspect of the operation."
In mid-1996, the management team went to Chicago to observe other noodle restaurants and, the night of their return, the basement flooded at the Madison location. The next day, Kennedy made a list of 15 areas for improvement. Rocky Mountain News said "the team completely revamped the Noodles concept, overhauling the menu, the prices, the decor and more. It worked." The restaurant implemented a warmer color scheme. Steam tables to keep food warm were replaced with saute lines to cook each dish as it is ordered. Two new managers were hired and an executive chef re-worked the menu. According to Inc. Magazine, within sixty days "the food had improved dramatically."
Growth
From 1996–2000, Noodles & Company's revenues grew from $330,000 ($ in dollars) to $13 million ($ in dollars). Local food critics in many cities began naming Noodles & Company as the best fast-food restaurant in the city and it was frequently listed as a "company to watch." It won a Hot Concept! award from Nation's Restaurant News. $1 million ($ in dollars) in stock was sold in 1998, which was followed by a $2.5 million ($ in dollars) round of funding and a $5 million round in 2000. ($ in dollars)
The restaurant had 37 locations in 2002, 65 in 2003, and 142 by 2007. The company started franchising in 2003 and by 2007, 22 of its stores were franchises. The restaurants were redesigned in 2004 with lighter colors, new packaging, a greater emphasis on carryout orders and a floorplan that emphasized an open kitchen, where the saute line was visible to customers.
According to Rocky Mountain News, the company was growing "so fast that it has had to move every two years." In 2006, its headquarters were moved from Boulder to Broomfield, Colorado. The company's founder, Aaron Kennedy, stepped down from his position as CEO that same year and was replaced by Kevin Reddy. The number of Noodles & Company locations grew threefold from the beginning of the financial crisis of 2007–08 to 2013, reaching 339 locations.
Recent history
In 2010, a majority interest in Noodles & Company was acquired by an investment group led by Catterton Partners. In January 2013, bankers told the Financial Times that Noodles & Company was scouting for underwriters for an initial public offering (IPO). Two months later, the intent for a public offering was confirmed with a filing with the U.S. Securities and Exchange Commission for $75 million in stock. Around this time, the company had reached 339 locations, 51 of which were franchises, and $300.4 million in revenues. Within a day following Noodles & Company's IPO on June 27, the stock price doubled. Fast Company and The Daily Beast called it "the hottest IPO of the year" and compared it to Chipotle's IPO.