Noodles & Company, a Denver-based restaurant chain known for its quick, international noodle dishes, is going through major changes. Founded more than 30 years ago, the company once led the way in the fast-casual dining movement, offering freshly made meals served faster than traditional restaurants. But after years of expansion, the company now faces its biggest pullback ever.
Between 2024 and 2026, Noodles & Company plans to shut down as many as 82 restaurants, including up to 35 closures this year alone. This will reduce its total number of locations by nearly 18 percent, or about one in five restaurants. Rising food prices, higher wages, investor pressure, and tighter profit margins have all contributed to this decision. The closures reflect broader struggles in the restaurant industry, where even longtime brands find it hard to stay profitable in a changing economy.
Industry expert Mark Kalinowski points out that the restaurant world has changed dramatically since Noodles & Company first opened. Consumers have more choices than ever before, from delivery-only brands to healthier fast options. As a result, even well-known names must rethink what growth looks like and focus on sustainability instead of sheer expansion.
The Scope of the Closures
The company has been steadily reducing its number of restaurants since 2024. That year, it closed 20 locations, followed by 42 more in 2025. Now, up to 35 additional closures are scheduled for 2026. At the end of 2025, the chain operated 423 restaurants across the United States, 340 owned directly by the company and 83 operated by franchisees. After this year’s closures, that number could drop below 400 total.
Rather than spreading itself too thin, Noodles & Company plans to focus on its stronger, more profitable markets. Restaurants that consistently attract customers and perform well financially will remain open, while weaker locations in struggling areas will close. The company hopes this strategy will help it regain stability and improve overall performance.
Compared to normal business cycles, this reduction is unusually steep. Typically, restaurant chains close about 5 percent of locations during tough times. Noodles & Company’s 18 percent contraction shows the depth of its financial challenges and the seriousness of its efforts to restructure.
The Human Cost of Restructuring
Each Noodles & Company location employs between 15 and 25 people, meaning that the 2026 closures could put 525 to 875 workers out of a job. Across the full three-year downsizing, as many as 2,000 employees may be affected. Many of these workers are part-time employees, including students or parents who rely on flexible schedules.
For communities, the closures also hit close to home. Noodles & Company restaurants are often located near schools, malls, or busy neighborhoods, making them easy lunch or dinner spots. Customers in some areas have been caught off guard, discovering that their local restaurant shut its doors suddenly, with no full list of closures released publicly.
According to the National Restaurant Association, nearly one in ten U.S. workers is employed in the restaurant industry. With inflation and rising living costs putting pressure on both employers and employees, the loss of even part-time jobs like these adds another layer of economic strain.
A Strategy to Survive, Not Just Shrink
Surprisingly, the closures aren’t just about cutting losses—they’re part of a plan to make the company stronger. CEO Joe Christina describes this as a “shrink to grow” strategy. By eliminating underperforming restaurants, Noodles & Company can focus on locations that bring in the most profit. Christina says that about one-third of sales from closed restaurants shift to nearby ones, making them more efficient and productive.
This approach has already shown some positive results. In the third quarter of 2025, the company’s adjusted EBITDA, a measure of profit, rose 32.7 percent to $6.5 million, even though total revenue fell slightly by 0.5 percent. Investors responded well: Noodles & Company’s stock price jumped nearly 15 percent on January 12, 2026, and is up more than 21 percent since the start of the year.
Still, challenges remain. In both 2024 and 2025, Nasdaq issued warnings that the company’s stock price had stayed below $1 for 30 consecutive days, putting it at risk of being removed from the exchange. In late 2025, Noodles & Company hired financial advisors to explore options such as refinancing debt, selling more franchise locations, or even selling the entire business. Some investors have pushed for the sale of up to 200 restaurants.
These problems reflect a larger crisis across the industry. Over the past five years, food and labor costs have climbed by about 35 percent, while menu prices have increased 31 percent just to maintain slim profit margins of 3–5 percent. Customer traffic has dropped around 1 percent, with modest growth early in 2025 failing to last.
Noodles & Company’s story mirrors those of other well-known chains like Red Lobster and Applebee’s, which are also shrinking to stay afloat. The company’s next test will be whether its leaner, more focused model can truly restore profitability, or if ongoing economic challenges and rising costs will force more drastic measures ahead.
Sources:
TheStreet, 30-year-old pasta chain announces 35 restaurant closures in 2026, January 13, 2026
Nation’s Restaurant News, Noodles & Company to close an additional 30-35 restaurants this year, January 11, 2026
National Restaurant Association, Inflation, February 28, 2025
Scripps News, Noodles & Company’s shrinking footprint could fall below 400 locations in 2026, January 13, 2026