A pasta restaurant chain that’s been a popular hotspot for Americans has been at a downturn for quite some time, but not for a dip in quality. Behind closed doors, the chain has been struggling financially, and now has to face the reality of the biggest round of restaurant closures in eight years.
According to Fast Company, company leaders told investors their review found dozens of restaurants that weren’t making enough money, with profit margins below 12 percent. The closings will happen slowly across different areas rather than all at once. Regulars might visit their favorite spot one day, only to find it closed.
Financial Pressures
The restaurant closures are happening because of ongoing financial pressures. GlobeNewswire reported that the Company’s first-quarter revenue went up slightly by 2 percent to $123.8 million, but rising costs for food and workers caused it to lose even more money—$9.1 million.
Chief Financial Officer Mike Hynes told investors that “our new menu is resonating, but we must right-size expenses,” highlighting that tariffs on shrimp and produce could dig into profits even more.
A Popular Restaurant
The pasta chain was established 30 years ago in Denver and has since grown to become a nationwide restaurant found in nearly every state in America. The restaurant has become a favorite of many diners, serving everything from Wisconsin Mac & Cheese to Japanese Pan Noodles.
According to ScrapeHero data, they have about 60 restaurants in Wisconsin, 55 in Illinois, and 54 in Colorado. Despite locations finding success in several regions, others are facing unprecedented downturns.
Part Of A Bigger Crisis
The restaurant’s problems are part of a bigger crisis that echoes across numerous establishments in the restaurant landscape. According to CNN, TGI Fridays suddenly closed nearly 50 restaurants last fall before filing for bankruptcy, while Red Lobster has closed more than 120 locations during its bankruptcy restructuring.
All of these restaurants face similar challenges—high rent, not enough workers, and customers spending less money. The problems highlighted have been crushing the affordably priced restaurant chain.
Noodles & Company
The secret couldn’t be kept from the public forever. On May 7, 2025, Noodles & Company filed an official document with the SEC confirming plans to close 13-17 company-owned restaurants plus four franchised outlets—up to 21 locations total, or “nearly two dozen,” by the end of the year.
Nation’s Restaurant News reported that CFO Mike Hynes said on the earnings call, “We expect to close 13 to 17 company-owned and four franchise restaurants in 2025.” This high number is much higher than estimated by past projections. Thousands of customers could see their favorite Noodles & Company closing in the future.
Communities Impacted
Many concerned consumers are wondering which locations will be affected by the closures. According to WFTV and the Orlando Business Journal, Orlando-area franchise owners are waiting for guidance, but Central Florida could lose stores as landlords raise rents.
The Company has not revealed specific addresses while negotiations continue, leaving employees checking company websites daily for updates about whether they might be able to transfer to other locations if their restaurant closes. These concerns are valid, as these employees depend on their work for their livelihoods.
Employee Concerns
Restaurant workers are unsure whether their location will be one of the 21 closing, which has them concerned about their future.
According to the official earnings call transcript, CEO Drew Madsen said, “This sustained and significant improvement in our sales trends demonstrates to us that the execution of our previously announced strategic priorities has gained traction, especially while coming during a period when the industry has been impacted by lower consumer sentiment.”
Stock Problems
Noodles & Company’s economic downturn creates a domino effect that cascades into more problems. According to Investing.com, Nasdaq warned Noodles & Company on June 24 that 30 straight days with stock prices below $1 triggered a potential removal from the stock exchange.
Management now has until December 22 to get the share price back above $1 or face a move to a lower-tier trading market. One of the fastest ways for restaurant chains to get back on track is to cut money-losing stores.
An Industry In Crisis
Restaurant bankruptcies hit a five-year high in 2024, with 20 large operators seeking Chapter 11 bankruptcy protection as customer visits fell and interest rates stayed high, according to CNBC. Many restaurants—easily found in shopping mall parking lots—are shrinking fast, and banks increasingly demand hard proof of profitability.
Noodles & Company’s proactive downsizing shows how even healthier brands must act early to avoid ending up in bankruptcy court. Despite these economic headwinds, company representatives have a positive outlook.
The Path Ahead
Executives insist 2025 will not be a retreat but a reset. While many locations are closing, others are opening as scheduled in new areas. One restaurant opened in January and another is slated for June—while digital orders already represent a majority of sales.
However, Noodles & Company isn’t out of the woods just yet. The chain must show it can boost restaurant-level profit margins above 12 percent without losing customers. Consumers should be ready for locations to close, and before the company provides any specific information, it’s anyone’s bet which ones are on the chopping block.