Noodles & Company plans to close up to 35 restaurants in 2026, wrapping up a three‑year downsizing that will ultimately wipe out nearly one in five of its locations. It’s the chain’s largest pullback since it opened its first store in Denver more than 30 years ago.
Behind the decision are high food and labor costs, pressure from investors, and a drive to get the company back to profitability. But for many employees and loyal customers, the news marks more uncertainty in an already tough dining landscape.
From Fast‑Casual Pioneer To Survival Mode
When Noodles & Company launched in 1995, it helped define the “fast‑casual” restaurant trend, food that was fresh, international, and quick. The brand went public in 2013 and grew rapidly nationwide. But years of rising costs and slowing customer traffic have taken a toll.
Today, the chain finds itself fighting to stay relevant amid tough competition and changing dining habits. “This isn’t the same restaurant world as a decade ago,” says restaurant analyst Mark Kalinowski. “Even popular brands are being forced to rethink what growth really means.”
Nearly One In Five Restaurants To Go
Between 2024 and 2026, Noodles & Company will close between 77 and 82 restaurants, roughly 18% of its footprint. The shutdowns began in 2024 with 20 closures, followed by 42 more in 2025. Up to 35 more could shutter this year, marking a dramatic reset for the company.
For comparison, most restaurant chains usually close less than 5% of stores during a downturn. The numbers show how serious Noodles & Company’s challenges have become.
Footprint Shrinks Below 400 Locations
At the end of 2025, Noodles & Company had 423 restaurants, 340 company‑owned and 83 run by franchisees. Once this year’s closures are done, the system might fall below 400 locations, erasing years of expansion. Analysts say the company is focusing on profitable regions while exiting weaker markets.
Thousands Of Jobs Lost
Each Noodles & Company restaurant employs around 15–25 workers. That means the planned 2026 closures could cost about 525 to 875 people their jobs. Across all three years of cuts, as many as 2,000 employees may be affected.
For workers, many of whom are students or parents balancing multiple jobs, the news adds to financial stress. According to the National Restaurant Association, nearly one in ten U.S. workers is employed by the hospitality industry, one hit hardest by inflation and wage pressures.
Families Losing Their Local Favorite
For many communities, Noodles & Company has been a family‑friendly favorite, a place to grab quick pasta near a mall, school, or shopping center.
But customers across the U.S. are finding their neighborhood spots suddenly closed, often without warning. Without an official list of closing stores, many fans are discovering the changes only after the lights are off.
Why Closing Stores Might Actually Help
Though it sounds counterintuitive, shutting weaker restaurants can boost profits. CEO Joe Christina has said about one‑third of sales from closed locations are moving to nearby stores that perform better. That shift allows stronger restaurants to become more efficient and profitable.
Putting it simply, the company is cutting volume to strengthen the core business, a strategy experts call shrink to grow.
Profits Rise Even As Revenue Dips
The company’s recent numbers show the effects of that strategy. In the third quarter of 2025, adjusted EBITDA, a measure of profit, jumped 32.7% to $6.5 million, even though total revenue slipped 0.5%. That means Noodles & Company is making more money from fewer stores.
It’s an unusual mix that highlights management’s focus on efficiency and cost control over expansion.
Investors Reward The Tough Choices
Wall Street has taken notice of the brand’s turnaround effort. On January 12, 2026, Noodles & Company’s stock rose nearly 15% and was up more than 21% since the start of the year.
Investors see the store closures as proof of discipline rather than decline. Still, the optimism remains cautious, trimmed earnings leave little room for new mistakes.
Racing Against The Nasdaq Deadline
Despite the market rally, the chain faces pressure from the Nasdaq exchange. It received warnings in late 2024 and mid‑2025 for failing to keep its share price above $1 for 30 consecutive trading days.
Falling below that mark could mean delisting, a major blow for visibility and investor confidence. To avoid that, executives are doubling down on profitability and exploring ways to attract new investors or debt partners.
Searching For Strategic Options
In September 2025, Noodles & Company confirmed that it had hired advisors to review strategic alternatives. That could mean refinancing debt, selling company-owned locations to franchisees, or even putting the entire chain up for sale.
Some activist investors have urged management to sell as many as 200 restaurants to reduce debt and operating costs.
Inside The Fast‑Casual Squeeze
Noodles & Company’s troubles mirror what’s happening across the restaurant world. Over the past five years, average food and labor costs have climbed roughly 35%, according to the U.S. Bureau of Labor Statistics.
At the same time, menu prices have increased by about 31% as restaurants scramble to protect razor‑thin 3–5% margins. In other words, costs keep climbing faster than customers’ willingness to pay.
Inflation’s Toll On Customers
Higher prices have saved many restaurants from closing outright, but they’ve also made diners think twice about eating out. Industry data show that restaurant traffic dropped about 1% by mid‑2025, a small number that translates into millions of lost visits nationwide.
For mid‑priced chains like Noodles & Company, which depend on steady customer flow, that decline hits particularly hard.
The Numbers Tell A Mixed Story
The company’s own results show a brand that’s struggling but not collapsing. In early 2025, Noodles & Company saw a modest 2% revenue rise and 4.4% same‑store sales growth.
But by mid‑year, those numbers slowed, and overall revenue began edging down again. The data show a company in transition, cutting losses in weak spots while trying to hold onto what’s working.
The Bigger Picture For Fast‑Casual Dining
Noodles & Company isn’t alone. Iconic names like Red Lobster, Applebee’s, and Outback Steakhouse have closed dozens of locations amid what some analysts call a restaurant apocalypse. The fast‑casual industry, once the hot future of dining, now faces a tougher reality.
If profitability means running fewer but stronger restaurants, the next few years may bring fewer familiar brands, and a sharper divide between winners that adapt and those that quietly fade away.
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