Operations
As part of the broader turnaround, the company is closing up to 32 underperforming restaurants by year’s end and 12 to 17 in 2026.
Photo: Noodles
August 14, 2025 by Cherryh Cansler — Editor, FastCasual.com
A new CEO isn’t the only thingNoodles & Co is embracing this month; the 450-unit chain is also charting a new course, banking on a three-pronged strategy to reignite growth following a dreary second quarter and the unexpected departure of CEO Andrew Madsen due to health reasons. Newly appointed CEO Joe Christina will take over by the end of August with a clear mandate from Madsen: improve the guest experience, boost traffic and expand margins.
Despite positive same-store sales of 1.5% during the second quarter, the company had an unexpected decline in guest value perception following a new menu launch in March, driven by a changing consumer landscape where affordability is paramount.
“We have identified the challenges in the current consumer environment to improve our top-line performance and are moving quickly to respond to them,” Madsen said during this week’s investor call before introducing Christina, who was positive about his new role.
“Backed by our dedicated teams, franchisees and partners, we will strive to deliver meaningful value to our guests and stakeholders,” Christina said during the call. “I look forward to working with Drew (Madsen) during this transition period in August and speaking with you all next quarter.
The company is implementing a strategic turnaround plan built on three key pillars:
1. Strengthening value and menu innovation
To combat the value perception issue, Noodles has introduced the Delicious Duos value platform, starting at $9.95, allowing guests to choose a small noodle bowl and a side.
“We believe this is a great choice for guests…who want a more balanced meal that includes a smaller noodles portion plus a lighter, fresher side,” Madsen said. “It is the right portion size and the right price for lunch or a lighter dinner.”
The initial results have been promising with same-store sales improving significantly since the platform’s July 30 launch. The company also plans to introduce a more accessible Chili Garlic Ramen for under $9 in the fourth quarter to address a menu gap and capitalize on the dish’s growing popularity.
2. Bolstering operational excellence
Madsen and Christina acknowledged that its menu rollout created some operational challenges, related to overportioning that put pressure on food costs. To address this, the company has launched an operations excellence coaching program and redesigned its operations team, featuring six coaches working with restaurant managers to ensure consistency and improve the guest experience. The goal is to move past the temporary “J-curve” — an initial dip in guest satisfaction that the company experienced with the new menu — and deliver on its promise of a high-quality product.
“Our research has identified that increases in taste of food have the strongest correlation with increases in traffic of any guest experience attribute,” Madsen said.
3. Increasing marketing and brand differentiation
The company plans to double down on its marketing efforts and creative messaging to make sure its new “We Know Noodles” brand identity resonates with customers, especially a younger generation of leaders. It will continue to lean into its digital platforms, which saw a 2% increase in traffic year-over-year, and its rewards program, which now accounts for 27% of transactions. The aim is to create a more compelling and differentiated brand that positions the brand as a top choice for comfort food cravings.
Lastly, to create a more profitable foundation, the company is closing up to 32 underperforming restaurants by year’s end and 12 to 17 in 2026
“To deliver sustained top-line sales growth, we will continue to build on the improvements made to date that will clearly establish Noodles & Company as the best choice for more customers to satisfy their comfort food cravings,” Madsen said.
