Wednesday, April 19, 2017

Update 2: Troubled Noodles & Co. fires its COO

UPDATE (4/19/17): The spiral continues at Noodles & Company. The financially troubled company that last month abruptly pulled out of the Albany County market today made a one-line announcement in  a federal Securities and Exchange Commission (SEC) filing that said its chief operations officer, Victor Heutz, was terminated “effective immediately.” There was no explanation for the move. He had been in the position for just nine months.

UPDATE (3/1/17): As I noted 2½ weeks ago, employees of the Noodles & Company restaurants locally were waiting for the inevitable after the chain said it would close 55 locations, most of them among its newer ventures. Now, that has happened, with both the Crossgates Commons and The Shoppes at Latham Circle venues closed down.

(Originally published 2/10/17)

Staff at two Noodles & Company restaurants in Albany County are waiting for the other shoe to drop after the chain today announced it will close 55 of its company-owned locations because of weak sales figures.

While the announcement did not specify which locations would close, it did specify that many of the targeted venues "were opened in the last two to three years in newer markets where brand awareness of the company’s restaurants is not as strong as in other markets. These restaurants have significantly underperformed the company’s restaurant averages.”

The Colorado-based company, founded in 1995, has just two New York State locations -- one in Crossgates Commons off Washington Avenue Extension in Albany, and one in The Shoppes at Latham Circle. Both opened last year. 

Noodles, which closed 16 sites a little over a year ago but still has more than 400 locations, had said in November that it was contemplating closing even more. Now, that is coming to pass, with the latest closing scheduled for the first and second quarters of the year.

The company's menu specializes in domestic and international noodle dishes, soups, salads, and the like cooked to order. 

Also today, Noodles announced preliminary, partial fourth-quarter results ahead of its official earnings report, projecting "a system-wide decrease in comparable restaurant sales of 1.3%,  including a 1.8% decline at company-owned restaurants and a 2% increase at franchised locations." It would be the sixth consecutive quarter of year-over-year declines of sales at locations open at least a year.

• Go here to visit the Capital Region Brew Trail
• Go here to visit Dowd On Drinks
• Go here to visit Dowd's New York Wines Notebook

No comments:

Post a Comment