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Noodles & Co. goes sans noodles

By
John Kell
John Kell
Contributing Writer and author of CIO Intelligence
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By
John Kell
John Kell
Contributing Writer and author of CIO Intelligence
Down Arrow Button Icon
March 25, 2015, 2:15 PM ET
Jeff Padrick Klug Studio Inc.

When attending a tasting event hosted by a restaurant chain called Noodles & Co., the expectation is a menu full of pasta.

Instead, Noodles & Co. (NDLS) opted to serve protein-packed, paleo-friendly dishes on a bed of fresh spinach. No pasta was on the main course, but the company’s appetizers featured a few stable pasta dishes to introduce the chain to those members of the New York media that might not be familiar with the restaurant, which operates 453 locations across 32 states but has no presence in New York City.

The new dishes, four in total and all under 400 calories each, are a nod to the protein craze, a prevailing trend in the food industry. U.S. consumers have expressed great interest in eating more protein, viewing it as an important component to a healthy diet. Research firm NPD Group has found that Americans are increasingly checking nutrition labels to see how much protein is packed in their food, and the interest in protein isn’t just focused on meats; it’s also coming to Greek yogurt, nuts and eggs. The craze has even sparked the Paleolithic diet, also known as paleo, which consists of meats, fish, vegetables and fruits, and mostly avoids grains and dairy.

That might explain why a company named Noodles & Co. would want to debut menu options without the pasta, a move that seems counterintuitive at first glance.

“The dish happens to be perfect for anybody on a Paleo diet,” said Noodles & Co. Chief Executive Kevin Reddy. “It wasn’t the inspiration but it certainly meets that need.”

Founded in 1995, Noodles & Co. is known for selling a mix of Asian, Mediterranean and American noodles and pastas. As the name suggests, pastas are a big component of the fast-casual chain’s business, although the company also sells sandwiches, soups and salads. The company has 26 core menu items at any time, with more than 200 ingredients packed into its dishes. The new protein focused dishes, called “Buff Bowls,” feature ingredients already found in Noodles’ restaurants. They will debut on menus April 1.

Shares of Noodles & Co., which generated $404 million in revenue last year, have had a tough time as the company’s sales results have missed Wall Street’s expectations for five of the past seven quarters. Executives say the company’s biggest challenge has been a lack of brand awareness in new markets. It wants to add more restaurants to existing markets, contending greater density will help the restaurant chain come to mind when consumers ponder which restaurant chain they want to visit for lunch or dinner.
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“To me, fast casual is still very compelling,” Reddy told Fortune, when discussing a competitive market led by Chipotle (CMG) but also featuring new upstarts such as Shake Shack (SHAK).

Reddy said that the company’s top-performing markets are in various locations across the nation, so he says Noodles can achieve success in any market.

“We have so much variety under one roof,” Reddy said. “We have more variety packed in 26 menu items than almost any other restaurant that I can think of.”

About the Author
By John KellContributing Writer and author of CIO Intelligence

John Kell is a contributing writer for Fortune and author of Fortune’s CIO Intelligence newsletter.

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