Fast-casual chain says it is redefining how diners engage with the brand; digital sales increase 47%
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Noodles and Company is marking up delivery orders by 10%, a premium pricing strategy gaining traction in the industry to offset margin-hurting third-party delivery fees.
Ken Kuick, chief financial officer, said it’s too early to tell how consumers are reacting as the mark up has been in effect for only a few weeks.
“We’re pleased with the results we’ve seen so far,” he told investors during the company’s third-quarter earnings call.
CEO Dave Boennighausen said “there was very little reduction in sales” when the brand initially piloted the higher fees.
The strategy comes as the growth of delivery sales has slowed down for the Broomfield, Co.-based company. In the third quarter, delivery sales represented 7.6% of total sales versus 6.6% in the...
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