Noodles & Co. doubles down on ghosting

BROOMFIELD — Noodles & Co (Nasdaq: NDLS) opened its second ghost kitchen, a press release said. This one is in San Jose, California; the first was in Chicago.

Ghost kitchens are restaurant sites with food preparation only and no in-person dining or drive throughs. They expand a chain’s digital and delivery business and can move companies into areas lacking standard brick-and-mortar restaurants or have expensive real estate, often in non-retail layouts like industrial parks.

“San Jose is an emerging market for us,” Chief Marketing Officer Stacey Pool said. The kitchen will help the company gather data on trends and customers and could lead to franchising in the area.

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Digital sales accounted for more than half of Noodles & Co.’s $125.6 million in second quarter sales, the company said last month.

The chain has 451 locations, more than 80% company-owned. Average unit volumes are $1.35 million.

Shares traded recently at a $550 million market cap, down about 4% over the last month.

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