TL;DR
Zoe's Kitchen is considering closing up to 10 underperforming units as it evaluates its 258 locations and slows future development. The decision comes after a 2.3 percent decline in same-store sales in Q1.
Last week, Zoe’s Kitchen Inc. released its Q1 financials, which showed a 2.3 percent decline in same-store sales. In the announcement , Zoe’s Kitchen President and CEO Kevin Miles said the franchise would lower its guidance for the remainder of the fiscal year and slow future development.
Now, it seems the franchise is taking their response to Q1’s financial results a step further, not just slowing development but also evaluating stores for closure.
According to an article in Nation’s Restaurant News , the franchise’s board has created a panel to evaluate its 258 locations and will select five to 10 underperforming units to close as early as this year.
“We need to take a more aggressive step to strengthen our existing restaurant base, channeling our efforts into recouping traffic losses, reversing our negative comp-store sales trends and improving restaurant-level profitability,” said Miles.
In this story
This story was originally published in 1851 Franchise on May 29, 2018. Burnaze summarizes and links to the original reporting.
Read the full story at 1851 FranchiseLiked this? Get the week's franchise news, explained
- Sunday 8 AM ET weekly + a monthly deep dive
- Sections picked for the industries you follow
- Every claim linked to its source. Free.