NRN: Zoe’s Kitchen Weighs Closure of up to 10 Units

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.

Read the full article at nrn.com.

Image courtesy of @zoeskitchen on Instagram.