Franchise News
NRN: Soft Sales Trends Dog Zoe’s Kitchen Into 2Q
The fast-casual brand plans to slow development in response to declining same-store sales in Q1
Zoe’s Kitchen Inc. has released its Q1 financials, and the results are not encouraging for the fast-casual Mediterranean brand.
According to an article in Nation’s Restaurant News, same-store sales were down 2.3 percent compared to Q4 of last year for the Texas-based franchise. In a statement released by Zoe’s Kitchen on Thursday, brand president and CEO Kevin Miles said “early results in the second quarter have not show significant improvement.”
In response to the downward trend in sales, Miles says Zoe’s Kitchen will lower its guidance for the remainder of the fiscal year and slow future new-unit development. For existing stores, the company will focus on “aggressive actions” to improve sales.
“We will slow our future new-unit growth and conduct a thorough review of under-performing restaurants,” Miles said. The company will also “re-allocate resources toward marketing and technology initiatives to drive sales,” he said.
Read the full article at nrn.com.
Image courtesy of @zoeskitchen? on Instagram.
Don’t Miss the Next Big Franchise Story
Sign up for the 1851 Franchise newsletter to get our biggest stories before everyone else
By signing up, you agree to our user agreement (including class action waiver and arbitration provisions), and acknowledge our privacy policy.
