Noodles & Co. Bets on Costlier Cheesy Pasta

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Noodles & Co. Bets on Costlier Cheesy Pasta
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Restaurants are wrestling with how much of their own expenses they can pass along to customers as costs for wages, ingredients and transportation climb

Noodles & Co. is conducting an experiment: determining how much consumers will pay for a bowl of fat, cheese-stuffed pasta.

Carl Lukach, the 450-unit chain’s chief financial officer, pored over customer surveys before pricing Noodles’ new Tortelloni dish at $8 when it was introduced in June. That made it more expensive than core dishes on the menu, but Noodles’ costs were rapidly rising, and Mr. Lukach wagered that customers would keep splurging on indulgent entrees.

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