Franchising
Newk's developing cost-efficient prototype, elevating menu
Since being acquired last year by FSC Franchise Co., the parent company of Beef 'O' Brady's and The Brass Tap, Newk's Eater is developing a more cost-effective footprint and upgrading its menu.
April 30, 2024 by Cherryh Cansler — Editor, FastCasual.com
Since being acquired last year by FSC Franchise Co., the parent company of Beef 'O' Brady's and The Brass Tap, Newk's Eater is developing a more cost-effective footprint and upgrading its menu.
"Newk's footprints will be smaller," FSC CEO Chris Elliott told FastCasual. "To match the off-premise trends we're seeing, there could be a pickup window or a drive-thru in new and remodeled locations. We're redesigning for more efficiency and lower cost, but the customer experience will be as good as or better than it is today. The average unit volumes and store-level margins continue to grow, which makes Newk's a very attractive investment for the right franchise now."
FSC acquired the 100-unit brand in December 2023 after searching for a compatible concept to add to its platform.
"We are happy to have a high-volume fast casual concept to complement our Beef 'O' Brady's and The Brass Tap brands, Elliott said. "We are really impressed with the food quality and customer loyalty to the brand. These are core characteristics needed for future growth."
CEO Frank Paci will continue to lead the brand and is looking to grow store counts and recruit additional franchisees.
"We are leveraging some resources (purchasing, culinary and franchise development) among the brands that we expect to accelerate our ability to grow," he told FastCasual. "Combined our system sales are almost half a billion dollars."
Teams at Newk's Eatery's test kitchen are working on menu enhancements that guests will see later this year, and Beef 'O' Brady's recently launched 18 menu additions. Lastly, the Brass Tap's food truck menu, which features Premium Picks and $10 Street Smart Values, launched toward the end of the first quarter and has received strong feedback.
The company also reported a steady growth trajectory through Q1, opening five Brass Tap locations, including the first in Philadelphia and one Newk's in Bentonville, Arkansas. The team also signed a franchise agreement for Beef 'O' Brady's and has multiple franchisees completing due diligence for each brand.
"Our development trends are steady, and we're expecting to finalize more deals in the second quarter," Elliott said in a company press release. "Balance of the year we plan to open two Beef 'O' Brady's, 13 Brass Tap and three Newk's Eatery."
About Cherryh Cansler
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