News

Newk's Express to enter Georgia market

June 15, 2010

Two franchise groups have signed deals with Newk's Express Café to enter the markets of Atlanta and Athens, Ga.

John's Creek, Ga.-based GBDL Holdings LLC and Atlanta's Many Glacier Holdings LLC will be the first franchise companies to introduce the fast-casual restaurant concept to the state of Georgia. Both businesses are slated to open their first Newk's restaurants by spring 2011.

Newk's was created by the founders of McAlister's Deli. The cafe provides an express casual dining experience and features a variety of made-to-order choices including fresh-tossed salads, oven-baked sandwiches, California-style pizzas, made-from-scratch soups and homemade cakes baked by Newk's Bakery Company. A selection of wines by the glass and beer also is available.

"The Newk's Express Café concept is superior to other franchise concepts out there based on its use of fresh ingredients and the originality of its menu," said Greg LaFoe, owner-operator of GBDL Holdings LLC.

Similarly, the father-son business team of Doug and Jay Medley has made public their plans to open as many as three locations over the next three years in the north and northwest Atlanta market through Many Glacier Holdings.

So far, the market prognosis for expansion in Georgia appears strong, said Chris Newcomb, CEO, founder and president of Newk's Franchise Company LLC. He estimates the Atlanta market and its metro area can accommodate as many as 15 to 20 additional locations over the next five years. Additional store expansion opportunities also exist in the statewide markets of Columbus, Macon, Savannah and Augusta.

Since opening its first location in Oxford, Miss., in 2004, Newk's Express cafés have expanded their presence to more than 28 locations across seven states, mainly across the U.S. southeast. More than 20 of the restaurants are franchise-owned.

Newk's has also steady strengthened its earning prowess over the past two years. Same-store-sales for Newk's Express Café increased 2.6 percent in 2009; the opening of six Newk's Express Café restaurants in 2009 increased system wide annual sales to more than $43 million, an increase of almost 44 percent from the previous year. Through the first 22 weeks of 2010, same-store-sales were up more than 9 percent over the same time period in 2009.

Newcomb says expansion into the Atlanta market—and the state of the Georgia as a whole—is a pivotal piece of Newk's growth strategies. Other markets targeted for expansion include Houston, Oklahoma City, Tulsa, Okla., Chicago; Louisville, Ky., Orlando, Fla., Cincinnati and Richmond, Va.

To better guide its growth, Newk's has remained strategic in its selection of the right leaders who can best execute the business's vision. The past 18 months have yielded several significant hires, including:

• Steve Caulk, VP of company operations: A management veteran for nearly two decades, Caulk joins the Newk's team to work closely with CEO, founder and president Chris Newcomb to oversee all facets of company operations. Previously, Caulk served as regional manager for Avado Brand's Gianni's Little Italy concept in Madison, Ga., as well as Tia's Tex Mex out of Dallas.  He also spent 13 years as regional vice president for First Watch Restaurants in Sarasota, Fla.
• Kathy Harris, director of training: Prior to joining the Newk's team, Harris served as director of training for a combined five years at both Flying Star Café in Albuquerque, N.M., and for JHM Hotels in Greenville, S.C. She joined the Newk's team to help streamline management processes and increase company efficiency in the face of rapid growth.
• Stephen J. Hinkis, VP of franchise operations: Hinkis brings deep management knowledge to the table in his new role with Newk's. He has previously served as VP of ROC Corp., in New York, and as regional VP of Quizno's Corp. in Denver. He also served as president of Quality Foods of Connecticut in Simsbury, Conn.