Most people, if given the chance, would do things differently the second time around. Chris Newcomb, Don Newcomb and Debra Bryson got that chance.
The trio opened the first Newk’s Eatery in Oxford, Miss., in February 2004 — three years after the sale of their first concept, McAlister’s Deli.
Their new concept gave them the opportunity to try a different approach. So they gave Newk’s a streamlined menu to increase ease of service. The restaurant also took fast casual a bit further, bringing food to the table.
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“We wanted to see if we could do the menu a little smaller and not as complicated,” Chris Newcomb said.
In the process, Newk’s created an efficient model that is easier to operate and has high unit volumes, which lure higher quality operators and help the now-82-unit concept spread throughout the Southeast.
The chain has a selection of sandwiches, like a Chicken Parmesan Sandwich, as well as pizzas, salads featuring ingredients like red quinoa and kale, and a selection of soups that rotate daily, including Spinach & Feta. It also has limited-time offers, such as the Ahi Tuna Salad.
Customers order their food, are given a cup for their drinks, and are also invited to the roundtable, where the concept keeps its salt, pepper, Parmesan, extra fixings like croutons and popular packaged thin breadsticks. The chain’s goal is to bring customers their food within eight minutes. But half of that wait time is spent getting drinks and condiments.
“By the time they sit down, they’ve taken up four minutes of their time, and they have a little something extra,” Newcomb said.
Keys to success
The menu: Newk’s menu is a major key to the chain’s success. It has 64 items, which is still broad, but is smaller than many other bakery-café chains. It also offers many of these items as “grab-and-go” selections for customers who are in a hurry.
Grab-and-go items account for 5 percent to 6 percent of a Newk’s location’s sales. Catering is another 8 percent. And the chain has a selection of beer and wine for customers who want to take their time at dinner. The result: High unit volumes of about $2 million per location, and without a breakfast daypart, the chain said.
“We have a very efficient model,” Newcomb said.
Franchisees: Newk’s high unit volumes give the chain a two-to-one sales-to-investment ratio that lures higher quality franchisees and encourages them to build new units. The company expects to open a total of 30 locations this year, and has plans to more than double in size, to 230 units, by 2018.
“Their return on investment make them happy,” Newcomb said, noting that the chain’s existing operators are building new units and multiconcept franchisees have recently signed development deals.
Corporate culture: To Newcomb, the chain’s corporate culture is also important to the company’s success. While stores in most chains have three managers apiece, Newk’s each has four or five.
“We want everybody to have time off and quality of life,” Newcomb said. “Folks who come work for our company love the quality of life. It passes through to our hospitality and is there for our guests.
“We’re in the people business. Food is our byproduct. But we have a culture of hospitality that sets us apart.”
Contact Jonathan Maze at [email protected]
Follow him on Twitter at @jonathanmaze
