Franchise Opportunities
Great food is
our passion.
We live for the tantalizing smells, sights, tastes and textures
of meals that are made to perfection. We are obsessed
with discovering new recipes and reimagining old favorites _
especially our Newcomb Family Recipes. We insist on sourcing
the finest ingredients. Nothing is pre-chopped, pre-sliced
or pre-packaged. We are uncompromising about quality from
kitchen to table and our dedication to personal service.
That’s a passion shared by everyone you will meet at Newk’s.
Day Part Mix
The Numbers
DINNER
31%
LUNCH
59%
CATERING
10%
Breakfast
11 AM TO 10 PM
NO
Concept
Royalty fee
FAST-CASUAL
5% NET
Average unit square footage
Marketing fund fee
130-150
10
LIST
CATERING
8.27%
CALL IN
& ONLINE
10.52%
1% NET
Average interior seats
2004
TO GO
18.39%
Hours
3,800-4,500
Average including patio seats
Newk’s was founded in 2004 by Don Newcomb, Debra Bryson and Chris Newcomb in Oxford,
Mississippi. The team had previously founded McAlister’s Deli and transformed the restaurant into
one of the fastest-growing fast-casual restaurants of the time. After providing a solid foundation
and establishing strong upward growth for McAlister’s Deli, they sold the chain and soon began to
focus on their new venture, using an abbreviated version of “Newcomb” for the restaurant name.
GRAB-N-GO
4.46%
150-170
Total investment necessary
to begin operations
DINE IN
62.98%
$932,000-$1,331,000
Total check average
Wine & beer
$16.32
OFFERED WHERE LEGAL
*Average unit volume
SALES BY SEGMENT
CORPORATE - $2,436,644
FRANCHISE - $2,156,905
TOP
First Newk’s opens in
Oxford, Mississippi
2008
First franchised
Newk’s opens
“Top Ten Restaurant
Concept” by
Restaurant Chains
SANDWICHES 35%
2005
2009
2010
2011
2012
2013
“Growing
Concept” by Nation’s
Restaurant News
Opened record
14 new units
Technomic Top 150
Fast-Casual Chains
Rebranded as
Newk’s Eatery
Opened 14 new units
2014
Best Franchise Deals
“Rising Star” by QSR
2015
Fast Casual’s “Top 20
Movers and Shakers”
Fast Casual’s “Top 20
Movers and Shakers”
2016
Fast Casual’s “Top 10
Marketing Campaigns” (#2)
Next 20 “Standout
Brand” by Nation’s
Restaurant News
Brand Differentiators
Scratch-Made Approach – Broad
menu of meticulously prepared
meals, made from scratch with fresh,
high-quality ingredients.
OTHER 7%
BEVERAGES 12%
SOUPS 11%
PIZZAS 11%
SALADS 24%
Menu Sales Mix
Franchise Times Fast and
Serious “25 Smartest
Growing Brands”
“Top 10 Best Franchise
Deal” by QSR
Inc. 5000 FastestGrowing Company
Culinary Driver Menu –
Unique fast-casual dining
experience highlighted by
the Roundtable, signature
take-home cup, free breadsticks, famous iced tea and
large portions.
Hospitality First – Exceptional
customer service in a comfortable
setting that appeals to multiple
demographics and is suitable for
multiple occasions.
Operations-focused, unitlevel model that is easy for
franchisees to learn.
Open Kitchen & Warm, Inviting Interior –
Best-in-class concept with superior competitive
positioning in the fast-casual sector.
* Figures reflect averages for seven affiliate-owned and 57 franchised restaurants that were open and operating for the entire fiscal year as published in Item 19 of our April 2015 Franchise Disclosure Document.These averages are based on 13 four-week periods from December 29, 2013 - December 28, 2014.The financial performance representation contained in Item 19 of our April 2015 Franchise Disclosure Document also includes 2014 cost of sales as a percentage of net sales for each affiliate-owned restaurant that was open for one year
or longer. A new franchisee’s results may differ from the represented performance.There is no assurance that you will do as well, and you must accept that risk. Franchise offerings are made by Franchise Disclosure Document only. This information is not intended as an offer
to sell or the solicitation of an offer to buy a franchise. It is for information purposes only. Currently, the following states regulate the offer and sale of franchises: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island,
South Dakota,Virginia,Washington and Wisconsin. If you are a resident of or want to locate a franchise in one of these states, we will not offer you a franchise unless or until we have complied with applicable pre-sale registration and disclosure requirements in your state.
Chris Newcomb
Co-Founder & CEO
In addition to co-founding Newk’s with his father,
Dr. Newcomb, and Debra Bryson, Chris Newcomb
co-founded McAlister’s Deli and was instrumental
in the chain’s success. As CEO, Chris is responsible
for implementing the strategic goals and objectives
of the company and also serving as the administrator
of all company locations.
The right concept.
The right opportunity.
Fast-casual restaurants are the fastest-growing segment of
the restaurant industry, leading industry growth since 2007.
Newk’s has significantly outpaced the fast-casual sector due
to our unique concept and market positioning.
MICHAEL CLOCK
President &
Chief Financial Officer
MARK REEDY
VP of Performance,
Development & Culture
ALAN WRIGHT
Chief Marketing Officer
KLARA SMITH
Corporate Counsel
KEVIN ANDERSON
VP of Company Operations
ADAM KARVELLER
VP of Information Technology
KEITH MOODY
VP of Franchise Operations
ANGEL MCGOWAN
Director of Purchasing
CHRIS CHEEK
Chief Development Officer
THE IDEAL NEWK’S FRANCHISEE
• Prior restaurant experience
• Passionate about the hospitality industry
• Active in the business, with a priority on local marketing
and customer service
• Well capitalized
3 to 5 restaurants: $3MM net worth and $1.5MM liquid
5 to 8 restaurants: $4MM net worth and $2.5MM liquid
8+ restaurants: $5MM net worth and $3.5MM liquid
BENEFITS OF NEWK’S FRANCHISE OWNERSHIP
• A concept validated by industry trends
• Streamlined, efficient operational system
• Flexible menu, adaptable to change with trends and tastes
• Flexible store design and location options
• Long-term, multi-unit franchise focus
• Experienced, respected management team
• Strong training and marketing programs
• Ongoing support of a dedicated franchise company
Specialty Toasted Sandwiches
Homemade Desserts
We live for the perfect sandwich. It all begins with the bread – our dough recipe
bakes up perfectly soft and airy inside, then we toast it to order for a light and
flaky crust. We slice it with a hinge to help you keep a handle on your flavors of
choice: flame-grilled meats, imported cheeses, hand-chopped vegetables and
Newcomb Family Recipes like homemade pimiento cheese or chicken salad.
Shrimp Po’ Boy
Pesto Chicken
Newk’s Club
Vegetarian Club
Grilled Steak
The Italian
Grilled Chicken
Our Newcomb Family Recipe cakes and treats are made from scratch in
our own bakery, so they are always guaranteed to satisfy your sweet tooth.
Homemade Cakes
Brownies
The Royal
Newk’s “Q”
Pimiento Cheese
Chicken Salad
Choice Roast Beef
Smoked Ham
Turkey Breast
Kettle Batch Soups
Our signature soups are handmade in small batches,
ensuring slowly simmered perfection in every spoonful.
Soup menus change daily and seasonally.
Loaded Potato
Tomato Basil
Lobster & Crab Bisque
Broccoli Cheese
Chicken Tortilla
Newk’s Signature Chili
Fresh-Tossed Salads
Salads should be beautiful. We start with vibrant greens – a hearty Arcadian
mix of greens, aromatic arugula or crisp romaine fillets – then build your
bowl to order with impeccable ingredients like hand-chopped vegetables,
premium meats, nuts and imported cheeses. It’s all tossed with our madefrom-scratch Newcomb Family Recipe dressings.
Ahi Tuna
Shrimp & Avocado
Shrimp Remoulade
Newk’s Favorite
Ultimate
Black & Bleu
Big Crispies
Peanut Butter Crispies
Cobb
Chef
Southern
Greek
Simply
Caesar
Artisan Pizzas
Each and every pizza is hand-rolled to
order from our own artisan dough.
We brush it with our housemade garlic olive oil, and
then bake your 10" pizza
to crispy perfection
with your choice of
premium toppings.
Spicy Shrimp
Deluxe
Sausage & Pepperoni
The Debra
Veggie
Spicy Chicken
BBQ Chicken
Pepperoni
Mediterranean
Five Cheese
Margherita
Newk’s “Q”
Chicken Chili
Chicken Sausage Gumbo
Chicken Noodle
Corn & Crab Chowder
White Bean & Kale
Hoppin John
Seasonal Temptations
We’re always looking to raise the bar, so we pepper our menu with
limited-time offers to try out new recipes and appeal to seasonal
preferences. Soups and cakes are also rotated to keep our menu fresh.
Beverages
In addition to our standard 32-ounce fountain drinks, you’ll find
upscale favorites like Orangina, Pellegrino® and Acqua Panna®.
Our classic iced tea is available sweet, unsweetened and
presweetened with Splenda®. And, where permitted by law, imported
and domestic bottled beers and premium wines are also offered.
Shortcuts have their place.
That place is in someone else’s restaurant.
Open kitchens have become popular in the restaurant industry over the past several
years. Newk’s restaurants do have open kitchens. But our reasons have nothing to
do with restaurant trends.
Our kitchens are open because we believe in preparing our food in a manner that’s
open and respectful of our guests’ expectations.
We have nothing to hide. You won’t find deep fryers or microwave ovens in our kitchens.
No boxes of pre-cooked meats (the kind with the grill marks painted on) or tubs of
pre-shredded cheese. Instead, we grill and slice our meats and cheeses, shred our
lettuce, roll our dough, bake our own croutons and even mix our own salad dressings.
At Newk’s, we prepare food for our guests the same way we would do it for ourselves. It’s
our golden rule.
The Ingredients
Imagine painting a masterpiece
using only three colors. Or composing
a symphony with no sharps or flats.
Preparing food is no different. Of
course, it would be easier to order
all of our ingredients from the
same food distributor checklist that
everyone else uses. We could save
time and money using pre-made,
pre-processed ingredients from the
lowest-price suppliers.
But we don’t do easy.
We start from scratch to build our
culinary masterpieces. The right
ingredients, in the right combination,
synergistically affect the quality
of the final product. That’s why we
devote so much attention to
finding the best suppliers for our
premium ingredients.
Other restaurants have condiment bars, but we take it to the next level.
Our Roundtable features an array of premium ingredients used by our
guests to customize their meals with additional variety.
CRACKERS
EXTRA VIRGIN OLIVE OIL
CAPERS
Sourced in the USA
Taken from the first pressing
BALSAMIC, SHERRY &
RED WINE VINEGARS
SEA SALT & COARSE PEPPER
GRINDERS
Imported from Italy
BREAD & BUTTER PICKLES
Most popular Roundtable item
GRATED PARMESAN
The perfect finishing
touch
The
Roundtable
ROASTED GARLIC
Roasted in olive
oil in house
PEPPERONCINI
Imported from
Italy, too
HOT CHERRY PEPPERS
SRIRACHA, TABASCO AND
CHOLULA HOT SAUCES
Plenty of heat to go around
CROUTONS
BREADSTICKS
Made fresh in-house
Torinesi-style, straight from Italy
JALAPEÑOS
Imported from Turkey
for better crunch
We don’t have customers at Newk’s.
We have guests.
A customer buys goods or services.
A guest receives hospitality at the home or table of another.
The difference is more than just semantics. Treating guests with
respect, kindness and genuine care is a notion that’s embedded into
our culture. It’s why we believe that guest service should continue
after the order has been taken and the ticket paid.
Likewise, we have hourly partners – not employees or team members.
It’s a reminder that everyone who works at Newk’s plays an integral
role in the success of our brand and each restaurant.
Catering
Catering is a popular business segment among
fast-casual restaurants, and our emphasis on
high-quality food has led to continued growth
in our catering business.
When preparing for a new restaurant to open,
we provide free samples from our catering
menu to nearby businesses’ decision makers.
It’s an effective way to pre-sell the Newk’s
concept and encourage sales for both the
catering and dine-in segments.
Grab - N - Go
Our guests tend to be educated and hardworking with a busy lifestyle.
They crave convenience almost as much as they crave our bold flavors.
In addition to the typical call-ahead takeout order, we offer Grab-N-Go
items in a cooler next to our takeout cash register for people in a hurry.
Guests can choose from a wide selection of sandwiches, soups, salads,
desserts and beverages. All food is prepared daily and replenished as needed.
We like to call it #InstantGrabification.
System Map
Newk’s restaurants are located within the fastgrowing southeastern U.S. We are pursuing expansion
opportunities within both existing markets and new
markets outside of our current geographic footprint.
14) FINDING YOUR HAPPY PLACE
NO CHANGES
Finding the perfect place.
Finding the perfect location is one of the most important decisions you’ll
make. Look for locations with high visibility and appropriate age and income
demographics. Plans are available for stand-alone, in-line and end-cap sites.
Existing locations - sold out
Existing locations - some territories available
Target locations
Not currently franchising in these states
We like to keep our interiors fresh, too.
From the warm, inviting Tuscan color scheme to the open kitchen and our
attractive furnishings and fixtures, we strive to make our interiors look as
good as our food tastes.
Each store gets a piece
of original artwork
customized to its city.
Standard Floor Plan
• Open kitchen
• Roundtable condiments bar
• Beverage bar
• Grab-N-Go station (with separate
entrance where available)
• Seating for 140-160 guests in dining
room and 24-60 guests on patio
• 3,800-4,500 sq ft
Franchise Support
Newk’s offers extensive support in the following areas: real estate,
training, operations and marketing.
REAL ESTATE & CONSTRUCTION – With the support of a dedicated development
team, we assist with location selection, including market planning
and analysis, tenant-rep broker management and lease negotiation.
Additionally, our construction team is there to manage the construction
process, including space planning, bid review, general contractor
selection and necessary support for architecture and FF&E packages.
TRAINING – New franchise training is provided at our Support Center
in Jackson, Mississippi and is covered under your franchise fee. (You pay
salary and travel expenses.) Prior to opening a new location, your hourly
partners will be trained on site by a certified Newk’s training team.
Ongoing training is provided as needed on site, at the Support Center
and in certified regional training restaurants.
OPERATIONS – We support your operation via regular visits and contact by your
franchise business consultant and our operations support teams. Support
includes conference calls each period with operators and principles to discuss
performance, opportunities, challenges and solutions. P&Ls are reviewed
quarterly, and POS equipment and software are available for management
reports. Food prices and distributor partnerships are negotiated in house, and
franchise partners have access to all corporate vendors for small wares,
paper goods, marketing materials and supplies.
MARKETING – Through regular visits and contact by your field marketing manager,
Newk’s will provide comprehensive marketing support, from grand opening
events, social media setup and management to Roundtable Loyalty Club emails
and catering business development. All franchise partners have access to an
online toolkit with marketing materials and an in-house graphic design team for
site-specific advertising needs.
Your National Soup
Month Headquarters.
BRAND
PHOTOGRAPHY
Newk’s Marketing
Newk’s has a library of marketing materials and a
marketing calendar available for use by all franchisees.
The library contains print, radio, outdoor, rich-media
online ads, catering van wrap designs and window clings.
Newk’s conducts brand-level social media marketing
and encourages all franchisees to operate social media
accounts for local store marketing. We assist with setup
and support of local social media and email marketing
accounts and hold regularly scheduled social media
conference calls with franchisees.
APP
WINDOW CLING
Prepared by hand –
not by bag.
DIGITAL AD
OUTDOOR
Super foods
don’t need
a cape.
EBLAST
SOCIAL
MENU
Red Quinoa & Kale Salad
POP
Franchise FAQs
Q. IS NEWK’S INTERESTED IN EXPANDING OUTSIDE OF THE U.S.?
A. Currently, we are focused on opportunities in the U.S. only.
Q. WHAT DOES IT TAKE TO BE A SUCCESSFUL FRANCHISEE?
A. The three most important factors are experience managing and operating successful restaurants,
sufficient capital to weather financial ups and downs, and a passion for the business. In our experience,
people who open a franchise for the investment potential but don’t want to be actively involved in
its operation tend to be unsuccessful.
Q. HOW MUCH DOES IT COST TO OPEN A NEWK’S UNIT?
A. F or most franchisees, the estimated cost to open ranges from $932,000 to $1,331,000. This range
includes the initial franchise fee, real estate costs, furnishings, fixtures and equipment, architect fees,
insurance fees, initial supply inventories, training expenses, grand opening advertising costs and other
necessary costs. Costs may vary by market and business decisions that franchisees make in their start-up.
Q. HOW LONG DOES IT TAKE TO OPEN A NEWK’S LOCATION AFTER THE FRANCHISE AGREEMENT IS SIGNED?
A. Y ou should allow a minimum of nine months to prepare for the opening of your restaurant. The time
frame may be slightly more or less, depending on your experience with opening restaurants.
Newk’s University
People who visit chain restaurants expect consistency in food, service
and overall dining experience.
To ensure that every Newk’s restaurant meets the high expectations
of our guests, we created a proprietary training program that we call
Newk’s University.
Participants receive hands-on training covering the specific procedures
required to run a Newk’s Eatery – from the manager’s responsibilities
to tasks conducted by our hourly partners. This is also where we
detail our unique culture and how our mission and values translate
into real-world success.
Q. WHAT COSTS AND FEES ARE ASSOCIATED WITH BEING A NEWK’S FRANCHISEE?
A. N
ewk’s franchisees pay an initial franchise fee of $40,000, due when you sign the Franchisee Agreement.
Operating a Newk’s unit requires ongoing monthly royalties of 5 percent of net revenue and an annual
marketing fund fee of 1 percent of net revenue.
Q. I’M INTERESTED. HOW DO I GET STARTED?
A. First, contact us so that we can discuss any questions or needs you may have and discuss market
opportunities and available territories. Next, you’ll need to complete our application process, provide
supporting financial documents and attend a Discovery Day before we can finalize a franchise
agreement and start planning your grand opening.
Our passion goes
beyond the kitchen.
Lori Newcomb
Co-Founder of Newk’s Cares
Newk’s Cares is our way of giving back, as we rally behind an important cause that
continues to affect the lives of many. Ovarian cancer has personally impacted the Newk’s
family, and we are determined to give women a fighting chance against this killer.
Our goal is to improve the rate of early diagnosis by funding research and creating greater
awareness about the early symptoms of ovarian cancer.
To accomplish this, we host community events, including our annual Ovarian Cycle, to raise
funds for research. We constantly promote awareness with teal cups and information
readily available in our stores and on our website, newkscares.com.
Fast Fact:
Each year, 200,000 women worldwide are diagnosed with ovarian cancer,
and 125,000 women die from this disease.
For more information about franchise opportunities,
visit newks.com or call 601.326.4539.
03.2016