Newk’s Eatery is Improving Unit Economics…and The Numbers Were Great to Begin With
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Newk’s Eatery is Improving Unit Economics…and The Numbers Were Great to Begin With

Newk’s Eatery is Improving Unit Economics…and The Numbers Were Great to Begin With

Newk’s Eatery is a fast-casual chain that has long been known for great “scratch-made” food cooked on the spot with the freshest of ingredients. Customers love Newk’s and so do its franchisees, who are passionate about the brand. Now, Newk’s is making a concerted effort to help its franchisees be even more successful by introducing new systems of efficiencies that offer the potential to help improve unit economics and boost franchisee bottom line numbers.

In today’s retail real estate market,  rising rent costs which can create a drag on an operator’s profitability. And every operator knows all too well that once a lease is signed, it’s a fixed cost that’s going to stick around for a while. Meanwhile, labor costs are on the rise thanks to low unemployment, minimum wage increases, and other market factors. Newk’s has acknowledged these marketplace challenges and taken a proactive strategy to provide tools and solutions for its franchisees in both areas. The results are even better unit economics for franchisees.

Newk’s has executed three specific strategies that are helping their franchisees boost their bottom lines. First, the brand has developed a new store footprint that requires less square footage (as little as 3,300 sg-ft now) than a traditional Newk’s Eatery, but the new model does not reduce the seating capacity for guests. That’s because the kitchen area has been retooled to require less space without sacrificing any capacity. A win-win.

Second, Newk’s has developed a new labor model that can have a positive impact on labor costs through a more structured and scalable deployment of labor based on hourly sales volume projections.

Finally, new technology in the kitchen area is streamlining operations and reducing costs. New, more efficient equipment is allowing operators to prepare food more quickly and with less labor than before. For example, the restaurants’ old char-grills are being replaced with highly automated combi-ovens. These state-of-the-art units allow automated cooking and grilling procedures and can produce greater yields on proteins These programmable and versatile ovens save on labor costs and increase overall productivity.

“A lot of time, research, testing, and investment has gone into helping our franchisees achieve better unit economics,” says Cheek. “The unit economics have always been good but every move we make also keeps in focus the high standard for the quality of our food and a commitment to never limiting the sales capacity of our restaurants..”

If the unit economics of Newk’s Eatery sounds like the kind of investment opportunity you are looking for, contact Newk’s now to find out more about available territories, room for growth, and a chance to become a part of the Newk’s culture. Newk’s has attractive development incentives in place for any new franchisees that join the system in 2019. Contact Cassidy Raynor at 601-326-4539 or visit for more information.


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Published: May 20th, 2019

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