Enhancing Operations for Growth and Quality at Newk’s
Explore how Newk’s optimized its operations post-acquisition for growth and quality enhancement. Learn about menu innovations, loyalty programs, and more.
Photo by Luca Bravo on Unsplash
Strategic Acquisition and Operational Transition
Following the acquisition by FSC Franchise Co., Newk’s underwent a significant operational transformation geared towards growth and maintaining quality standards. The move towards consolidation of purchasing, culinary, real estate, and development functions aimed to streamline operations and enhance efficiency.
Menu Innovation and Efficiency
Newk’s approach to menu innovation played a pivotal role in optimizing operations. By shedding non-essential SKUs and reevaluating underperforming products, Newk’s achieved a remarkable 25 percent food cost reduction while preserving its popular offerings. The focus on streamlining prep tasks post-COVID further enhanced efficiency without compromising on quality.
Rebranding for Success
In a bid to drive premium positioning, Newk’s initiated a comprehensive rebranding effort, emphasizing 'Extra with Every Bite.' This campaign, rooted in customer research, aimed to highlight the unique offerings of the brand. By collaborating with creative agencies like White Unicorn, Newk’s revamped its look, digital platforms, and messaging to create a strong brand identity.
Photo by Luca Bravo on Unsplash
Embracing Innovation in Menu Pairings
Newk’s innovative 'Pick a Pair' menu option revolutionized the dining experience, allowing guests to create personalized combinations. By offering full portions of menu items paired with accompanying sides, Newk’s saw a substantial increase in menu mix percentages. This strategic move not only enhanced customer satisfaction but also drove profitability by increasing average check values.
Photo by Luca Bravo on Unsplash
Loyalty Programs and Customer Engagement
The implementation of a loyalty program at Newk’s further exemplified the focus on customer experience. By enabling tableside ordering through the app, Newk’s provided an 'extra' touch that resonated with guests. Franchisees and customers alike embraced the brand's commitment to quality and innovation, resulting in improved margins and sustained customer loyalty.
Future Growth and Evolution
Looking ahead, Newk’s is positioned for significant expansion under the seasoned leadership of CEO Frank Paci. With a clear vision to grow the brand by 50 percent in the next five years and a target of reaching 250 restaurants, Newk’s continues to prioritize operational excellence alongside quality-driven innovations. The ongoing evolution of the brand's design and off-premises strategy underscores its commitment to adapt to changing consumer demands and market trends.