Newk's Eatery
Food & Beverage · Fast-Casual Restaurants
- Active units
- 66
- Avg unit volume
- $2.4M
- Royalty
- 5.0%
Franchised, year-end 2024
of weekly Net Sales
About Newk's Eatery
Newk's Eatery is a beloved brand that has been serving delicious meals for over 17 years. Founded in 2004 as Newk's Express Cafe, by Don Newcomb, Debra Bryson, and Chris Newcomb, the team behind McAlister's Deli, Newk's quickly gained popularity. The first store opened in Oxford, Mississippi, offering a menu that showcased the team's personal passions in the kitchen, including several treasured family recipes. Since then, Newk's has grown extensively, with over 80 franchise locations nationwide. The brand has received numerous accolades, including being named one of the Top 10 New Restaurant Concepts and one of the Top 150 Fast-Casual Chains. Newk's commitment to the community is also evident through their initiative, Newk's Cares. Founded in 2014 by Chris Newcomb's wife, Lori Newcomb, who battled ovarian cancer, the initiative aims to raise awareness about the early symptoms of ovarian cancer and fund research. Newk's Cares has raised an impressive $1.6 million for the Ovarian Cancer Research Alliance. With over 100 locations in 13 U.S. Whether you're craving their famous soups, healthy choices, catering options, or their classic menu items, you're guaranteed to enjoy a personalized and unforgettable meal at Newk's Eatery.
Key terms
- Franchise fee
$40k
- Franchise development incentive program (through Dec 31, 2026)
Franchise Fee reduced by 50% to $20,000 for Restaurants opened on or before 12/31/2025 or 12/31/2026. Royalty abated for 6 months; then 2.5% months 7–18 (for 2025 opens) or 3% months 7–12 (for 2026 opens).
- Brand fund
1.8% of Net Sales
- Local advertising
1.0% of Net Sales
- Footprint
3,200 – 3,600 sq ft
- Area Development Agreement
$40k
- Veteran discount
Not offered
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2026 filing).
Growth
- Total locations69
Franchised units open at year-end
- New openings5
Gross new units opened during the calendar year
- 1-year unit growth rate4.5%
Net unit growth versus prior year
- 3-year unit CAGR0.7%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio2.5×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)—
Per FDD Item 19 disclosure
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate—
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$1.1M
Midpoint of estimated initial investment range
↓ Lower is better - Time to open8 months
Midpoint of average time from agreement to opening
↓ Lower is better - Royalty rate5.0%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio—
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Location footprint
Showing 63 of 104 mapped locations
Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.