One of Mississippi’s favorite local eateries is now under new ownership.
Newk’s Eatery, which was founded in Oxford in 2004 before growing into one of the largest fast-casual chains in the Southeast, has been purchased by the parent company of Beef ‘O’ Brady’s and The Brass Tap chains.
According to Restaurant Business, FSC Franchise Co. “quietly added” Newk’s during quarter four, per a recent press announcement.
“We’ve been looking to add something to our platform for several years, and we think that Newk’s is the perfect complementary brand,” said Chris Elliot, the CEO of FSC. “It’s fast-casual with average unit volumes of $2.2 million, and it has the same geographical footprints across the Southeast that we currently have, so we’re ecstatic about that partnership.”
While no purchase price was provided, the release from the Tampa-based franchise company noted that franchisees of Beef ‘O’ Brady’s and Brass Tap are expected to operate Newk’s locations, and vice-versa, as the company plans for all three restaurant brands to see growth in 2024. The release added that FSC is targeting 10-15 new Newk’s locations this next calendar year.
“Our EBITDA growth this year was a very healthy 15%, and it’s planned to be 15% next year, as well,” Elliot continued, referring to earnings before interest, taxes, depreciation, and amortization.
Beef ‘O’ Brady’s, a family-friendly sports pub, has 143 locations across 21 states while Brass Tap, an upscale beer bar, has 40 locations in 16 states. With the addition of Newk’s, FSC adds over 100 locations across 13 states.
This is the second time Newk’s has been acquired after being founded by Don and Chris Newcomb, who also created and sold McAlister’s Deli. In 2014, Newk’s was sold to private equity firm Sentinel Capital Partners out of New York for an undisclosed amount. However, it has still remained headquartered in Jackson.
