The parent company of Beef ‘O’ Brady’s and The Brass Tap casual-dining chains has quietly added the Newk’s fast-casual brand to its fold.
Mention of the acquisition was tucked into a press announcement of the two full-service chains’ expansion during 2023. The release does not reveal the purchase price or other details of the Newk’s deal.
But it does provide a prepared comment, after revealing that the buyer, FSC Franchise Co., had opened one Beef ‘O’ Brady’s unit and 10 Brass Taps during the year.
“We’ve been looking to add something to our platform for several years, and we think that Newk’s is the perfect complementary brand,” reads the quote from Chris Elliott, 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.”
He aired expectations that franchisees of Beef ‘O’ Brady’s and Brass Tap would become operators of Newk’s restaurants, and vice-versa.
Then he segued back to FSC’s expansion plans for 2024, noting that the strategy calls for adding 23 units across Beef ‘O’ Brady’s and Brass Tap. Tacked on is a comment that the new owner will ramp up Newk’s expansion to add 10 to 15 stores in 2024.
“Our EBITDA growth this year was a very healthy 15%, and it’s planned to be 15% next year, as well,” said Elliott, referring to earnings before interest, taxes, depreciation and amortization.
An FSC representative acknowledged the soft-pedal of the Newk’s acquisition in the release. “It was intentional and it was a decision made by all parties involved,” she said, declining to say why or reveal any details, including when the acquisition was consummated.
“I’m not at liberty to give you an exact date, but it was in Q4,” she said.
Beef ‘O’ Brady’s is a sports pub concept with 143 locations across 21 states. Brass Tap, which features an extensive array of beers and what FSC describes as a food-truck-inspired menu, has 40 units in 16 states.
Newk's has about 100 locations in 13 states.
A controlling interest in FSC is held by CapitalSpring, a New York-based investment company that says it has holdings in 70 foodservice brands.
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