As more franchisees look to move beyond single-unit ownership and build multi-unit portfolios, Newk’s Eatery is attracting operators who understand that long-term success often comes from hard-earned lessons, not perfect execution from day one.

Wes Williams, a Mid-South multi-unit Newk’s franchisee who operates locations across Arkansas and Tennessee, didn’t enter franchising with a traditional background. After working his way up from loading trucks to becoming president of a $50 million metals distribution company, he invested in Newk’s in 2013 and learned the business from the ground up.

“My partners and I thought we were just going to be investors. We were just going to write a check and own a restaurant. We thought that would be kind of cool,” he said. “We found out pretty quickly that’s not what happens. You have to show up. You have to do the work.”

Over the past 13 years, Williams has grown his portfolio while navigating the realities of the restaurant business. That included closing underperforming locations, learning the impact of real estate decisions and refining a strategy built around scale and consolidation.

“We learned the hard way. We opened a second location in the same town within three miles because customers told us they would come more often,” he said. “What we found was we had two average stores. It was a hard lesson and very expensive.”

That experience ultimately reshaped his approach. By consolidating locations and focusing on high-performing units, Williams now operates a flagship restaurant that ranks among the top in the system and serves as a training ground for future growth.

For Chris Cheek, Newk’s chief development officer, those experiences reflect the reality of franchising and the importance of building a system that supports long-term success.

“It’s not an easy business,” Cheek said. “You have to put the business on your back and play to your strengths.”

Founded in 2004, Newk’s Eatery is a fast-casual, scratch-kitchen concept with nearly 100 locations nationwide. The brand operates a mix of corporate-owned restaurants and franchise locations, creating a feedback loop that allows leadership to test ideas internally while learning directly from operators in the field.

“We listen to our franchise partners,” Cheek said. “We understand that we’re not the smartest people in the room when it comes to design, menu, operations and the like.”

Cheek and Williams joined 1851 Franchise Publisher Nick Powills on a recent episode of the “Meet the Franchise” podcast to discuss scaling a Newk’s portfolio, lessons learned from real estate and operations, and what it takes to grow the right way in franchising. A transcript of the interview has been provided below. It has been edited for brevity, clarity and style.

Nick Powills: Chris, I’m going to start with you. To frame our conversation, give a backdrop. What’s the state of the union right now? What’s going on with the brand? Then we’ll get into this.

Chris Cheek: A lot of exciting things are going on right now. The brand was founded in 2004, and we’ve been growing by way of franchising not too long after that. During this year, we will get our 100th unit open.

Wes has been with us for a really long time as a franchise partner, one of our best. He’s on our Franchise Advisory Council. It’s a great time to look at the brand as a franchisee for a lot of reasons.

Not the least of which is we own and operate 29 of our own restaurants, so we’re the largest operator of our own brand. At the same time, Wes can attest, we listen to our franchise partners. We understand that we’re not the smartest people in the room when it comes to design, menu, operations and the like.

It’s just a good time to join the brand. One thing I’ll leave everybody with: If you look at the balance of 100 minus 29 company-owned restaurants, that balance in franchise units is only about 20 to 21 franchise entities. So although we have a lot of units, it’s more like a smaller family.

We have a lot of franchisees in our system with multiple units, and recently, a number of existing franchisees acquiring existing restaurants from franchisees who were leaving the system or retiring. That always says a very good thing about a franchise system when franchisees in the system are doubling down, or in some cases tripling down, on acquiring within the system.

Powills: Wes, let’s go to the end, then we’ll work back to the beginning. What does that portfolio look like today? Give me a sense of how things are going.

Wes Williams: Right now, things are good. We currently have five stores. We are under contract for five more stores, so we will double in size this year.

We’ve closed a couple of stores in the last 13 years. We’ve been in the system for 13 years. We found that some of the stores we opened cannibalized other stores or just weren’t in a good location. We’ve learned as we go, which is normal for any process when you start. We’re in good shape right now. The stores that we have are producing, and we’re excited about our growth.

Powills: Go back to the beginning. You’re not a franchisee yet. What are you doing? How do you even pick this brand? What did that process look like?

Williams: When I started with Newk’s in 2013, my partners and I thought we were just going to be investors. We were just going to write a check and own a restaurant. We thought that would be kind of cool.

We found out pretty quickly that’s not what happens. You have to show up. You have to do the work. In that process, we lost a partner. Somewhere down the road, I bought out my other partner. It’s a tough business, but as you scale, it becomes easier. You can be more successful. That’s where I’m at right now.

I was in the metal and steel distribution business for about 17 years. I saw a company grow from $100,000 a month in sales to $5 million a month before I left. I’ve been part of companies that grew, and I was fortunate that we sold that company. I’m kind of a gambler by nature, and I took some of that and parlayed it into other businesses. That’s when I got heavy into Newk’s.

As a family, we traveled with travel baseball, and we would always go to Newk’s in Southaven, Mississippi, because everybody in our group could find something they liked to eat. Whether you had the grandpa who wanted a sandwich, the aunt who wanted something vegetarian, or the kids who wanted mac and cheese. I was always intrigued by the brand because it was good for so many people. That stuck with me, and when I had the opportunity, we opened our first Newk’s in 2013.

Powills: How were you navigating that mentally? Did it feel turbulent, or were you just jumping in?

Williams: If we’re being honest, I’m a shoot-from-the-hip kind of guy, so we just jumped right in and learned as we went. There were probably more things available to us that we didn’t utilize at the time. I like to go on my own steam and figure things out, so it was a longer path for me and my partner. If I’d known how hard we had to work, I either would have skipped it or immediately gone to a number of stores, because scaling is the way to go.

Powills: When was that “aha” moment for you?

Williams: We learned the hard way. We opened a second location in the same town within three miles because customers told us they would come more often. What we found was we had two average stores. It was a hard lesson and very expensive.

After a period of time, we decided to combine into one store where we owned the real estate. COVID accelerated that decision. Now that store is a top-seven store in the company. It’s our flagship. It’s where we train managers for our other locations.

Cheek: Wes hit the nail on the head. It’s not an easy business. You have to put the business on your back and play to your strengths. Some franchise owners are very good financially. Some are better at marketing. You have to be a jack of all trades but know your strengths.

Wes has used a combination approach to scale. You can build new restaurants, acquire existing ones or focus entirely on acquisitions. Wes has taken a hybrid approach. He’s also someone who’s going to win. He mentioned closing a couple of restaurants. You take some losses, but overall you keep moving forward and know when to take those losses.

Powills: As bad as closing a restaurant sounds, I actually hear maturity. How do you think about that?

Williams: I hate to lose. It was hard at first to admit we had to close a store and take a loss. But if we take those lumps now, we learn valuable lessons and apply that to opening new stores. I’ve had friends in other franchises do the same thing I did, even after I warned them. They learned the hard way too.

Cheek: It’s amazing in franchising. I’ve had friends ask for advice, and it’s amazing how often they don’t take it.

Powills: How do brand, operations and real estate factor into your success?

Williams: If you haven’t made mistakes or closed locations, you’re probably not taking enough chances. With real estate, sometimes you just miss. You look at daytime population, traffic patterns, competitors.

Our best store is in a location most brands wouldn’t pick. What brings people back is great service. We love on our guests. We give them a reason to come back.

Powills: Could you have sped up the learning curve?

Williams: Looking back, yes, but I don’t know how I would have known that. I had a partner. Capital was a factor. Timing with my family mattered. Now my kids are grown, and I can spend time in other markets. At scale, I can send people from our team. I couldn’t do that with two or three stores.

We built three stores from scratch and acquired two. Building new stores lets you own every detail. Acquired stores come with inherited issues.

Powills: Chris, what does Wes represent in a franchise candidate?

Cheek: If we could clone Wes, we would. You spend as much time as possible with candidates before awarding a franchise. Existing franchisees like Wes can often evaluate candidates better than we can.

There’s no one-size-fits-all candidate, but you want someone who understands hospitality, builds strong teams and delivers a great guest experience. We also evaluate their existing businesses if they have them. It’s not an exact science, but you do the best you can.

Powills: Wes, how do you compare your previous career to what you’ve built now?

Williams: I’m most proud of where we are now. It’s pass or fail on me and my team. I grew up in a two-bedroom trailer on free lunches. If it all ended tomorrow, I’d say it was a good run and start over. My dad taught me to work hard every day and try to be better. I’m a testament to that.

Powills: Do you ever take a moment to reflect?

Williams: I don’t think I’m done yet. I still feel like I have more to do. If I had to start over making $9 an hour, I would do it again.

Powills: That’s the beauty of franchising.

Williams: If I can do this, anybody can. You just have to work hard and figure things out. Newk’s makes it doable. I’m proud of our team. Not so proud of myself yet because we still have things to do.

Powills: Chris, what should candidates know?

Cheek: Two things. One, we are very culinary-driven and a scratch kitchen, but we don’t require trained chefs. We train our teams.

Two, as a franchisor, we focus on the long-term success of franchisees. Sometimes that means tough decisions, like closing a location. If Wes had been forced to keep that second location open, he wouldn’t be where he is today. Sometimes you have to make strategic decisions for long-term growth.

Powills: At the end of the day, it’s about building the portfolio. There’s a lot of honesty and validation in this story. Wes is still growing and doubling the business after 12 years. That’s powerful. I’m grateful you shared your story. Chris, Wes, thank you.

Watch the full interview above or on YouTube. 

To find out more information on costs to buy this franchise, please visit https://1851franchise.com/newks-eatery.