Brixx Pizza’s Neil Newcomb
GlobeSt.com/HotSeat
Jan 07, 2008
By: Ian Ritter
Some new concepts roll out with guns blazing, adding new units across the country at a rapid pace. Others take a more tempered approach. Brixx Pizza, a regional chain based in Charlotte with 10 locations in the Carolinas, has fit in the latter category. However, management is looking to ramp up the expansion process. Thus far, the 10-year-old chain, which offers thin wood-fired pizzas, craft beers and other items, has grown slowly, sticking to two states. This year though, 10 new franchisees are expected to sign up and open three to four new restaurants. Ten units are planned for next year, and the goal is to have 30 locations in place by the end of 2010. Neil Newcomb, president of the company’s franchising group and a former co-founder of the McAlister’s Deli chain, recently spoke with us about Brixx’s growth efforts.
GSR: Why begin franchising now?
Newcomb: The company has been growing over the past 10 years. We’ve grown to 10 units, and people have been asking, “Can I buy a franchise? Can I get into this?” We create a lot of excitement wherever we go. My past experience was with McAlister’s Deli, and I saw the same thing. When people want to become a part of it, you want to find a way to get them to become a part of it.
We also have the depth in our company to support franchisees now. It’s harder when you have one or two stores to be able to devote some time to franchisees, but we have that time now.
GSR: What is your geographic strategy?
Newcomb: In 2008, I am really focusing on attracting franchisees to cover the territory between Atlanta and Washington DC, However, I’ve talked to some candidates in Tampa and Jacksonville, FL; and Connecticut; and I’ll work with them, though it’s not our focus. After 2008, we plan on focusing on Florida, Georgia, Tennessee, Kentucky, Maryland, Pennsylvania and really widen the circle.
GSR: As the concept grows will restaurants differ by geographic location, or will they uniformly fit anywhere?
Newcomb: I think it can uniformly fit anywhere. It’s not like barbeque, where people in Texas have an idea of what they call barbeque, and people in Virginia have an idea. I think our menu is pretty universal – it’s craft-brewed beer and thin crust, high-end pizza.
GSR: You’re currently in lifestyle and open-air centers. What are your preferred real estate types?
Newcomb: Our highest –volume restaurant is in a lifestyle center. We look at co-tenants more than anything, and they should include a great bookstore, a Williams-Sonoma, a Banana Republic, a new movie theater and other higher-end stores. If we can get prominent spaces in those centers, we feel like we’re going to be very successful. We used to say Starbucks, but that doesn’t limit us any more. A hardware store probably isn’t a good co-tenant, but a Barnes & Noble is.
GSR: Are you considering other real estate types?
Newcomb: If we’re in the center of a neighborhood where prices are between $300,000 and $500,000, we feel like it will help us be successful. We’re in two centers, where, by any measurable standard, the center is not successful. But yet, we’re doing great, and they’re two of our highest volume restaurants because the neighborhoods right next to them are so high quality.
GSR: What sorts of franchise owners are you pursuing?
Newcomb: The ideal franchisee is the same ideal franchisee that every franchisor in America is shooting for. It is somebody who has an existing business with positive cashflow in the market that he wants to develop, except that he has already developed out of his market. Applebee’s is not going to take on any more franchisees, so if you want to take on more territories, you have to buy out other Applebee’s guys, or your market has to grow through a new housing development or a new center. Those guys are very important to us, and our first franchisee in Knoxville, TN, is in that situation. He is a Salsarita’s franchisee with seven unites and doesn’t see himself growing that brand because he doesn’t want to travel that far.
But if you have a solid business background and net worth, we’d love to talk to you. Our franchisee in Columbia, SC, fit that criteria but had never run a restaurant. We found him two people that have great restaurant experience that he is probably going to bring on in some kind of equity position. We’re partnering operators with businesspeople and trying to do that in Richmond, VA, right now.
GSR: What do you see as the biggest challenge to the chain’s expansion?
Newcomb: Finding the right sites is always difficult. A bad real estate decision is the worst decision you can make. If you hire a bad manager, you can replace a bad manager. If you have a bad marketing program, you can stop the marketing program. But if you have a bad site, you’re stuck with the duration of the lease and are just going to endure the pain.
For us, we’re adding corporate positions. It’s always a judgment call on who and what we need. Do we need a director of training? We do. Who is that director going to be? Do we need a corporate chef? Now who are they going to be?
Some new concepts roll out with guns blazing, adding new units across the country at a rapid pace. Others take a more tempered approach. Brixx Pizza, a regional chain based in Charlotte with 10 locations in the Carolinas, has fit in the latter category. However, management is looking to ramp up the expansion process. Thus far, the 10-year-old chain, which offers thin wood-fired pizzas, craft beers and other items, has grown slowly, sticking to two states. This year though, 10 new franchisees are expected to sign up and open three to four new restaurants. Ten units are planned for next year, and the goal is to have 30 locations in place by the end of 2010. Neil Newcomb, president of the company’s franchising group and a former co-founder of the McAlister’s Deli chain, recently spoke with us about Brixx’s growth efforts.
GSR: Why begin franchising now?
Newcomb: The company has been growing over the past 10 years. We’ve grown to 10 units, and people have been asking, “Can I buy a franchise? Can I get into this?” We create a lot of excitement wherever we go. My past experience was with McAlister’s Deli, and I saw the same thing. When people want to become a part of it, you want to find a way to get them to become a part of it.
We also have the depth in our company to support franchisees now. It’s harder when you have one or two stores to be able to devote some time to franchisees, but we have that time now.
GSR: What is your geographic strategy?
Newcomb: In 2008, I am really focusing on attracting franchisees to cover the territory between Atlanta and Washington DC, However, I’ve talked to some candidates in Tampa and Jacksonville, FL; and Connecticut; and I’ll work with them, though it’s not our focus. After 2008, we plan on focusing on Florida, Georgia, Tennessee, Kentucky, Maryland, Pennsylvania and really widen the circle.
GSR: As the concept grows will restaurants differ by geographic location, or will they uniformly fit anywhere?
Newcomb: I think it can uniformly fit anywhere. It’s not like barbeque, where people in Texas have an idea of what they call barbeque, and people in Virginia have an idea. I think our menu is pretty universal – it’s craft-brewed beer and thin crust, high-end pizza.
GSR: You’re currently in lifestyle and open-air centers. What are your preferred real estate types?
Newcomb: Our highest –volume restaurant is in a lifestyle center. We look at co-tenants more than anything, and they should include a great bookstore, a Williams-Sonoma, a Banana Republic, a new movie theater and other higher-end stores. If we can get prominent spaces in those centers, we feel like we’re going to be very successful. We used to say Starbucks, but that doesn’t limit us any more. A hardware store probably isn’t a good co-tenant, but a Barnes & Noble is.
GSR: Are you considering other real estate types?
Newcomb: If we’re in the center of a neighborhood where prices are between $300,000 and $500,000, we feel like it will help us be successful. We’re in two centers, where, by any measurable standard, the center is not successful. But yet, we’re doing great, and they’re two of our highest volume restaurants because the neighborhoods right next to them are so high quality.
GSR: What sorts of franchise owners are you pursuing?
Newcomb: The ideal franchisee is the same ideal franchisee that every franchisor in America is shooting for. It is somebody who has an existing business with positive cashflow in the market that he wants to develop, except that he has already developed out of his market. Applebee’s is not going to take on any more franchisees, so if you want to take on more territories, you have to buy out other Applebee’s guys, or your market has to grow through a new housing development or a new center. Those guys are very important to us, and our first franchisee in Knoxville, TN, is in that situation. He is a Salsarita’s franchisee with seven unites and doesn’t see himself growing that brand because he doesn’t want to travel that far.
But if you have a solid business background and net worth, we’d love to talk to you. Our franchisee in Columbia, SC, fit that criteria but had never run a restaurant. We found him two people that have great restaurant experience that he is probably going to bring on in some kind of equity position. We’re partnering operators with businesspeople and trying to do that in Richmond, VA, right now.
GSR: What do you see as the biggest challenge to the chain’s expansion?
Newcomb: Finding the right sites is always difficult. A bad real estate decision is the worst decision you can make. If you hire a bad manager, you can replace a bad manager. If you have a bad marketing program, you can stop the marketing program. But if you have a bad site, you’re stuck with the duration of the lease and are just going to endure the pain.
For us, we’re adding corporate positions. It’s always a judgment call on who and what we need. Do we need a director of training? We do. Who is that director going to be? Do we need a corporate chef? Now who are they going to be?
