Thank you for sharing!

Your article was successfully shared with the contacts you provided.

EATONTOWN, NJ-New World Restaurant Group has targeted the end of this year for closure of its 90,000-sf combination production and headquarters facility here, as well as a smaller facility in Southern California, as part of a consolidation effort aimed at cutting costs. The moves are part of an ongoing effort to streamline the company’s operations in the wake of its acquisition a year ago of the Einstein/Noah Bagel Corp.

The production operations will be consolidated at an existing company plant in Whittier, CA and a plant Avon, IN operated by Harlan Bakery, a dough-making contractor. Both of those facilities are operating at 70% of capacity, according to a company spokesman. “They are capable of manufacturing products for several different brands without requiring a major capital investment,” according to the spokesman.

Over the years, New World has accumulated several chains, among them Manhattan Bagel, Chesapeake Bagel Bakery, Einstein Brothers, Noah’s Bagels and New World Coffee/Willoughby’s Coffee & Tea. Recently, the company’s headquarters have been split between this Monmouth County community, where the Manhattan Bagel Co. first set up shop a decade ago, and Golden, CO, home base for the Einstein/Noah operations.

“The decision to close the plants was a painful but necessary step in our efforts to generate cost savings from the consolidation of the New World and Einstein organizations,” according to Anthony Wedo, New World chairman/CEO. “These consolidations are the result of a comprehensive review of the company’s operations. It gives us flexibility to expand production capacity without tying up additional capital.

New World, which has 468 company-owned and 293 franchised locations in 34 states, including 54 stores in New Jersey, will continue “to maintain our East Coast franchise support center in New Jersey,” according to the company spokesman. “We will relocate our offices and franchisee training facility from Eatontown to another site in Central New Jersey by the end of the year.”

The new location, which has not been disclosed, will house New World executives and support personnel for the Manhattan Bagel, Chesapeake Bagel Bakery and New World Coffee/Willoughby’s Coffee & Tea brands. Einstein Bros. will continue to be operated out of Golden, CO.

As part of the consolidation, New World expects to record a one-time charge in this year’s third quarter for estimated employee severance (about 60 jobs are expected to be cut at the two locations), plant closing and lease obligation costs. The company will also repay a $2 million note to the New Jersey EDA relating to the Eatontown facility.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.