New World Restaurant Group to relocate headquarters
January 23, 2007
by Eric Schroeder
GOLDEN, COLO. — New World Restaurant Group, Inc. announced it will relocate its corporate headquarters to Lakewood, Colo., from Golden, effective June 1. The move is expected to save approximately $3.5 million in lease payments over the 10-year term of the new lease.
Rick Dutkiewicz, chief financial officer, said that in addition to significant cost savings, the new facility will afford the company more efficient use of space while preserving excellent access to major thoroughfares for employees.
"We are very pleased with this new lease arrangement, which allows us to significantly reduce our long-term lease costs while improving the overall workplace environment for our employees," Mr. Dutkiewicz said. "While we remain focused on improving profitability through the long-term growth of our business, we are also continually looking for opportunities to lower our cost structure in select areas that make sense. In this case, we will save approximately $3.5 million on overhead costs over the life of the lease. This move follows a 2006 debt refinancing that lowered our average cash interest rate by nearly 4%, resulting in an expected $5 million annual improvement in after-tax cash flow."
New World Restaurant operates locations primarily under the Einstein Bros. and Noah’s New York Bagels brands and primarily franchises locations under the Manhattan Bagel brand.