You can use a regular expression filter to eliminate the part of the string containing "(new)"
:
import re
def myfilter(x):
return ' '.join(re.sub(ur'\(\s*[nN][eE][wW]\s*\)','',x).title().split())
wcity = myfilter( raw_input("Please enter a city ==> ") )
print wcity
wtype = myfilter( raw_input("Please enter a restaurant type ==> ") )
print wtype