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Sun 22nd Nov 2015 - Lifestyle Hospitality launches £500,000 crowdfunding to expand Burgerfest
Lifestyle Hospitality launches £500,000 crowdfunding to expand Burgerfest: Lifestyle Hospitality Group, which currently has 12 sites in the UK and is led by James Eyre, has launched a crowdfunding campaign to raise £500,000 to expand its better burger brand Burgerfest in the UK and internationally in return for 6% of its equity. The business now operates 12 sites with turnover of £6.69m in the year to 31st May 2015 and Ebitda of £800,000. The company also operates the Tiger Bills, Apple and Parrot and Mambo brands. It wants to embark on a plan to invest £3.5m over five years to expand Burgerfest. The pitch states: “We are forecasting a steady increase in both sales and profits as the business expands. Over the next three years we forecast the following key financial milestones: Year Ending May 2016 – Turnover £7.91m with pre-tax profits of £791,000; Year Ending May 2017 – Turnover £12.05m with pre-tax profits of £1.76m; Year Ending May 2018 – Turnover £15.6m with pre-tax profits of £2.77m. The business has plans to invest £3.5m over the next five years with £1.57m planned during the next three years. As we are looking to raise £500,000 from the Crowdcube community, we will be funding the balance from retained profits. The £500,000 funding will be used to open new Burgerfest restaurants alongside the £3m the company will be investing from its own profits.” Prior to forming the Lifestyle Hospitality Group, James Eyre was a main board director of Eldridge Pope where he was responsible for the property portfolio as well as mergers and acquisitions. The company has promised a minimum dividend equivalent to an annual yield of 6.5% of the cash value of the investment paid annually in October of each year (subject to the company generating sufficient profits). The existing founding shareholders have waived their entitlement to the 6.5% dividend yield to allow Crowdcube investors receive a return on investment ahead of them. The pitch adds: “Have you ever been in a restaurant where you get up and play on one of your favourite arcade games or been somewhere you can show your kids your favourite Nintendo games? Just as importantly have you ever been anywhere you can relive your youth with old school and college friends playing each other on Nintendo game while having a great meal? We believe no-one else in the market provides this experience with great freshly made burgers. We believe that the major growth opportunities exist in opening key UK cities such as Bristol, Birmingham, Cardiff, Manchester, Liverpool, Leeds, Leicester, Milton Keynes, Nottingham, Sheffield and London where the market size, due to population and consumer spending power, is much larger than our home market of the Southwest of England. Burgers are an internationally accepted concept and we have already received international enquires for European cities and in the far east. We have taken casual dining to a new level – casual should also be relaxed and provide a positive environment for socialising. Burgerfest has been built like this from day one with its cool, relaxed, retro, fun-to-be-in atmosphere. Tiger Bills will adopt this model in the fullness of time. We have appointed a specialist consultancy to grow this side of the business through a global franchising programme which will provide additional revenue streams and enhance the Burgerfest brand value.” So far, £26,390 has been pledged by nine investors.



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