Beef & Brew
- Investment sought:
- Equity offered:
At Beef & Brew we offer quality and affordable steak in a casual environment. Established by Dan, an ex-banker with a love of food, and Jess, a Michelin-trained chef, we are passionate about what we do: we cook steaks over charcoal, make classic cocktails and don’t charge the earth. We buy from artisan butchers, breweries and vineyards. We serve great food, without fuss.
We opened our first site September 2015 and hit our revenue target in our first year. We’ve served over 40,000 meals and are a popular local restaurant, with 4.5* reviews on Trip Advisor & Open Table, and 4.4* on Google.
Beef & Brew was established with a multi site plan in mind. We focus on quality, but also simplicity, ensuring that what we do is replicable, whilst maintaining the quality required to be successful in the competitive UK dining scene.
We’re now looking to open our second site, building on our success to date. We’ve identified various locations, with a shortlist of sites which we are actively pursuing.
At Beef & Brew we want to offer the quality of a premium steak house, but much better value and more accessible. In short, we want to add our name to the list of casual dining groups in the UK, making quality steak available to more people, whilst cementing Beef & Brew as a lasting brand.
Steak & chips aren’t a fad. They are simple, delicious and timeless. At B&B we make great food at an affordable price, with interesting sides and a beer led drinks list sourced predominantly from local suppliers. We plan to keep doing that at Kentish Town and in many more sites across the UK over the years to come.
Substantial accomplishments to date
We opened our doors in September 2015 and in a short time have built a thriving, popular local restaurant. We have served over 40,000 meals with consistently strong customer reviews on Trip Advisor (4.5*), Open Table (4.5*) and Google (4.4*).
We’re well regarded: we made it in to the Michelin Guide in our first year. We were included in GQ’s best steak houses in London. We received a host of glowing reviews for our food and value. As the Evening Standard put it: “a cheap steak house that’s still decidedly decent? It’s a rare medium, but here it is decidedly well done”.
Financially we hit our mature revenue target in our first full month. We’ve demonstrated a capacity to accurately budget, to deliver trading profit (EBITDA)* and successfully run a restaurant business.
*Based on unaudited management accounts
Primarily, the strategy is to roll out a coherent brand, with shareholder exit achieved via a business sale. The goal of the business is to generate a strong return on each new site, with robust leases in strong locations, each of which, we believe, will be accretive to shareholder value. There is a mature market for the sale of restaurant businesses with experienced trade and private equity buyers, suggesting an exit will be achievable if we are successful in scaling the business.
Use of proceeds
The funds raised in this campaign will be used to support the opening of our next site. We have identified a number of possibilities, with 2 primary sites, which we are pursuing. Sites will generally fall into one of the two following categories:
- An existing restaurant, or leased premises, often fitted out to a high standard. In these instances, the cost of opening the site will comprise a premium paid to the outgoing tenant, plus the cost of rebranding and re-fitting the site to our brand’s standard.
- A new lease, provided by the landlord, often as part of a new development. These sites are often provided in shell and core state, meaning a complete fit out requirement including extraction, toilets, kitchen and all other amenities. These sites typically do not attract a premium, but the fit out costs are far higher.
Locations that we are pursuing include strong zone 2 locations, akin to Kentish Town, but with higher footfall. These include: West Hampstead, Brixton, Dalston and various other London neighbourhood locations. We would also consider central districts, such as London Bridge, Hoxton, Shoreditch and Soho, depending on affordability and deliverability.
Please also note that the company has two outstanding directors loans totalling £14,550.89. None of the proceeds from this raise will be used to repay these loans.
We would like to offer the following perks to our investors:
• £100 - £500 = 25% off a meal for 2.
• £500 - £1000 = 25% off a meal for 2, twice per year, for 3 years.
• £1000 - £2,500 = 50% off a meal for 2, twice per year, for 3 years
• £2,500 - £5,000 = Buy 1 meal, get 1 free for 1 year (excl. drinks), not more than one free meal per month.
• £5,000 + = Buy 1 meal, get 1 free for so long as you remain an investor (excl. drinks and not more than one free meal per month).
N.B. Any discounts, rewards and/or offers listed by a company in its campaign are subject to the terms and conditions applied by that company and listed above. It is the company’s responsibility to honour such discounts, rewards and/or offers and Seedrs does not take any responsibility for them.
Our core target market is predominantly, but not exclusively, young professionals. Our online engagement is greatest from the 25-34 year age group, closely followed by 35-44 year olds and then the 18-24 year age group. There is a relatively even split between men and women.
Beef & Brew’s affordability and relaxed atmosphere mean we can cater for a range of dining occasion. In addition to our core menu, we offer a range of menus from £10 early bird and weekday lunches, to brunches and Sunday Roasts. As result, we offer a well-rounded retail proposition, that is attractive across periods of the day and for a variety of dining experiences.
Characteristics of target market
The UK restaurant market is c.£79bn in size, having remained relatively flat between 2008-2014, with 0.86% growth despite the difficult economic climate.
However Branded Restaurants grew at 4.1% during the same period, and it is projected by the Pragma Market Snapshot 2016 that Branded Restaurants will continue to grow at 5.9%, with Branded Emerging Fast Food growing at 14.4%. Beef & Brew fits these categories and therefore forms part of a fast growing sub segment.
Our marketing plan is as follows:
Our Macro Targets:
(i) The Business: Showcasing the business through all of our communications, focusing on the quality and value of our offering.
(ii) The Location: Developing an area specific marketing plan for launch of site 2.
(iii) The Customers: Focusing on residents and local office workers in order to drive loyal customers and recurring spend.
Our Micro Targets (location dependent):
Office Locations: (i) Promoting our £10 steak & chips as the best value lunch deal in London. In particular, we will do that by focusing on local office workers.
(ii) Promoting our Brunch Menu to local office workers (Thursday / Friday hangover cures).
Local Residential Areas: (i) Promoting our Sunday roast, ensuring a full successful weekend, with daytime trading;
(ii) Promoting our £10 steak & chips, particularly the early bird component (6-7pm) ensuring a busy service throughout the evening.
We plan to use PR to drive media attention, which demonstrably worked with the opening of our first site. This will be enhanced through the use of advertising and social media with a planned increased focused on short videos.
Our strategy is to remain focused on value and quality, with a clear steak led offering. Our core product is a £10 hanger steak, with the menu built around that.
Within our market sector, we occupy a relatively unique space, particularly in London and even more so in other urban areas. This is how we fit in compared to our key competitors:
- Premium operators (Hawksmoor, Goodman, Gaucho): We aim to offer comparable quality at a lower price, in a more casual environment.
- Local & non-premium operators (Cau, Foxlow): Typically these are less casual and more expensive than B&B.
- Mono-Menu (Flat Iron, L’Entrecote Relais de Venice): Certain operators offer a single menu item. Flat Iron, which is similarly priced to B&B and also similarly casual, offers just flat iron steaks alongside limited daily specials. Both mono-menu operators tend to be located in central locations, whereas we believe Beef & Brew's wider offering has the breadth to operate in local areas.