One of the first UK multi-brand cloud kitchen businesses has secured more than £250,000 funding on equity crowdfunding platform Seedrs.
Feastr, which smashed its target in just 10 days, has welcomed over 300 investors on its journey to revolutionise on-demand food delivery.
With three delivery-only restaurant brands operating from sites in Shoreditch and Waterloo, Feastr is exploiting the huge ready customer base of apps such as Deliveroo and UberEats.
Sales are growing week-on-week and annual revenue run-rate has surpassed £1m, having only launched its delivery-specific menus at the end of 2019.
Alex Metcalf, co-founder of Feastr, said the brand is aiming to do to the restaurant industry what Asos did to the fashion industry and Netflix has done to TV and film.
“We’re ditching the overheads associated with bricks and mortar restaurants – the high street rents, rates and front-of-house staff, instead operating from cloud kitchens in non-prime real estate built purely for on-demand food delivery. It just makes total sense,” he said.
Customers have been heavily reliant on food delivery this year due to lockdown restrictions.
However, the market was in fact growing at a substantial rate ahead of the pandemic, up 39% in the last three years and estimated by analyst firm NPD to be worth £15 billion by 2023.
Feastr will use the funds raised from this round to open a further three sites in London and finalise development of three new brands.
In the next five years it plans to grow to more than 30 sites and expand outside of the capital.