Exclusive – Mildreds secures new funding, signs on two new sites, to launch bakery concept: London-based, vegan restaurant group Mildreds is set for further expansion in the capital after securing a multi-million-pound funding package, Propel has learned. The Sam Anstey-led business, which currently operates six sites under its eponymous brand across London, will use the funding to open a further two new sites in the capital, in Victoria and Wimbledon, in early 2024. The new round of funding was provided by existing investors, Encore Capital, which have supported the brand’s expansion since 2019 and comes following the successful launch of sister concept Mallow’s second site in Canary Wharf earlier in the year, and the continued strong trading performance of the group. The Wimbledon site will be part of the newly redeveloped Wimbledon Centre Court shopping mall. Located in an old grade II-listed fire station, the restaurant will feature more than 100 covers alongside an outdoor terrace facing onto Queens Road. The site will also see the launch of Mildreds’ new plant-based bakery concept, MiMA. The company said: “MiMA showcases the delights of plant-based baking, serving freshly baked vegan pastries, open sandwiches, salads, and a display of all classic Mildreds desserts, alongside a drinks menu of speciality coffees from Allpress and freshly pressed juices.” The Victoria location will be a 120-cover restaurant, alongside an extensive outdoor terrace, located on the ex-Le Pain Quotidien site in Wilton Road. Anstey, managing director of Mildreds, said: “With this substantial investment, the group is set to embark on an exciting journey of expansion and innovation, promising even more exceptional dining experiences. Securing additional funding from Encore Capital has allowed us to continue the rollout of our iconic brands across London. Despite ongoing economic challenges, we continue to thrive and seek out opportunities for future growth, which is a testament to the hard work and dedication of the team helping to create a local and international customer base. With a commitment to offering a delicious, cruelty-free menu, supporting local communities and championing sustainable practices, Mildreds continues to redefine the vegan dining experience.” In addition to its two new locations, Mildreds is launching a third cookbook featuring a brand-new collection of over 100 recipes for plant-based eating.

Honest Burgers crowdfunding campaign reaches more than £1.6m on launch day, comes with £31m valuation: A crowdfunding campaign from Honest Burgers, the Active Partners-backed business, has reached more than £1.6m on its first day. The 40-strong company, which had already raised £1m from Active before the campaign began, had raised £1,680,348 in total from 1,274 investors by 6pm, in return for 5.14% of equity. The campaign, which came with a pre-money valuation of £31m, will close in seven days. It is thought the company intends to raise up to £5m. The company plans to use the new funding to return to the expansion trail and launch a new premium quick service Smashed Burger concept. Propel understands that the business has earmarked the former YO! at 5-14 St Paul’s Churchyard for the first site under the new format. The company acquired the site last summer. The Frank Hayes-led company said: “We’re restless in our ambition to make things better. We believe we’re the only major burger chain to have our own butchery and make our own burgers. We make everything we can in our own prep kitchen with the best ingredients we can. Last year we launched Honest Farming to tackle our beef emissions – sourcing directly from regenerative farms who focus on promoting soil health, biodiversity and carbon capture. We have a track record of consistent sales and profit growth, and this year we are forecasting to deliver £55m sales turnover (+23% year-to-date vs FY23) and to deliver £4m-plus Ebitda (FY23 sales: £48m, Ebitda: £3.8m), despite headwinds in the industry. We now have the team in place to take the brand to the next level: to open more Honest restaurants, building our presence in regional cities as well as London. And to launch a brand new restaurant format, following the success of our Smashed Burger launch. With a new range, we believe we can challenge the big guys in the premium quick service burger market, in a set-up built for speed, convenience and value for money.” On the new Smashed Burger concept, the business said that “with a new range of burgers, sides and milkshakes, we believe we can challenge the big guys in this sector, in a set-up built for speed, convenience and value for money, while never compromising on our Honest quality and values”. In a reply to a question asking about its expansion plans, the business said: “Expansion will come from two key initiatives, first by opening new Honest Burgers restaurants in their current format. This would include key regional cities, increasing density in existing regional cities and also looking at key neighbourhoods in London where we feel there is still an opportunity. Second is to launch a brand new concept in the quick service category, based on our smashed burger. We believe we can compete on all fronts, but most important to us is on quality, and then on value. We’re biased, but we are very confident that our quality is better than any of the competition you mention – our grass fed beef, with burgers made by us in our own butchery, combined with our fresh, never frozen chips. We track our current restaurant prices against both Five Guys and Shake Shack and we already match/beat them, even after including our restaurant service charge – so we know we can match them. Moreover, our quick service format is specifically designed for simplicity, volume and cost efficiency, which will allow us to be more competitive on our prices than in our restaurant format. Of course, we won’t be fully matching McD/BK on prices, but we will be limiting our price premium against them so that it is easily justified by the difference in quality.” In February, Hayes told Propel the company was “performing strongly” and seeing strong sales momentum, and is beginning to again look at expansion opportunities. Last October, the business launched the Smashed burger as its new entry level burger. Hayes said: “It’s a fantastic quality product, based on our smashed patty, at a price of £8.50 for a burger and rosemary chips, and is also a slightly lighter eat, which we think makes particular sense as a weekday lunch option. Customers have responded positively, and it immediately hit a significant share of our sales mix and added to the existing growth we were seeing.” At the start of 2015, Active invested around £7m to acquire a circa 50% stake in the then nine-strong Honest Burgers, which was founded in 2011 by Philip Eeles and Tom Barton. Honest Burgers features in the Propel Turnover & Profits Blue Book. Its turnover of £48m is the 159th highest in the database. The Blue Book ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email jo.charity@propelinfo.com to upgrade your subscription.