Home » UK Business News » Vegan Shack plans UK expansion and launches fundraising drive

Vegan Shack plans UK expansion and launches fundraising drive

By Nagasunder in UK Business News, posted June 9, 2023

Vegan Shack is embarking on a major fundraising campaign to raise £400,000 and expand its presence across the UK.

The company, which initially started in a one-bedroom apartment in Salford Quays in early 2020, currently operates two locations in Manchester and London.

With a current valuation exceeding £1 million, Vegan Shack has already secured over £162,000 through its Crowdcube campaign, attracting support from more than 70 investors.

The crowdfunding campaign aims to reach a target of £180,000, with the overall goal of raising £400,000 within the next six months.

Founded by Dimeji Sadiq and Saffron Mir, Vegan Shack opened its first outlet in Collyhurst, followed by a second eatery in Piccadilly Gardens in June 2021.

In a message to investors on the Crowdcube platform, Mr. Sadiq expressed the company's focus on establishing their own stores while also considering future franchising opportunities.

The priority, however, lies in building a strong brand, and ensuring smooth operations and profitability before exploring franchising options.

The expansion plans involve initially targeting major UK cities with walk-in stores, potentially incorporating dark kitchens as well.

Additionally, Vegan Shack has plans for a food truck to participate in events and festivals.

Regarding future funding, Mr. Sadiq said the business has been able to open stores at a relatively low cost, achieving profitability in the first quarter (£21,000).

Therefore, there is no immediate need for funding to sustain the business.

However, as expansion progresses, they may seek additional funding to accelerate growth, consider larger or more central locations, and increase the pace of expansion.

While the company has been self-financed by its co-founders thus far, they received a £5,000 grant as winners of the Uber Eats Black Business Award in 2022.

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Mr. Sadiq previously played a role in Hot!Mess Clothing's founding team, while his business partner has experience in retail sales.

In a message to investors on the company's Crowdcube page, Mr Sadiq said: "The next phase of our growth is focussed on running our own stores but we wouldn't be against exploring franchising opportunities in the future.

"Our belief though is that it is better to properly establish a brand and make sure new stores can be opened smoothly and brought to profitability quickly before looking at franchising.

'Therefore we’re looking at initially expanding to major UK cities predominantly via walk in stores though we may have some dark kitchens also.

"We also have plans for a food truck to be able to pop up for events and festivals."

In a message to investors, the co-founders expressed their pride in what they have achieved independently and with limited resources but acknowledged with investment, they can accomplish much more.

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