Peckwater Brands

Idea

Please note that whilst the campaign is labelled as EIS eligible the Company has £150,000 remaining of its SEIS limit. Investments made after £150k will be EIS eligible. Any tax relief is dependent on personal circumstances and may be subject to change in the future.

Introduction

Peckwater Brands runs virtual restaurant brands from the kitchens of existing restaurants. This is an innovative model in the growing cloud kitchen/delivery only space.

We develop restaurant concepts specifically for delivery. The clever part – they’re run from existing kitchens.

The Italian restaurant you love on the high street? It’s also a Mexican and a Korean restaurant.

Why? Running a restaurant is expensive, and most of the costs are fixed. High street rents, rates, and staff need paying, no matter how many diners visit. Because of this nearly 5,000 restaurants have closed in the UK since 2015… and that was before Covid.

Virtual restaurants are our solution to this. We let restaurants run multiple brands, which adds incremental revenue without adding to their overheads. We help restaurant partners use their existing staff and kitchen capacity better, and help keep struggling businesses running, all whilst adding choice to consumers.

Substantial accomplishments to date

- 10,000+ customer orders through Deliveroo and Uber Eats

- £250k+ of customer sales since June 2020

- Team including Deliveroo and UberEats alumni

- 40+ virtual restaurants launched

- Served customers in London, Manchester, Leeds, Coventry

- 4 brands launched, and 4 ready to go!

We've spent our time building our initial concepts and getting these ready for launch by perfecting the product and ensuring the building the background:

Step 1: Ideation - we've developed partnerships with major players in the industry to ensure all of concepts are driven by data. Our existing brands have been developed in partnership with the likes of UberEats (UK & US) and BuzzFeed, so our partners can be confident that they'll work.

Step 2: Creation - From the data our branding is designed by the best; for example the agency who came up with our chicken brand designed the current Domino’s Pizza branding! This wows customers - our restaurant partners have seen sales of our products outpace their own by nearly 20x their own sales in some cases

Step 3: kitchen science - We use a scientific approach to kitchen operations; they're developed by strategists as well as chefs! For our partners, this means fewer ingredients, bought more cheaply, and less wastage. It means everything available through a single, central supplier. And it means simple operations on the ground - none of our recipes take more than 8 minutes to prep!

Step 4: Launch! - We're now selling to the public from multiple sites, and things are going well!

Monetisation strategy

We give our partners everything they need to get trading. Menus, listings on the UK’s leading delivery platforms (Deliveroo, Just Eat, and UberEats), access to ingredients through our supply chain, training, and ongoing operations management.

We set up a second brand in parallel to their existing business – adding much needed sales with no extra overheads. Revenues go up, but rent, rates, and staff costs stay the same.

The fee to access all this is £400… compare that to the average set up fee for a UK franchise of £50k – with McDonald’s costing up to £1.85m!

Restaurants pay 30-35% to delivery platforms for their existing brands. We charge a management fee of 35%, including delivery, making our brands cost-neutral to the site. For context, McDonalds charges 12-21% of sales without covering delivery fees.

Use of proceeds

We want to reach food lovers everywhere!

To do this we need three things:

- More Partners: We need sales support to reach restaurants, and operations people to train and manage those sites – especially as we move into new geographies. We will use part of the investment to fund the salaries of sales and operations heads to sign and setup new partners.

- More Brands: Our concepts need to meet customer expectations of quality, taste, and trends, which means constant development. We will use part of the investment to develop new brands, as well as continuing development of our existing brands to ensure the product is as good as we can make it.

- More Customers: To date all of our sales have been organic. We want to be able to fund marketing to promote trials - because we know that once customers have tried our food, they’ll love it as much as we do! The final use of funds will be in-app marketing (promotions and preferential listings) on delivery platforms.