Crêpeaffaire looks to expand with over £2m BGF funding
The multi-site crêperie UK brand, Crêpeaffaire, has secured investment from the Business Growth Fund (BGF) to accelerate its new site rollout. Crêpeaffaire, which operates 10 company-owned sites and has a growing franchise in the Middle East, will use the funding to expand across the UK and internationally.
BGF, which has become a long-term, minority investor in the business, has provided over £2m to support the expansion.
Crêpeaffaire, set up in 2008 by the founder and chief executive Daniel Spinath (pictured), provides an all-day offering, serving sweet and savoury crêpes, waffles, coffees and smoothies for food-to-go and sit in customers.
Starting from a single London site, the quick service group has opened new sites across London and other parts of the UK, including Birmingham, Newcastle, Leeds and most recently Chester. The business generated more than £5m in revenue in 2017, with system sales approaching the £10m mark.
Earlier this year, Crêpeaffaire appointed Andrew Guy as non-executive chairman to support the group’s expansion plans. He brings more than 30 years’ experience in operating pub, food and restaurant companies across the UK, Europe and the U.S., including Frankie & Benny’s and HMSHost, the provider of food and beverage services to airports and motorways. Guy is also non-executive chairman of BGF-backed The Coaching Inn Group.
Spinath said: “This is a really exciting time for Crêpeaffaire. We’ve grown steadily during the past 10 years and are now ready to accelerate our expansion and drive brand awareness, both in the UK and internationally.
“BGF is providing an initial investment but more importantly has come on board as a long-term, non-controlling partnership. We are pleased to be working with them in the next stage of our growth plan.”
Jon Simon, investor, BGF said: “Daniel and his team have created an offering and brand that is differentiated and scalable. It caters to a wide audience, providing both healthy and indulgent products, at an attractive price point. We look forward to supporting Crêpeaffaire through its next phase of UK and international growth.
BGF invests in small and mid-sized businesses in the UK and Ireland. It has £2.5bn to support a range of growing companies, whether early stage, growth stage and quoted, across every region and sector of the economy.
The company says it makes long- term equity capital investments in return for a minority stake in the companies in backs. Initial investments are typically between £2m-£10m and BGF can provide significant follow-on funding. BGF offers flexible investment structures with a mix of equity and unsecured debt.
BGF can provide equity release for existing shareholders, and funding to support acquisitive and organic growth strategies.