Hotcha aims to raise £1m through crowdfunding on Crowdcube
Hotcha, the Chinese takeaway franchise, is aiming to raise £1m through crowdfunding, to develop its brand. It has launched a four-year mini-bond on Crowdcube, a leading investment crowdfunding platform.
Investors in the mini-bond are offered eight per cent interest per annum, over a four-year term. The offer is proving popular with investors, as the Hotcha Bond has already raised over £555,000.
Hocha says it has achieved circa £4m turnover and earnings before interest, taxes, depreciation and amortisation of circa £265,000 in the financial year ending 31 March 2015. The company estimates turnover will grow to £19m by 2019.
The company says that the finance raised on Crowdcube, will facilitate the opening of a number of new company-owned stores around the country, with experienced multi-unit franchise investors opening a series of outlets in large territories.
Bristol-based Hotcha currently has 10 stores across the South West of England and aims to open another 22 outlets over the next three years. This will see the company fulfil its ambition to become the first national chain of Chinese takeaways.
The company was co-founded in 2011 by London and Hong Kong restaurant entrepreneur, James Liang, who has enlisted former Domino’s Pizza senior executives, Andy Emmerson and Clive Mellor, to assist the brand reach its full potential in the UK.
Laing commented: “The market has been dominated by independent operators who rely on expensive in-house chefs. We fill a huge gap in the market, for a national Chinese takeaway and delivery chain, thanks to our central food production unit operated by our highly experienced executive chefs that delivers ingredients daily to the restaurants.”
The total investment required for a typical store is approximately £135,000. An average franchised unit should generate revenues up to £500,000 per annum with a gross profit margin of 70 to 75 per cent.
For any prospective franchisee investing £50,000 via Crowdcube, Hotcha says that it will waive the normal franchise fee of £15,000, subject to the individual meeting the company’s normal franchise recruitment requirements.