A consortium of high net worth individuals, including former Sainsbury’s boss Justin King, have raised £50m to snap up businesses in the high end restaurant sector.
Hestia Hospitality has so far completed three small deals is poised to buy two larger restaurants as it targets £100m in revenue within the next three years.
The company is backed by a collection of private family offices and high-net-worth individuals who are on the hunt for “premium, multi-site restaurant brands with growth potential”.
King, who is also a non-executive director at M&S, is working alongside Andrew Fishwick, 45, the chief executive of Salt marketing agency and also a restaurateur.
It is the pair’s second attempt at launching this idea, having failed to get it off the ground in 2021.
Last year they raised £1m in seed funding and have acquired three businesses, including the Native restaurant conceived by established chefs Ivan Tisdall-Downes and Imogen Davis.
The foray into the restaurant market comes amid a challenging time for the sector.
Inflation and supply issues have led to higher costs for owners, while the cost of living squeeze has meant customers have less disposable income.
Earlier this year, former MasterChef finalist Tony Rodd was forced to close his restaurant in Blackheath after his energy bills rose to £1,000 a month.
Fishwick,who has a 69 per stake in the new business, told the Times: “ The last two years there’s been no market for it, none at all. Tell people they should invest in hospitality and they look at you like you have two heads.”
The chief executive remains hopeful about demand for the premium dining market.
He added: “Now is a good time. There are incredible landlord deals out there at the moment. For the right brand that’s on message, there’s never been a better time. You’ve got pent-up demand and a more cultural consumer than you’ve ever had.”