The consortium, which includes Justin King, former CEO of J Sainsbury and other high-net worth individuals, has raised £50million to acquire premium restaurants.
Hestia Hospitality – named after the Greek Goddess of Home and Hospitality – has closed three small deals, but is “in heads of terms” with two larger businesses. It aims to reach £100 million in revenues within three year.
King, 62 years old, has been dubbed a City grandee. He works with Andrew Fishwick 45, the chief executive and restaurateur of Salt Marketing Agency. Fishwick, the majority shareholder and chief executive of Hestia with a stake worth 69 percent, is Fishwick.
Fishwick, and Queen are hoping for a second chance after attempting to launch a similar project in 2021. Fishwick stated that the project “didn’t work out.” It was taking much longer and with more pain than we should have, so we moved forward. The timing was off but the idea was good.”
Last year they launched their second effort, raising £1million of seed funding. They have so far acquired three businesses including the Native Restaurant conceived by Ivan Tisdall Downes and Imogen Davies. Recently, they left their Covent Garden location and moved to Pensons in Worcestershire. This former Michelin starred restaurant closed in December.
There have also been two other deals signed. It is believed that the establishments are run by Budgie Montoya of Great British menu fame. It has also taken a small stake in All Things Bloom – a coffee brand created by Henry Ayers formerly of The Gentlemen Baristas – which went into administration in January.
King is a nonexecutive director at Marks & Spencer, and the nonexecutive chair of Itsu the sushi chain. He is also a special advisor to the Hestia board and a minor shareholder. Simon Esner is its chairman. He’s 62 and a founding director at WSH, which owns BaxterStorey and Benugo.
The company has a group of private family offices, as well as high-net worth individuals, who support the search for multi-site premium restaurant brands that have growth potential. Fishwick stated that the group targeted businesses that survived the pandemic, and that were “fundamentally operating well but had balance sheets that were pretty kaput”.
He acknowledged that convincing investors to invest in the hospitality industry was “a difficult task at best.” In the last two years, there has been no market. “Tell people to invest in hospitality, and they will look at you as if you have two heads.”
Hestia’s ability to raise £50m to fund deals, however, showed that the tide had turned and that investors were realising that “now is the right time”. Right now, there are some incredible landlord deals. There’s no better time to launch a brand with a clear message. There’s a pent-up consumer demand, and you have more culture than ever before.”
Fishwick, far from being confined to London, said that he wanted to “pretty rapidly” move into the regional markets and internationally using the correct concept to capitalize on the “massive underestimated in our industry”.
Fishwick and King planned to flotation their company three years ago but failed to get the support of the market. With £50 million from private investors this time around, the plan is to go for it.
Fishwick stated, “We want to make this a big deal.” “We’re going to give it some rocket fuel.” We are looking to make a lot of significant purchases.