David Bruce, the founder of the Capital Pub Company, has launched a new Enterprise Investment Scheme (EIS) fund to develop a new restaurant and farm shop concept.
The Country Food & Dining EIS fund is looking to raise £10m to acquire five farm shops located within a one and a half hour drive from Central London that are on stand alone sites of between five and 10 acres.
The investors plan to open casual dining eateries near the existing farm shops with the aim of competing directly with food-led destination country pubs.
Martin Sherwood, head of Smith & Williamson Tax Efficient Solutions, who also sponsored British Country Inns’ investment series, said that the advantage of buying farm shops was that they were currently being sold on a multiple of around 1 x turnover, compared with nearly 3 x turnover for pubs.
The companies will be headed by Jonathan Shearme and Gordon Leatherdale, whose original Country Food & Dining Company has already raised £2.3m to acquire the Highclose Farm Shop in Berkshire.
The farm shop, which already has a small eating area, will be extended to include a 60-cover restaurant with a mainly organic menu.
The directors plan to open the first five sites before the end of the year and will then look to roll the concept out further.
