XANDOCOSI may not mean much to diners in Southampton but the US trend for having one caf bar for breakfast, lunch and dinner is proving a winning combination for deals experts in the city.
Michael Barcia, director of corporate finance for Lester Aldridge in Southampton, has just completed a deal which will see this type of caf bar appearing in the UK.
Billed as the ultimate in convenience the new venture is called mix and is the brainchild of entrepreneurs Jonathan Cooper and Ed Bentley.
Trading for 18 hours a day and designed to maximise each day-part accordingly, mix encapsulates the functions of a top-class fast-food sandwich and coffee operation with the mood, form and feel of a late opening continental hang-out caf. At the heart of each mix is a stone oven in which to bake the fresh bread created for you by mix bakers from a scratch dough recipe.
"We decided to go alone and raise capital for a start-up," said Jonathan. "We chose Lester Aldridge as we liked its one-stop shop approach to the financials and legals. Now it's up to us to push forward. The UK caf bar sector needs a shake-up."
Lester Aldridge corporate finance arranged the deal, with funding provided by a private business angel and Lloyds Bank plc.
"We were very impressed with their level of expertise," said Mr Barcia.
"To us it was obvious that the team would succeed in fundraising and we wanted to help them. Fundraising for a less than £1m equity requirement, particularly for start-ups, is not too easy at the moment. We focussed on attracting funds from the private investor market. Lloyds TSB Bank also took a welcome commercial stance and backed the team. All of us at Lester Aldridge wish mix luck with their venture."
One week after completing the fundraising process the team were active again with the completion of the acquisition of their first satellite branch, the wrap bar Feast, based in London. Although initially London-based, mix is planning a rollout which may see them arriving in Southampton in the near future.
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