Need some help? Close Help

The Good Egg

Food & Drink
UK - South East
Date Rated:
Valuation (Pre Money):
Industry: Food & Drink
Location: UK - South East
Platform: Crowdcube
£500,000 Expansion
Valuation: £2,750,275
Date Rated: 26/09/17



Tax Status: EIS

Business Summary

The Good Egg serves up Jewish deli and Israeli-inspired brunches, bagels, pitas and small plates alongside a drinks menu of classic American cocktails, craft beers and natural wines.The Good Egg currently serves an average 1200 customers a week in its first location and has secured a 100+ seater site in the heart of Soho in London's West End for its second. This round of investment will be used to fund pre-opening costs and working capital.

Financial Overview

Date (y/e) Sep-16 Sep-17 Sep-18 Sep-19 Sep-20
Sales Sep-16£695,710 Sep-17£815,828 Sep-18£2,792,160 Sep-19£4,781,223 Sep-20£5,160,279
Gross Profit Sep-16£476,793 Sep-17£589,897 Sep-18£1,969,634 Sep-19£3,444,513 Sep-20£3,747,398
GP as % sales Sep-1669% Sep-1772% Sep-1871% Sep-1972% Sep-2073%
Overheads Sep-16£490,419 Sep-17£603,284 Sep-18£1,998,009 Sep-19£2,967,546 Sep-20£3,088,926
Operating Profit Sep-16-£13,626 Sep-17-£13,387 Sep-18-£28,375 Sep-19£476,967 Sep-20£658,472
OP as % sales Sep-16-2% Sep-17-2% Sep-18-1% Sep-1910% Sep-2013%
Closing Cash Sep-16£61,385 Sep-17£47,759 Sep-18£360,542 Sep-19£837,509 £1,495,981

Note: This financial information has been sourced from the company on 28/09/2017. Financial data is NOT verified by Wheatfromchaff Ltd.
The Founders have proven product development skills and they have a supporting operational team to help manage the business.
The first site has given the management team relevant start-up experience and they have industry advisors onboard but the rollout will be a completely new challenge for them.
No directors pay, dividends or non-exec salaries have been paid to date, yet most of the management team seems to be full-time since inception.
Brunch is increasing in popularity and is experiencing fast growth in the industry. Furthermore, the location of the second site should provide the company a large addressable market.
The number of weekly customers, strong network of followers and many supportive testimonials shows there is a real demand for this concept and the team has already secured the second location.
The market is extremely competitive as there are many players with brunch offerings, however, the company has a strategic location that should help to gain market share.
The forecast has reasonable growth assumptions and the team will distribute costs between the sites to improve current profit margins but it will be difficult to increase them much further thereafter.
The company will face considerable upfront expenditure and has only modest headroom to protect against any revenue shortfall unless the intended overfunding is achieved.
If an exit is achieved with the expected three sites, a potential two-fold return for investors in this round seems realistic but not that appealing given the execution risk.


Although the company is behind their previous plan given the delays fitting out the first site, it has now gained strong commercial traction and relevant brand awareness and is also ahead of the targeted weekly revenue of £12k achieving £16-£18k. Therefore, the Founders have demonstrated they can build a competitive business and the second site seems to be in an ideal location. That said any F&B roll-out still represents a major challenge.

Investors should note that a further funding round to fund the third site is likely and a minimum investment of £10k is required to secure pre-emption rights.

Related Links

Crowdcube Pitch


Right To Reply

Are you the entrepreneur? If you would like to publish a comment on our rating, please contact the ratings team.

Latest Forum Comments

Read All Comments


The views and opinions expressed on this bulletin board are the sole property and responsibility of the author. Neither Crowdrating nor Wheatfromchaff Ltd, nor any of the directors or officers of Wheatfromchaff Ltd accept any responsibility or liability for them. Readers should be aware that comments do not constitute investment advice and may be inaccurate. Please seek to verify and take advice on all comments before relying on them in the context of any investment decisions you may make. if you wish to use the bulletin board please be aware you are accepting full responsibility and liability for what you write. Please look here for more specific rules we impose on people using our bulletin boards. We moderate all bulletin boards and we reserve the right not to publish your comments.


Your capital is at risk when you invest in shares and debt securities. You can lose some or all of your money and may not be able to realise your investment. Therefore you should should never invest more than you can afford to lose. If in doubt about the suitability or tax implications of any investment, please seek independent financial advice. 

Information published on this website and any other reports or ratings published on or by Wheatfromchaff Limited (trading as Wheatfromchaff) have been prepared by us in the United Kingdom for information purposes only. Wheatfromchaff Ltd is Authorised and Regulated by the Financial Conduct Authority FRN: 751017. 

No content on this website or on any reports or ratings published on this website nor any copy of it, nor any other reports or copies of them published on may be reproduced, redistributed or copied in whole or in part for any purpose. Any and all reports have been approved by, and are being distributed in the UK and the European Union (EU) only and are not to be distributed in any other jurisdictions where their distribution may be restricted by law and persons into whose possession this or any other reports come should inform themselves about and observe such restrictions.

This report and any other reports published on do not constitute an offer or a solicitation to buy or sell any securities referred to herein. It should not be so construed, nor should it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. The information on this website or in reports or ratings published by Wheatfromchaff, or on which this or any other reports are based, has been obtained from sources that Wheatfromchaff believes to be reliable and accurate, and in accordance with COBS 2.4 of the FSA Handbook we have verified it to the best of our ability. However, it has not been independently verified and no representation or warranty, express or implied, is made as to the accuracy or completeness of any information obtained from third parties. The information or opinions are provided as at the date of this report or any other report publication dates and are subject to change without notice. The information and opinions provided in this and any other reports take no account of the investors/ individual circumstances and should not be taken as specific advice on the merits of any investment decision. Investors should consider any or all of the reports or ratings we publish as only a single factor in making any investment decisions.  

Wheatfromchaff does not accept any liability whatsoever for any direct or consequential loss however so arising, directly or indirectly, from any use of this report nor its contents. Investors may receive back less that they invested as investments may fall as well as rise in value. Investors should obtain independent advice based on their own circumstances before making investment decisions. By accepting this report you agree to be bound by the foregoing limitations.

The Ratings we publish have been approved and issued at Financial Promotions in the United Kingdom by Wheatfromchaff in the United Kingdom who is Authorised and Regulated by the Financial Conduct Authority FRN: 751017. Wheatfromchaff Limited registered office is Kilver Court, Kilver Street, Shepton Mallet, Somerset, BA4 5NF and telephone number +44 (0) 1749 347 577. Telephone calls may be recorded. VAT No: 214 0196 49

© Wheatfromchaff Ltd All Rights Reserved February 2017