Hey Hot Potatoes,

Welcome to the latest edition of the Hot Potato Newsletter! Cor, it's absolutely sizzling out there at the moment isn't it? Apart from the scorching weather, I hope you're all having a great summer - can't believe it's already August!

Speaking of all things sizzling, I just spent the past week diving deep into a brand that's built their fortune by sizzling patties on the grill. We’re talking about the burger legends, Honest Burgers. I discovered how they grew from two Brighton restaurant workers with £3,000 and a drunken pub conversation into Britain's most successful homegrown burger empire worth £56 million, all while maintaining the authenticity that made them special.

While analysing their regenerative farming supply chain (the first of its kind in the UK), I realised Honest Burgers isn't just another restaurant success story. They've completely rewritten the hospitality scaling playbook. For every chain desperately chasing American imports like Five Guys and Shake Shack, Honest Burgers proved you can beat them at their own game by being unapologetically British.

The numbers are absolutely mind-blowing: From one tiny Brixton "shoebox" in 2011 to 39 locations today, they've achieved 17% year-over-year growth, 22 consecutive months of like-for-like sales increases, and somehow managed to cycle through three CEOs in 18 months without missing a beat. They're planning to quadruple by 2030 while launching "Smash + Grab" to take on the likes of Shake Shack and Five Guys.

The burning question: Is Honest Burgers the blueprint for building authentic British hospitality brands that can compete globally or are they a lucky anomaly? We're decoding their secret formula and revealing the lessons every operator can steal.

In today’s email: The Boozy Brighton Conversation That Built a £56M Burger Empire

Read Time: Approx 3-4 mins

How a Boozy Pub Conversation Became a £56 Million Burger Empire

Source: Restaurant Online / The Caterer

Tom Barton and Philip Eeles met in 2009 while working at Riddle & Finns restaurant in Brighton and initially couldn't stand each other. The turning point? "Several beers" at the Bath Arms pub and a drunken decision to start a burger business.

Key Points:

• The £3,000 gamble that changed everything: They bought a marquee, griddle and fryer to serve burgers at festivals. Early days were brutal, battling gale-force winds at Lewes Bonfire Night, staying up all night hand-cutting chips but generating immediate queues at their first Brixton Village location.

• Strategic angel investment unlocked scale: Dorian Waite invested £2,500 alongside the founders' contributions, bringing hospitality expertise that transformed amateur enthusiasm into professional operations.

• Brixton Village provided the perfect launchpad: Their tiny 10-table restaurant generated massive PR value. "You could have had a £1m PR budget and you wouldn't have got the coverage we got from a little shoebox in Brixton," Barton reflected.

• Authenticity from day one: They made their own chips, sourced quality British beef and never compromised on ingredients despite higher costs. This foundation became their competitive differentiator.

The Supply Chain Revolution That's Actually Changing Everything

Source: The Caterer / Tonic Communications

Honest Burgers didn't just build a restaurant chain, they built Britain's first regenerative farming supply chain at restaurant scale, completely redefining what "farm to table" means.

Key Points:

• They own their entire beef supply chain: Operating their own butchery, buying whole cows directly from British regenerative farmers. They use 70% for burgers and sell premium cuts to partners like Turner & George – this is vertical integration, not just procurement.

• The £600,000 sustainability bet: In 2022, they became the first UK restaurant chain to switch entirely to regeneratively farmed British beef. This produces 50% less carbon per kilogram than standard UK beef while creating complete "field to plate" traceability.

• Transparency as competitive advantage: Hand-cut chips from a single West Sussex farm, beef served medium-rare like steak, never-frozen ingredients. "Telling people where their food comes from is really important," explains Eeles. "Still today in a lot of places they don't tell you where their meat is from; either because they don't know, or they don't want you to know." Customers are even more demanding and are choosing to prioritise brands that promote transparent practices.

The Growth Strategy That Defies Franchise Logic

Source: MCA Insight / Restaurant Online

While competitors chase rapid franchise expansion, Honest Burgers proved methodical growth with community connection generates better returns than venture-backed rapid growth models.

Key Points:

• Local partnerships over standardisation: Their "Local Burger Programme" ensures each location has a unique burger collaborating with nearby businesses. Partnerships with local breweries create genuine neighbourhood experiences rather than chain uniformity.

• Site selection with character: They deliberately avoided generic high-street locations, choosing sites "with character and history" while maintaining table service. This generated consistent like-for-like sales growth averaging 10% above industry benchmarks.

• The dual-brand expansion strategy: December 2024's "Smash + Grab" launch represents their QSR concept targeting major fast-food chains. It is also capitalising on the latest smashburger trend while also offering an even more affordable price point, well suited to the current economic climate.

• Financial discipline during expansion: With £2.8 million raised through crowdfunding in 2023, they plan 15 new openings over 2.5 years. Compare this to competitors who raised tens of millions for rapid expansion that destroyed unit economics.

The Financial Performance That Survived Leadership Chaos

Source: The Caterer / Restaurant Online

Here's what nobody talks about: Honest Burgers cycled through three CEOs in 18 months but their financial metrics remained bulletproof throughout the leadership turbulence.

Key Points:

• Resilient growth despite management changes: Current leader Matt Brandon brings restaurant finance expertise from Popeyes and Burger King. Despite CEO musical chairs, they achieved 60% EBITDA growth in H1 2024 and 22 consecutive months of like-for-like sales growth.

• Digital strategy generating real returns: Delivery now represents nearly one-third of total revenue, with exclusive Uber Eats partnership driving 22% growth in like-for-like delivery sales. This focused approach shows strategic discipline many chains lack.

• Investment backing from proven winners: Over £12-15 million in total funding from investors including Active Partners, who backed Leon and Soho House. Smart money recognises sustainable business models.

The Verdict: The Blueprint for Authentic British Hospitality

Key Points:

• Authenticity drives extraordinary growth when executed with operational excellence. Their success stems from five principles: Quality over convenience, local over global, sustainability as strategy, measured expansion over rapid scaling and progressive people policies including simplified handbooks and paid sabbaticals.

• Values-driven positioning creates defensible competitive advantages. Being first-to-market with regenerative farming created positioning competitors can't easily replicate, while transparent supply chains build trust in an industry often criticised for opacity.

• Community connection generates better unit economics than standardisation. Their neighbourhood restaurant approach creates customer loyalty that generic chain experiences cannot match.

If I was building a restaurant brand tomorrow, I'd steal three things: Invest in supply chain transparency, create genuine local partnerships and prioritise sustainable growth over investor-driven scaling.

Today we've decoded how Honest Burgers built Britain's most successful homegrown burger empire. I want to know: if you were building a restaurant concept inspired by Honest Burgers tomorrow, what would you prioritise first? Supply chain transparency? Local community partnerships? Sustainable growth over rapid scaling?

Now, speaking of brands redefining entire industries... have you seen how luxury fashion houses are completely taking over hospitality? From Louis Vuitton's Michelin Guide cafés to Dior's designer dining rooms, fashion brands are proving you can literally eat luxury for a fraction of owning it. It's not just about serving overpriced lattes, it's about creating lifestyle empires.

In our next edition, we're exploring fashion's hospitality revolution: deep diving into why luxury brand-led hospitality ventures soared 20% in 2024, how Gucci's Osteria earned Michelin stars and most importantly, whether this trend represents sustainable business evolution or expensive Instagram moments.

Ready to discover how fashion houses are rewriting hospitality rules? Subscribe now to get our exclusive breakdown of luxury's dining takeover!

Bon appétit,

Max Shipman, Founder, Hot Potato

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