Butterware Investment Website
Butterware provides online ordering services for lunch-to-go businesses on a commission basis.
With the aim of enabling sustainable growth, Butterware is seeking capital investment for development and marketing costs.
Butterware is a cloud-based application providing lunch-to-go businesses with websites capable of processing online orders. The target market typically comprises sandwich shops and delivery services, although any business supplying food for collection or delivery can be supported.
- Butterware Ltd was incorporated in 2011, although research and development started prior to that. It is now a well-developed and rigorously tested service backed by a loyal customer base.
- Its service model ensures an ongoing and dependable revenue stream, while continuing development and new features nurture good customer relations and typically increase revenue per client over time.
- Butterware has become an established player in the ‘Lunch-to-go’ market with good exposure via industry channels as an industry expert.
- Butterware are seeking investment of £280,000 for a stake of 35.00%.
Investment will allow:
- the development and design team to dedicate more time to the project
- implementation of a coordinated marketing strategy
- recruitment of the first full-time account manager
- expansion to new markets, initially France
- Butterware to dominate an industry which is currently open
- accelerated release of new features, improving clients’ growth and thereby increasing Butterware’s own revenue.
Background and idea
The idea behind Butterware came from Managing Director Graeme Simpson’s own lunchtime experiences while working on a typical trading estate near Hereford. With only thirty minutes for lunch, he had to choose between dashing to a nearby shop, queueing, waiting for a sandwich to be prepared and driving back to eat or waiting for the sandwich delivery van to turn up, often late and with limited remaining stock.
Online ordering with the Butterware service solves these problems for the end customer. Delivery services can carry their customers’ choices on board; no more ‘last butty on the van’. Collection can be faster by removing the queuing, preparation time and payment hassle, thereby leaving more time for enjoying lunch.
The service is very much in the interest of the businesses as well. Companies providing delivery services can cut wastage by reducing the number of speculative orders they carry. Those offering collection can extend their busy period by preparing more orders in advance, thus allowing them to serve more ‘walk-in’ customers who haven’t pre-ordered. With the “recommend a friend” feature, and the ability to run promotions rewarding existing customers, companies can expand their customer base, and encourage repeat business.
Butterware provides each business with a managed, customisable website allowing their customers to order and pay online. The orders are then automatically printed by either a dedicated label printer or an A4 printer. The system has been designed to operate with little or no interaction from the business during the working day, allowing them to get on with the job of serving their customers.
In addition to improved efficiency, businesses can start to gather vital data about their customers, something rarely available to lunch-to-go businesses in the past. Butterware provides its clients with a range of tools, helping them to monitor, market and improve their businesses.
- newsletters, targeted to all or subgroups of customers to promote and stimulate business
- vouchers and discount coupons, typically for distribution via digital newsletter or printed flyer
- the “recommend a friend” feature via email and social media, promoted via rewards to be spent in store
- weekly and monthly performance reports to monitor ongoing progress, as well as reports showing popular items and ingredients
- meal deals to encourage increased average spends and loyalty rewards to encourage repeat business
The Butterware Team
Managing Director BSc (hons) Computer Science with Software Eng
Graeme is the project founder, with a background in IT Security which has taken him on projects across North America, the Middle East and West Africa. Graeme is responsible for company strategy while also making a significant contribution to development work.
Developer Graduate in Computer Science at Paris XIII University
David has more than 20 years’ experience in software development, including 10 years as an Oracle Database architect and 8 as a full stack web developer. He has worked on many enterprise applications and start-up projects for clients in the travel, social networking, e-commerce and nance sectors (back of ce, cash management, nancial risk management and accounting). David leads the development of the Butterware system and also takes a keen interest in monitoring and performance.
Developer BSc (hons) Applied Science
Matt has over 20 years’ experience in Microsoft Technologies and applying it to various industries, including Food & Beverages, Insurance, Education and Utilities. Matt leads the development of the shop printing systems, ensuring that orders are printed out correctly on a number of different devices and formats.
Marketing / Customer relations BA (hons) Psychology and Philosophy, ACIM
Louise has 14 years’ experience in Marketing and Corporate Communications across a range of industries including Oil & Gas, Pharma, Utilities, Logistics and Technology. Louise has worked in large, multi-national corporations as well as SMEs and start-ups. Louise manages the day-to-day marketing including social media, PR, customer communications as well as advising on future development, brand and strategy.
Designer / Front end developer BA (hons) Visual Communications
Grant has 20 years' design experience across a broad spectrum of sectors including, media, nuclear, engineering, not-for-profit and technology. Working in both agencies and corporates he has developed a broad range of skills, however, he now spends his time working on Brand, Print and Web projects taking the creative lead and project management.
Why Butterware and what makes it different?
- Butterware is an existing, stable service which has been proven to help its clients increase their business and improve efficiency.
- Butterware is a niche service whose development has been guided by the recommendations and experience of numerous business owners to create a system tailored to the industry as a whole, while remaining entirely customisable for each client.
- Butterware does not provide a single portal for all its clients - each business can create their own dedicated and independent website. This leaves the business in full control of their customer base, cashflow and brand.
- All existing development work has been done by the Butterware team, without any cost (or debt) to the business.
- Butterware has contributed numerous articles to the trade press on the technical aspects of the catering industry, establishing the Butterware brand and highlighting this exciting growth area.
- Successful sandwich shops use Butterware: two of the six businesses awarded Gold for ‘Independent Sandwich Bar of the Year 2015’ at The Sammies are Butterware customers.
- One member of our team is based in Strasbourg, France - a potential aid to any future expansion into Europe.
There are already several big players in the online ordering market for evening takeaways, with Just Eat and Hungry House being the two largest. They typically use the portal method, whereby the end customer visits a single website, regardless of the business they wish to order from.
Butterware differs from these portal sites in that it offers a unique website for each business, allowing its clients to remain in control of their brand, cashflow and customer base. By being given their own sites, businesses have full responsibility for their own marketing, supported by Butterware’s technical marketing tools. Naturally, some businesses are better at this than others, but the majority of the technical marketing features are managed automatically once enabled.
By providing our clients with individual sites rather than a portal, we are targeting businesses who are keen and able to take responsibility for their own brand and marketing. They are therefore more likely to succeed generally and succeed with Butterware. An individual website is better for Butterware’s clients, which in turn is better for Butterware.
Although each client has their own individual website, the Butterware system is actually driven by a single, cloud-hosted platform. This makes system management easier and also scalable to handle greater volumes of traffic almost instantaneously. The system is able to handle an uplift in business and traffic easily and would also benefit from economies of scale as it did so, despite low running costs to start with.
A small number of other businesses operate in our target market for lunchtime orders; however, like us, none has yet managed to become a dominant force. The lunchtime industry is still waking up to the benefits of online ordering and is currently trailing behind the evening takeaway market.
Interest is growing, however, and the Butterware team feels it is well positioned to be the first to break through. Our chief competitors include:
- LunchQ - a technically inferior system (in our opinion!)
- Bring Me Lunch - portal based and therefore not providing the best service to customers
- Spoonfed - Pricing structure limits use to buffet provision only
- mmmLunch - Portal based app
Some lunch-to-go businesses have also used standard e-commerce packages such as Shop Rocket or simple web-based forms. We believe our system provides more flexibility and is better suited to the lunch- to-go market as it’s been specifically designed for this industry and includes key features not available in standard e-commerce packages.
Who are Butterware’s potential clients?
Our primary market is independent sandwich shops with a small number of outlets, those who largely target office workers rather than shoppers. The most successful Butterware clients so far have been those positioned on or close to an industrial estate, with a significant proportion of offices rather than solely factories. However, it is certainly not limited to this demographic.
Until now we have primarily been targeting sandwich businesses, although their menus often extend to jacket potatoes, salads, etc. Our menu system is perfectly capable of working with a wide range of lunchtime offerings, indeed any menu where the food is either collected or delivered. Our clients can be (and are) sandwich shops, delivery services and also those offering buffet menus. The latter take higher value orders but fewer in number and tend to be more variable in income from week to week. Sites taking single orders are generally more consistent but both types have seasonal rises and falls. We also have one client that sells fresh juices and have had several enquiries from businesses wishing to provide cakes.
Although chains such as Subway may be easier to spot in their prime locations, an enormous number of sandwiches are bought from independent shops. These independents cannot afford to commission their own custom system, particularly not one as feature rich and beneficial to their business as ours. Our pricing model means that the shop is only paying in line with their ability to pay, an excellent safety net for any small business.
While the UK food-to-go sandwich market is often very difficult to calculate due to the large number of small independents, the British Sandwich Association puts its current worth around £4.4 billion per annum. That figure doesn’t include other lunch-to-go options. The UK sandwich market as a whole employs around 300,000 individuals.
According to the BSA, the market has seen growth of approximately 2.2% between 2015 and 2016. Within this figure, sandwich bars have enjoyed growth of 7.5%, offset by a downturn for forecourts, newsagents and convenience stores. The average price of a sandwich was £2.14, an increase of 2% from the previous year.
Despite the challenging economic conditions over the last few years, the lunch and food-to-go industries have been very resilient, as consumers have been willing to spend higher amounts of money _ 6.9% of all consumer spending on goods and services was spent on restaurants and cafes in 2010, rising to 7.2% in 2014.
According to Industry Analysts Key Notes, the coffee and sandwich shops market is forecast to witness significant 10-year growth of 106% between 2010 and 2019, from £5.05bn to £10.4bn (retail selling prices). Between 2015 and 2019 the number of outlets is expected to increase by more than 4000 outlets. This can be put down to a number of factors including increased consumer spending; investment by national chains; innovation in menu and service; and the demise of the pub trade.
In terms of store volumes, Key Note estimates that there will be 58.6% more coffee and sandwich shops in the UK in 2019 compared with 2010, rising from 14,000 to a forecast volume of 22,204.
Growth of sandwich and coffee outlets
While large chains such as Subway, Greggs and Pret A Manger are more visible in the market, there is still a very high demand for independents, particularly since the public’s upset regarding tax avoidance by global corporations.
While the figures may be difficult to pin down, what isn’t in doubt is that the market is enormous and with good reason. Sandwiches are generally perceived as a healthy choice as well as relatively cheap compared with other lunchtime options. Coupled with the wide range of choice available, the sandwich market isn’t going to disappear anytime soon.
Market demographics and preferences
Mintel has researched the demographics of sandwich shop users; some of their key findings are presented below. Main users of sandwich shops are those aged 16-34, urban-based people (particularly in London), ABs, those in full-time employment and those in education.
- 34% of people repeat order.
- 58% of people are put off by queues.
- Consumers like loyalty incentives.
- 69% of users state convenient location is a key factor.
- Nearly 50% state fast service is a factor.
- 62% of people said they would use takeaway counters if available.
- 51% said they would be more likely to use priority queues if they were available.
These findings suggest that the market would be very receptive to innovation in online ordering for lunch businesses.
Expansion into overseas markets
It would take relatively little technical effort to expand into overseas markets. We are already well placed to start expanding into Europe as one of our team is based in Strasbourg, France. We have made some preliminary enquiries and have had a positive reaction from local French businesses. We have also already received enquiries from businesses based in Germany, Malta, Portugal and Gibraltar.
One area we do not plan to move into is the evening takeaway market. In technical terms, it would be relatively straight-forward. However, the evening takeaway market is already well covered, and it is not in our interests to try to force ourselves into an already competitive market when a far more open one exists.
Butterware charges 2.5% of all orders successfully placed via their clients’ websites. This is charged in arrears on a monthly basis with the majority of clients paying via Direct Debit. Our invoicing system is already fully automated, calculating, raising and emailing invoices, directly in our online accounts software.
The majority of Butterware clients greatly increase their turnover over time, increasing our revenue at the same time. Once their customers start to use it, organic growth is achieved through word of mouth and the systems in-built promotional tools. If the business takes a more proactive role in marketing, using newsletters and special offers for example, then their effort is always rewarded with faster and more significant growth.
The chart shows the growth of one of our clients over a twelve month period. Note the obvious dip in sales around Christmas.
One of our aims following funding is to dedicate more time to assisting our clients achieve good, consistent growth. This will be done with the help of a dedicated customer account manager and also by providing more and better online support resources such as screencasts.
There is currently an initial design charge of £250 for creating the website template for all new clients. This covers using their branding and colour scheme to create a custom design for their individual website. Other minor changes are chargeable on a quote basis.
Ordering systems serving the evening takeaway market typically charge a much higher percentage than we do, but, given that most are portal systems, they also provide marketing in addition to their service. Once the portal is established, they are able to force high charges because businesses feel they have to be a part. This is not true customer loyalty, however, and a newer, cheaper portal could easily take swathes of clients once they have managed to achieve a critical mass.
The small charge businesses pay for online orders does not deter them from converting their existing customers across to using online ordering, as the improved efficiency they enjoy outweighs the charge. Because our service by its nature provides business growth, our charge represents excellent value for money for them. Despite the comparatively low charge, because large numbers of orders are placed through the service, we are able to be profitable. Our more successful shops are generating monthly orders worth tens of thousands of pounds.
One additional area we have considered is to provide new customers with a starter pack as an optional extra. This could be tailored to their needs, ranging from a few hundred to a around one thousand pounds. In return, we would provide a more hands on service to get them started. This could include:
- A site visit to guide them through the process of creating their online menu and choosing the correct settings.
- Taking photographs of their premises and food to help to provide colour and interest on their online presence.
- Creating a marketing plan to get them started more quickly.
While all these things are reasonable and helpful to the client, they would also be beneficial to Butterware as we would have a better prepared business, selling online more quickly.
How does the Butterware system work?
As already stated, each business is provided with a custom website. Some businesses have more than one website so that they can offer, for example, single orders through one and buffets through another. Some clients also offer alternative menus and pricing to particular customers under special arrangements.
Having separate sites further allows a business to apply different settings as well as menus. A company would probably be happy to provide orders on an invoice basis for buffets, but not for single orders. But they would also want a higher minimum order value and the order deadline would be further in advance in order to give them the appropriate preparation time. Having separate sites allows this level of control. Because the sites share the same branding and can be linked together, the customer experience is seamless.
Branding and setup
Having created the website for a client, we then work with them to develop the template themed to match their company branding, as mentioned above. These can be quite varied in style as can be seen below.
TODO: BRANDING EXAMPLES!
We discuss with the customer the available options and how they would best work for their business. We also usually assist them with the initial creation of their menu, demonstrating how they can maintain it themselves in future.
The business needs to receive the orders in order to prepare them. Orders are automatically downloaded via a Windows based PC on the premises and printed by a dedicated label printer or any generic A4 printer without any need for the user to do anything. There is no requirement for users to look at the computer at all during the working day.
If the business has more than one premise then naturally they will need one printer per location. The printout contains all the information required to prepare the order, along with whom it is for, whether it’s for collection or delivery (and where) and the payment information including whether any balance is outstanding. We recommend printing onto labels for single orders and A4 for buffet orders, but the business is free to choose whatever format suits them best.
A physical print-out of the order is easier for the kitchen to handle than trying to use a mobile or tablet. The labels can be adhered to the outside of the bagged order and, in the case of deliveries, also include the delivery address and route information. A sticky-backed label avoids any health and safety problems that could arise from using staples.
Customer sign-up and use
When the site has launched, customers register their details and marketing preferences. If applicable, they are also encouraged to register any delivery addresses. The business can choose to manually approve addresses for delivery or set up rules for auto- acceptance based on predefined criteria.
The map opposite is a screenshot from a website showing delivery addresses registered to one of our clients (shared with their kind permission).
The customer builds their order from the available menu. The menu will comprise single items such as canned drinks, fruit, etc. and combination items where options are available, such as a sandwich, which is made up of bread, fillings, sauces, etc. Once the order is chosen, the customer proceeds to place the order and is given choices over timing and payment options.
Once the order has been placed, the customer receives a confirmation email, as does the shop. Depending on the options chosen and the date for which the order was placed, it is printed a few minutes. The business can opt to delay the printing of orders for future dates until the day the order is required, to avoid confusion.
The system generates a number of other web pages which are included by default, such as contact form and locations page. The system also generates a list of favourites, both specific to the logged-in customer and overall for all customers. This makes it easier for the customer to grab their regular order.
The customer facing pages are deliberately kept simple. It's important that the customers can quickly and easily place their order, according to the limits and options that the business wishes to use.
In contrast to the customer facing side, the administration area for the business is necessarily more involved. The range of options available to the shop is quite large, allowing them control over many aspects of how the site works in order for it to better suit their business.
The businesses have great flexibility to control collection/delivery time slots, order placement cut-off times, payment methods, minimum order values, delivery zones and many more options to allow them to configure the system to match their way of working.
As well as the core controls mentioned above, there are optional features such as capacity limits. This controls the orders that are accepted for fulfilment within a given period so that small kitchens are not overwhelmed. As orders can take varying lengths of time to prepare, depending on the order itself, a time value is assigned to each menu item. Orders can then be approved based on their required preparation time, rather than simply limiting the number of orders.
TODO: WALKTHROUGH VIDEO?
Why do we need investment?
Until now, Butterware has survived happily and indeed performed miracles with very little capital. We make good use of reliable and very cost effective cloud services so our monthly running costs are tiny. The majority of our expenditure so far has been on marketing, funded from cash ow and shareholder investment.
All of the team has dedicated much time to the project in return for equity. Although it is hard to put a gure on the value of the time spent so far and the value of the software, we estimate it to be in excess of £350k. In order to accelerate the growth of Butterware, we need capital for two main areas. The rest is marketing, in order to reach our target market and attract new customers. The second is to fund salaries for staff to support the growing customer base.
We intend to take on three members of full-time staff initially, one of whom is an existing shareholder and contributor. David Bourguignon is our coding powerhouse and will taken on the majority of our development work. He has a strong background in databases and web development. David will be joined by a full-time designer.
We will also take on a new team member who will be the Customer Account Manager. They will be responsible for a range of activities, from following up warm leads to guiding customers through the process of getting up and running and then promoting the new online aspect to their business.
Over the last four years of operating, we’ve had the chance to trial a variety of marketing channels and tactics to re ne our approach and understand how to get the best value for money and grow our business. One of the challenges is the fractured nature of the market. Many sandwich businesses are ‘one-man-bands’, who are often not members of the British Sandwich Association and are unlikely to read industry publications. Therefore, the marketing approach has to be creative and varied.
To date, a large number of our clients have come from the Lunch! show, the industry’s largest business to business exhibition for the food-to-go market. Attending the show has also allowed us to see what competition is out there (we’re the only company in our area to have consistently attended for the last few years), network and find partnerships as well as raising our pro le in the industry and developing relationships. Funding would allow us to attend another major exhibition - Caffe Culture15, as well as other smaller ones around the country.
A good website representing the company is clearly important. We have recently revamped ours to bring it up to date. As well as information about our service, we also include links to client websites and video case studies. A significant number of enquiries that we receive come via the contact form on our website.
PR and advertising
We’ve developed relationships with key industry publications, primarily the British Sandwich Association’s own publication: International Sandwich and Food to Go News. We’ve had numerous articles published, which position us as industry experts, and we have also featured in a number of case studies alongside our customers including Cook & Garcia and Francombs. We regularly pay for advertising on an ad hoc basis but would prefer to commit to an ongoing plan. The money from funding would allow us to negotiate and commit to increased, paid-for advertising in this and other industry publications, which would be accompanied by relevant press releases, customer case studies and contributions to industry articles.
Social media is a logical marketing tool for us as lunch-to-go businesses who are active on social media forums are more likely to be technologically competent and interested in growing their business, which makes them ideal customers for our software. We’ve already built up an established following on Twitter and are active on a regular basis, publishing and retweeting industry news, supporting our existing customers, as well as developing relationships with prospective customers. We also have a Facebook page and a separate group for UK Sandwich Shop owners, to help generate industry debate.
Additional funding would allow us to pay for a dedicated expert to take on our current social media channels and fully develop them. We could also invest in targeted paid-for advertising on social media. These would also be integrated with our other marketing channels to provide a cumulative effect.
Due to the fractured nature of our audience, direct marketing is an important method to help ensure we reach our target audience. So far we have trialled email marketing and telesales, and a mixture of both cold-calling and following up on existing contacts/previous enquiries (mainly leads from the Lunch! show) with some success to date. We believe a combination of these two tactics, working together, is most effective for us, using emails to make the initial contact and following up with calls afterwards, prioritising those who have engaged with the email.
Funding would enable us to purchase and screen lists from a variety of sources, and the telesales would be part of the Customer Account Manager’s role, following up hot leads from the email campaigns. We will also be considering direct mail as a possible route to prospective clients.
Video & imagery
Whilst not a channel on its own, video and photography are important communication tools, in particular when trying to communicate virtual concepts and grabbing attention. We have already produced a promo video, including a piece to camera with Graeme and also testimonials from existing customers. We aim to use this footage on social media, on our website, linked to in email marketing, and at future exhibitions.
TODO: Missing heading
Funding will enable us to continue to commission additional footage with future customers, as well as animations and re-editing and re-purposing of existing footage to keep our communications fresh. Alongside video footage, professional still photography is essential for creating a professional image and for use across our other communication channels. In the future it may be necessary to commission our own, but so far we have used stock imagery and images belonging to our clients that they have generously allowed us to use.
British Sandwich Association
As the trade body for the UK sandwich industry, the British Sandwich Association is well respected and supported by all the major players in the market. While we have not taken membership to date, it is the intention that Butterware should become a supplier member and take advantage of the marketing opportunities that the Association can provide for us. Becoming a member would also strengthen our position in the market and help to open doors for the business.
The table below shows proposed costs for the marketing plan on an annual basis.
|Exhibitions||Continue with the Lunch! show, and also attend Caffe Culture. In addition we would like to purchase new stand equipment that is more professional looking.||£8,000|
|PR and Advertising||We would continue to write articles in-house, and develop relationships with other publications, but increased budget would allow us to advertise in more publications on a committed and regular basis. We could also investigate commissioning industry research to be used in features.||£10,000|
|Social Media||Pay for an expert to manage and develop our social media presence.||£3,000|
|Direct marketing||We can continue to use a free mail service, and write the emails ourselves, however we would potentially want to look at purchasing database lists.This does not include the cost of the Customer Account Manager to follow up leads, as this cost is covered in the investment section.||£2,000|
|Video & imagery||We would use budget to continue to regularly commission video footage and still images, for use in other channels.||£3,000|
|British Sandwich Association||Annual supplier membership for increased publicity and closer relationship to the major industry body.||£1,350|
Currently Butterware does not have a physical office. Each of us works from home and we use a number of online tools to remain connected and coordinated. We have face to face meetings with the majority of the team together at least twice per year.
Our budget includes rent in France for co-working office space at La Plage Digitale in Strasbourg which will allow David to work away from home occasionally. We have also included a small figure so that we can optionally rent a small office in the UK for our account manager and designer, although it may be preferable for them to work from home also.
As already discussed, our target market is enormous. Therefore, in order to handle signi cantly more customers we must automate more aspects of the site to reduce the amount of manual intervention required.
For example, currently when a new customer signs up, we must manually create their site for them. This only takes about fifteen minutes but it’s possible to get this down to seconds. As well as reducing the administrative load, this would improve the customer experience. Potential clients would be able to sign-up and create their site themselves via a control panel, allowing automatic, limited trial periods.
With regards to ongoing new features, development is typically request led, with further improvements aiding our clients and therefore Butterware. Work is normally done without additional charge as long as the changes are considered to be to the bene t of the majority of clients and will likely result in a commensurate increase in revenue for the time invested. We encourage our clients to submit their suggestions via our support website but frequently they make their requests directly.
The following bullet list sets out our current plans, which are flexible depending on the needs of our clients and their customers. Tasks marked with an asterisk have already been started.
- Create a fully mobile responsive version for all sites. The conversion of the administration back end has already been completed. *
- Allow shops more control over their design template, including customisation and ability to switch to temporary themes. *
- Create automated sign-up, reducing administration and allowing time- limited trials.
- Work on new integrations with third party tools e.g. accounts packages, Mailchimp for improved newsletters.
- Work on internationalisation to allow expansion into foreign markets (i.e. to support different languages, currencies, VAT rates etc.).
- Investigate dedicated printing system run on something like a Raspberry Pi and tablet controlled.
Mobile responsive version
Our current front-end template is not mobile responsive but we’re working on a new version that will be. The administration area of the website has already been made mobile-responsive as a rst step. This is a signi cant overhaul and will obviously affect all of our clients and their customers. We’ve done a great deal of work already but there is still plenty to do. As well as being mobile responsive, we are also building in several new features.
The new site will allow the shop more control over the display of the website. They can choose to display photos which they can select and upload themselves. There will be a range of stock photographs available if they are not able to have their own taken. For businesses with larger menus, they can opt to not display photos, resulting in a more compact display.
They can switch between the themes easily and also preview them without affecting the display for their customers. Below are some preliminary designs, showing the same page in desktop, tablet and mobile formats.
Our medium-term plan is to turn Butterware into a larger, more profitable company which is able to pay dividends once reinvestment is no longer required. Following the stabilisation of the business, we aim to be acquired by a larger company. It is our belief that the established businesses within the evening takeway online ordering market (e.g. Just Eat, Hungry House) will view Butterware as an ideal takeover, both to quickly expand their market and to purchase the technology we have and will continue to develop.
Hungry House was bought by the company Delivery Hero and has acquired smaller competitors along the way19. Delivery Hero is itself valued at over £2.1 billion, operates in at least 12 countries and has funds of $350 million set aside for acquisitions.
Just Eat has recently acquired Australia and New Zealand-based business Menu Log for £445 million, the latest in a number of acquisitions.