Honest Burgers buys 12 GBK sites

Honest Burgers has acquired 12 Gourmet Burger Kitchen (GBK) sites for an undisclosed sum.

The burger brand did not reveal the precise location of the venues, but said they will broaden its footprint in London, the Midlands, the south east and East Anglia, bringing its estate to more than 50 sites.

The purchase forms part of Honest Burgers’ accelerated growth phase of its 2030 strategy and was facilitated by new funding from shareholders and a senior debt package provided by OakNorth.

The funding will also be used to invest in a new state-of-the-art central prep kitchen, where everything will be prepared from scratch every day.

The newly acquired sites will be converted to Honest Burgers restaurants and will work closely with local partners, including nearby breweries, as part of a commitment to supporting neighbours.

Chief executive Matt Brandon said that growing Honest Burgers’ footprint was a key priority for the brand and the new investment and financing is “a vote of confidence in the business following a fantastic commercial performance last financial year”.

Thomas Kelly, chair of Honest Burgers’ board, said: “This acquisition is an important step in our strategic plan to quadruple the size of our business over the next five years. We’re excited about the journey ahead and the opportunity this brings.”

GBK’s portfolio numbered more than 20 sites prior to the deal, but the brand, which was bought by Boparan Restaurants in 2020 for £6m as part of a pre-pack administration, now wants to focus on delivery.

Its latest financial results for the week ending 29 December 2024 show it being back in the black, posting a operating profit of nearly £4.9m, compared to a loss of £4.6m the year before. Revenue was also up by 30%, from £96.2m to £125m, with the firm citing £19m of that due to acquisitions in 2023, £6.5m from sales generated by Slim Chicken sites opened in 2024 and a 4% uptick in like-for-like sales.

Martin Owen, group people director of Boparan Restaurant Group, said: “This is a strategic opportunity for GBK which allows us to focus on our core growth area of delivery.

“Selecting who we sold the sites to was a vital part of this process. We needed to ensure that they had the right values and would do the right thing by our amazing colleagues. We thank our colleagues for their exceptional commitment and contribution to the brand.”

James Dodd, group head of marketing for Boparan Restaurant Group, added: “Over the last couple of years, we’ve seen really strong growth in our delivery business for GBK. This led us to trialling a partnership with a leading national delivery kitchen operator across multiple sites around the UK over the last 12 months.

“We are really happy with the results of that partnership, and we now plan to roll out across a further 100 locations. This will mean we are able to serve more of our guests in more locations than ever before.”

This announcement follows the launch of the first Honest “Smash + Grab” site in London’s Liverpool Street at the end of 2024, offering burgers from £6.25 and chips from £3.25.

Honest Burgers was co-founded by friends Tom Barton and Philip Eeles in Brighton in 2009.