The founders of Loot and Earnr have taken a bold step in supporting Manchester’s hospitality industry. Their new venture, Shuffle, commits to investing an initial £2.5 million in the sector. This funding is poised to bring significant growth opportunities to local businesses through various enhancements and expansions.
Investment in Manchester Hospitality Industry
The founders of Loot and Earnr are set to invest an initial £2.5 million in Manchester’s hospitality sector. This significant funding aims to unlock opportunities for commercial growth including new site openings, upgraded interiors, and kitchen renovations.
Repayment Through Consumer App
Rather than seeking equity in the companies, the investment will be repaid through a consumer-facing smartphone app. Set to launch later this year, the app rewards consumers for spending at Shuffle-partnered venues.
Challenges Faced by Hospitality Owners
CEO Ollie Purdue noted that hospitality owners are often very entrepreneurial but struggle to access the needed capital for growth. Many have proven business models but can’t get the funds to expand.
Support from Successful Operators
During the conception stage, Purdue consulted many successful operators who faced these problems. This consultation led to the realisation that Shuffle could support these businesses and become the UK’s biggest hospitality investment platform in the next three years.
A New Rewards Platform
Purdue also wanted to build a better rewards platform for customers. Many existing platforms are tied to uninspiring brands, devalue businesses, or are quickly forgotten. Shuffle aims to change that by rewarding customers who spend at partner venues.
Co-Founders’ Experience
Purdue co-founded the platform with COO Enzo Ottens, who has worked in multiple industries including technology and finance. Ottens’ experience at Deloitte, Uber Eats, Loot, and Mettle, as well as setting up Earnr, brings invaluable expertise to the new venture.
Funding from Venture Capital Firms
The duo has secured millions in equity and debt funding for Shuffle from various Venture Capital firms. This backing ensures the company has the resources needed to support its ambitious goals.
Line of Credit for Manchester Investments
The company has also established a line of credit specifically to support its investments in Manchester’s hospitality industry. This financial line will be crucial for the planned expansion.
Launch in Manchester
Manchester is the chosen launch city for Shuffle. This is the first step in what the founders hope will be a nationwide rollout of their platform.
Early Sign-Ups
Several well-known businesses have already signed up with Shuffle. These include Madre, Medlock Canteen, Trof, and Bold Street Coffee, showcasing the immediate interest and support within Manchester’s hospitality community.
In summary, the bold initiative by Shuffle underscores a significant commitment to Manchester’s hospitality sector. With £2.5 million earmarked for investments, the platform not only aims to boost local businesses but also set a new standard for customer rewards.
The strategy to repay investments through a user-friendly app showcases innovation, while the extensive experience of the co-founders adds credibility to the venture. Manchester’s hospitality scene is poised for a transformative impact, thanks to these forward-thinking efforts.
Overall, Shuffle’s approach could very well serve as a model for future investments in the industry, fostering both growth and consumer engagement in unprecedented ways.