Investors line up for $2m share issue to fund Eat My Lunch expansion

Monday, 20 May 2019

Eat My Lunch provides lunches for children that arrive at school without enough food.

Eat My Lunch co-founder and chief executive Lisa King says more than 1000 would-be investors have already registered for $1.68 million of shares before the company's fund-raising on PledgeMe on May 22.

The company wants to raise $2m and King said she would like to break the previous PledgeMe record of raising that amount within 32 hours.

The three-year old company has yet to achieve profit but the financial revelations will include forecasts.

When customers buy a lunch the company gives schools and community groups a free one.

Would-be shareholders have already pledged $1.6m to Eat My Lunch even before a share offering opens, says co-founder Lisa King.

* Eat My Lunch hits $500,000 PledgeMe goal

* Eat My Lunch crowdfunding for $1 million to expand the social business to Wellington**

Chief executive Lisa King and Eat My Lunch co-founder and award winning chef Michael Meredith Children at Haeata Community Campus.

King said Eat My Lunch always factored in costs without the 35 volunteer workers who complemented the 50 employed full timers.

'Having volunteers helps us manage costs but we always knew we could be commercially viable without them.

'That's the benefit of of a blended model - we have the heart of a charity. It gives advantages over traditional businesses, or charities which aren't necessarily financially viable.

'People are as strongly motivated by our social plan as the financial benefit. We have a two to three month waiting list for volunteering.'

The 50 full time staff prepared and delivered food while the volunteers made the free lunches for children.

'We've chosen to do equity crowd funding through PledgeMe because we want to give the public the chance to own shares. It's about everyone being involved.

'It's always been my ambition to create a movement everyone can be part of it. We gave our 1 millionth free lunch last year.'

King said Eat My Lunch wanted to expand beyond Auckland and Wellington.

'We're looking at opening out first Eat My Lunch store at Britomart (central Auckland) in the next month or so and if it's successful we would like to roll out more throughout the country to enable people who aren't so planned about lunches to walk out of their offices buy lunch and also give one to kids who need them.'

The company was also looking at also education to enable people to make more lunches at home.

'We've had quite bit of interest overseas for this model even in the United States where they haven't seen a business like ours. We'd like to look at a franchise model,' King said.

The shares on PledgeMe will be issued a $1 a share with a minimum purchase of 500.