Beets & Roots

Company profile

Healthy nutrition: fast, personalised and sustainable

Optimising your own diet is becoming increasingly important. Especially given the stress of everyday working life, many people want lighter meals that suit their taste and personal diet plan. At the same time, the desire for sustainability and the careful use of available resources is increasing.

Beets & Roots GmbH is a food tech company based in Berlin and offers healthy, tasty and balanced meals that can be put together quickly and individually. In order to reach a large number of customers in the shortest possible time, beets&roots is increasingly focusing on offering its products at important transport hubs such as train stations and airports. The pursuit of a sustainable business model in system catering also plays a central role for the company.

Since it was founded in 2016, the company has opened 21 restaurants across 8 markets. Of these, 14 restaurants in Germany are operated by the company itself, while 7 locations are run by licence partners. In 2024, beets&roots expanded into new markets, opening locations in Nuremberg and Cologne, with further expansion planned in Bremen in 2025.

In addition to offering food in restaurants, beets&roots also offers food to order. This part of the business continues to grow rapidly without the need to rent additional premises.

beets&roots employs 200 people and generated system revenue (including income from the franchise business) of more than €13.5 million in 2024.

Developments since the last funding round with Invesdor

You already know Beets & Roots? Find out what happened since the last funding round.

Products

The beets&roots range includes bowls, wraps, salads and soups. In the area of transport catering at large railway stations and at the airport, sandwiches are also offered to make it easier for travellers to take their food with them. All dishes are available as a culinary composition from the in-house creation team or as a customised version, where customers can put together all the components themselves. The concept thus appeals to customers who value healthy eating but have little time available.

Business model

The food can either be consumed directly in one of the restaurants, taken home or delivered via a delivery service. In addition, beets&roots already supplies a large number of business customers who book meals for meetings and events as catering offers or office lunches.

The company also generates income from franchise operations. Furthermore, an initial pilot project is currently underway to see how pre-packaged beets&roots branded bowls are being received by customers in supermarkets.

One of the fastest-growing verticals of beets&roots is its B2B business, where they deliver directly to companies. The average order size is approximately 20 times that of a B2C order, resulting in a substantially higher margin. As businesses increasingly seek to provide their employees with sustainable and nutritious lunches, the company expects exponential growth in this area.

The multi-channel approach, as well as the visibility in highly frequented transport hubs, enables beets&roots to generate sales from various channels and at the same time continuously increase brand awareness.

Healthy "fast food" from a Michelin-starred chef with digital trend analysis

The dishes offered are created and continuously developed by Andreas Tuffentsammer, the youngest Michelin-starred chef in Germany. When creating the dishes, digital customer data is analysed in order to identify current customer needs and trends promptly and to be able to respond to these in the form of new creations.

High level of digitalisation in the restaurants increases per capita sales

In recent years, beets&roots has successfully worked on the digitalisation of processes and the expansion of online channels. The various digital ordering channels such as the app, the self-order terminals and the online ordering system have already increased average per capita sales by 25%.

Market

Competitive environment

beets&roots competes with companies from the healthy fast-casual segment such as for example Dean & David as a national system catering business. It is also positioning itself in the fast-casual segment against brands such as Maloa Poke. On the premium healthy fast-casual segment, beets&roots is number one in Germany.

Competitive advantages

In comparison to its competitors, the company has a broader base and excels in terms of its innovative strength and omnichannel presence. Guests not only benefit from the unique and innovative flavour experience at star cuisine level, but also from the speed of food preparation and simple ordering system. The focus on sustainability with the wide range of vegan dishes and the use of reusable bowls is another competitive advantage that sets beets&roots apart from its competitors.

The omnichannel approach, in which the product range is not only sold in the stores, but also in the business customer segment as a delivery service and in retail outlets (e.g. supermarkets), leads to above-average profitability per square metre. In addition, the presence in the B2C and B2B sectors ensures a high level of brand awareness.

Management

Company structure

Beets & Roots GmbH is the holding company and is responsible for the strategic development of the Group as well as the operational activities of the Berlin and Hamburg branches. The Group also owns 100% of Beets & Roots Stuttgart GmbH and Beets & Roots Rheinland GmbH as well as 65% of Beets & Roots Hamburg GmbH. Beets & Roots Frankfurt GmbH is a 51% joint venture of the Group.

The subsidiaries are responsible for the operational location business. The subsidiaries' revenue is accounted accordingly by the parent company.

Investors in this funding round will participate via STAK Beets and Roots, a foundation set up to issue depositary receipts of shares in Beets & Roots GmbH. Beets & Roots GmbH will issue new shares of its GmbH to the STAK which will hold the direct participation in the project owner.

The investors will therefore invest trough the STAK which will issue depositary receipts of the shares on a one per one basis (one share issued is one depositary receipt issued) to the Investors. The depositary receipts represent the economic rights of the new shares of the project owner. The Investors will receive the same economic terms as the highest existing share class of the project owner.

This structure allows investors to indirectly hold a share in Beets & Roots GmbH, consolidating revenues (including system revenue and the revenue from all subsidiary activities).

Distribution of company shares

Additionally, several business angels - including professional athletes - have invested in beets&roots. Given their strong focus on health and nutrition due to their professional backgrounds, they prioritize investments in companies that promote healthy eating.

This diverse and strategically aligned shareholder base strengthens the company’s position and supports its long-term development.

Developments at Beets & Roots since the last crowdfunding

Successful opening of four more stores

Since our last campaign, we have opened four new stores - three travel stores and one omnichannel store. This clearly demonstrates that there are multiple growth paths for us to pursue. The stores that have been operating for more than six months are already showing above-average performance.

Two new market entries: Nuremberg & Cologne

Among our recent openings are two new markets - Nuremberg and Cologne. When entering new cities, we approach them not just with a restaurant but also with our travel, B2B, and retail channels. This strategy allows us to accelerate top-line growth. In particular, new delivery areas are generating more value than existing markets.

Elevated new store design launched

As part of our efforts to enhance the guest experience, we have opened a new flagship store in Berlin-Charlottenburg featuring an upgraded interior design. The goal is to create a livelier atmosphere that encourages dine-in visits. So far, the store’s performance has exceeded our expectations, and we plan to roll out the majority of the new design features to upcoming stores.

Beets+ subscription model rollout

As introduced in our last campaign, we are the first restaurant chain in Germany to offer a subscription model - beets+. The goal is to provide our guests with an attractive way to increase their visits while maximizing the value they receive for their money. Early results have been very promising, and we are carefully expanding the model to ensure that costs and benefits scale in the right direction.

B2B rollout

As we will elaborate on later, a major focus for us is our B2B business. Over the past year, we have invested significantly in this area to identify the key levers for scaling. First, we see a growing market as companies seek more flexible food supply solutions for their offices. Second, B2B orders generate substantially higher margins for us. Lastly, we can fully leverage cross-marketing benefits across stores, delivery, and catering.

Use of funds

*including anchor investment

The anchor investment comes from an experienced investor who joined the company last year. This investment was made with a clear focus on expanding our B2B business—the same opportunity we are now offering to the crowd. This serves as a clear signal of trust and commitment, reinforcing the attractiveness of this investment opportunity.

Actual and planned figures

Take a look at the company's key financial figures, such as sales and earnings performance.

beets&roots raised capital from a new investor in 2024, validating the company's growth strategy and long-term vision. The investment was made with a clear focus on scaling the high-margin B2B business. The same investment opportunity is now exclusively offered through Invesdor with significant commitments already from current shareholders in the company. This backing strengthens beets&root's position as the company continues its expansion. By prioritizing profitability over pure sales expansion, beets&roots is well-positioned to achieve a higher revenue multiple compared to traditional market transactions, creating a strong value proposition for new investors.

Further debt investments until 2026

beets&roots has signed a term-sheet with a large German bank for additional debt capital. The company expects the deal to close during the campaign period. This would put them on track to secure additional investments in Beets & Roots GmbH (Company Stores & Tech Development), ranging between €3 and €5 million in debt financing by 2026.

For more information, go to the FAQ section.

Exit strategy until 2027

With significant growth in stores and brand, beets&roots is planning to sell to an investor for a European roll-out. The following scenarios are conceivable:
 

Notes:
*Bonuses will only be awarded to investors when the investment project is finalised and after the financed amount has been paid out to the company, approximately 4 weeks after the financing is closed.

Only one voucher can be stored per user profile – multiple investments are summarized.
Your voucher code is expected to be displayed in your Invesdor portfolio from April 1st, 2025.

The code can be redeemed once per day for orders up to 29€ (before discount).

Investment related documents

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Below you will find answers to some of the most frequently asked questions about beets&roots and this investment opportunity.

If you have additional questions, feel free to reach out through our customer support.

Note:

In this update section you will find new, project-relevant information that we receive.

Invesdor does not conduct a separate review of information received after the start of the financing phase.

UPDATE | 18.03.2025: Q&A with CEO and founder Maximilian Kochen

What sets beets&roots apart from other healthy food brands, and how do you maintain your competitive edge?

"beets&roots has two key strengths that differentiate it from competitors.

The first is our omnichannel business model. Our goal is to generate most of our revenue outside of our restaurants by leveraging our brand, products, and production capacity across multiple sales channels. These include restaurants, delivery, B2B catering, travel locations, and retail.

This approach strengthens our brand awareness and leads to higher profitability per square meter than many of our competitors." - Maximilian Kochen

Your B2B catering business is growing rapidly – what potential do you see in this segment, and how does it impact profitability?

"There are two key reasons why B2B is an exciting opportunity for us.

First, the market tailwinds are strong:

• The labor shortage pushes companies to make their workplaces more attractive, and food is an important non-monetary benefit.
• Office managers aim to bring employees back to offices, and food serves as an effective incentive.

Second, B2B has strong unit economics. In our restaurant business, the average order value is €13-15 per customer. In B2B, the average order value is €300.

This means our highly efficient, fragmented approach is even more profitable at higher order values - making B2B a major driver of profitability." - Maximilian Kochen

Which markets or cities are next on your expansion list, and how do you select new locations?

"Looking at our past expansion, our main priority has been to establish beets&roots in Tier 1 cities - large German cities with over 500,000 inhabitants and strong economic activity.

Last year, we entered Nuremberg and Cologne and recently signed a lease in Bremen. Our next targets include the Munich metropolitan area, Vienna, and mid-sized cities like Hanover.

We base our decisions on three key criteria:

1. Market strength - Is the city economically attractive?
2. Real estate value - Micro-location, foot traffic, and cost-benefit ratio (CAPEX vs. rent).
3. Operational setup - Do we have a strong local partner or an existing team to support market entry?" 

- Maximilian Kochen

Can you share insights into your omnichannel strategy and how you balance growth across restaurants, delivery, B2B, and travel locations?

"Our omnichannel strategy operates on two levels:

• Location-based expansion - Growth through restaurants and travel locations in high-traffic areas like train stations and airports.
• Scalable sales channels - Delivery and B2B allow us to expand without opening new physical locations by maximizing the output from existing production capacity.

This means that when we enter a new market, we can generate significant revenue from a single location - without the need to open additional stores. Instead of investing in real estate (CAPEX), we focus on targeted marketing to scale more efficiently." - Maximilian Kochen

Based on your financial plan, when do you expect significant profitability, and how will this affect future funding needs?

"It’s important to note that as long as we continue expanding, we will reinvest a significant portion of our cash flow into growth - both regionally and conceptually.

However, a major milestone was reached in 2024, when we became EBITDA-positive. This means that we can fund expansion costs (excluding new store investments) directly from the cash flow of existing restaurants.

With our current HQ and overhead structure, we can scale significantly without proportionally increasing costs. This strengthens our ability to work with banking partners, enabling us to finance future growth with non-dilutive capital such as debt financing." - Maximilian Kochen

What is the liquidation preference, and how does it protect investors?

"When evaluating our share pricing, investors should consider the liquidation preference.

This structure ensures that in the event of an exit, investors with a liquidation preference first receive back the amount they originally invested before other shareholders receive payouts.

After this, they also participate proportionally in any remaining proceeds, based on their shareholding. This mechanism provides investors with an added layer of protection by securing their initial investment first." - Maximilian Kochen

Investors participate through a STAK structure – why was this chosen, and what are its benefits?

"The STAK structure was designed to ensure that all investors are included in the cap table and receive the same rights as other shareholders.

This setup enables a transparent investment structure, where investors indirectly hold shares in beets&roots while benefiting from the same economic rights as direct shareholders." - Maximilian Kochen

Your exit strategy involves selling to a strategic partner – what type of company would be an ideal buyer, and how are you preparing for this exit?

"Our exit strategy is clear and structured: We aim to build beets&roots into a scalable brand that can be easily expanded across Europe.

The ideal buyer would be a strategic partner with experience in large-scale expansion who can roll out the concept across multiple countries. Our approach is to develop beets&roots as a fully proven, ready-to-scale model, where all operational challenges have been solved - making it a highly attractive acquisition target.

As founders, we have been deeply involved in shaping the brand and concept. The next step is to find a partner with the operational expertise to scale the business far beyond what we could achieve alone. This creates a win-win scenario for both beets&roots and potential buyers." - Maximilian Kochen

UPDATE | 12.03.2025: What is a liquidation preference?

A liquidation preference is a special advantage for certain investors in equity investments. It ensures that, in case of a company sale, investors with a liquidation preference get their investment back first before other shareholders receive any payouts. This reduces risk and provides greater financial security.

How does this work for beets&roots?

At the time of the current investment round, investors coming through Invesdor and any other investors joining this round will receive the highest-ranking liquidation preference. This means:

In future financing rounds, new investors may receive a similar preferences, which could impact the order of payouts.

UPDATE | 11.03.2025: New FAQ section available