BigDish has developed a yield management platform for use in the restaurant industry. Currently operating in the Philippines, Hong Kong, Indonesia and the UK, the platform allows restaurants to improve sales by offering variable prices dependent on the time of a reservation.
Yield management for the restaurant industry
Yield management strategies provide opportunities for companies to maximise revenues by adopting a variable pricing strategy. Using the BigDish platform, restaurants can offer a level of discount (up to 50%) to customers dining at a specific time, thus providing the potential to fill what would otherwise have been an empty table at standard prices.
Platform live in Asia and acquisition of Pouncer opens up the UK
In Asia BigDish currently has operations in the Philippines, Hong Kong and Indonesia where it has partnered with 450 restaurants. The company has the opportunity to take advantage of strong economic growth in the region which is boosting demand for restaurant dining. The recently acquired Pouncer, the owner of a UK based restaurant booking platform, provides the foundation for expansion in the high value UK market.
IPO fundraise provides firepower to advance marketing and sales
BigDish listed on the Standard segment of the Main Market of the London Stock Exchange on 2nd August 2018, raising £2.22 million (£1,837,000 net) in a placing of 49,391,796 shares at a price of 4.5p per share. The net proceeds of the IPO fundraise provide BigDish with the firepower to advance its corporate strategy, with a ramp-up in marketing campaigns over the coming months expected to result in significant revenue growth.
Food tech industry deals highlight upside potential
The wider food technology industry has seen a number of significant transactions completed over the past few years. Within BigDish’s peer group we identify a Series A funding round from competitor Eatigo which we believe justifies a minimum value for BigDish of 5.5p per share. However, we believe other funding rounds within the industry suggest a value of approaching 9.63p per share should BigDish meet its targets set at IPO. We initiate coverage with a stance of Speculative Buy & price target of 9.63p.
RISK WARNING & DISCLAIMER
BigDish is a research client of Align Research. Align Research owns shares in BigDish. For full disclaimer information please refer to the last page of the full document. This investment may not be suitable for your personal circumstances. If you are in any doubt as to its suitability you should seek professional advice. This note does not constitute advice and your capital is at risk. This is a marketing communication and cannot be considered independent research.
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