Square Mile darling Farmer J bags $23m funding to take on New York
London’s fast-casual darling Farmer J is heading across the pond after securing a $23m (£17.5m) funding round to launch its first New York flagship later this year, City PM can reveal.
The investment, led by existing backer Beringea and joined by a new global hospitality investor, will also fuel three additional London openings before year-end, as the chain transitions from a City lunchtime staple to a global contender.
Founded in 2014 by former banker Jonathan Recanati and his wife Ali, Farmer J built its reputation on veg-led ‘fieldtrays’ served at speed to time-poor office workers.
Recanati, who spotted the lack of “healthy, affordable options” in the Square Mile, told City PM the move across the Atlantic was a natural next step.
“Launching into New York later this year is a big milestone for our brand”, he said. “There’s so much opportunity in the US fast-casual space”.
The upcoming 2,700 sq ft Manhattan site will serve the same formula that’s won over finance bros and foodies alike in London; grilled proteins, seasonal veg, and the brand’s signature “honest, forkin’ good food”.
Sales at the group increased by 55 per cent in 2024, with expectations for similar growth next year, while EBITDA has more than doubled over the same period.
A boom in fast, casual dining
Farmer J push into America underscores the growing appetite for “fast-casual” dining – healthier, more premium fare served without the trappings of full-service restaurants.
It’s a model proven by US counterpart Sweetgreen, now valued at around $3.5bn, and increasingly attractive to investors looking for the next scalable, post-pandemic food brand.
Its backers argue that Farmer J focus on fresh, locally sourced ingredients and in-store cooking gives it an edge in urban markets where hybrid workers are willing to spend more for quality.
The move also comes as another British City lunch favourite, Pret A Manger, faces mounting scrutiny for its lack of overseas diversification.
Pret, which still derives 75 per cent of its income from the UK despite opening its first international store 25 years ago, recently wrote down £553m of goodwill – a third of the value assigned during its 2018 sale to JAB.
The group blamed higher national insurance costs (NIC), elevated interest rates, and an uncertain macroeconomic outlook for its £525m pre-tax loss last year.
Critics, however, suggest Pret’s insular focus has been punished by investors.
Writing on LinkedIn last month, Knoops’ chief executive William Gordon-Harris described the situation as a disaster for domestic UK growth, arguing that “failing to focus abroad is punished”.
While some, like Gordon-Harris, lament the flight of capital overseas, others see international ambition as essential.
For Recanati, the move isn’t about abandoning home turf, but building resilience.
“The popularity of Farmer J continues to grow – and so does our business”, he said. “We aim to bring Farmer J to as many people as possible”.