How A Basement Startup Cornered A UK Market And Secured A £40 Million Acquisition

Pasta Evangelists: From Subscription Box to Global Ambitions

Key Concepts:

• Luxury pasta subscription box service
• Multifaceted business model (subscription, on-demand delivery, pasta academy)
• Vertically integrated production (ptio/factory)
• Burilla acquisition (majority stake)
• COVID-19 pandemic impact (tenfold sales growth)
• Takeaway business expansion
• Pasta Academy (cooking classes)
• Dark/Ghost kitchens
• Authenticity and sustainability
• Global expansion plans (franchising, US, China)

1. Company Origins and Early Days:

• Pasta Evangelists was founded in London in 2016.
• Started in a basement in Notting Hill with no Wi-Fi, relying on a co-founder's phone hotspot.
• Initially, deliveries were limited to specific London neighborhoods and were hand-delivered by the founders themselves.
• Finn Lean, co-founder and CMO, highlighted the initial struggles of packing and delivering pasta while using public transport.

2. Business Model Evolution:

• The company transitioned from a subscription box service to a multifaceted business with multiple revenue streams.
• Current offerings include:
  • Gourmet subscription boxes
  • On-demand meal delivery
  • London-based Pasta Academy (pasta-making classes)
• The company is now fully vertically integrated with its own pasta production facility ("ptio").

3. Burilla Acquisition and Partnership:

• In early 2021, pasta giant Burilla acquired a majority stake in Pasta Evangelists for a reported 40 million pounds.
• Burilla's annual revenue in 2022 was nearly $5 billion, making it one of the largest pasta manufacturers globally.
• The founders remain incentivized with equity in the business.
• The acquisition aimed to allow Burilla to learn from Pasta Evangelists' direct customer relationships and agile operations.
• Finn Lean emphasized that Burilla has allowed Pasta Evangelists to maintain its unique approach and speed of innovation.

4. The Role of Finn Lean (CMO):

• Finn Lean is described as the "creative one" and the company's CMO.
• He was featured on the Forbes 30 Under 30 Europe retail and e-commerce list in 2020.
• He was recruited after impressing the founders with his presentation and immediate hands-on approach to improving the business's online presence.
• Alex (co-founder) described Finn's immediate impact, fixing website issues and optimizing the CRM system within minutes.

5. COVID-19 Pandemic Impact:

• The COVID-19 pandemic significantly boosted Pasta Evangelists' sales.
• As consumers rushed to buy pasta and avoid leaving home, Pasta Evangelists' home delivery service experienced a surge in demand.
• Sales grew tenfold between March and April 2020.
• The company rapidly recruited staff from the hospitality sector, which had been shut down.
• Despite logistical challenges (lack of space, cold storage, and staff), the founders prioritized fulfilling all orders.

6. Post-Pandemic Strategy:

• As home delivery demand declined after the pandemic, Pasta Evangelists expanded its takeaway business.
• They opened their first Pasta Academy in London in early 2022.
• The Pasta Academy is highly profitable due to its low operating costs.
• It is ranked as the number one food experience in London on TripAdvisor.

7. Pasta Academy and Culinary Expertise:

• The Pasta Academy serves to demonstrate Pasta Evangelists' authority in fresh pasta.
• Chef Alex runs approximately eight classes per week and collaborates with the marketing team on new initiatives.
• Roberto Delia, Head Pasta Artisan, is credited with driving Pasta Evangelists' fresh pasta "renaissance."
• Roberto's role involves creating new sauces and pasta shapes, including a special "Dragon" shape for the Chinese New Year.

8. Production and Sourcing:

• Pasta is made using semola and water, stretched to achieve the right consistency.
• Sauces are prepared in large pans, with ingredients cooked and packed in individual packaging.
• The company emphasizes authentic Italian gastronomy while prioritizing sustainable ingredients.
• Italian products are used when necessary (e.g., tomatoes, mozzarella), while local UK products are used when possible (e.g., cabbage).
• The goal is to source ingredients as close as possible to "kilometer zero."

9. Pricing:

• The average price point depends on the channel.
• In the takeaway business, dishes range from £8 (simple tomato sauce) to £11-£12 (basil pesto lasagna).

10. Future Expansion Plans:

• The company aims to establish a physical presence on high streets across the UK and in major international cities through franchising.
• They are exploring opportunities in travel retail (e.g., airports) and partnerships with restaurant chains in the US and China.
• The goal is to create "amazing, beautiful, aspirational premises" where customers can experience the passion and flavors of Italy.
• Currently, they operate 44 dark/ghost kitchens for delivery.

11. Authenticity and Respect for Italian Cuisine:

• Finn Lean emphasizes the importance of paying homage to Italian cuisine and culture.
• Chef Roberto highlights the traditional Italian approach to cooking, using "a handful of this, a handful of that."
• He incorporates family recipes, some of which he jokingly admits to "stealing" from his grandmother.

12. Conclusion:

Pasta Evangelists has evolved from a small subscription box service into a multifaceted business with significant growth potential. The Burilla acquisition has provided resources and expertise, while the company's focus on authenticity, sustainability, and customer experience positions it for continued success. The expansion into takeaway, pasta academies, and potential global partnerships indicates ambitious plans for the future. The company aims to bring the passion and flavors of Italy to customers worldwide through both delivery and in-person experiences.