Manchester's beloved brunch and coffee group, Federal, has announced ambitious plans to create hundreds of new jobs across the country following a substantial £3 million investment from private equity firm Foresight Group. This significant financial backing is set to fuel a major expansion drive, with the company aiming to open as many as 18 additional sites by the year 2030.
A Decade of Growth and New Horizons
Founded in Manchester in 2014 by entrepreneur Claudio Ribeiro, Federal has become a cornerstone of the city's vibrant cafe scene, currently operating three successful venues in its hometown. The group, which draws inspiration from the relaxed neighbourhood cafes of Australia and New Zealand, took its first step beyond Manchester last December with the opening of a new site in Leeds, which immediately created 15 local jobs.
This latest investment from Foresight Group represents a pivotal moment for the business, enabling Federal to dramatically accelerate its regional growth strategy. The planned expansion is expected to generate up to 250 new employment opportunities in communities across the United Kingdom, marking a substantial contribution to the national hospitality sector.
Proven Track Record of Foresight Group
Foresight Group brings a formidable reputation for nurturing successful hospitality brands to this partnership. The investment firm has previously played a crucial role in the expansion of several prominent UK chains, demonstrating a keen eye for scalable businesses with strong growth potential.
Notably, Foresight backed the remarkable growth of Mowgli Street Food, helping founder Nisha Katona expand the Liverpool-based Indian restaurant from just three North West locations to 15 sites across the UK by 2023. The firm also invested in Nottingham's specialty coffee roaster, 200 Degrees Coffee, supporting its expansion from six to 21 shops, and in 2020 committed £7.5 million to Roxy Leisure, operator of the popular Roxy Ball Room and Roxy Lanes entertainment venues nationwide.
Strengthening the Leadership Team
As part of the investment agreement, Foresight has appointed seasoned hospitality executive Karen Jones as the new chairperson of Federal. Jones brings an impressive wealth of experience to the role, having held executive and director positions at several major brands including Café Rouge, Hawksmoor, Deliveroo, Whitbread, and Mowgli.
Her appointment signals Foresight's commitment to providing Federal with not just capital, but also strategic guidance and industry expertise to ensure the brand's successful national rollout.
Vision for Community-Focused Expansion
Claudio Ribeiro, founder of Federal, expressed his enthusiasm for this new chapter, stating: "This investment marks a significant milestone for Federal. With Foresight's backing, we can accelerate our regional expansion and bring our unique brunch experience to more communities. We're proud of what we've built and excited about the opportunities ahead."
Clare Alvarez, partner at Foresight Group, highlighted Federal's strong market position, commenting: "Federal represents exactly the type of high-quality, scalable business we look to back. Its strong brand, exceptional customer experience and proven model in a growing market segment make it an exciting investment opportunity. We're delighted to support Claudio and the team as they embark on the next phase of growth."
Incoming chair Karen Jones added her perspective on Federal's unique appeal: "Federal occupies a vibrant space in the growing market for daytime socialising over great coffee and delicious food. Federal aims to be at the heart of the communities it serves and Claudio's belief in the power of hospitality to brighten a customer's day is inspiring."
This investment and expansion plan comes at a time when the daytime dining and specialty coffee market continues to show robust growth across the UK, with consumers increasingly seeking high-quality, community-focused dining experiences beyond traditional meal times.
