SPRoUT is a worker-owned wholefoods grocery being built for Leicester. This page sets out what it costs to open, how many customers it needs and how the money works over its first five years.
SPRoUT isn't yet incorporated. This page isn't a prospectus and isn't a regulated financial offer. Every figure is a projection from our financial model, the same figures as our October 2026 financial pack.
Before we trade we need to fit out a unit, buy opening stock and hold enough cash to carry the shop through a first year that loses money.
So far £45,000 of loan stock and £5,000 of donations have been pledged. Pledges aren't money in the bank yet. We've applied to a co-operative lender for the social loan and nothing is agreed.
The cash isn't spare. It carries the shop through its first year, when it has its full team but only part of its customers.
The plan holds at least £40,000 in the bank as a safety margin. Choose a case to see what happens if things go less well.
We open in April 2027 with about 160 customers a week and build to 900 a week by the twelfth month. The shop covers its costs at about 880 a week.
Year 1 is shown month by month. Years 2 to 5 show the average week. Hover or tap a column for the basket spend.
Year two, the first full year of trading. Most of the money goes on the food we buy and the people who sell it.
Year two is the first profitable year. Social loan repayments start late in year two. Loan stock repayments start in year four, at 20% a year, so it's repaid over five years.
Basket spend and customer numbers came up at our public meeting, so here are the assumptions the figures rest on.
You can support SPRoUT financially in three ways. None of them gives you ownership of the business.
You lend money to SPRoUT. Once incorporated, SPRoUT will issue loan stock in return. It pays interest at a fixed rate, which we'll set when we issue it. Repayment of your money is planned to start in year four, at 20% a year, so it's repaid over five years.
Loan stock isn't a bank deposit and it isn't guaranteed. If the business fails, loan stock holders are unsecured creditors. People who buy loan stock back the project because they believe in it, rather than to get the best return available.
We haven't set a minimum or maximum amount yet. We'll confirm this when we formally issue loan stock. If you have a figure in mind, tell us when you register your interest.
For larger amounts, or for organisations that want a more formal arrangement, we can discuss a direct social loan. Our model assumes interest only for the first two years, then capital repayments of £25,000 a year.
If you want to support SPRoUT without expecting anything back, a donation is the simplest way. It helps without adding to the repayments. It's especially useful for the fit-out and the cash buffer.
You don't need a large sum to help. If 150 people lent £1,000 each, that's £150,000. Thirty people lending £5,000 gets to the same place.
We put loan stock repayments back to year four on purpose. Years two and three are when the shop builds its cash. Starting repayments a year or two later means you wait longer for your money, but the business starts repaying from a stronger position. Year four carries the heaviest repayments, £61,000, and the shop still ends it with about £219,000 in the bank.
We're telling you this because you should know it before you put money in.
The range will focus on everyday staples in their least processed form: whole grains, dried pulses, fresh produce, nuts, seeds and core household products. We buy direct from producers and co-operative wholesalers wherever possible.
Our sourcing and buying guideEach worker-member has one vote. There are no external equity investors. Ownership can't be sold to private buyers. If the numbers can't support decent wages, we change the model rather than cut pay.
About SPRoUTSPRoUT is being developed by Rajiv Shah and Tamsin Robinson, with a small group of advisors and potential founding members. The founding team is still forming.
Meet the teamSPRoUT can't formally issue loan stock until it's incorporated as a co-operative. That process is underway.
If you'd like to register your interest in loan stock, make a donation or discuss a social loan, get in touch at hello@sprout-grocery.co.uk. Tell us roughly what you have in mind (the amount and whether you're thinking of loan stock, a donation or a direct loan).
We'll keep you informed as the project moves forward. You'll hear about incorporation, the formal loan stock offer and any other significant developments through the newsletter.
Email hello@sprout-grocery.co.ukSPRoUT is currently unincorporated. This page isn't a financial promotion or regulated investment advice. Community loan stock will be formally offered only once SPRoUT is incorporated and the terms are finalised. If you're in any doubt about whether lending through loan stock is right for you, seek independent financial advice.