Brewery entrepreneur secures half a million MEIF II funding to launch Coventry’s first food hall

Dal Dhillon’s new venture, Elle’s, will bring together independent food vendors with barista coffee and a late-licence bar to create a social hub at the heart of the city. The business has secured a £500,000 loan from the Midlands Engine Investment Fund II, through fund manager Frontier Development Capital (FDC), to complete the fit-out.

Elle’s will occupy an 8,000 sq ft space in Two Friargate next to Coventry Station, which is the busiest station in the West Midlands after Birmingham New Street. It is due to open on 30 January 2026 and is expected to create around 40 jobs. The company plans to roll out the model to other towns and cities.

Founded by Dal in 2015, the Dhillon’s Brewery business now employs more than 70 staff. In addition to its award-winning microbrewery and venue in Longford, it runs Spire Bar and Sky Blue Tavern in Coventry city centre, and three sites within Coventry Building Society Arena.

With plans to open similar ventures in Liverpool and other cities, it expects its growth plans to create over 65 jobs in total in the year ahead.

Dal Dhillon, CEO of Dhillon’s Brewery, said: “I’m proud to be opening Coventry’s first food hall. Elle’s will be a space for everyone – families, commuters and visitors. It will be a showcase for independent food operators and demonstrate the potential of the city’s hospitality industry. Having recently celebrated our tenth anniversary, it is also an opportunity to take our business to the next level.”

Diane Watt of Frontier Development Capital added: “Dal is an impressive entrepreneur who is a keen supporter of the city of Coventry and has played a key role in developing its tourist and hospitality industry. This latest venture will be his most high-profile to date and will be unique in integrating a major social hub with a mainline railway station. We are pleased to support him in pursuing his vision.”

David Tindall, Senior Investment Manager at the British Business Bank, said: “The Midlands Engine Investment Fund II invests in ambitious entrepreneurs to help them start, scale and expand their businesses. Dal Dhillon has a proven track record of founding and growing successful ventures, and the Fund’s latest investment in Elle’s will support the opening of a new regional food hall, create new jobs, and enable expansion into neighbouring cities.”

Parmy Singh at Coventry City Council provided fundraising advice to the company.

The £400m Midlands Engine Investment Fund II covers the entire Midlands region and provides equity investment up to £5m and debt finance from £25k to £2m to help a range of small and medium sized businesses to start up, scale up or stay ahead.

The purpose of the Midlands Engine Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the Midlands. The Midlands Engine Investment Fund II will increase the supply and diversity of early-stage finance for smaller businesses in the Midlands, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.