Chilango to expand with £3m ‘Burrito Bond 2’ fundraise

London-based Mexican restaurant group Chilango looks set for an exciting year as it exceeds its original fundraising target threefold, to finance its latest site acquisition programme.

Chilango was founded in 2007 by Eric Partaker and Dan Houghton, both former employees of the global tech giant Skype. The established food brand now operates 10 restaurants across London and its first site outside the capital opened in Manchester in 2016.

Following the success of their first round of fundraising to expand their portfolio in 2014, the award-winning restaurateurs launched a second round of fundraising in October of last year.

The group’s investment opportunity ‘Burrito Bond 2’ (Capital at risk) has seen its original fundraising target extended from £1m to £3.25m and the chain will use the finance gained by the mini bond to aid growth. With just under two months left to invest, the brand is hoping set to exceed its extended target and the search is already underway for new sites.

Since Chilango opened its first London restaurant in 2007, it has enjoyed steady secure growth and last year the restaurants generated over £10m in sales and £1.7m in EBITDA with all 11 restaurants profitable.

Along the way the brand has attracted support from the former CEO of Domino’s Pizza, the former VP of McDonald’s and the former MD of Itsu as each has invested in the chain.

The Mexican chain has identified a number of areas in central London in high footfall locations for their target audience of students and young professionals. The brand is looking for ground floor accommodation ranging between 500 – 2500 sq ft on sites located in and adjacent to residential areas, commercial/office areas, retail and or leisure areas, universities, hospitals and transport hubs.

Chilango’s property advisor, Richard Brown of RAB Retail, said: “This is an exciting brand with ambitious plans. With 11 established restaurants, we are now looking to help them build on their success. Their novel way of raising capital means they are now in an excellent position with a strong covenant to expand their portfolio and we are looking to secure additional restaurant sites on their behalf in the next year.”