Mexican fast food chain 'Chilango' returns to Crowdcube to raise £1million
Described as "London's hottest new fast food chain", Chilango is today launching its second investment round on Crowdcube in the form of an equity crowdfund that aims to raise £1 million from investors in return for a 3.26% stake in the business. This money will kick start the next expansion phase that expects to see five-fold growth in the next five years. Details of the pitch are at www.crowdcube.com/chilango.
This is different to its highly successful bond offer last summer where investors put in a minimum of £500 in return for an 8% p.a. interest payment over the four years of the bond. The Burrito Bond overfunded to secure a record-breaking £2.1 million on Crowdcube.
Eric Partaker, co-founder of Chilango explains why the company has opted for equity investment this time:
"Our guests can't get enough of our burritos and tacos and we love how equity crowdfunding means they can, literally, buy into a brand they love for as little as £10. Investors make fantastic brand evangelists so we want to have as many on board as possible. With the bond the entry bar was £500 so it was accessible to fewer people, although we still attracted over 700 who are all very happy with the return on their investment following two dividends."
Luke Lang of Crowdcube adds:
"Chilango pioneered our bond proposition back in June last year and we're delighted to welcome them back for an equity raise this time."
The Burrito Bond has already paid out £130k to its investors in its first two interest payments. The £2m capital raised has allowed Chilango to grow rapidly in 12 months, creating around 40 more jobs and financing three additional sites, with London Bridge and Camden High Street open, and Soho on the way, taking the group up to 10 restaurants. Across the chain Chilango serves fresh, vibrant Mexican food to over 20,000 enthusiastic hungry guests every single week.
With the help of the new equity round, founders Eric Partaker and Dan Houghton are gearing up to reach over 50 locations over the next 5 years. To support this five-fold increase, Chilango is looking at potential sites in over 20 cities throughout the country, as well as introducing international franchises, with an initial focus on Dubai in the Middle East. As a first step in this plan, the £1 million will fund the launch of three UK restaurants.
To strengthen the management team, three industry heavyweights and existing investors have been appointed as non-executive directors:
• Simon Kossoff, chairman of Carluccio's Italian restaurants
• Dan Henshall, former CEO of Krispy Kreme UK and current CEO with Farrow & Ball
• Chris Moore, former CEO of Domino's Pizza UK
Chris Moore explains why he is a fan of Chilango:
"I always look for passion in the entrepreneurs I invest in, and Eric Partaker and Dan Houghton have it in spades, and they also get the importance of building a brand. Creating a company that engenders loyalty is part of that, and Chilango's staff, investors and guests all become advocates, so that's why crowdfunding works perfectly for these guys."