Luke Johnson in talks to acquire Wahaca restaurants

Serial hospitality investor Luke Johnson is in advanced talks to buy Wahaca following an auction of the Mexican casual dining chain.

Wahaca, which runs 14 sites across the UK, has been working with advisers at BDO to find a new owner in recent months, according to the Sunday Times.

The business has been majority-owned by Yellowwoods, an investment vehicle behind Nando’s, since its rescue deal in November 2020.

Johnson, former chairman of PizzaExpress, is understood to be the frontrunner to acquire Wahaca, which was founded by 2005 MasterChef winner Thomasina Miers and Mark Selby in 2006.

At its peak, the Mexican restaurant group traded from 27 locations nationwide.

In October 2020, Wahaca underwent a company voluntary arrangement (CVA), which resulted in the permanent closure of 12 restaurants.

Lenders and shareholders wrote off £25m in debt and a further £5m was injected into the business.

In April 2024, Wahaca opened a 150-cover restaurant in London’s Paddington, which marked its first new opening in six years.

Selby said: “We’ve been exploring opportunities to bring in new investment to support Wahaca’s next phase of growth, and we’re pleased by the strong level of interest that this has attracted. Risk Capital have been one of the parties looking at the business, amongst many others.

“We’re continuing to work with BDO to identify the right long-term investment partner, and those discussions remain ongoing.”

Johnson’s former hospitality investments have included family-friendly restaurant group Giraffe, which he sold to Tesco for £50m in 2013.

Meanwhile, his firm Risk Capital Partners continues to back the likes of Bread Holdings, All Star Lanes and Brighton Pier Group.

The Caterer has contacted Johnson for comment.