Luke Johnson’s Risk Capital acquires Wahaca

Serial hospitality investor Luke Johnson has acquired Mexican-inspired restaurant group Wahaca following days of speculation.

The deal funds Wahaca’s next phase of growth as the business looks to expand into new locations including Cambridge, Manchester, Glasgow and Birmingham, in addition to more sites across London.

Over the weekend, the Sunday Times reported that Risk Capital, the investment vehicle founded by Johnson, was in advanced talks to acquire the casual dining chain.

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

From November 2020, the restaurant group had been majority-owned by Yellowwoods, the investment vehicle behind Nando’s.

Gemma Glasson, chief executive of Wahaca, said: “I’m genuinely excited to be working with Luke and the Risk Capital team. He understands hospitality better than almost anyone in the UK, and having that experience and drive behind us as we continue to grow is exactly what this business needs right now.”

Johnson added: “Wahaca is a brand I’ve long admired – brilliant food, real culture, and a team that’s clearly hit its stride. I’m looking forward to working closely with Gemma and the team to build on the momentum they’ve created.”

Mark Selby, co-founder of Wahaca, said: “Risk Capital and Luke bring exactly what we said we were looking for back when we first went out to find a new partner – deep rooted hospitality experience, ambition and someone who can sit alongside the team as we grow. We’re hugely grateful to Yellowwoods for everything they’ve done to get us here, and excited for what comes next with Luke on board.”

Wahaca was founded by Selby and 2005 MasterChef winner Thomasina Miers 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.

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

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 All Star Lanes and Bread Holdings, the parent company of Gail’s.

Wahaca was advised on the deal by CMS.