Chilango to crowdfund £1m as it eyes 50 sites

26 October 2015 by
Chilango to crowdfund £1m as it eyes 50 sites

Burrito restaurant chain Chilango is seeking to raise another £1m through crowdfunding, as it aims to expand to 50 sites over the next five years.

The company, which last year raised £2.1m through a "burrito bond" with Crowdcube offering 8% p.a. interest over the four years of the bond, will this time offer investors a 3.26% stake in the business for their £1m investment, effectively valuing the company at just over £30m. Once again it will work with Crowdcube to secure the funds.

Whereas the burrito bond required a minimum investment of £500, this time investors will be able to offer up as little as £10 each.

Chilango said it would use the funds to help kickstart the next phase of its expansion, with ambitions to grow five-fold in the next five years. Chilango currently has nine sites, all of which are in London, with a 10th planned for Brewer Street in Soho soon.

Founders Eric Partaker and Dan Houghton (pictured, L-R) said they wanted to look at potential sites in over 20 cities throughout the country, as well as introducing international franchises with initial focus on Dubai and the Middle East.

The £1m would fund the launch of three UK restaurants.

To strengthen its management team, three existing investors with a background in hospitality have been appointed as non-executive directors:

  • Simon Kossoff, chairman of Carluccio's Italian restaurants

  • Dan Henshall, former chief executive of Krispy Kreme UK and current CEO with Farrow & Ball

  • Chris Moore, former chief executive of Domino's Pizza UK

So far, Chilango has raised £654,100 from 153 investors, with the largest investment at £85,000.

It's £2.1m burrito bond financed the opening of three new sites, creating 40 jobs in 12 months.

Restaurants are the fastest-growing sector on the high street >>

Chilango raises £2m in ‘burrito bond' >>

Chilango to raise £1m with ‘Burrito Bond' >>

Is it time for a change? See all the current retail vacancies available with The Caterer Jobs >>

Latest video from The Caterer

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking