Chilango pushes for more money by extending its Burrito Bond
Launched in October, the group initially aimed to raise £1m by the start of December, but passed this target in just over 24 hours. It has since raised more than £2.3m from nearly 400 investors, exceeding the £2.1m it raised in 2014 with the inaugural Burrito Bond.
It says that with ‘new site opportunities on the horizon’ it will keep the investment opportunity open into the new year in an attempt to increase the amount of money it has for expansion.
Chilango is set to open its first site in Birmingham early next year and has plans for more London restaurants in the capital. With each new Chilango restaurant costing approximately £500,000 to kit out, additional funds will accelerate the company’s growth, it says.
“The response to the Burrito Bond has been overwhelming,” says co-CEO Eric Partaker. “Extending the Burrito Bond will give us the opportunity to welcome more people into the Chilango family and spread our message further afield.”
More than 700 investors, including e executives from several of the world’s top food brands, backed the last unlisted corporate bond, according to Chilango. Investors this time round include the former CEO of Domino’s Pizza UK, the former MD of Itsu, and the former VP of Marketing for McDonald’s UK.
The Burrito Bond 2TM promises to deliver gross interest of 8% per year over four years, with bondholders given the option to have their principal redeemed in full at maturity. Starting at the minimum investment level of £500, the bond includes a voucher for two free burritos with the highest tier investors being given a Chilango Black Card.
The bond also gives investors the opportunity to win a number of experiences, including – a private flavour event with the former senior development chef at The Fat Duck, an all-expenses paid trip to Day of the Dead in Mexico, Spanish language lessons and activities such as skydiving, motor-racing, speed-boating, abseiling, bungee jumping and ice climbing.
Chilango reported sales of £10.3m in sales and £1.7m in restaurant EBITDA last year – with forecast restaurant EBITDA of £2.1m and nearly £11m in sales in the current financial year.
