Business Growth Fund makes first investment in north-west England
Barburrito set to open 18 new restaurants following £3.25m deal
Mexican restaurant chain Barburrito has become the first enterprise in North West England to receive money from the Business Growth Fund (BGF), the government’s flagship scheme to stimulate investment in new and growing companies.
Under the terms of the deal, BGF has invested a total of £3.25m in Barburrito. Colin Hughes, previously a board member at EAT and Pret A Manger, will join the investee’s board as a non-executive director.
Barburrito was founded in Manchester in 2005 and now employs 100 people across six sites in Manchester, Liverpool and Leeds.
The company recorded net revenues of £4m in 2005, and will use the BGF investment to fund the creation of 18 new restaurants over the next four years, primarily focused on London.
Morgan Davies, joint MD and founder of Barburrito, said: “We have made great progress since starting as a single site in 2005. In the last two years we have opened three new stores and doubled the size of the business.
“We believe that the time is right to roll out our award-winning formula to a national customer base, and we knew that we needed additional funding to achieve this”.
The Business Growth Fund, which launched in April 2011 and is backed by five of Britain’s biggest banks, purports to offer equity investment capital to fast-growing businesses which need capital for expansion and diversification.
The Fund has invested £37m to date, and completed five deals over the past three months.
Andy Gregory, BGF’s regional director for the North of England, said: “Barburrito has a fantastic product, a strong vibrant brand, ambitious management and an excellent operational platform. These are strong foundations for growth and the basis for our decision to invest. “The business has demonstrated strong trading in the North West and is now well placed to bring its winning formula to the London market. This is where our capital and expertise comes in and we look forward to working with the team as we move into their next stage of growth.”