Mexican quick-service chain, Chilango, has today announced it will extend its Burrito Bond 2TM bond offering into the new year. Launched in October, Chilango set out to raise £1million by 2 December. The initial target was surpassed in just over 24 hours. As of today, Chilango has raised over £2.3million from nearly, 400 investors. This […]
Chilango smashes minimum £1m ‘Burrito Bond’ target in little more than 24 hours
Launched yesterday, and with 51 days of the Offer Period remaining to invest in its second investment bond – dubbed ‘Burrito Bond 2TM’ – Mexican quick-service restaurant chain Chilango is pleased to confirm that it has reached its minimum target raise of £1 million in little more than 24 hours.
- Chilango launched Burrito Bond 2TM to the public yesterday, Thursday 11th October in the wake of a 24-hour exclusive access period for existing investors.
- Strong demand saw the £500,000 mark breached in less than two hours! At 10.45 this morning, Chilango met its minimum target raise of £1 million.
- With each Chilango restaurant costing circa £500,000 to kit out and plans to open at least five more restaurants in London over the short-term before it expands further into the regions, the award-winning chain hopes to exceed the £2.1million it raised with the inaugural Burrito Bond.
- Burrito Bond 2TM will deliver gross interest of 8% per annum over four years and bondholders will have the option to have their principal redeemed in full at maturity.
- The platform for investments in Burrito Bond 2TM will remain open until Sunday 2nd December.
- Chilango is marketing the Burrito Bond 2 via a dedicated website: www.chilango.co.uk/burritobond
Commenting on reaching the minimum £1m target raise, Co-CEO Eric Partaker said:
“The response from the public has been overwhelming. Not many people can say no to a burrito. We’re thrilled to have reached our minimum target in such a short time, and grateful to all our investors so far. We hope to welcome hundreds more to the Chilango family as the Bond launch proceeds.”
Over 700 investors, including high-profile executives from several of the world’s top food brands, backed the last unlisted corporate bond, the first in the world to be launched in this way, and which funded the Company’s expansion into three new London restaurants. This time around several high-profile executives have invested once again, including the former CEO of Domino’s Pizza UK, the former MD of itsu, and the former VP of Marketing for McDonald’s UK.
Burrito Bond 2TM investors will support the chain’s continued growth with its Birmingham restaurant to open within the next few months and at least five additional sites planned in London.
Bondholders will enjoy a range of benefits, starting at the minimum investment level:
- Every investor will receive a voucher for two free burritos and a £10 promotional code for a free burrito, delivered via Uber Eats;
- Those investing £1,500 will receive a Chilango Gift Card loaded with five delicious meals, and those investing £2,500 a Gift Card loaded with 10 meals;
- For all investments of £5,000 or higher Uber Eats will offer free delivery (i.e. the delivery fee will be waived) of unlimited Chilango orders for the lifetime of the Bond;
- Those investing between £5,000 and £10,000 will also qualify for the ‘Chilango Green Card’, entitling them to free guacamole on one meal per transaction during the lifetime of the Bond;
- Those investing £10,000 or more – 100 investors did just that four years ago – will also qualify for the ‘Chilango Black Card’, entitling them to a free burrito every week for the lifetime of the Bond;
- Burrito BondTM 2 will also debut a completely new referral programme, designed to inject some vibrancy into people’s lives and which includes numerous rewards – a private flavour event with the former Senior Development Chef of The Fat Duck, an all-expenses paid trip to Day of the Dead in Mexico, Spanish language instruction from some of the world’s most accomplished instructors and an array of thrill-seeking activities such as skydiving, motor-racing, speed-boating, abseiling, bungee jumping, and ice climbing.
Founded in 2007 by two former Skype colleagues, Eric Partaker and Dan Houghton, Chilango’s estate currently includes 11 restaurants based out of London and most recently, Manchester. On a mission to make the world a more vibrant place, Chilango adds flavour to people’s lives, serving fresh, bold and creative Mexican meals to more than 25,000 hungry customers every day.
Attractive business outlook
Commenting on the launch of Burrito Bond 2TM, Partaker said:
“While many casual dining chains have experienced difficult times of late, our quick-service concept has helped us post the best results ever in our 11-year corporate history, with positive like for like sales of 5.3% and all our restaurants profitable. The UK is riding a Mexican wave and Chilango looks forward to welcoming another round of investors and brand evangelists into the family.”
Chilango recorded sales of £10.2 million 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. It will open the doors on its Birmingham restaurant within the next few months, with plans to add further restaurants to its already strong and profitable base (at an approximate cash outlay of £500,000 for each restaurant).
Vibrant, fresh thinking
Chilango is well-established in London and Partaker believes the time is right to build out Chilango’s regional presence in both the Capital and the regions. The chain has been funded by its guests from day one and Partaker – the archetypal brand evangelist – is keen that they should participate in its next phase of growth.