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 invites investors to spice-up their portfolio with ‘Burrito Bond 2’
Mexican quick-service chain, Chilango, has announced the launch of the Burrito Bond 2TM, its second bond offering, which will earn investors a gross interest of 8% per annum over four years.
The award-winning chain is offering a bond for the second time after doubling its £1m Crowdcube campaign target in 2014, closing at just over £2m.
This time around, the restaurant chain has ambitions to hit an investment of £1m once again. Investors in Burrito Bond 2TM will receive a gross interest of 8% per annum with the option to have their principal redeemed in full at the end of the 4-year term.
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 this way – to fund 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 2 investors will support the chain’s continued growth with its Birmingham restaurant to open within the next few months, followed by additional sites planned in London.
Invest and reap rewards
- Bondholders will also enjoy a range of benefits beginning at the minimum investment of £500
- Every investor will receive a voucher for two free burritos and a £10 promo code for a free burrito delivered via Uber Eats.
- Those investing £1,500 will receive a Chilango Gift Card loaded with 5 delicious meals and those investing £2,500 a Gift Card loaded with 10 delicious meals.
- For all investments of £5,000 or higher Uber Eats will offer free delivery (i.e. 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 a 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 Bond 2 will also debut a completely new referral program meant to inject some vibrancy into people’s lives, including rewards such as a private flavour event with the former Senior Development Chef of the Fat Duck, an all-expense paid trip to Day of the Dead in Mexico, and Spanish language instruction from some of the world’s most accomplished language 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 over 25,000 hungry customers every-day.
Attractive business outlook
Commenting on the launch of Burrito Bond 2, Eric Partaker, Co-CEO and Co-Founder of Chilango said:
“While many casual dining chains have experienced difficult times as of late, Chilango’s quick-service concept is posting its best results ever in its 11-year history, with positive LFL sales of 5.3% and all its 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.”
Boasting an 11-year operating history, Chilango recorded sales of £10.2 million in sales and £1.7m in restaurant EBITDA (earnings before interest, tax, depreciation and amortisation) 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.
Chilango is marketing the Burrito Bond 2 via a dedicated website: www.chilango.co.uk/burritobond