Mexican quick service chain, Chilango, has announced it will be committing at least £10,000 into helping a lucky Brit achieve their lifetime ambition. In a nod to the Mexican holiday Dia de los Muertos or Day of the Dead, the London-based chain has launched The Day of the Living, a campaign that calls for Brits […]
Chilango exceeds ‘Burrito Bond’ target by nearly £1.5 million, and extends deadline into 2019
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 figure exceeds the £2.1million Chilango raised in 2014 with the inaugural Burrito Bond.
Due to continued strong demand in the round, together with new site opportunities on the horizon, Chilango has today confirmed that it will keep the investment opportunity open into 2019.
The investment will be used to fund Chilango’s expansion. The company 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.
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.
Commenting on the extension, Co-CEO Eric Partaker said:
“The response to the Burrito Bond has been overwhelming. The continued demand we are receiving is testament to the enthusiasm the public has about our mission to inject flavour and vibrancy into the largely bland high-street dining landscape. Extending the Burrito Bond will give us the opportunity to welcome more people into the Chilango family and spread our message further afield.”
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. 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.
Bondholders will enjoy a range of benefits, starting at the minimum investment level of £500:
- 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 will also qualify for the ‘Chilango Black Card’, entitling them to a free burrito every week for the lifetime of the Bond. Over 100 Black Cards will be going out as part of funds raised in Burrito Bond 2 thus far;
- 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 guests and fans 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 £10.3 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 further expand in both the Capital and the regions. The chain has been funded by its guests and fans 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