Mon 24th Jun 2024 - El Mexicana owners seeking investment partner to support ‘rapid expansion plans’, plans 25 new sites by 2027 El Mexicana owners seeking investment partner to support ‘rapid expansion plans’, plans 25 new sites by 2027: The owners of Mexican burrito brand El Mexicana are seeking an investment partner to support their “rapid expansion plans” which include launching 25 new sites by 2027. They plan to grow both El Mexicana, which has nine sites located around the Home Counties, and its three-strong sister dessert brand, Don Churro. They have appointed a team from FRP Corporate Finance to bring on board a partner to “support plans to continue both brands’ rapid geographical expansion”. FRP partner Chris Adlam and director Alex Patey will oversee the process and are exploring options with potential buyers and investors. These include utilising the central kitchen to rapidly expand the El Mexicana and Don Churro brands as well as examining the potential to service other brands. Paul Stagg, co-owner of El Mexicana and Don Churro, said: “We have transformed our business in the last 12 months from a franchise model to fully owning all stores while investing in a state-of-the-art central kitchen. This gives us, and any partner, capacity to grow more than three-fold from our existing overhead base, with an existing pipeline of new stores opening in the coming months set to further drive increased profitability.” Chris Adlam, Partner at FRP Corporate Finance, added: “In recent years we’ve seen a surge in popularity for fast food brands that can offer healthy alternatives at a reasonable price. El Mexicana and Don Churros’ commitment to using only the freshest ingredients, combined with its established Central Kitchen and logistics operation, mean the business is uniquely placed to capitalise on this trend and continue its rapid growth. We urge any interested parties to get in touch.” Founded in 2011 by former Sainsbury’s executive John Coverley, the £5m turnover group provides Mexican-inspired grab-and-go meals including burritos and quesadillas, as well as freshly made churros and other desserts, with all food prepared daily in its Stevenage-based central kitchen. Propel revealed in March 2023 that the bulk of the El Mexicana business had been sold via a pre-pack administration for a total consideration of £150,000. The business had appointed advisors to explore its strategic options, including seeking further investment into the business, earlier that year. Administrators from Interpath Advisory completed a sale of a number of entities within parent company Elmex Group. The business was sold to Cholco Consulting, which comprises Cloverly and Paul Stagg as directors. The deal saw nine El Mexicana sites continue to trade – five locations with motorway services operator Extra (at Baldock, Beaconsfield, Cambridge, Cobham and Peterborough) plus sites in Romford, Stevenage, Swindon and Worcester. Further sites at Luton airport and in Chelmsford closed. El Mexicana features in the Multi-Site Database, the next edition of which will be sent to Premium Club members on Friday (28 June) at midday. The next Propel Multi-Site Database, produced in association with Virgate, provides details of 3,161 multi-site operators and is now searchable in seven main segments. The database features 927 (29%) operators from the casual dining sector, 771 (24%) pub and bar operators, 524 (17%) cafe bakery operators, 433 (14%) quick service restaurant operators, 254 (8%) hotel operators, 198 (6%) experiential leisure operators and 54 (2%) fine dining operators. The database is updated each month, and this edition includes 40 new companies. A Premium Club subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or supplier. Email kai.kirkman@propelinfo.com today to sign up.