The street food-style brand has two sites in Cheltenham and Oxford and has appointed property agency Fleurets to look for further locations.
Founded by five Sri Lankan friends, Coconut Tree's original Cheltenham restaurant was named runner up in the ‘Best Cheap Eats’ section of The Observer Food Monthly Awards in 2017.
Its menu includes hoppers – a bowl-shaped coconut milk pancake – and tapas-style dishes such as mutton rolls and hot battered spicy mushrooms.
Now the group is understood to have agreed terms on a site in central Bristol.
A spokesperson for Fleurets says the team is also targeting sites in Brighton, Bath, Cardiff, Exeter, Reading.
They are also looking at the Putney, Wimbledon, Richmond, Chiswick, Parsons Green, Battersea and Kensington areas of the capital.
Coconut Tree's growth has been supported by its brand director Anna Garrod, previously MD of Po Na Na and head of brand and revenue for The Lucky Onion.
“The Coconut Tree is a great example of an innovative new brand that is making the UK restaurant and bar market so exciting at present,” says Kevin Conibear, head of urban markets at Fleurets.
“Whilst unfortunately we have witnessed some casualties in recent times, good quality concepts from emerging operators are thriving and The Coconut Tree has quickly established itself as a highly respected bar and restaurant, backed by an experienced team, with the quality to grow throughout the UK.”