El Mexicana seeks new investment
The group operates eight sites in the UK in Baldock, Beaconsfield, Cambridge, Cobham, Peterborough, Romford, Stevenage and Swindon with food prepared daily at its Stevenage-based central kitchen.
It is seeking an investment partner to fund its plans to open up to four new sites this year and a further 25 by 2027.
A team from FRP Corporate Finance, led by partner Chris Adlam and director Alex Patey, has been appointed to oversee the process, and is exploring options with potential buyers and investors. These include using the central kitchen to rapidly expand the El Mexicana and Don Churro brands as well as examining the potential to service other brands.
“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," says Paul Stagg, co-owner of El Mexicana and Don Churro.
"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.”
El Mexicana was founded in 2011 by former Sainsbury’s executive John Coverley. The £5m turnover group serves Mexican-inspired grab-and-go meals including burritos and quesadillas, as well as churros and other desserts.
“In recent years we’ve seen a surge in popularity for fast food brands that can offer healthy alternatives at a reasonable price," says Chris Adlam, partner at FRP Corporate Finance.
"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."
