Manchester-headquartered Mexican style restaurant chain Barburrito has been bought by the owner of Wagamama, Frankie and Benny's and Chiquito for £7million.
The Restaurant Group has snapped up the company which operates 16 sites including at Manchester Airport, Manchester Arndale, Manchester Piccadilly and two at the Trafford Centre. Barburrito's was founded in 2005 and has its head office based in Didsbury.
The new owners, whose brands also include Brunning & Price, Coast to Coast and Firejacks, has also revealed plans to double the number of Barburrito sites within the next four years. For its most recent financial year, to September 26, 2021, Barburrito achieved a turnover of £11.1m and a pre-tax profit of £1.7m.
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Its profit for that period "benefitted from significant temporary government support", the Restaurant Group said.
The buyer added that the 16 Barburrito sites are expected to contribute pre-tax profits of about £800,000 to the group over the next 12 months.
The Restaurant Group said: "The Barburrito proposition is well aligned with key consumer trends including healthy eating, convenience, customisable cuisine and offers high quality products at attractive prices with an average spend per customer of c.£10. The strength and established nature of the proposition and its alignment to these key consumer trends has resulted in an impressive trading performance.
"Barburrito’s strong current trading gives us confidence in its ability to align with and extend TRG’s track record of market out performance.
"The sites have historically generated strong returns on invested capital in excess of 30% and TRG believes there is significant scope to further develop and expand the brand, particularly in the south of England, where there is limited presence.
"The initial expansion plan would be to double the existing state over the next four years."
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