El Mexicana seeks investment partner to accelerate expansion

The owner of Mexican fast-food chain El Mexicana and sister dessert brand Don Churro is seeking a new investment partner as it targets rapid growth.

 

El Mexicana was founded in 2011 by former Sainsbury’s executive John Coverley and currently operates nine sites predominantly in the South East, with all food coming from its Stevenage-based central kitchen.

 

Last year, it revealed plans to open almost 30 branches over the next three years after it was bought out of administration by Cholco Consulting Limited, which lists Coverley as a director.

 

The owners have put the business up for sale and Chris Adlam and Alex Patey from FRP Corporate Finance have been appointed to seek opportunities from potential buyers and investors.

 

El Mexicana is also considering providing services to other brands as it carves out options for rapid expansion.

 

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.”

 

FRP Corporate Finance’s Adlam 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.”

 

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