Benito’s Hat

Sector:
Restaurant & Food Services

Mexican restaurant chain

benitos-sideimageBenito’s Hat is a Mexican fast-casual restaurant chain, providing authentic Mexican food at an affordable price. The company has won many accolades from food critics and has built a following of customers who are passionate about the product and the brand.

We previously invested in Benito’s to provide capital for its initial growth phase of site openings and there are now six within the M25, one in Oxford and one in Leicester. In 2017, under a new management team, Benito’s undertook an extensive programme to position its operating model to reflect a changing trading and employment environment. The Company has implemented a new supply chain model that enables a significant reduction in site labour costs and the capital expenditure required to open new sites. This has been achieved while maintaining the quality of the product and the customer experience.

Rationale

The latest investment from Calculus will provide funding for further site openings to reach new customers across London and the UK, targeting 13 new sites over the next four years. The retail property market where lease costs were rising has ‘cooled’ and there are opportunities to acquire additional sites on attractive terms. Moreover, food price inflation has stabilised whilst household income is rising. These factors along with the impressive new management team, including newly appointed Managing Director Michael Pearson (who brings experience from Ping Pong Dim Sum, Intercontinental Hotels Group and SSP Group Travel), will enable Benito’s to grow to a size and level of profitability attractive to trade and private equity buyers.