TRG acquires Barburrito for £7m with plans to double estate

The Restaurant Group (TRG) has today announced it has bought Mexican fast casual chain, Barburrito Group, for £7m.

Barburrito is an award-winning chain, focused on serving fast, fresh and healthy Mexican food. The business currently operates across 16 sites in high footfall locations across a range of formats, such as shopping centres, city centres and transport hubs.

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 around £10.

The strength and established nature of Barburrito and its alignment to these key consumer trends has resulted in an impressive trading performance.

For the period ended 26 September 2021, Barburrito’s profit before tax was £1.7m and its gross assets were £3.9m.

The chain's 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 estate over the next four years.

Barburrito will be integrated into TRG’s Leisure & Concessions division, with the key operational team from Barburrito retained. The Leisure & Concessions team is very familiar with the business having operated two sites previously as franchises in UK airports.