Johnson buys Red Hot World Buffet
LUKE Johnson’s private equity vehicle Risk Capital Partners has taken a majority holding in the Red Hot World Buffet restaurant chain.
The value of the deal was not disclosed but the company said it would use the cash to upgrade existing restaurants and open another in Leicester.
The Nottingham-headquartered group has restaurants in Manchester and Liverpool and five other locations.
It was founded in 2004 by Parmjit and Helen Dhaliwal and now employs 600 people and has a turnover of £22m.
Luke Johnson made his fortune building the Pizza Express chain and subsequently invested in restaurants including Belgo and Strada. He also owns the Ego chain with James Horler who will join the Red Hot management team on a part-time basis. Mr Johnson has become chairman.
Mr Dhaliwal said: “Risk Capital’s investment solidifies our growth ambitions and provides the financial and strategic support to help us capitalise our market offering. We are looking forward to what the future holds.”
Mr Johnson said: “We believe the buffet dining space to be one of the fastest growing segments of the UK’s restaurant market and that Red Hot offers great choice and great value for money to its customers in these challenging times. We are looking forward to working with the Founders and the wider management team to help them in their ambitious growth plans.”
The Manchester office of accountancy firm BDO advised Red Hot World Buffet. Risk Capital was advised by Baker Tilly, CMS Cameron McKenna, Jelf Manson and Catalysis. Pinsent Masons acted as lawyers for the company and the founders, and JMW acted for the management team.
