Growth on the menu after Red’s £5m investment deal
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THE co-founders of Red’s True Barbecue have selected from the industry’s top table in bringing together eight investors into a consortium to put in £5m into their growing chain.
The first restaurant opened in Leeds in late 2012, before adding Headingley, Manchester and Nottingham.
Now a combination of debt funding and equity investment will feed their appetite for further growth by supporting two more restaurants, including its first in London, in the pipeline.
Red’s co-founder Scott Munro said: “This deal will guide us into early next year where we plan to re-look at our options. Our focus remains to open 20 sites within five years. With the team and investors in place we’re firmly on track to become the UK’s largest smokehouse group, and the go-to brand for authentic barbecue in the UK.”
The consortium is made up of industry veteran Ian Neill, Jamie Barber of Cabana, Pho’s Stephen Wall, Brandon Stephens of Tortilla, K10’s Maurice Abboudi, Dom Lake of Canteen, and retail entrepreneurs Aarish Patel and Sunny Gill. Debt funding is being provided by Santander UK.
Mr Wall and Mr Patel are joining the board as non-executive directors, alongside Brandon Stephens who was made non-executive chairman earlier this year. Red’s has also recently strengthened its management team with the appointments of Matt Snell as operations director, joining from Fuller’s, and Craig Bell as finance director, previously FD at AIM-listed Premium Bars and Restaurants.
Mr Munro added: “Red’s is still a young company, and to have access to this wealth of advice and knowledge at this stage of our growth puts us in a strong and enviable position. Interest in the brand remains unprecedented – Nottingham sales continue to track ahead of our expectations, whilst Manchester, Leeds and Headingley remain resilient.