Mexican quick-service chain, Chilango, has announced the launch of second Burrito Bond.

The bond, which was launched this morning, has already raised almost £700,000 of its initial £1m target, principally from two current board members.

Co-founder Eric Partaker told MCA that ultimately he hoped to at least match the success of its 2014 bond, which raised £2m. That campaign was hosted on Crowdcube bit Partaker said the 11-strong group was now established enough to run the crowdfunding itself through a dedicated website.

The funds will go towards a growth plan of adding at least two sites next year, including its second regional site – in Birmingham’s Colmore Row – followed by a further three a year going forward.

He said beyond Birmingham growth would principally be in London. The group previously secured sites in Glasgow and Leeds, and was thought to be eyeing Bristol, but Partaker said these locations did not form part of the immediate growth plan.

Chilango recorded sales of £10.2m and restaurant EBITDA of £1.7m last year – with forecast restaurant EBITDA of £2.1m and nearly £11m in sales in the current financial year. Like-for-like sales are currently up 5.3%, Partaker said.

Investors in Burrito Bond 2TM will receive a gross interest of 8% per annum with the option to have their principal redeemed in full at the end of the 4-year term.

Partaker said: “While many casual dining chains have experienced difficult times as of late, Chilango’s quick-service concept is posting its best results ever in its 11-year history, with positive LFL sales of 5.3% and all its restaurants profitable. The UK is riding a Mexican wave and Chilango looks forward to welcoming another round of Investors and brand evangelists into the family.”

He told MCA: “I would like to at least repeat the success of the first Burrito Bond and that, with the organic cashflow we’re projecting, gives us the firepower for growth.

“After Birmingham we are going to spend a few years focussing on London because we see an enormous amount of potential here. Our unit-level economics are producing some truly industry-leading numbers and we would be crazy to not double down on that sort of success and focus on replicating that over the next few years. London is a market we know well so it makes sense to focus there. We did have stated ambitions to go to other cities but the market has changed considerably since then.”

On delivery, the former Skype executive said: “Delivery is a big part of our offer now. It now accounts for 20% of our sales, versus zero three years ago. We have really embraced that model where others have been more cautious but I don’t think anyone could argue that it’s here to stay now and we have already carved out a strong position in that market.”