Red Hot World Buffet (RHWB), the buffet restaurant operator that is attracting private equity interest, is to look at developing a smaller “express” format as it continues to seek expansion opportunities across the UK.
Parmjit Dhaliwal, co-founder told M&C Report that the group would look at 7,000sq ft sites in strategic towns to further rollout the brand, while also concentrating on major cities for its core 10,000sq ft restaurants.
He said: “Smaller towns are very much under consideration going forward and something we will need to consider as we grow. We are building up experience all the time and a smaller format is something we believe we can deliver.”
The group will relocate its current Nottingham restaurant to a larger site later this year and has secured a further a unit in Leicester for a further opening at the start of 2013. Sites in Glasgow and Sheffield are also on its radar.
Dhaliwal said that talks regarding new investment continued for the seven-strong group, which has strengthened its management team with the appointment of Steven Wilkinson as finance director, since prospective suitors were initially sounded out last year.
As revealed by M&C Report, Piper, Bowmark, Risk Capital Partners and LDC are all believed to have expressed an interest in the group, which is being advised by BDO.
He said: “We have now got our ducks in a row in terms of back and head office and in a better position to engage with prospective investors. We have definitely got our act together in this respect and are still achieving high returns on capital.”
