Fast-growing smokehouse concept Red’s True Barbecue has secured a further £9m of investment as it looks to open a further eight to 10 sites over the next two years.
The majority debt deal is the second struck between the six-strong concept and Santander this year. It also comprises a secondary round of equity investment from its original handpicked panel of industry leaders, including industry veteran Ian Neill, Maurice Abboudi (K10); non-executive board members Brandon Stephens (Tortilla), Stephen Wall (Pho) and Aarish Patel; and retail entrepreneur Sunny Gill.
Earlier this year, the group, which is in legals of four new sites, secured £5m of new investment from the same “super 8” group of leading industry players and retail entrepreneurs, plus debt from Santander to aid openings in Nottingham, Shoreditch and Liverpool.
M&C understands the company is on track to deliver full-year turnover of c£10m in its current financial year and is forecast to see this grow to c£15m in the following 12 months if all new openings go to plan. Mooted future destinations include Glasgow and Sheffield. In May, it said it planned to open 20 sites within five years.
Scott Munro, co-founder of Red’s, told M&C that the company would concentrate on opening 4,500sq ft to 5,000sq ft sites in major city centres going forward after the continued success of its recent openings, with Liverpool being one of its most successful launches - tracking “20% ahead of budget”.
He said that trading had been buoyant, with the group experiencing more corporate bookings and a record number of Christmas bookings.
Munro said: “The UK’s prayers for more places to worship authentic US barbecue has been answered! As BBQ evangelists we’re delighted the appetite for this food trend is still as hungry as it was when we opened our first site in Leeds in 2012.
“Santander has been a great partner and this is a chance for us to forge a solid relationship as we move forward. We’re stoked our original equity investors have shown commitment once again, and demonstrates the strength of the Red’s business. Their wealth of experience is invaluable and has provided great insight and guidance this year.
“The pipeline for 2016 is already shored up with four fantastic sites in legals allowing us to spread the good gospel of true barbecue to around 100,000 believers each month, and positioning us as clear brand leaders in the sector.”
Earlier this year, the company launched its own range of BBQ sauces and rubs nationwide into Asda and Sainsbury’s whilst its debut recipe book, Let There Be Meat, was a Sunday Times best seller.
The business was recently shortlisted as Ones To Watch by the Sunday Times Fast Track 100 programme, having grown sales to £7.1m in 2014.
