Martin Williams has said the combined Gaucho and M Restaurants business offers a “three-pronged approach to expansion across the UK”.

It was revealed yesterday that Gaucho backers Investec Bank plc and SC Lowy had acquired the three-strong M Restaurant business, which was founded by Williams in 2014. The deal creates a 19-strong company under the umbrella of Rare Restaurants.

Williams, who has been appointed chief executive of Rare, said it offered growth potential for Gaucho, M and M’s Bar & Grill model.

However, he said the initial focus would be on stabilising the Gaucho proposition and redesigning key restaurants. A new menu and wine list has already been introduced which has seen covers rise 20% year-on-year and spend per head dip 15%.

Refurbishments of the Charlotte Street and Chancery Lane sites will be undertaken this year with work to add new bars to the sites in the O2 and Piccadilly.

Williams told MCA: “This is a new chapter and a really good investment story. It’s probably quite rare for banks to back the long-term revitalisation of a brand but Investec and SC Lowy have really bought into the plan.

“The two teams combined make us a genuine player in the hospitality industry.”

He said that while M Restaurants had “up until now been an entrepreneurial journey” now “it’s a scale up process – the combined resources open up a lot of exciting opportunities”.

Work will now begin to build a strong board for Rare as well as strengthening the restaurant management teams.