Franchising Too Soon Is ‘A Cop Out’ Say Restaurant Owners

Crain’s Manchester Business:

There are only 2 branches of Mexican restaurant Barburrito - in Piccadilly Gardens, which launched in November 2005, and at the Trafford Centre, which opened in November 2007. But its founders believe their concept, dubbed ‘fast-casual dining’, is ripe for rolling out into a chain.

Turnover for the year ended March 2008 was £1.2m, up from £700,000 the previous year, and the target for the current financial year is £2m.

Owners Morgan Davies and Paul Kilpatrick know they should capitalise on this growth with more restaurants. They have plans for 10 by 2010, with number three opening towards the end of 2008.

In June 2007, 2 angel investors put in £350,000 of equity. But if Barburrito is to continue to expand beyond a trio it will need more cash.

Obvious route… read on.