The Sunday Times reports that Risk Capital, the private equity firm run by serial entrepreneur Luke Johnson, has acquired a majority stake in Red Hot World Buffet, the restaurant company launched and operated by Paramjit and Helen Dhaliwal.
Rumours of such a deal have flourished in recent months, though it is believed that the Dhaliwals have thoroughly explored alternative funding and development options.
The company, founded in 2004, has enjoyed growing success as it developed and refined its concept: a fixed price buffet featuring cuisines from around the world, including China, Mexico, India, Italy and the US. Its most recent opening – the seventh – in Nottingham has 500 covers and is reported to be serving as many as 8,000 customers a week.
Expansion plans are for 25 sites within the next three years.
The new funding brought by Risk Capital is expected to pay for significant refurbishment and upgrading of the existing estate, as well as the opening of an eighth outlet. All being well, we can expect rapid expansion thereafter, as Luke Johnson’s experience and contacts are applied.