Red Hot World Buffet was founded in 2004 by husband and wife, Parmjit and Helen Dhaliwal (pictured). It now has seven large restaurants across the UK, employing 600 people with a turnover of £22m.
The investment will provide development capital for the restaurant group’s further expansion, it said.
The buffet restaurant group serves English, Indian, Chinese, Italian, Tex-Mex and Japanese dishes, amongst others, has grown from one small site to having seven restaurants in Northampton, Milton Keynes, Liverpool, Leeds, Manchester and Cardiff, plus a new 20,000 sq foot restaurant in Nottingham that re-launched earlier this year.
Risk Capital’s investment provides development capital to upgrade the existing estate, as well as growth funding for the group’s eighth site which is due to open in Leicester in 2014.
The current management team remain, augmented by James Horler, initially in a part time capacity.
Luke Johnson, co-founder, Risk Capital Partners, said: “We have been talking to Pammie and Helen for over three years and are delighted to have made this investment. We believe the buffet dining space to be one of the fastest growing segments of the UK’s restaurant market and that Red Hot offers great choice and great value for money to its customers in these challenging times. We are looking forward to working with the founders and the wider management team to help them in their ambitious growth plans.”
Earlier this year the firm sold its stake in child-friendly restaurant chain Giraffe.
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