Luke Johnson's Risk Capital buys Wahaca, backing UK expansion

What's the deal? Serial hospitality investor Luke Johnson has acquired Mexican-inspired restaurant group WahacaDealroom has a profile for this one. Try Dealroom → through his investment vehicle Risk Capital. The chain, which runs 14 sites across the UK, was previously majority-owned by YellowwoodsDealroom has a profile for this one. Try Dealroom →, the investment vehicle behind Nando's, since November 2020.

Why now? Wahaca had spent recent months working with advisers at BDO to find a new owner. The Sunday Times reported over the weekend that Risk Capital was in advanced talks to buy the casual dining chain.

What's the endgame? The deal funds Wahaca's next phase of growth. The business is targeting new locations including Cambridge, Manchester, Glasgow, and Birmingham, alongside more sites across London.

The backdrop: Founded by Mark Selby and 2005 MasterChef winner Thomasina MiersDealroom has a profile for this one. Try Dealroom → in 2006, Wahaca traded from 27 sites at its peak. A 2020 company voluntary arrangement (CVA) shut 12 restaurants permanently, and its Paddington opening in April 2024 was its first new site in six years.

Chief executive Gemma Glasson said Johnson "understands hospitality better than almost anyone in the UK." Johnson called Wahaca a brand he has "long admired," citing "brilliant food, real culture, and a team that's clearly hit its stride."

The signal: Johnson's return to the sector adds to a portfolio built over decades. His firm Risk Capital PartnersDealroom has a profile for this one. Try Dealroom → backs All Star Lanes and Bread Holdings, owner of Gail's, and he previously sold restaurant group GiraffeDealroom has a profile for this one. Try Dealroom → to Tesco for £50m in 2013. The acquisition signals fresh appetite for expansion in a UK casual dining market still recovering from a wave of closures.

Read more: The Caterer

Image credit: Ewan-M