Finance This Restaurant, Get Four Years' Worth of Burritos
Who needs an IOU when you've got a burrito?
In what may be the most creative financing scheme in the annals of small business, London fast food outlet Chilango is offering a four-year corporate bond that gives buyers 8 percent interest and a free burrito a week for the duration of the debt, according to The Wall Street Journal. All you need to participate is £10,000 ($16,800) and a lot of faith that the company will make good on its promise.
Founded by former Skype colleagues Eric Partaker and Dan Houghton, Chilango operates seven Mexican restaurants across London. The company is raising £1 million to expand and, as it says on its website, "bring the stampede of flavors we love to the U.K."
Fans of the chain have two months to invest in the seven-year-old company, WSJ notes, and must put up a minimum of £500. Investing £10,000 gets you lunch once a week, which is probably what you'd spend in London anyway. All investors get a coupon for two burritos upon subscribing, and the first 100 will be invited to a shindig featuring even more delightful Chilango fare.
“Each new restaurant costs around £500,000 to launch so raising £3 million would enable us to accelerate the opening of six new Chilango restaurants around London,” Partaker and Houghton write in the Burrito Bond prospectus.
If you're feeling rich and hungry, you can make your investment online via crowdsourcing site CrowdCube.
JILL KRASNY | Staff Writer | Staff Writer
Jill Krasny is a staff writer for Inc. magazine, where she covers the intersection of entertainment and startups. Prior to Inc., she was a writer for MTV and Esquire and an editor at TheStreet. She is a graduate of the University of Southern California with a degree in communication. She lives in New York City.