THE popular Indian restaurant chain in the UK, Dishoom, has secured its first major outside investment, with the business now valued at around £300 million.
L Catterton, an investment firm backed by luxury giant LVMH, has bought a stake in the restaurant group to help fund its expansion plans, including opening its first American restaurant next year, reported the Times.
Dishoom was started by cousins Shamil Thakrar and Kavi Thakrar in 2010 with a single restaurant in London's Covent Garden. The restaurants are designed to feel like the old Iranian cafés that were popular in Bombay during the 1960s.
The concept quickly caught on with customers, who often queue for long periods to get a table. The company now runs ten outlets across the UK and four more cafés under the Permit Room brand, employing about 2,000 people.
Business has been growing strongly. The company's income rose by 23 per cent to £116.8 million in 2023, whilst profits before tax jumped by 56 per cent to £7.4 million, according to official company records.
This marks the first time the founders have brought in outside investors since starting the business. The cousins will continue to run the day-to-day operations alongside chief executive Brian Trollip, who took the top job last year after working with the company for 14 years.
The new investment will help Dishoom expand into overseas markets, with plans to open in the US in 2026.
L Catterton is a major investment firm that manages about $37 billion worth of assets. The company specialises in mid-sized consumer brands and has stakes in well-known names like Birkenstock shoes, fashion brand Ganni, and bakery chain Ole & Steen.
Last year it bought a stake in Value Retail, which owns Bicester Village shopping centre, in a £1.5 billion deal.
Shamil said the investment opens up exciting possibilities: "It is wonderful to be contemplating the international opportunities ahead of us. As ever, even more important than growth and expansion is keeping our focus strongly on deepening our hospitality — on providing guests with the most delicious food and the warmest service in beautiful restaurants and continuing to make sure Dishoom is one of the very best workplaces in hospitality."
Miray Topay, a partner at L Catterton, praised the restaurant chain: "We are absolutely delighted to be partnering with Dishoom. What the team has created is a truly exceptional business by all measures."
She added: "We look forward to supporting Shamil, Kavi, Brian and the team as they continue to grow the business in the UK and beyond. We look forward to leveraging our deep understanding of consumers and our experience in the restaurant industry to support Dishoom as they expand, and allow more people to experience their wonderful and distinct hospitality."
