Risk helps itself to a large portion of the Buffet

The former chairman of Pizza Express said the deal – for an undisclosed sum – will provide development capital for the restaurant group’s further expansion.

The business was founded by husband and wife team Parmjit and Helen Dhaliwal in 2004 and now has seven large restaurants across the UK, employing 600 people with a turnover of £22m.

Mr Johnson 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.”

Red Hot World Buffet opened in Leeds in October 2010. It has 350 covers and serves 6,500 people a week.

The new investment will help upgrade the existing estate, which includes restaurants in Northampton, Milton Keynes, Liverpool, Manchester and Cardiff, and provide funding for the eighth site which is due to open in Leicester in 2014.

The group relaunched its 20,000 sq ft restaurant in Nottingham earlier this year.

Risk Capital is bringing in James Horler to support the management team. He was previously chief executive at chains. Frankie & Benny’s and La Tasca

Mr Johnson has been appointed chairman of the group.

Pammie Dhaliwal, founder and CEO of Red Hot World Buffet, said: “This is an exciting time for us and all the staff who have been involved in making Red Hot World Buffet a success since we launched our first restaurant in 2004.

“Risk Capital’s investment solidifies our growth ambitions and provides the financial and strategic support to help us capitalise our market offering.

“We are looking forward to what the future holds.”

Accountancy firm BDO advised Red Hot World Buffet.

Peter Hemington, a partner at the firm, said: “This deal highlights that M&A and investor appetite remains strong for innovative concepts in the restaurants and bars sector. Risk Capital’s investment and sector expertise will support the group’s plans, in a deal that provides an exciting opportunity for both parties.”