A Worcester based, family-run Italian restaurant is set to expand its offering and create additional employment opportunities following a £200,000 loan from BCRS Business Loans.

Benedictos restaurant, based in Worcester city centre, secured £200k funding from both the Midlands Engine Investment Fund II (MEIF II) and the Community Investment Enterprise Fund (CIEF) to expand the business by adding a new Italian wine bar, café and four boutique guest rooms to its existing premises.

Established by co-owners Gaetano Cinao and Gianluca Tilotta in 2003, Benedictos is an authentic Italian restaurant that has grown significantly over the years, adding  two additional floors to host events and increase capacity, as well as creating an outdoor seating terrace and hosting wine tasting evenings.

The funding will enable Benedictos to boost revenue by increasing seating capacity from 130 to 145 and extending opening hours with the addition of an Italian café, wine bar and new lunchtime menu.

The expansion will also create job opportunities in Worcester, with the business expected to grow its headcount from 25 to 31 over the next 12 months. Staff development is a high priority for the business, with many of its long-serving colleagues progressing into management roles.

Owner Gaetano Cinao said: “After Covid, the business had the opportunity to reset and look at our plans for growth. We realised we needed to diversify to encourage weekday trade, good quality accommodation and a dedicated area for customers to have a drink before their meal. This is where our plan to create a wine bar, café and accommodation came to fruition.

“BCRS were great and took the time to understand the business and our vision for the future. We know that in the hospitality industry you can’t sit still and so we are always planning ahead to keep up with trends, new ways of engaging with our customers and diversifying our offering. We’re incredibly proud of how far Benedicto’s has come and the funding from BCRS has allowed us to realise our vision and grow the business further.”

BCRS Business Loans senior business development manager Angie Preece added: “We’re delighted to support Benedictos as they take this exciting next step in their growth journey.

“This loan will help them diversify their offering, increase capacity and welcome even more customers through their doors. At BCRS, we’re committed to backing ambitious SMEs that make a real difference in their communities, and Benedicto’s is a perfect example of that.”

David Tindall, Senior Investment Manager at the British Business Bank, said: “The investment from the Midlands Engine Investment Fund II will enable Benedictos to expand its offering, increase capacity and create new jobs in Worcester, while giving customers even more opportunities to enjoy an authentic Italian experience. This is a good example of a family run business with a clear ambition to grow while staying true to what has made it successful.

“It’s particularly encouraging to see the business investing in its people and we’re pleased to have supported Benedictos on the next stage of its journey and look forward to seeing the business continue to thrive.”

BCRS Business Loans provides funding between £10,000 and £250,000 to SMEs across the West Midlands and Wales who are unable to access the finance they need from traditional sources. The organisation is committed to lending to viable businesses making a positive contribution to the social, environmental or economic wellbeing of their communities.

Funded by Lloyds and social impact investor Better Society Capital (BSC) with management by responsible finance provider Social Investment Scotland (SIS) the £62m CIEF aims to invest in 800 small businesses nationally and support 10,500 jobs. The CIEF is backed by funds from community development finance institutions BCRS Business Loans, Business Enterprise Fund and Finance for Enterprise.

The Midlands Engine Investment Fund II drives sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the Midlands. The Midlands Engine Investment Fund II will increase the supply and diversity of early-stage finance for smaller businesses in the Midlands, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.

Since 2002 BCRS Business Loans has delivered more than 2,300 loans totalling over £110m in funds, generating more than £500m in economic impact.

BCRS Business Loans is a fund manager for the small funds portion of the first £130m Investment Fund for Wales and is an accredited lender under The British Business Bank’s Community ENABLE Funding (CEF) Programme.

Visit www.bcrs.org.uk to discover more or submit an initial application form.