From ihug to a bite of Mexican

Mexicali Fresh hopes to open three more stores in Auckland and is looking to expand to other parts of New Zealand. Photo / Supplied

The co-founder of internet company ihug Tim Wood has bought into the Mexicali Fresh restaurant chain.

The web entrepreneur has scooped up a minority stake in the restaurant group, which is a family-owned business with four Mexican-themed food outlets in Auckland.

The chain, which set up its first restaurant in 2005, hopes to have three more stores in the city by January and a spokesperson said Mexicali Fresh might expand into other parts of New Zealand.

Wood said he was looking forward to growing the brand and had a particular penchant for the restaurant's chicken taco salad.

"It's a fantastic product that has huge expansion potential with a little help around growth and delivery strategies.

"I was naturally keen to partner with the family to take Mexicali Fresh to the next level," he said.

Wood and his brother Nick founded the internet Home Users Group, ihug, in 1994 using an $8000 loan from their father.

It was sold 10 years later to Australian-based iiNet for $81 million and was then bought up in 2006 by global mobile giant Vodafone.

As well as the ownership announcement, Mexicali Fresh said it had appointed Keith Goodall and Grant Stapleton to its board of directors.

Goodall is ihug's former chairman.