Tortilla reports 60% revenue increase
Fast casual Mexican restaurant group Tortilla has reported a 60% increase in group revenue to £26.9m for the first half of the year, compared to the same period in 2019.
In a trading update to 3 July 2022, the group said like-for-like revenue increased 19% and reported net cash of £3.1m to fund future expansion.
Tortilla bought rival Chilango in May for £2.75m, adding eight sites to the group's estate plus one delivery kitchen. It said the integration was "progressing well" and would accelerate its expansion across the UK.
During the six months, the group opened six sites in Bath, Cheshire Oaks, Bournemouth, Portsmouth, Birmingham New Street, and a delivery kitchen in Maida Vale. SSP Group also opened a Tortilla in Bristol Airport and the group commenced a franchise partnership with Compass Group, with four sites trading.
Tortilla said all new sites were "performing well and in line with expectations" since opening. The openings have brought the company to 84 sites, with 41% of company-run sites located outside of the M25. It said it remained "on track" to deliver its target of 45 new sites over the coming years.
The update added that the business had taken "proactive and decisive steps" to help mitigate inflationary pressures, including updating pricing, driving operational efficiencies, and partnering with Uber Eats, Just Eat, and Deliveroo.
Richard Morris, chief executive of Tortilla, said: "Our site-roll out continues as planned in line with the target set out at IPO, with further opportunities supported by the favourable rental environment.
"Whilst the macroeconomic environment remains challenging, we are working hard to mitigate cost pressures as much as we can and are mindful of the impact on the consumer of the cost-of-living crisis. However, we remain very confident that supported by our strong reputation for outstanding value, excellent delivery proposition, and growing UK presence we are well positioned for long term growth."
