Tortilla’s half-year revenue slips after Deliveroo decision

Fast-casual Mexican restaurant group Tortilla has revealed its revenue for the half-year ending 30 June 2024 is down £1.2m on the same period last year, now totalling £31.5m.

The chain cited its recent decision to end its delivery partnership with Deliveroo and instead concentrate on Uber Eats and Just Eat as being behind the 5.9% revenue drop.

However, Tortilla said this strategy had improved profitability on delivery sales and will increase focus on in-store revenue.

Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) was £1.8m, in line with H1 last year despite the revenue drop. Tortilla said that as the benefits of its strategic initiatives will be slower than anticipated, combined with an ongoing challenging trading environment, it expects adjusted EBITDA to be £5m for 2024.

Andy Naylor, chief executive at Tortilla, said: “We are now seeing the positive implementation of our strategy as we continue to strengthen Tortilla’s offering and position the business to capitalise on the long-term significant opportunities in our market as the dominant European market leader in fast-casual Mexican cuisine.”

Tortilla has 81 UK sites following a Manchester Arndale Centre opening in May. The group completed six kiosk store conversions this year, following a London Wall conversion in August last year. A new SSP franchise site also opened in Leeds train station and a new Compass site opened in Leicester.

Other developments included trialled food improvements in Q2 that have now been rolled out in stores and which Tortilla said are showing early encouraging results. New food director James Garland joined the firm in June.

In June the chain made its entry into continental Europe through its acquisition of French rival Fresh Burritos, which added 13 company-owned leasehold sites in Paris and other major French cities to its portfolio, along with the rights to the Fresh Burritos brand and a network of franchised locations.

Image: ML Robinson/Shutterstock