, UK
Press photo. /Tortilla

Tortilla H1 revenue slips 5.9% over dual delivery strategy

The group said the benefits from the new strategy are slower than originally anticipated.

Tortilla Mexican Grill PLC reported that like-for-like revenue was down 5.9% due to the strategic decision in the first quarter to condense to a dual delivery platform to improve profit conversion and increase focus on in store revenue.

Previously, the group ended its partnership with Deliveroo, deciding instead to concentrate on Uber Eats and Just Eat,

However, the Tortilla said that it saw     improved profitability on delivery sales following switch to dual platform.

Adjusted EBITDA is at £1.8m, in line with H1 last year despite revenue drop. The group also said that the early results are encouraging, however, the benefits of their new initiatives like the dual delivery strategy will be slower than originally anticipated, and this combined with an ongoing challenging trading environment, means the Board now expects Adjusted EBITDA (excluding the recent Fresh Burritos acquisition) to be £5m for 2024.  

A revised combined outlook, including Fresh Burritos, will now be Adjusted EBITDA of £4.5m and the year-end net debt position is expected to correspondingly increase to £7.5m.

|In the first half of 2024, we have significantly improved the quality of our food and are driving exciting innovation with our new Food Director, James Garland now onboard.  We have accelerated the deployment of kiosk-ordering technology and will be launching our new loyalty platform at the beginning of August.  Whilst the timing of these initiatives has been slower than planned, the early signs are positive, and we look forward to updating shareholders on progress in September,” Andy Naylor, CEO at Tortilla said.
 

Follow the link for more news on

Join QSR Media UK community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

Chipotle opens 1,000th restaurant
It is located in the greater area of Kansas City, US.
International
wagamama is UK’s most diverse restaurant workplace
The brand ranked 130th in all of Europe and 1st in the UK among restaurants.
Mr Bao Group formalises to ‘6 OF 1’
This marks the brand’s departure from the Taiwanese restaurant concept.
New concepts