Tortilla revenue soars 60% in H1

Tortilla has welcomed strong top-line growth during the first half of FY22, with group revenue soaring 60% to £26.9m, or an increase of 55% excluding the impact of the Chilango acquisition. 

The group said this performance was underpinned by growing customer demand for Tortilla’s food as well as the group’s roll-out of new sites.

During the period, the group completed the strategic acquisition of Chilango for £2.75m, adding eight sites to the group’s estate plus one delivery kitchen. 

It noted the integration was “progressing well”, and said the acquisition strengthens the group’s position and accelerates its expansion across the UK to further capitalise on growing consumer demand.

During the period, the group opened a further six sites: Bath, Cheshire Oaks, Bournemouth, Portsmouth, Birmingham New Street, and a delivery kitchen in Maida Vale. SSP Group also opened a Tortilla site in Bristol Airport and the group commenced a franchise partnership with Compass Group with four sites trading.

The group noted all new sites are “performing well” and in line with expectations since opening. These openings bring the total number of Tortilla sites to 84, with 41% of company-run sites located outside of the M25. 

In addition, Tortilla remains on track to open 45 new sites over the coming years, with the eight sites acquired through the acquisition of Chilango supplementary to this.

Richard Morris, CEO of Tortilla, said: “We are pleased to report further strong growth and strategic progress during the first half supported by our strong reputation for great value and our growing UK presence. 

“During the period we sold more than 3.2m burritos and completed the exciting acquisition of Chilango to bolster our leadership position in the UK’s fast-casual Mexican market. Chilango hold leases in several strong London locations and provide a high-quality supplementary food offer”.

He added: “We have continued to outperform the sector according to relevant industry benchmarks and remain confident in the Group’s long-term growth prospects. 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.”