Wahaca returns to FY profit as DF Tacos ceases trading

Wahaca has announced plans to cease operations within its DF Tacos brand, and instead focus on the Wahaca brand as the group welcomed rising turnover and profits in its full-year results. 

For the year ended 30 June 2024, pre-tax profit hit £0.7m, up from a loss of £0.7m the prior year, while turnover hit £40 5m, up from £39.7m. 

In its latest Companies House filings, the group’s directors said they were “pleased” with how the group has performed in the face of “ongoing external headwinds which continue to impact the sector”.

They added that despite continued labour cost inflation and the cost of living crisis in the UK, the group was able to generate an adjusted operating profit of £2.4m, though this was down slightly from £3.1m in FY23. 

In addition, the group received £3.4m through an insurance claim settlement during the year for losses caused by business interruptions from the closure of restaurants amid the Covid-19 pandemic. This was not included in its adjusted operating profit figure. 

The group noted its focus for the last year has been re-defining its brand around customer needs, adding this focus has “strengthened our guest satisfaction metrics, putting the business in a good position to be able to drive organic growth as we focus on building brand awareness through our digıtal marketing strategy”.

However, following the year end, it closed its DF Tacos brand due to “unavoidable cost pressures, weaker trade than expected and to allow a focus on the Wahaca brand”. 

It added that it will continue to look for new site openings following the success of its new Paddıngton site.

In its latest filings, the group said: “The directors continue to be fully confident that the brand love and recognition remain very strong, which will help the business continue to navigate the ongoing challenges, particularly around cost of living and ever increasing labour costs, which continue to be a challenge across the whole UK economy.”