The fast-casual Mexican restaurant group reported revenue of £31.5m, which was down £1.2m on last year, with like-for-like revenue down 5.9%. This, it says, was due to its decision to condense to a dual delivery platform, improve profit conversion and increase focus on in store revenue.
In a trading update for the half year ended 30 June 2024, adjusted EBITDA was £1.8m.
In April Tortilla revealed its new strategic vision, called the Vital 5, designed to improve UK profitability at the business, invest in brand growth and technology, ‘double down’ on franchise, and develop the brand internationally.
In February this year Tortilla ended its partnership with Deliveroo, saying the delivery commission it charged had ‘challenged margin performance’, which it cites as the reason for the fall in revenue.
It subsequently moved to a dual delivery platform strategy, strengthening its relationship with Just Eat and Uber Eats.
The group says it has accelerated the deployment of kiosk-ordering technology, with six kiosk store conversions completed this year following the success of the London Wall conversion in August last year, and will be launching a new loyalty platform at the beginning of August.
“We are now seeing the positive implementation of our strategy across all five pillars as we continue to strengthen Tortilla’s offering and positioning the business to capitalise on the long-term significant opportunities in our market as the dominant European market leader in fast-casual Mexican cuisine,” says CEO, Andy Naylor.
“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 on board.
”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.”
Tortilla currently operates just over 80 sites, including franchise-run locations, with its latest being a company-owned site in Manchester’s Arndale Centre.
It will open a total of four new sites in transport locations this year in partnership with global food travel business SSP.