Tortilla to accelerate expansion to ‘take advantage' of market conditions

Monday, October 3, 2022

Tortilla, one of Mexico's largest restaurant chains, said it expects its number of new openings to grow to 12-15 a year starting in 2023.

Stock in the Mexican fast-food chain soared after it warned of "material" influences to profits in the second half of the year from inflationary pressures.

The company bought rival Chilango earlier in the year for £2.75m, opening five UK locations and a delivery kitchen, bringing the total number of sites, including the eight it acquired, to 84.

This is expected to reduce gross profit by around £1.8m, along with another £500.000 incurred due to increased utility costs.

The firm said its recovery in London was continuing, with full scale sales around the zone up 98% on pre-Covid levels, offering it "great confidence" in the Chilango takeover.

That came even though Revenue at The Board soared up by 30% in the same period from £21 million to £27 million after the store closed for a few weeks last year amid the pandemic.

At the end of December, the group asserted that its new Tortilla Club loyalty programme was transmitted by a 29% increase in visits among loyal clients, while five of the eight Chilango locations have switched to the Tortilla brand.