Yahoo Finance Tortilla Mexican Grill to ‘double down’ on franchising as revenue leaps
Chain restaurant Tortilla Mexican Grill said it will “double down” on franchising to help capitalise on growth opportunities in both the UK and internationally.
It forms part of a five part plan unveiled by the business to help drive profits over the coming years.
The casual dining chain said on Wednesday revenues grew 14 per cent to £65.7m in the year to December.
Adjusted EBITDA also saw a 16 per cent year-on-year increase to £4.6m, while its loyalty scheme saw a 116 per cent uplift in users.
During the year, the publicly listed firm opened six sites and one franchise store taking its total to 87 sites.
Tortilla also operates in the Middle East, with 10 stores in Dubai and Saudi Arabia through a franchise partnership with Eathos.
The firm said total franchise sales were up 26 per cent for 2023.
Tortilla said it wants to “double down” on franchising this year and has at least five openings planned in 2024 with its partners.
Talks of a growth plan come just two months after it said adios to its long serving boss Richard Morris.
Morris stepped down after a 10-year stint at the chain, with former chief financial officer and commercial director Andy Naylor taking the reins.
Commenting on its latest financial statement, Naylor, said: “Recent years have seen Tortilla expand strategically through a multi-channel approach, strengthening our operational model as a springboard for sustained, profitable growth.
“Throughout 2023, we dedicated ourselves to building resilience, especially enhancing profitability, as we recovered from macro events in 2022.”
“Our efforts included streamlining costs, bolstering franchise partnerships, augmenting efficiency via technology investments, and enriching our team with fresh talent, all while continuing site deployments. These initiatives have solidified the foundation for our continued success.”
