Tortilla has reported a dip in revenue following its strategic withdrawal from the Deliveroo platform – and the company remains steadfast in its decision as it is choosing to concentrate on expansion across continental Europe instead.
The firm experienced a 10.3% decline in like-for-like deliveries for the 26 weeks ending 30 June.
In a move aimed at “improve profit conversion and increase focus on in store revenue”, Tortilla chose to part ways with Deliveroo. As a result of this strategic shift, the company noted a £0.5 million improvement in delivery profitability for the first half.
Despite the departure from Deliveroo, revenue for the first half dropped by £1.2 million, down from £32.7 million to £31.5 million compared to last year, as reported by City AM.
However, adjusted earnings before interest, tax, depreciation, and amortization remained steady at £1.8 million, unaffected by the revenue decrease.
With an eye towards growth, Tortilla is now channeling its efforts into expanding within continental Europe and refreshing its menu offerings.
During this period, Tortilla acquired Fresh Burritos, gaining 13 company-owned leasehold locations in French cities and the franchise rights to the Fresh Burritos brand, a move that Tortilla believes will “provides a springboard for franchise growth across Europe”.
Andy Naylor, Chief Executive Officer of Tortilla, expressed pride in the company’s progress: “We are very proud of the positive momentum we have driven throughout the business over the last six months.”
“The UK business had lost momentum at the start of the year, and we had to make some big decisions to overhaul the trend. We have driven the UK business forward by revitalising our food offering and investing in people, brand awareness and technology.”
“It is encouraging to see the benefits of these investments, with our in-store like-for-like sales steadily improving, from -6% per cent in March to +4 per cent in September month to date.”
“The Board remains confident and excited about Tortilla’s long-term and sizeable growth opportunities both in the UK and internationally.”
Tortilla has seen a reshuffle in its leadership team recently, with CEO Richard Morris succeeded by Andy Naylor and Maria Denny joining the board in the first quarter.
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