Tortilla Mexican Grill serves up European expansion with Fresh Burritos deal
Tortilla Mexican Grill has acquired Fresh Burritos, the second largest fast-casual Mexican restaurant group in Europe, for €3.95m (£3.3m).
The London-listed company will take on 13 directly-owned restaurants in Paris and other major French cities as well as the rights to the brand and network of 19 franchised locations.
Fresh Burritos was founded by Timothée Tronet in 2011 while Tortilla Mexican Grill has 89 locations in the UK and Europe.
In 2023, Fresh Burritos generated a revenue of €9m and a pre-tax loss of €100,000.
Tortilla Mexican Grill ‘primed for sustainable growth abroad’
Tortilla Mexican Grill’s chief executive Andy Naylor said: “Tortilla’s international ambitions are no secret, and acquiring Fresh Burritos is our gateway to mainland Europe.
“With Mexican cuisine surging in popularity, these prime French locations give us a solid launchpad. We’re set to leverage this acquisition, just in time for the Paris Olympics.
“We’ve assembled a top-tier European team, with Francesca and Gilles at the helm, to navigate this new market.
“The brand synergies are clear, a new central kitchen is in the works, and our dedicated team is raring to go. We’re primed for sustainable growth abroad.”
Fresh Burritos founder Timothée Tronet added: I started Fresh Burritos after returning home from a stint in America, where I fell in love with Mexican cuisine.
“Our brand was the first of its kind in France, offering quick and affordable, customisable Mexican-inspired dishes – similar to Brandon and Jen’s mission to bring burritos to the UK.
“I have long admired Tortilla and couldn’t think of a better brand to partner with to take the French business to the next level. As well as their passion for the product and our category, Tortilla’s operational model and scale will be an incredible asset to our franchisees.
“There is great enthusiasm in France and Europe in general for Mexican food, and Tortilla is the best positioned to take advantage of the market trends.”
No bonuses for top bosses as targets missed
The deal comes after the top bosses at Tortilla Mexican Grill were not paid their bonuses for the company’s latest financial year after a key target was missed.
The chain cancelled the bonuses of its executive directors after the target of an EBITDA of £4.9m was not met in 2023. It instead reported an EBITDA of £4.6m.
Tortilla Mexican Grill announced in February that Morris was to depart at the end of March and be succeeded by the company’s CFO.
The company, which serves lunchtime burritos and salads, floated in 2021 on London’s junior AIM market.
Announcing its full-year results for 2023 in April, Tortilla Mexican Grill posted a revenue of £65.7m, up 14 per cent.
During the year, the firm opened six sites and one franchise store taking its total to 87 sites.