Tortilla revenue slumps after cutting ties Deliveroo, but there’s no sign of regret
Tortilla’s revenue has slumped after the decision to remove itself from takeaway platform Deliveroo, but the company showed no sign of returning to the platform and said it was focused on expansion in continental Europe instead.
Like-for-like deliveries fell by 10.3 per cent in the 26 weeks ended 30 June.
Tortilla said the decision to remove itself from Deliveroo had been driven by a move to “improve profit conversion and increase focus on in store revenue”.
The company said that delivery profitability had improved by £0.5m in the half due to the decision.
Revenue for the first half of the year fell by £1.2m, from £32.7m to £31.5m last year.
Adjusted earnings before interest, tax, depreciation and amortization was £1.8m, unchanged year on year despite the revenue drop.
The Mexican food offering said it was now focused on expanding into continental Europe and revitalizing its menu.
It acquired Fresh Burritos during the period, which included 13 company-owned leasehold sites in French cities and the franchise rights to the Fresh Burritos brand.
The purchase “provides a springboard for franchise growth across Europe”, Tortilla said.
Andy Naylor, chief executive Officer of Tortilla said: “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 shaken up its leadership team in recent months, with CEO Richard Morris replaced by Andy Naylor and Maria Denny appointed to the board in the first quarter.