Tortilla acquires second largest fast-casual Mexican restaurant group in Europe – Fresh Burritos: Tortilla, Europe’s largest fast-casual Mexican restaurant brand, has acquired Fresh Burritos, the second largest fast-casual Mexican restaurant group in Europe, and largest in France, for a total consideration of €3.95m (£3.34m). The acquisition includes 13 company-owned leasehold restaurants, in high-quality locations in Paris and other major French cities, and the rights to the Fresh Burritos brand and network of 19 franchised locations. It will also provide Tortilla with the springboard for franchise growth across Europe. The deal will include the introduction of a French central production kitchen, as well as wider buying power, operational and marketing efficiencies. Tortilla, which already operates 89 sites across the UK and in the Middle East, said that through the Fresh Burritos company-owned store portfolio it will gain a strong footprint of well-invested, high-quality sites that will be rebranded to Tortilla, allowing “more rapid expansion versus organic growth, with lower early year losses”. Of the 13 restaurants being acquired, seven are being purchased as an asset deal through insolvency proceedings, while six are being acquired as going concerns. For the 52-week period to 31 December 2023, Fresh Burritos delivered revenue of €9m and a loss before tax of €100,000. Tortilla said the acquisition is the latest step forward in its ambitious ‘Vital Five’ growth strategy, of which key pillars are to develop the brand internationally and double-down on franchise. Tortilla has acquired Fresh Burritos through a combination of cash payment and bank debt roll over. The deal is funded from the group’s existing debt facilities and expected to contribute £2.5m of additional annual adjusted Ebitda (pre-IFRS 16) at 24 months maturation. On the back of the deal a new Tortilla European sub-board committee has been created, chaired by group non-executive director and former Yum! European franchise division chief financial officer, Francesca Tiritiello. Joined by newly appointed non-executive director of the sub-board committee, Gilles Boehringer, former vice-president of development and franchise for KFC France. The company said that “an experienced European hospitality managing director” has been appointed and will join in September. Andy Naylor, chief executive of Tortilla, 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!” Timothée Tronet, founder of Fresh Burritos, 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.” At the same time, Tortilla said its core UK business is trading in line with the board’s full year expectations. The company will provide a market update on its first-half 2024 performance in July.

Propel’s next Multi-Site Database to be released on Friday with seven category segmentation including 927 operators from the casual dining sector: Premium Club members are to receive the next Multi-Site Database on Friday (28 June) at midday. The next Propel Multi-Site Database, produced in association with Virgate, provides details of 3,161 multi-site operators and is now searchable in seven main segments. The database features 927 (29%) operators from the casual dining sector, 771 (24%) pub and bar operators, 524 (17%) cafe bakery operators, 433 (14%) quick service restaurant operators, 254 (8%) hotel operators, 198 (6%) experiential leisure operators and 54 (2%) fine dining operators. The database is updated each month and this edition includes 40 new companies. Premium Club members also receive access to five additional databases: the New Openings Database; the Turnover & Profits Blue Book; the UK Food and Beverage Franchisor Database; the UK Food and Beverage Franchisee Database and the Who's Who of UK Hospitality. All Premium Club members will be offered a 20% discount on tickets to Propel paid-for events including Social Media for Profit (18 July), the Talent and Training Conference (1 October) and Restaurant Marketer and Innovator (two days in January 2025). Operators that are Premium Club members are also able to send up to four members of staff to each of our four Multi-Club Conferences for free. Premium Club members receive their daily Propel Info newsletter 11 hours earlier than standard subscribers, at 7pm the evening before. They also receive videos of presentations at eight Propel conference events two weeks after they are held. This represents around 100 videos of industry insight over the course of the year. Premium Club members will be sent a dedicated monthly newsletter that will highlight key updates in the sector and direct subscribers to all the vital content their membership offers. Premium Club members also receive exclusive opinion columns every Friday at 5pm, which include the thoughts of Propel group editor Mark Wingett and a host of industry leaders from across the sector. A Premium Club subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or supplier. Email kai.kirkman@propelinfo.com today to sign up.

Chapel Down plans strategic review of options to fund long-term growth: The board of Chapel Down has announced it will be conducting a strategic review of the company’s options to fund its plan to continue “driving strong and profitable growth in the long-term”. The company said: “Chapel Down's growth strategy includes investing in new vineyards, a new purpose-built winery to be operational for the 2026 harvest and the development of our brand home in Tenterden. Considering the timeline of these investments, the board believes that it is now appropriate to review the full range of long-term funding options that support this plan. As part of the review, the board will consider all alternatives, including investment from existing shareholders, investment from new shareholders, a sale of the company, and other relevant transactions.” The company said it remains on-track to deliver double-digit sales growth in 2024 and retains a strong balance sheet with significant headroom to its existing debt facility of £12m and has reached agreement in principle to extend and increase this facility. Chapel Down said that there can be no certainty that a transaction will be pursued by the company, nor as to the terms of any eventual transaction.