Tortilla posts half-year results
However, the brand said it is seeing improving profit conversion from this strategy.
Tortilla reported a 5.5% dip in overall like-for-like revenue in the first half of the year, driven by its planned strategic decision in Q1 to condense to a dual delivery partnership.
The brand said this has seen an expected delivery revenue decline of 10.3% LFL.
Previously, the group ended its partnership with Deliveroo, deciding instead to concentrate on Uber Eats and Just Eat.
Revenue for the first half of the year dipped year-on-year from £32.7m in FY2023 to £31.5m. Tortilla said that Adjusted EBITDA of £1.8m is in line with the prior year despite the revenue drop, highlighting our improved profit conversion.
“Current Trading is in line with management expectations for the full year 2024, with in-store sales continuing to improve on the back of our investment in food, brand awareness and technology (+4% LFL in September month to date, up from -6% in March). We also continue to see our revised delivery strategy and cost savings initiatives improving profit conversion,” the brand said.
Meanwhile, the brand said it is focusing on driving brand awareness through collaborations, and monthly influencer burrito specials, resulting in our brand awareness rising to 23%
August also saw the launch of the new Tortilla app, with 30,000 new members since launch, now totalling 164,000 active members. Further investments include seven kiosk restaurant conversions, driving an increase of 12% in average order value, with the group planning to install more kiosks in the fourth quarter.
“Integration of Fresh Burritos progressing well and in-line with plans: Site secured for a fully-fitted-out 1400 sqm Central Production Kitchen in France, enabling Tortilla to produce consistent food at scale for the European market, on track to open in Q4. Store conversion started with the first site, Strasbourg, converted to Tortilla in Q3 with the next two sites scheduled for conversion in Q4,” the brand said.
