Tortilla, the Quilvest-backed, the burrito and taco brand, is looking into developing a smaller format model aimed at residential areas, prompted by the growth of the delivery side of its business, MCA understands.
The company is looking at getting in to 600sq ft to 800sq ft locations in residential areas, embracing the fact that that 30-40% of its business will be through delivery.
Managing director Richard Morris told MCA: “We really believe that a 600-800sq ft Tortilla doing 30-40% on delivery with 20 to 30 seats is a model that works for us. Our Clapham site at 900sq ft is the closest unit we currently have to that model and it is taking £1.5m a year, it’s a great little business. With these prospective residential locations there will be less capex, a lower threshold to make the business work, including lower rents. We know our product is a product that people love to eat at home, so we have to find a way of making that work.”
MCA yesterday revealed that the 35-strong Tortilla’s like-for-like sales were up 9% in the year to date on the back of strong like-for-like sales last year.
Morris said that the half of that growth came through delivery, but that all areas of the business was in growth, with the company’s mature sites seeing double-digit growth.
At the same time, the company, which is on track to post full-year turnover of c£30m, up from £25.3m in its last financial year, has appointed Andy Naylor, former group head of finance at Gaucho and CAU, as its new finance director.