The brand reports improved profit conversion from its strategy.
Tortilla experienced a 5.5% decline in overall like-for-like revenue during the first half of the year, attributed to its strategic decision in Q1 to focus on a dual delivery partnership. This shift has resulted in a 10.3% fall in delivery revenue on a like-for-like basis.
The company previously ended its partnership with Deliveroo, opting to concentrate on Uber Eats and Just Eat.
Year-on-year revenue for the first half decreased from £32.7 million in FY2023 to £31.5 million. Despite the drop in revenue, Tortilla reported an Adjusted EBITDA of £1.8 million, consistent with the previous year, indicating improved profit conversion.
“Current trading aligns with management’s expectations for the full year 2024, with in-store sales continuing to recover due to our investments in food, brand awareness, and technology (+4% like-for-like in September month to date, up from -6% in March). We also observe that our updated delivery strategy and cost-saving measures are enhancing profit conversion,” the brand stated.
In addition, Tortilla is focusing on increasing brand awareness through collaborations and monthly influencer burrito specials, which have raised brand awareness to 23%. In August, the new Tortilla app was launched, attracting 30,000 new members, bringing the total to 164,000 active members. Further efforts include converting seven locations into kiosks, leading to a 12% increase in average order value, with plans to install more kiosks in the fourth quarter.
“The integration of Fresh Burritos is progressing well and according to schedule: a site has been secured for a fully equipped 1400 sqm Central Production Kitchen in France, allowing Tortilla to produce consistent food at scale for the European market, which is set to open in Q4. Store conversions have begun, with the first location in Strasbourg transitioned to Tortilla in Q3 and two additional sites planned for conversion in Q4,” the brand reported.
