Tortilla plans stock market float and expansion to 45 new sites

Mexican food chain Tortilla is to list on the stock market in London and has confirmed ambitious expansion plans for 45 new restaurants over the next five years.

The fast casual dining group currently runs 62 restaurants, with 50 of these operating in the UK.

It plans to list on the London Stock Exchange’s junior AIM market to help the group take advantage of growth opportunities.

Tortilla said the challenges facing the hospitality sector due to Covid-19 have resulted in a “dramatically increased number of vacant units”, providing it with an “unprecedented opportunity” for expansion.

The chain said it will open 45 sites in its long-term plan, in a move which will also include the opening of more delivery-only kitchens.

Richard Morris, chief executive of Tortilla, said: “We are delighted to announce Tortilla’s intention to float on AIM, which marks an incredibly exciting milestone in our continued growth journey.

“Since its launch in 2007, Tortilla has established a long-term track record of strong financial performance driven by considered expansion of the property portfolio and like-for-like growth.

“The business has shown itself to be extraordinarily well positioned throughout the pandemic, as the Tortilla product proposition is well-suited to the growing delivery market and we have proved the brand’s flexibility to operate across a range of locations and formats, including smaller sites and cloud kitchens.

“We believe that this IPO unlocks our ability to consolidate on this momentum and enables us to capitalise on significant long-term growth opportunities in the post-Covid-19 pandemic landscape.”

The restaurant operator also confirmed that it has appointed former Wagamama chief Emma Woods as a non-executive director.

Russ Mould, investment director at AJ Bell, said: “The good news for Tortilla is that thanks to the pandemic there are plenty of vacant units around with affordable rents which it can use to expand.

“However, selling burritos and fajitas is hardly a ground-breaking concept and there are plenty of lookalikes in the UK. Tortilla will have to work hard to win that wrap battle.”