Tortilla acquires French competitor Fresh Burritos for €3.95m

Tortilla Mexican Grill has announced its strategic acquisition of Fresh Burritos, a France-based European fast-casual Mexican restaurant, for a total of €3.95m (£3.34m).

The deal has been funded from the group’s existing debt facilities and is expected to contribute £2.5m of additional annual adjusted EBITDA at 24 months maturity.

It comes as the latest step in Tortilla’s ‘Vital Five’ growth strategy, of which key pillars are to develop the brand internationally and double-down on franchise.

The acquisition includes 13 company-owned leasehold restaurants in “high-quality” locations in Paris and other major French cities, in addition to rights to the Fresh Burritos brand and network of 19 franchised locations.

A new Tortilla European sub-board committee has also been created, and will be chaired by group non-executive director and former Yum! European franchise division CFO, Francesca Tiritiello.

Tiritiello will be joined by newly-appointed non-executive director of the sub-board committee, Gilles Boehringer, the former VP of development and franchise for KFC France.

An experienced European hospitality managing director has also been appointed and will join in September.

Andy Naylor, CEO 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 locagons 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.

“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.”