Tortilla Mexican Grill PLC (AIM:MEX) said it was seeing ‘positive momentum’ after overhauling its strategy even though revenues fell in the first six months of 2024 and it posted another loss albeit reduced.
Since the half year, the Tex-Mex chain said like-for-like (LFL) sales had improved from minus 6% year-on-year (in March) to growth of 4% in September.
Andy Naylor, chief executive, said: “The UK business had lost momentum at the start of the year, and we had to make some big decisions to overhaul the trend.”
This has involved an overhaul of the food offering, more store openings especially with franchisees and overseas with total outlets now 89, changes to its delivery partners and more investment in technology.
Revenues in the six months to the end of June dropped to £31.5 million (H1 2023: £32.7m) with interim losses of £0.2 million (£0.6 million).
Most of the sales dip was due to a delivery revenue decline of 10.3% LFL due to the changes, though delivery profitability rose by £0.5 million.
Tortilla added that trading is on track to meet forecasts this week while a central kitchen is due to open in France in the fourth quarter when the first three sites (in Strasbourg) should also be up and running.