Saturday, February 16, 2019

Tesco to offload struggling restaurant chain


Following its recent full acquisition of coffee chain Harris & Hoole, big four grocer Tesco is looking to offload its restaurant business Giraffe.

Tesco bought Giraffe in 2013 for £49m and planned to open branches alongside its grocery sites to essentially provide a rounded retail experience.

Tesco noted that the combination would be an “opportunity to develop some of the space in our larger stores to create retail destinations that offer customers even more choice”.

In a move to cut losses, however, Tesco has made the decision to sell the struggling restaurant chain. It posted a £4.1m loss last year following new openings and cuts to the value of existing sites.

Private equity firms which have been involved in previous restaurant takeovers have expressed an interest, according to Sky News.  

Tesco also sold its loss-making music streaming business Blinkbox in January 2015.

Harris & Hoole currently operates 43 outlets, including 29 sites in Tesco stores. Losses soared to £25.6m in the year ending March 2015.

Tesco declined to comment.