Food group buys Giraffe restaurants from Tesco

FOOD entrepreneur Ranjit Boparan, owner of Midlands-based 2 Sisters Food Group, is to acquire the Giraffe restaurant chain from Tesco.

The sale will be via Boparan Restaurant Holdings, a subsidiary of the main Boparan Holdings group. The group’s restaurant portfolio already includes Harry Ramsden’s.

The sale of Giraffe includes 54 standalone restaurants, of which 12 are franchise sites, and three restaurants within Tesco stores. The value of the deal has not been disclosed.

Dave Lewis, Tesco chief executive, said: “As we stabilise the business in the UK, we continue to focus on where we can best serve the needs of our customers, while ensuring our business remains sustainable for the long-term.

“Giraffe is a much loved brand, and while casual dining remains an important part of the shopping trip for many of our customers, we will continue to meet these needs through our Tesco Cafés and other providers. I’d like to thank colleagues from Giraffe for all their hard work in serving our customers and we look forward to seeing it develop in the future.”

While not disclosed, the deal is thought to be for a modest sum as the Giraffe group traded at a loss last year.

In a separate transaction, Tesco also confirmed the proposed sale of its 95.5% controlling stake in the Kipa business in Turkey to Migros.  The disposal, which is subject to usual local regulatory approvals, will result in estimated cash proceeds of around £30m, contributing to a reduction of around £110m in the supermarket’s total debt.

“The sale of Kipa reflects the particular strategic challenge we have faced in Turkey as a small regional player in a highly competitive market,” added Mr Lewis.

“It removes the need for the sustained investment required to enable the business to compete independently, allowing us to focus on improving profitability in Central Europe and continuing to grow our businesses in South East Asia.
 
“The sale agreement recognises the significant improvements in the performance of the business over the last 18 months.”