Mexican food chain Tortilla founder nets £2m from float

THE founder of Mexican food chain Tortilla has landed a £2m payday, after cashing in on the group’s London float.

Brandon Stephens, a Californian who founded the company in 2007 after moving to London, sold more than 1m shares in Tortilla as part of its debut on Aim, leaving him with an 8.3pc stake in the business.

The chain, which has more than 50 outlets across the UK and 10 in the Middle East, priced its float at 181p per share, giving it a valuation of £70m.

Richard Morris, chief executive, also sold part of his stake, landing a £830,000 windfall and leaving him with a 3.6pc holding.

Tortilla is planning to ramp up its expansion following the float, with ambitions of opening 45 new sites over the next five years, using £5m of new funds raised as well as a £10m debt facility from Santander.

It said the post-pandemic landscape put it in a strong position to start opening more sites, given the “dra- matic increase in the number of vacant units on the market with rent levels rebalancing to more sustainable levels”.

It suggested that more of the new sites would be in pubs, hotels and amusement parks, citing the “recent trend among them to bring high-street restaurant brands’ food offerings into their venues”.

Tortilla’s float signals investor optimism for high street restaurant chains, which have taken a beating during the pandemic.

Names including Carluccio’s and Byron Burger have collapsed over the past year and a half, although for both those companies rescue deals were later agreed which saw some sites remaining open.

Tortilla is not alone in looking at high street restaurant closures as an opportunity for expansion, with TGI Fridays saying fewer options for diners would likely provide a bump.

The American-style food chain is also planning to float on the London Stock Exchange later this year.