Boparan to buy Tesco’s Giraffe restaurant chain
Tesco has announced the intended sale of its restaurant chain Giraffe to Boparan Restaurants Holdings Limited.
Ranjit Singh Boparan, who began his career in butchery, is also the founder of 2Sisters Food Group. Originally specialising in poultry, the company has since expanded to include red meat and chilled and frozen foods, as well as other food categories.
Dave Lewis, Tesco chief executive, commented: “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 Cafes 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.”
The transaction has been described as an “interesting development” by Shore Capital analysts. “No doubt there will be a reflection upon where Giraffe rests now and in the future at parcitipating Tesco stores. With Giraffe sold we shall also wait to see whether Tesco remains committed to Harris + Hoole, the coffee shop venture.
“All in all, this is a small beer deal in the re-engineering of the group but another cog in a much bigger wheel of simplification, focus and delveraging. Much work has been undertaken by Tesco on this front, work that we expect over time will more concertedly move to structural costs, supply chain structures and processes, and so the scope to harness positive operational gearing, central to any meaningfull recover of the group.”
Tesco also confirmed the proposed sale of its 95.5% controlling stake in Kipa business in Turkey to Migros.
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- shore capital
- dave lewis
- Boparan Restaurants Holdings Limited
- Ranjit Singh Boparan
- 2Sisters Food Group
- Harris + Hoole
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