Tesco Acquires Family-Friendly Restaurant Group Giraffe for £48.6m
Founded in 1998 by husband and wife team Russel and Juliette Joffe the group’s first restaurant was in Hampstead, North London. At the time of the acquisition, Giraffe has 48 sites around the UK, including franchised sites at Heathrow and other UK airports as well as one in Dubai.
The acquisition of Giraffe sees Tesco continue with its strategy of developing space in some of its larger stores. The aim being to attract customers not just to shop but to eat, drink and meet friends all under one roof. In the extremely competitive supermarket world it would seem that management teams are having to be more creative in their ideas as ways to attract and retain customers. Ideas which go beyond selling food as ways to protect margins, grow market share and ultimately translate into increased profitability.
The first Giraffe restaurant is expected to open next to a Tesco store near London.
Kevin Grace, Group Commercial Director at Tesco said, “We invest in businesses that add value for our customers online or offline; as we’ve done with Harris + Hoole, Euphorium, blinkbox, and now Giraffe. We have the opportunity to develop some of the space in our larger stores to create retail destinations that offer customers even more choice. Giraffe is hugely popular with a wide range of ages and particularly families – we think our customers will love it.”
Russel Joffe, Managing Director and Founder at Giraffe said, “We’re very much looking forward to working with Tesco. We’re passionate about great service, wonderful hospitality and serving good, healthy food at great value. This move will allow us to introduce Giraffe to a wider audience, presents great opportunities for growth and for the team to be involved in an exciting stage in our brand’s development. It will be very much business as usual at Giraffe.”
Going forward Russel and Juliette Joffe, along with Andrew Jacobs, will remain in place with Russel continuing as Managing Director. Private equity investors Risk Capital Partners and 3i sold their combined stake in the acquisition.
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