Tesco buys Giraffe restaurant chain
14 Mar 2013
UK's largest retailer Tesco has unveiled a new strategy to beat shrinking profits and declining footfalls - family-orientated restaurants and "independent" coffee shops. The retailer has acquired a 100-per cent stake in Giraffe chain of restaurants, for up to £50 milion.
Tesco commercial director Kevin Grace said Giraffe was hugely popular with a wide range of ages and particularly families and customers would love it. He added, they (Giraffe) planned to open some new branches inside their larger stores, where business had been flagging, in the hope of making them "warmer and less clinical".
Russel and Juliette Joffe founded Giraffe in 1998, which now has 48 branches including one in Dubai. The Joffes, who had sold their majority stake, would continue in an advisory capacity. They said, they welcomed the chance to introduce Giraffe to a wider audience.
This does not come as a first foray by the retailer in the café business. Texco had already invested in the small coffee chain Harris+Hoole and planned to double the number of outlets, with a blitz of new openings across London.
The retailer had also invested an undisclosed amount in a small London-based bakery chain, Euphorium, and planned to sell its bread and cakes in some London stores.
Tesco plans to open Giraffe restaurants alongside larger stores, with the first due near London before the end of the year. The idea is to allow customers to ''meet, eat and drink, as well as shop'' when they visit its supermarkets.
