|Tesco sticks out its neck with restaurant chain acquisition|
|Written by Lucy Britner|
|Wednesday, 13 March 2013 11:40|
Tesco has acquired restaurant chain Giraffe for £48.6 million.
Tesco said the acquisition forms part of its strategy to "develop the space in some of its larger stores and create even more compelling retail destinations where customers can meet, eat and drink, as well as shop". The first Giraffe restaurant to open next to a Tesco store will be 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."
The first Giraffe opened in Hampstead, North London in 1998 and the group now consists of 48 sites nationwide, including franchised sites at Heathrow and other UK airports as well as one in Dubai.
Russel Joffe, managing director and founder at Giraffe said: "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."
The original founders, husband and wife team Russel and Juliette Joffe, along with Andrew Jacobs, will remain in place with Russel continuing as managing director. Risk Capital Partners and 3i have sold their combined stake of and are no longer involved in the business.