Tesco acquires Giraffe restaurant chain

Tesco has acquired restaurant chain Giraffe, in a move which will see the supermarket open up a series of the child-friendly eateries in store in a bid to boost perception of the brand among families.

Giraffe Restaurant

The supermarket bought the business in a £48.6 million deal announced this morning (13 March). Giraffe has 47 restaurants across the UK and the next restaurant to be opened “near” a Tesco store will be “near London”.

Tesco will look to fill some of the space in its larger supermarkets with the restaurants as part of chief executive Philip Clarke’s bid to make stores “warmer and less clinical”.

Kevin Grace, Tesco group commercial director, says: “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.”

It is understood Giraffe’s founders Russell and Juliette Joffe will remain in the management team, but have sold their combined 54 per cent stake in the business.

Russel Joffe says: “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 move comes shortly after Tesco acquired a 49 per cent stake in coffee house Harris+Hoole, much to the dismay of some of its customers who thought the chain was independently owned.

The supermarket also recently invested an undisclosed amount in bakery chain Euphorium as it looks to leisure businesses to provide additional revenue streams for the company, which suffered a torrid 2012 where it lost market share to rivals and reported flagging sales – although it has shown recent signs of stability. Last month it warned the horse meat scandal will hit profit margins, with DNA tests on the meat it sells costing the company up to £2m a year.

This week Tesco introduced a new price promise, backed by a significant marketing campaign, offering customers buying 10 items or more money-off coupons on their till receipts worth up to £10 if they could have bought their items for less at a rival supermarket.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here