Tesco opens New York-style diner in latest restaurant push

Tesco is opening its first New York-style diner as its Osterley store as the supermarket pushes ahead with plans to widen its appeal by moving into the restaurant market.

Tesco’s latest restaurant move is New York-style diner Fred’s Food Construction

A spokesperson says the diner, called Fred’s Food Construction and which opens on Monday (31 March), will have its own entrance, as well as being accessible via the store. It will sells subs, sandwiches, salads and lettuce wraps that customers can choose to eat in or take away.

The concept was developed by Paul Goodale, former director of retaurants at Harrod’s and Daniel Gestetner founder of frozen yoghurt brand Yoomoo. As part of the plans Tesco has invested in Fred’s Food Construction, although further financial details were undisclosed.

The move follows Tesco’s acquisition of restaurant chain Giraffe, as well as its purchase of a 49 per cent stake in coffee house Harris+Hoole and an undisclosed investment in bakery chain Euphorium. Tesco says it will continue to support “food, drink and hospitality entrepreneurs with innovative food concepts”.

Tesco is looking to fill some of the space in its larger supermarkets with restaurants as part of chief executive Philip Clarke’s bid to make stores “warmer and less clinical”. The supermarket also hopes opening up eateries will provide it with additional revenue streams as its continues to see sales declines, with like-for-like sales down 2.4 per cent over Christmas.

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