Exclusive – shares in Tortilla surge 17% as Luke Johnson takes stake in business: Shares in Tortilla, the UK’s largest fast-casual Mexican restaurant brand, climbed circa 17% in afternoon trading to 49.50p, after serial investor Luke Johnson acquired a circa 3.5% stake in the business this morning (Tuesday, 27 February). Johnson – who currently backs the likes of Gail’s, All Star Lanes and Lussmanns Restaurants – has acquired 1.4 million shares in the circa 90-strong business, giving him a 3.62% stake. It is understood that the acquisition of the stake in Tortilla puts Johnson in the company’s top ten shareholders. It has led to speculation that the business could be a takeover target. Last week, Tortilla announced Richard Morris had decided to step down as chief executive after a 35-year career in hospitality and ten years with the company, at the end of March. Andy Naylor, who has worked alongside Morris for the last seven years, initially as chief financial officer, then with added business development leadership responsibilities and more recently as UK managing director, will succeed him as chief executive. Tortilla began trading on 8 October 2021 on London Stock Exchange’s AIM, at 181p. The initial public offering raised £5m of gross proceeds, and upon admission the company’s market capitalisation was £70m. It currently has a market capitalisation of £16.24m. In December, Tortilla said that it was excited by future growth opportunities but warned sales at its high street locations have been hit by low consumer confidence and footfall. It followed a trading update in which it said total revenue is expected to rise to £65.7m this financial year but underlying profits will be slightly below expectations at between £4.5m-£4.6m. Talking to Propel last month, Johnson said that after a generally difficult year for M&A in 2023, this year’s circumstances should be more favourable, with “falling inflation and lower interest rates in due course”. Johnson said: “Last year was generally difficult – tough trading conditions for consumer discretionary industries, and big differences in price expectations between buyers and sellers of businesses. This year will be a more active year for M&A overall. This year, circumstances should be more favourable, with falling inflation and lower interest rates in due course.” Tortilla features in the Premium Club Turnover & Profits Blue Book, which has grown to 875 companies and is available exclusively to Premium Club members. Its turnover of £65.7m is the 147th highest in the database. The Blue Book ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.

Exclusive – The Fabulous Restaurant Group to open brasserie concept Shanghai Noir: The team behind Westminster's fine dining Indian restaurant Yaatra is to open a new Indo-Chinese brasserie concept called Shanghai Noir, Propel has learned. The new site will open next month on the lower ground level of the Old Westminster Fire Station. Shanghai Noir is taking over the subterranean 78-cover space on the lower ground floor and will be a “sultry, art-deco style eatery that harks back to the heyday of 1920s and 1930s Shanghai when the burgeoning Asian city became known as The Paris of the East”. The menus, curated by executive chef Amit Bagyal (previously at Benares and Kanishka by Atul Kochhar) and head chef Velino Goes (previously at Kanishka by Atul Kochhar and JKS Group), promise a “daring reinterpretation on the sharp, spicy fusion of flavours that has been experiencing a recent spike in popularity in the US”. Mains will include a chef's selection in which the hottest chilli in the world, Bhot Jolakhiya, is prepared with spatchcock chicken and served with a Glenmorangie fire sauce. Meanwhile soup, noodles and more familiar Chinese-rooted dishes are set to be given a “surprising Shanghai Noir spin”. Founder of Fabulous Restaurant Group, Tina English, said: “We are excited to announce this next stage in our restaurant group's journey. Yaatra has grown from strength to strength over the past 18 months and we are grateful to be a go-to dining destination for Londoners and tourists seeking incredible fine-dining Indian cuisine. We have always wanted to experiment with concepts that focus on India as well as its surrounding countries and the beautiful downstairs area has provided us with the perfect opportunity to realise that ambition. We are thrilled to now have two diverse, but linked cuisines with our new Indo-Chinese brasserie, Shanghai Noir. There is so much to explore.”