Tesco today snaffled up the Giraffe restaurant group, as the supermarket giant activated its plan to transform its stores from clinical places in which to push around a trolley into enjoyable social destinations.
The £48.6m deal follows Tesco’s purchase of a 49 per cent stake in the Harris + Hoole coffee chain and a share of the Euphorium Bakery.
Tesco will take 100 per cent stake in Giraffe, triggering a pay day for shareholders, which include Luke Johnson’s Risk Capital Partners and private equity group 3i.
Tesco plans to set up outlets of Giraffe and its other recent acquisitions in its big stores, which chief executive Philip Clarke has described as lacking in warmth. The supermarket also hopes to diversify its own revenues by opening more outlets on the high street.
“We have the opportunity to develop space in our larger stores to create retail destinations that offer customers even more choice,” said Tesco group commercial director Kevin Grace.
The first Giraffe store was opened by husband and wife team Russel and Juliette Joffe, along with Andrew Jacobs, in Hampstead in 1998, and has grown into a 48-store nationwide franchise.
Mr Jacobs will stay on as managing director.
