Tesco Purchases Giraffe Restaurant Chain

The grocery store chain plans to use the family restaurants to create "retail destinations."

March 15, 2013

LONDON - Tesco has its eyes on transforming its superstores into mini malls with the recent purchase of the Giraffe restaurant chain, The Sun reports. Giraffe, a family restaurant with 47 locations, will be added to Tesco supermarkets to create "retail destinations" that could also include bakeries, coffeehouses and ten-pin bowling.

Tesco bought Giraffe for ?48.6 million. The initial launch will put Giraffe locations into 10 of Tesco??s largest supermarkets, said Kevin Grace, U.K. commercial director for Tesco. Grace also mentioned part of the restaurant could end up in as many as 150 Tesco locations.

"As more sales move on to the internet it creates opportunities for us to use the space in our stores differently," said Grace. "Our opportunity is to offer retail destinations, to do something differently that will bring people to them other than the weekly shop. In our largest stores, you will have six to eight of these different brands, creating mini malls."

Tesco currently has 30% of the grocery market, grabbing ?1 out of close to ?7 consumers spend on England??s high streets (equivalent to U.S. main streets). "It will provide people with more reasons to come to our stores. Giraffe is hugely popular with a wide range of ages and particularly families ?" we think our customers will love it," said Grace.

"Both brands have a strong family following ?" wonderful growth opportunities. So it??s a great fit," said Giraffe founders Juliette and Russel Joffe and Andrew Jacobs, who will remain with the restaurant business after Tesco takes over.

Advertisement
Advertisement
Advertisement