Tortilla Mexican Grill will ‘overview’ costs after Budget tax raid

Tortilla Mexican Grill said it plans to review its pricing as it battles higher costs following the Autumn Budget. 

It warned that ‘cost headwinds’ in 2025, in addition to changes announced by the Chancellor, will continue to weigh on trading. 

Tortilla also warned that lower employment levels could have a ‘downward impact on the consumer economy’ this year.

Hospitality businesses have warned that higher energy and labour costs are making it more difficult to trade.  

Adding to their bills was a jump in business rates following the 2025 Budget. While the Government has u-turned in offering relief to pubs, thousands of restaurants, hotels and small shops have been left out in the cold. 

The warning came despite Tortilla’s upbeat update for the year ending 28 December, with revenue reaching £73.8million, an 8.5 per cent increase on the previous year. 

Review: Tortilla Mexican Grill said it plans to review its pricing amid ‘cost headwinds’

Total group sales came in at £98.3million, up 9.2 per cent on the previous year. 

In the UK, sales grew 6.2 per cent over 2025 while in-store sales slipped from 4.8 per cent to 3 per cent in the final quarter. 

Adjusted EBITDA for the year is expected to be ‘in line with management expectations, following a strong performance in Q4’, the group said. 

Across 2025, franchise like-for-like revenue growth was 4.5 per cent in the UK, 14.7 per cent in the UAE and 2.6 per cent in France.

The business said it opened seven franchise stores in the period, three in the UK and four in the UAE. 

Despite its cautious outlook, Tortilla said its UK stores outperformed the market in the first three weeks of 2026.

Andy Naylor, chief executive of Tortilla, said: ‘I’m happy to report that we finished 2025 positively, with a strong fourth quarter capping off a record year for UK profitability. 

‘Our in-store and delivery channels both exceeded the industry reported benchmark and this is particularly pleasing considering the strong prior year comparatives (Q4 2024 in-store LFL growth of +4.8 per cent). 

‘Our food is better than ever and our work on brand and use of technology continue to yield a good impact.’

He added: ‘The investment in the team and central kitchen in this market gives us a strong platform to grow over the coming years and we are looking forward to converting the remaining strong locations acquired.’ 

Naylor replaced Richard Morris as Tortilla’s boss in April 2024 after serving seven years as its chief financial officer.

Tortilla was founded in 2007 by the Californian Brandon Stephens after he became frustrated at the lack of places selling high-quality burritos and tacos in London.