Giraffe restaurants to expand with Tootsies deal

Private equity-backed restaurant group Giraffe has agreed to purchase 11 outlets from bust burger chain Tootsies.

The pre-pack deal was announced as Tootsies, whose parent company is Gourmet Burger Kitchen owner Clapham House, went into administration. Giraffe is backed by private equity group 3i as well as Risk Capital Partners, whose
founder Luke Johnson is chairman of the restaurant group.

The £2.5 million deal includes 11 of the 21 Tootsies outlets in London and the South East and brings the Giraffe group to a total of 36 restaurants plus five airport franchises, of which three are at London’s Heathrow.

Says Johnson, ‘This is a deal that will transform Giraffe, and it shows how ambitious we are for the business.’

Giraffe’s management team, led by managing director Russel Joffe, will continue to run the acquired restaurants as Tootsies for the next few months, after which they will be rebranded as Giraffe.

Joffe says that the acquisition of the restaurants is expected to take Tootsies’ revenues to more than £35 million.

Justin Maltz, a director at 3i’s growth capital arm, comments, ‘Giraffe’s exceptional performance has defied the downturn. This deal will give the brand further room for growth. We believe there is plenty more to go for.’

Risk Capital Partners backed Giraffe in 2004, while 3i first invested in 2006. The restaurant, which opened its first branch in Hampstead, London, in 1998, specialises in ‘global food’ and world music.