Tesco acquires Giraffe chain

TESCO has snapped up the Giraffe restaurant chain for £48.6m, as it looks to extend its reach in hospitality.

The supermarket giant will acquire 48 restaurants nationwide, including airport franchises and in Dubai.

The acquisition is part of a strategy to free up space in some larger Tesco stores, with more general merchandise moving online.

The Giraffe restaurants will sit next to Tesco stores or just outside of them, in a bid to increase the amount of time customers spend in Tesco stores.

Giraffe was founded by Juliette and Russel Joffe and Andrew Jacobs, and backed by private equity group 3i and entrepreneur Luke Johnson's Risk Capital Partners.