The top bosses at Tortilla Mexican Grill were not paid their bonuses for the company’s latest financial year after a key target was missed.
The London-listed restaurant chain cancelled the bonuses of its executive directors after the target of an EBITDA of £4.9m was not met in 2023. It instead reported an EBITDA of £4.6m.
Despite the cancellation, the pay of outgoing managing director Richard Morris increased from £215,000 to £231,000 while his successor, chief financial officer Andy Naylor, saw his pay also rise from £153,000 to £175,000.
Tortilla Mexican Grill announced in February that Morris was to depart at the end of March and be succeeded by the company’s CFO.
The company, which serves lunchtime burritos and salads, floated in 2021 on London’s junior AIM market.
Announcing its full-year results for 2023 last month, Tortilla Mexican Grill posted a revenue of £65.7m, up 14 per cent.
During the year, the firm opened six sites and one franchise store taking its total to 87 sites.
Tortilla Mexican Grill also operates in the Middle East, with 10 stores in Dubai and Saudi Arabia through a franchise partnership with Eathos.
In its annual report, the business said that base salaries for its executive directors remain behind the market and it expects to carry out a “recalibration” of their salaries once the business has reached 100 sites in the UK and has expanded into Europe.
On the company’s financial performance in 2023, Naylor said: “Recent years have seen Tortilla expand strategically through a multi-channel approach, strengthening our operational model as a springboard for sustained, profitable growth.
“Throughout 2023, we dedicated ourselves to building resilience, especially enhancing profitability, as we recovered from macro events in 2022.
“Our efforts included streamlining costs, bolstering franchise partnerships, augmenting efficiency via technology investments, and enriching our team with fresh talent, all while continuing site deployments. These initiatives have solidified the foundation for our continued success.”