Tortilla Mexican Grill reviewing prices after budget cost increases

Mexican chain Tortilla has said it is reviewing potential price rises after being hit by cost increases linked to recent Government budgets.

Tortilla Mexican Grill told shareholders on Wednesday it has faced “cost headwinds” after rises in taxes and labour costs in April last year, with the group set to see labour costs rise further this April.

The burritos and tacos chain also warned it continues to expect pressure in the UK labour market to “have a downward impact on the consumer economy”.

Nevertheless, the business, which runs 81 UK sites, said it has made a “positive start” to 2026, outperforming the UK market across the past three weeks.

It added: “Supported by the success of our winter menu, ongoing investment in food, brand and technology, and encouraging results from the converted French stores, the business is well positioned for the year ahead.”

It came as the business reported group revenues rose by 8.5%, or £5.8 million, to £73.8 million in 2025.

Tortilla saw UK like-for-like sales rise by 6.2% despite wider pressure in the restaurant and fast-food sector.

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.

“It is testament to the hard work of the team that we were able to achieve UK Q4 like-for-like sales growth of 7.8%.

“Our in-store and delivery channels both exceeded the industry reported benchmark, and this is particularly pleasing considering the strong prior year comparatives.”

Shares in the hospitality business were up 0.3% on Wednesday.