Tesco buys family restaurant chain Giraffe

British supermarket Tesco has acquired restaurant chain Giraffe in an effort to make use of excess space as shopping moves online.

Tesco bought the company from venture capitalist Risk Capital Partners and UK buyout firm 3i for £48.6m.

Russel and Juliette Joffe, who founded Giraffe in 1998, will remain on the management team.

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Giraffe has 48 restaurants in the UK and Tesco plans to open more next to its supermarkets.

The first site alongside a Tesco will open later this year.

"The acquisition forms part of Tesco's strategy to develop the space in some of its larger stores," the grocer said in a statement.

The deal follows the group's purchase of 49% stake in coffee shop chain Harris + Hoole and bakery chain Euphorium.

RD