Supermarket chain Tesco has reported that it is looking to get rid of its restaurant business Giraffe, after purchasing it in 2013 for £49 million.

The plan was for Tesco to provide a full retail experience and noted that the combination would be an “opportunity to develop some of the space in our larger stores to create retail destinations that offer customers even more choice".

The supermarket has made the decision to sell after posting a £4.1 million loss last year following new openings and cuts to the value of existing sites.

Tesco has also reported that after its recent acquisition of the coffee chain Harris & Hoole, which operates 43 shops, including 29 sites at Tesco stores, it has made a loss of £25.6 million in the year ending March 2015.