Caffé Nero has announced Irish pre-tax profits of €562,000 in the year to 31 May 2017. The international coffee shop chain said revenues had increased 71.5%, from €2.1m in 2016 to €3.6m. The chain now operates a total of ten cafes in Ireland, with eight in Dublin and a site each in Galway and Drogheda.

Caffé Nero entered the Irish market in 2014, recording pre-tax losses of €138,000 in 2016. Allegra research shows high-rents are one of the biggest obstacles to coffee shop market growth in Ireland, with Caffé Nero’s most recent accounts showing costs of €1.68m for acquiring property, plant and equipment.

The statement from the firm’s directors said profit for the year arose due to continued growth from stores opened towards the end of the prior year as well as a reduction in start-up costs associated with establishing operations in a new region.