The Caffè Nero-owned coffee chain has credited its growing UK store portfolio, delivery and app-based ordering for lifting revenues above 2019 levels
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Coffee#1's sales increased to 117% of pre-pandemic levels in October 2022 | Photo credit: Coffee#1
UK-based Coffee#1 has announced strong trading for the first five months of its financial year, with strong like-for-like sales growth driving revenues to 111% of 2019 levels.
Reporting on the period from June-October 2022, Coffee#1 said that sales increased to 117% of pre-pandemic levels in October 2022, with the company achieving its first-ever £1m ($1.1m) gross sales week.
Coffee#1 opened four new stores during the period to reach 106 outlets across the UK. Among the new locations was a first store in Buxton, Derbyshire, marking expansion beyond the chain’s heartlands in Wales and South West England.
A further five sites are slated to open in the next three months.
Coffee#1 also highlighted the success of a new delivery partnership with Just Eat, which is currently operating at more than 60 locations. In a further move towards convenience, the company said a new click & collect function on the brand’s app will go live this month.
“We’ve been thrilled by the performance of Coffee#1 over the last six months. While the business faces obvious cost pressures, our locations at the heart of the community mean we are well placed to deal with the challenges ahead, respond to the changing working patterns we see around us and continue to grow and expand. While Coffee#1 will remain a predominantly drink-in brand, the launch of both delivery and Click and Collect services will complement our core drink-in offer and we look forward to an exciting Festive trading period,” said Bruce Newman, Managing Director, Coffee#1.
The strong performance will be welcome news for parent group Caffè Nero, which reported trading at 107% of pre-pandemic levels in October 2022.
Coffee#1, which opened its first store in 2001, joined The Caffè Nero Group in January 2019 following a near 70% stake acquisition. In February 2022 Caffè Nero purchased the remaining 33% stake from Welsh brewery S.A. Brain, to fully acquire the brand.
Coffee#1 operates as a standalone brand within The Nero Group, which manages the Caffè Nero, Harris+Hoole and Aroma brands.