The Caffè Nero Group-owned coffee chain reported a 400% rise in iced coffee sales volumes during the period alongside increased digital transactions and a greater delivery reach
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Cardiff-based Coffee#1 said fourth quarter sales tracked at 117% of pre-pandemic levels | Photo credit: Coffee#1
Coffee#1 has reported robust like-for-like revenue growth in its fourth quarter, driven by the strong performance of iced beverages.
The Cardiff-based coffee chain said sales during the three months ended 31 May 2023 tracked at 117% of pre-pandemic levels.
Managing Director Bruce Newman said new food and beverage ranges also performed well during the quarter, with like-for-like volumes of iced coffee sales growing nearly 400%. Additionally, the coffee chain’s delivery reach has widened via a new partnership with Uber Eats.
Digital sales also increased during the period, with transactions made through the Coffee#1 app exceeding 30% of total weekly sales for the first time in May 2023. The app currently has more than 200,000 users.
“While the business is still facing strong inflationary pressure, we are confident that the brand is well placed to take advantage of movement in working patterns and our good value offer for those wanting to enjoy eating out. Our strong sales and the positive performance of all our new store openings gives me confidence our current strategy is the right one, and we will continue to expand our estate at the current pace,” Newman said.
Founded in 2001, Coffee#1 currently operates 114 stores across the UK.
In January 2019, The Caffè Nero Group acquired a 67% of the coffee chain, before purchasing the remaining 33% stake in February 2022 to fully acquire the brand.
In March 2023, The Caffè Nero Group, which also operates the Caffè Nero and Harris+Hoole brands, announced plans to open over 90 new stores across its coffee shop portfolio following a return to ‘normal’ trading levels last year.