Delayed new stores prompt a fall in Cooks Coffee’s group revenues

An Esquires store in Melton Mowbray, UK | Photo credit: Cooks Coffee

Cooks Coffee, which operates Esquires and Triple Two Coffee, has reported a fall in full-year group revenues after delaying new store openings across the UK. 
 

The dual-listed café group said franchisee store sales in the UK and Ireland increased 24% to £27.6m ($34.3m) in the 12 months ended 31 March 2023. 

Additionally, like-for-like sales grew 13% in the UK and 29% in Ireland following the complete removal of Covid restrictions in each country.  

However, group revenues fell 10% to £3.4m ($4.2m) and pre-tax losses widened to £1.6m ($2m), compared to £200,000 ($250,000) last year, following lower than anticipated outlet growth.  

An unspecified number of planned outlet openings during the year were deferred due to supply chain disruption in Cooks Coffee’s third and fourth quarters. 

Cooks Coffee opened four net new stores across both café brands to reach 86 outlets in the UK and Ireland. The café group opened four net new Esquires Coffee stores across the UK to reach 51 sites and closed two net Triple Two Coffee outlets in the UK to close the year with 18 sites. Cooks Coffee also operates 17 stores in Ireland. 

The café group said five new stores have been opened in the UK and Ireland since 1 April 2023 with further openings planned across the next six months now that supply chain disruption has eased. 

“We are pleased to report strong sales growth across our existing estate of coffee stores as we continue our expansion programme of new store openings. Whilst the delay in certain store openings, particularly in the Triple Two business and the consequential impact of the loss of capital related revenues, has impacted the group's financial performance for the year ended 31 March 2023, this has been a transformational period for the group. We have emerged strongly from the pandemic, which clearly impacted our business.  We look forward with confidence to an improved financial performance in the current financial year,” said Keith Jackson, Executive Chairman, Cooks Coffee. 

Cooks Coffee added that revenues across its international markets were in line with the previous financial year and highlighted sales in Saudi Arabia as growing at an accelerated rate. 

The café group operates stores in Portugal, Bahrain, Kuwait, Saudi Arabia, Jordan and Pakistan. 

In November 2022, Cooks Coffee Company completed its dual listing on the Aquis Stock Exchange, an independent growth index separate to the London Stock Exchange. The company is also listed on New Zealand’s Exchange, although it currently has no operating assets in the country.