Delivery and coffee at home drive Caffè Nero’s robust third quarter UK sales

Caffè Nero’s December 2023 sales reached £34.5m ($42.4m) | Photo credit: Alexander London

Caffè Nero has cited delivery partnerships and double-digit coffee at-home sales growth as key contributors to its robust third quarter UK revenues. 
 

Reporting on the three months ending 29 February 2024, Caffè Nero said UK revenues grew 10.5% year-on-year. Sales growth for the year-to-date is currently 11% higher than the same nine-month period last year. 

In a press release, Caffè Nero said its performance was ‘underpinned by the sustained growth’ of delivery partnerships with UberEats, Deliveroo and Just Eat. Third quarter delivery sales grew 13% year-on-year, bringing total sales growth for the channel to 20% over the first nine months of the Caffè Nero’s fiscal year. 

Additionally, the coffee chain’s Coffee at Home segment achieved 55% year-on-year sales growth, boosted by retail partnerships with Waitrose, Amazon, Ocado, the Ambassador Theatre Group and a new partnership with Morrisons. 

Caffè Nero, which opened two net new UK stores during the quarter, also reported strong trading over the Christmas period, with sales reaching £34.5m ($42.4m) during December 2023. 

“We saw robust sales during the third quarter which built on the strong first half performance. Our Christmas sales were particularly pleasing with our stores delivering several record sales weeks during that period. Our delivery and Coffee at Home businesses continue to perform well and with a strong new store opening pipeline in front of us I think we will have a strong finish to our financial year,” said Gerry Ford, Founder and Group CEO, Caffè Nero. 

Caffè Nero currently operates approximately 620 UK stores and a further 430 outlets across nine international markets. The business will open its first drive-thru site at London Stansted Airport during its fourth quarter. In January 2024, Caffè Nero said the 1,200sq ft site will serve as a template for further roll-out of drive-thru stores across its global estate. 

The coffee chain’s third quarter group sales increased 12.7% year-on-year, with total sales growth across all markets for the year-to-date 14.1% higher than last year.