Cold beverages, summer food ranges and newly refurbished stores drove 12.5% year-on-year sales growth in the premium coffee chain’s key UK market, with footfall, delivery sales and app transactions all up on last year
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Caffè Nero currently operates 625 stores across the UK | Photo credit: Kevin Grieve
Premium coffee chain Caffè Nero has reported record £147m ($195m) first quarter revenues following robust summer trading in the UK.
Caffè Nero achieved 12.5% year-on-year sales growth in the UK – the largest of its 10 markets with 625 Caffè Nero stores – and 13.4% sales growth at group level. In a press release, the coffee chain said its sales growth in the three months to 31 August 2024 was its highest for five years.
Highlighting its growing share in the UK branded coffee shop market, Caffè Nero posted 9% like-for-like sales growth with first quarter footfall increasing 2%. Over a third of all UK store transactions now take place via the Caffè Nero App, which has more than 2.5 million members.
Delivery sales also increased during the period and now represent 2% of total sales, while Caffè Nero’s Coffee at Home channel revenue grew 5%.
Additionally, Caffè Nero credited greater demand for its iced beverage and summer food menu as lifting sales. A new flavoured Americano range and sourdough brioche Maritozzi buns were cited among its most popular products, with the latter selling over 200,000 units during the reporting period.
Caffè Nero opened 14 new stores globally during the quarter, including nine in the UK and Ireland. The business also refurbished 44 stores, 35 of which were in the UK, and has a further 100 further outlets scheduled for refurbishment over the next year.
“We have had a hugely successful quarter which has seen our financial year get off to a strong start. Despite the changeable weather in the UK, our summer iced drinks campaign was very successful, and customers have really taken to our summer menu, with the Maritozzi bun being a particular standout. These results show we are continuing to drive real momentum and performing very well as a business,” said Gerry Ford, Founder and Group CEO, Caffè Nero.
London-based Caffè Nero Group operates over 1,050 stores in 10 countries across its Caffè Nero, Coffee#1 and Harris+Hoole brands.
Coffee#1 and Harris+Hoole, acquired by The Caffè Nero Group in 2019 and 2015 respectively, currently operate 119 and 18 stores in the UK with neither having an international presence.
Caffè Nero Group achieved 10% year-on-year sales growth in the 12 months ending 30 May 2024 to reach a record $690m.