Caffè Nero reports strong first half performance

In a trading update, the coffee chain, which has more than 610 stores in the UK, says revenue has returned to pre-pandemic levels, with sales in December averaging 110% of pre-Covid levels. Sales in the half-year to November 2022, rose by 17% on the same period in 2021, averaging 104% of pre-Covid levels.

Like-for-like sales grew by 9.5% in December, with the business recording record weekly sales of £7.9m in the week beginning 5 December.

Despite what the company described as a ‘challenging period for costs’, the company opened seven new UK sites during the half year, and says it experienced a ‘notable and encouraging’ increase in several of its new sales channels.

Its delivery business benefited from adding Deliveroo and Just Eat, helping it generate £3.5m of revenue. Is Coffee At Home business for the same period achieved sales of £1.5m.

“We’ve seen a very encouraging first half of our financial year. Despite significant inflationary pressures which have continued to mount since June, we have demonstrated strong cost control and delivered solid sales growth,” says Caffè Nero Founder and Group CEO Gerry Ford.

“We traded at 110% of pre-pandemic sales in December and had record weekly sales. That is a testament to the hard work and outstanding service from our store teams as well as a very well received Christmas menu with our customers. We expect to see sales continue to improve further over the coming weeks and months.”