Easing of UK Covid-19 trading restrictions to allow outdoor and indoor seating over the last 13 weeks sees Caffè Nero’s sales pick up pace
Caffè Nero Founder and CEO, Gerry Ford, has said the coffee chain is “gaining strength each week” | Photo credit: Alexander London
Caffè Nero has said current trading is ahead of forecasts, with sales at 70-80% of those for the same period in 2019. The gradual recovery in store trade has also been boosted by new sales channels, including food and beverage delivery facilitated by UberEats, and a retail coffee partnership
with online giant Amazon.
According to a City AM
report, sales from these new channels have an annualised rate of £16m ($22.6m), with Caffè Nero anticipating them to double over the next 12 months.
“Sales are picking up and the last quarter has given us a lot of positive momentum. Covid-19, with its government enforced closures and restrictions, made for a challenging 14 months,” said Caffè Nero Group Founder and CEO, Gerry Ford
“We are gaining strength each week. Prior to the pandemic we were trading strongly and had a fantastic track record. We are starting to see that same trading pattern return,” he added.
The coffee chain also reports that it has now repaid all its Covid-19 support loans after paying back a £12.2m Liquidity Facility loan.
In November 2020, Caffè Nero Group rejected a takeover bid
by petrol station forecourt operator EG Group. However, indicating that EG Group still has ambitions to acquire the coffee chain, in April 2021 the forecourt operator’s founders Mohsin and Zuber Issa reportedly purchased around £140m of Caffè Nero's debt from Swiss private equity firm Partners Group.
Nevertheless, in the light of improved trading conditions, it is likely Caffè Nero will continue to resist any further takeover attempts.