| UK

Delivery, iced beverages and loyalty yield strong quarter for Caffè Nero

Successful partnerships with Uber Eats, Deliveroo and Just Eat continue to lift Caffè Nero’s UK revenues, with iced beverages, specialty coffee, and app-based transactions also key performers

Caffè Nero offers delivery from approximately 70% of its 620 UK stores | Photo credit: Caffè Nero


Caffè Nero has reported robust fourth quarter revenues, led by rising delivery sales in the UK. 

The premium coffee chain said strong like-for-like sales in the three months ended 31 May 2023 have lifted total revenues to 112% of pre-pandemic levels. 

Caffè Nero currently offers delivery from approximately 70% of its 620 UK stores, with the channel achieving 63% sales growth compared to the same period in 2022.   

The coffee chain strengthened its delivery capabilities by adding Deliveroo and Just Eat to its existing partnership with Uber Eats in 2022. 

Additionally, Caffè Nero said its digital segment continues to gain traction, with 32% of all in-store transactions in the UK being made via its app. The Caffè Nero App has more than two million users in the UK and is also available across the coffee chain’s 10 markets, including the US, Sweden, Turkey and Poland, where it operates as Green Caffè Nero. 

Caffè Nero’s iced beverage sales increased 54% during the quarter compared to the same period in 2022, with the coffee chain’s ‘very successful’ single origin range contributing to strong overall coffee sales. 

London-based Caffè Nero opened 23 new stores around the world during the quarter, including seven in the UK.  

In a press release, The Nero Group, which also owns the Coffee#1 and Harris + Hoole coffee chains, said 200 stores were upgraded as part of a group refurbishment over the last 12 months, 140 of which are in the UK.  

A further 180 stores are scheduled for refurbishment during the group’s next financial year, ending May 2024. 

“Despite difficult market conditions and inflationary costs still being challenging, the Caffè Nero brand has traction and is moving forward. With our new store opening programme and exciting product launches ahead, combined with clear customer demand for the brand, I’m confident we will have a strong summer and autumn,” said Gerry Ford, Caffè Nero Founder and Group CEO. 

World Coffee Portal research forecasts the total UK branded coffee shop market will reach 10,200 outlets by 2024 and exceed 11,600 outlets by 2028. 

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