Caffè Nero Q1 sales at 107% of pre-pandemic levels
The group is now forecasting it will open a further 18 new stores during Q2, with seven of those set to open in the UK
Caffè Nero has welcomed strong trading in its first quarter, reporting strong like-for-like sales growth that reached 107% of pre-pandemic levels.
Over the period, Caffè Nero opened 14 new stores across different territories. Four of those new stores have opened in the UK, including a flagship store in Stansted Airport. This site reported the highest level of sales in its first week of any Caffè Nero store in history.
The group is now forecasting it will open a further 18 new stores during Q2, with seven of those set to open in the UK.
In the UK, Caffè Nero continued to grow transactions via its mobile app, with over 30% of all UK store transactions now taking place through the app, which is now used by over two million people in the UK.
The group also continued the expansion of its Delivery sales in the UK, adding Just Eat as a delivery partner to join Uber Eats, driving growth in delivery sales during the same period by 10%.
Nonetheless, despite welcoming the “strong progress” in the period, the group warned of the “substantial” economic headwinds that have emerged during recent weeks, suggesting the business “faces a challenging winter ahead”.
However, it noted its strong new partnership collaborations will help it get through the period. These partnerships include deals with Compare The Market and the recently announced Waitrose tie-up.
Caffè Nero founder and group CEO, Gerry Ford said: “We’ve seen a very encouraging first quarter of sales. Customers really embraced our new range of Iced Drinks during the hot summer with sales up 55% LFL, the Iced Pistachio Latte being particularly popular. We also saw very strong coffee sales throughout and growth in food attachment.
“Despite the challenging conditions the whole country is facing, I’m confident we can have a successful autumn and winter and capitalise on strong new brand partnerships, an exciting festive menu and our new store openings programme.”
