Caffè Nero claims to be taking market share from its competitors after posting a 9.1% jump in like-for-like UK sales in the three months to the end of August.
The coffee shop operator posted a 12.5% increase in total UK sales in its first quarter, with total group sales up 13.4% to £147m. It said its performance was ahead of the general food and beverage sector and therefore marked a “continuation of Caffè Nero gaining market share in the coffee category”.
Its strong UK sales were driven by a 2.1% rise in footfall and high demand for its cold drinks and summer sweet range. The range experienced growth of 11.3%, with a standout performance from its Maritozzi bun, of which the retailer sold over 200,000 units during the period.
Caffè Nero said it is continuing to invest heavily in its store estate. It opened 14 new stores in total during the first quarter, with nine of these in the UK and Ireland. It also refurbished 44 stores of which 35 were UK-based.
The company said it is planning refurbs for over 100 more stores during the rest of the financial year.
Technology also played a key role in it performance, with over 35% of UK store transactions carried out via its mobile app. The app has 2.5 million users in the UK. Delivery sales now account for 2% of the coffee giant’s total sales, while its Coffee at Home offer grew by 5%.
“We have had a hugely successful Q1, which has seen our financial year get off to a strong start,” said Caffè Nero founder and group CEO Gerry Ford. “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.
“Building on from the strong Q4 we experienced in FY24, these results show we are continuing to drive real momentum and performing very well as a business. Customers are clearly demanding our hand-crafted speciality coffee, our friendly service and warm, welcoming stores. I’m optimistic that despite the impact of inflationary costs on our business, we can keep the momentum going and have an outstanding year.”
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