Caffe Nero Group PLC


020 7520 5150


Caffè Nero is the owner and operator of a chain of upmarket, Italian-style cafés selling gourmet coffees and deli products. It is a leading and fast-growing player in the UK coffee bar market and is now seeking joint venture and franchise partners to expand overseas.

Chief Executive:

Gerry Ford

Key People:

Chairman: Gerry Ford
Financial director: Ben Price
Managing director: Jonathan Hart
Commercial Director: Paul Ettinger
Retail director: Andy Wilson


Caffè Nero is the third largest player in the £1b branded coffee bar market and in 2004 claimed an 8% slice of the pie. It is the second fastest growing brand after Starbucks and has increased its market share by 4.3% since December 2001. The company was also named as the 20th fastest-growing company in Europe by Business Week in October 2005. 
Caffè Nero’s Continental-style offer has differentiated it from the American style typified by Starbucks and Coffee Republic and it has been voted the consumers’ favourite brand for five years running in the annual report into the market by Allegra Strategies.

Like many other coffee shop owners, it has been expanding its food offer to increase average spend, and food has become an increasingly important part of the sales mix as it has expanded into the provinces. In 2004, the group was selling 70,000 paninis and sandwiches a week.

The company is expanding at a rate of four openings a month and is forecast to reach 400 or 500 branches within the next five years. It is also looking at branching out into branded products such as CDs, retail coffee packs and ice cream.

Overseas expansion is also on the cards and will most likely take the form of a joint venture partner in northern Europe and a master franchisor in the Middle East. In February 2006, the group revealed that it was in talks with a number of potential partners and expected to sign a deal before May.


"Our roll out continues apace and is ahead of schedule with 250 of this year's target 255 stores already trading. 

The Group has also reached the fortunate position of self-financing, where its UK roll-out can be financed by its own internal cashflow.  EBITDA at the current rate is more than adequate to fund the capital expenditure for the anticipated 40-45 new sites in the UK per annum.

Further afield, international expansion continues to be an area of interest and focus.  We are still exploring which opportunities and markets are best suited for the Caffe Nero brand.

Source: Chairman, interim results statement, 2 February 2006

Operating Data:

Number of coffee bars: 262 (including eight sites on BAA land and concessions in Selfridges and House of Fraser stores)
Number of employees: more than 1,000

Figures for the six months to 30 November 2005
Store profit increased by 45% to £10.9m (2004: £7.5m)
Like-for-like sales grew by 4.5%
The group opened 30 new stores, of which 24 were outside Greater London

Financial Snapshot:

Full year
Turnover: £70.1m (2004: £50.5m)
Pre-tax profits: £5.1m (2004: £1.7m)

Half year
Turnover: £43.4m (2004: £32.8m)
Pre-tax profit: £3.5m (2004: £717,000)

Financial year end: 31 May 2005
Half year end: 30 November 2005


2nd Floor
3 Neal Street