Tue 4th Feb 2025 - Caffe Nero owner reports record first-half sales Caffe Nero owner reports record first-half sales, core brand’s UK like-for-likes up 11.4%: Nero Group, the owner of Caffe Nero, Coffee#1 and 200 Degrees, has reported record sales for the first half of its financial year to November 2024, with UK like-for-like sales up 11.4%. The Gerry Ford-led business reported overall sales for the period of £310m, underpinned by an increase of 8% in like-for-like sales (13.6% overall). In the UK, Caffè Nero reported sales of £185.4m for the first half, “representing strong overall growth of 11.4%”. The company said “robust” like-for-like sales were also experienced in Turkey (12%) and Sweden (9%). The Nero Group currently operates circa 1,120 stores across 11 countries with 11,000 employees, serving more than 150 million customers a year. There are 626 Caffe Nero stores in the UK. Caffè Nero's airport business also continued to move forward, opening two new sites during the period. The group now operates 45 stores in 16 airports. The company said: “Despite facing challenging costs in the first half, driven by ongoing inflationary pressures, the Ford family-owned and operated Nero Group added 63 stores, 31 were new store openings and 32 were additional stores gained through the acquisition of the FCB and 200 Degrees businesses. Within this, 13 of the new stores were in the UK and Ireland. The delivery business benefited from continuing strong partnerships with Uber Eats, Deliveroo and Just Eat, generating £8.2m of revenue, an 8% rise. Likewise, the coffee at home business (packaged coffee) for the same period achieved growth of 20%, with the wholesale business seeing growth of 35%. The latter was assisted by continuing momentum from the brand's retail partnerships with Morrison's, Amazon, Ocado, the Ambassador Theatre Group, and Waitrose.” The business said that its partnership with Waitrose continued to strengthen with the opening of five “best of both” cafes (which offer Waitrose food and coffee specially roasted for Waitrose by The Nero Roasting Company), and the first Caffè Nero store in John Lewis White City, London. Ford said: "The first half was very encouraging. Our success is a reflection of the hard work and outstanding service from our store teams and the real momentum we've built through menu innovation. I was particularly encouraged by our cinnamon bun, which sold more than quarter of a million units after its launch in the second quarter, and the famous Maritozzi Bun, which took the country by storm and sold close to half a million units in the first half of the year. We have delivered record sales at both group and UK level, and it leaves us well placed to have a strong full year, despite significant financial costs and challenges which the business will have to overcome in the coming months.” Separately, Stephen Fern, managing director of coffee roaster and retailer 200 Degrees, which was acquired by The Nero Group in October, has left the company. Fern, who has been with 200 Degrees for almost six years, has left “to pursue a new career opportunity”. A spokesperson told Propel: “It was a personal decision – we thank him for all his hard work during the process of joining The Nero Group, and we wish him well for the future.” It is thought Fern has left to take up a position outside the sector. He became managing director of 200 Degrees in January 2023 after being promoted from financial director, having held the position since 2019, with the vast majority of the company's expansion coming during his time with the business. Founded in 2012 in Nottingham by Rob Darby and Tom Vincent, 200 Degrees has grown to 22 sites. In addition to stores, the business has its own roastery and operates an online e-commerce channel selling directly to customers at home, including a subscription offering. 200 Degrees also operates a wholesale arm, serving more than 500 wholesale customers. Caffè Nero features in the Propel 500 report, an unparalleled resource that profiles the UK’s leading hospitality operators ranked by turnover – which is available now. This comprehensive report provides more than 90,000 words of analysis, delving into company histories, leadership structures, site numbers and financial performance, making it an essential resource for industry professionals. A list of the operators included can be discovered now by visiting the Propel 500 page on Propel’s website. The guide is delivered in two parts: an introductory PDF, featuring deep dives into the top 25 companies and 6,500 words of insight from Propel’s expert writers, and a fully searchable Excel sheet, offering easy access to all the data. Key highlights include Mark Wingett’s exploration of mergers and acquisitions shaping the Top 500’s future, Tim Street’s view of the UK’s franchise market, and Phil Pemberton’s insights into experiential leisure as a hospitality cornerstone. Katherine Doggrell examines developments in UK hotels, while Mark Bentley, business development director at HDI, identifies emerging growth sectors, and Maria Vanifatova, founder of Meaningful Vision, analyses trends in quick service restaurants. Propel 500 is available now for £595 plus VAT. Existing Premium Club members can purchase it for £395 plus VAT. Premium Club members will receive the report for free on Friday, 28 February at 9am. Order the Propel 500 report today by emailing: kai.kirkman@propelinfo.com.