High Street Coffee Shops Continue To Perform Strongly
UK coffee chain Caffe Nero has reported strong results for its financial year ending May 2013. Profits before tax rose by almost 11% year-on-year (y-o-y) to GBP21.1mn, with sales increasing by 10.7% y-o-y to GBP204mn. Like-for-like sales grew by 2.8%, with the company adding 39 shops to UK high street s .
The company is the third largest coffee chain in the UK in terms of store numbers, behind Starbucks and Costa Coffee , owned by Whitbread PLC . Costa dominates the UK high street coffee scene, having more than 2 , 500 outlets as of 2013 , compared with Starbucks ' 761. Though coffee outlets in the UK increased dramatically a few years ago, many believe that there is still plenty of room for growth . In 2010, Costa recorded revenues of GBP340.9m n , accounting for 23.7% of Whitbread's total revenue. This rose to GBP541.9mn in 2012 , and accounted for more than 30% of Whitbread's revenue . Andy Harrison, chief executive of Whitbread, has said the number of Costa stores in the UK has the potential to increase to 2 , 000 in the next few years. Similarly, Caffe Nero's chief executive, Gerry Ford, has said that his company could get to 750 stores.
Though Costa, Caffe Nero and Pret a Manger have all seen sales and profit growth in the UK, US-based Starbucks has historically struggled in the UK. However, the company's fortunes may have turned a corner, with Starbucks announcing positive sales growth in every month of Q313. Starbucks' s ame-store sales in Europe, Middle East and Africa, of which the UK represents the largest market, increased by 2% y-o-y .
|Costa Dominates The High Street|
|Current Number Of UK Coffee Stores By Chain|