Caffè Nero slurps up 82 per cent post-restrictions sales spike
Caffè Nero has enjoyed a sales spike in recent weeks, as restrictions were gradually eased, while it has also repaid all of its Covid financial support.
Weekly sales surged 82 per cent as outdoor seating was allowed and then restricted indoor eating was permitted in the last 13 weeks.
After paying back a £12.2m Liquidity Facility loan, the café chain has now repaid all Covid-19 support loans from the bank.
Current trading is ahead of forecasts, according to the company, at 70 to 80 per cent of levels seen in 2019.
“Sales are picking up and the last quarter has given us a lot of positive momentum. Covid-19, with its government enforced closures and restrictions, made for a challenging 14 months,” founder and group CEO, Gerry Ford, said.
The café chain also used lockdown to branch into the delivery and digital sphere, which has offered another revenue channel over the past year.
Sales from these new channels over the past 12 months have an annualised run rate of around £16m, the café chain said, as it is now listed on UberEats.
Its coffee products have also recently been listed on Amazon as well as with Sainsbury’s.
Revenue is set to double with these new channels in the upcoming financial year, Caffè Nero added.
Last year, UK sales were slashed by 22 per cent, taking revenue from £292.6m to £239.7m.
“We are gaining strength each week. Prior to the pandemic we were trading strongly and had a fantastic track record. We are starting to see that same trading pattern return,” the founder added.