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Caffe Nero owner reports record sales as popular menu items fly off the shelves

2025-10-05 21:55:45 By

The new Caffe Nero outlet at Bristol Airport

Nero Group, the parent company of coffee chain Caffè Nero, has reported a significant surge in sales for the first half of its current financial year.

The company achieved record-breaking sales of £310 million for the six months ending November 2024, representing an 8% like-for-like increase and 13.6% overall growth, as reported by City AM.

In the UK, Caffè Nero's sales reached £185.4 million, a notable 11.4% rise, while sales in Turkey and Sweden saw increases of 12% and 9% respectively.

With a global presence of approximately 1,120 stores across 11 countries and a workforce of 11,000 employees, Nero Group's impressive performance is a testament to its continued success.

The results precede the publication of Caffè Nero's full-year results, expected by the end of the month, which follow the company's previous financial year performance of £450.4 million in revenue and £7.3 million in pre-tax profit, alongside the creation of over 1,000 new jobs.

This positive news contrasts with rival Costa Coffee's reported pre-tax loss of £9.6 million in 2023, despite a revenue increase of over £100 million.

Founded in 1997 by Gerry Ford, Caffè Nero was listed on the London Stock Exchange in 2001 before transitioning to a private company in 2007.

Ford, who serves as the company's CEO, expressed optimism about the results, stating, "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 over quarter of a million units after its launch in Q2, 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."

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Retail & Consumer

Popeyes and Wingstop announce plans to open dozens of new UK restaurants

2025-10-05 21:55:45

Fast-expanding chains Wingstop and Popeyes have both unveiled ambitious plans to broaden their reach across the UK, generating thousands of job opportunities. Popeyes has detailed plans to nearly double its UK presence by launching over 45 new restaurants, as reported by City AM. This expansion will bolster its footprint in cities such as Birmingham, Leeds, and Bristol, while also growing further in Manchester, Liverpool, London, and Scotland. The company anticipates creating approximately 2,500 jobs and aims for sales exceeding £200m in 2025. Financial accounts released in October 2024 for the fiscal year 2023 showed a revenue increase from £15m to £58.1m. The firm has now reported that its sales soared to over £118m in 2024 with the opening of 33 new locations. Tom Crowley, CEO of Popeyes UK, stated: "2025 is set to be another incredibly exciting year for Popeyes UK®, building on the significant successes our team generated in 2024 as we ended the year with an annual sales run rate of £150m." He added: "I would like to take this opportunity to thank the whole Popeyes team for their continued hard work and dedication throughout what was an incredibly busy year which saw us become the UK’s fastest growing QSR brand." He concluded: "Our ambitious roll-out strategy – which will see us open, on average, close to one new site per week in the coming 12 months – will mean that we can bring joy to even more customers across the country, from breakfast through to late night." "At the same time, we are looking forward to welcoming around 2,500 new team members in the year ahead to support our expansion plans, all the while continuing our clear focus on exciting menu and technology innovation. Underpinned by the proven global appeal of the Popeyes brand and our highly acclaimed customer proposition, the growth potential of the business is significant, and we have a medium-term target to scale to more than 350 sites, establishing Popeyes UK as one of the largest QSR [quick service restaurant] operators in the UK market." Concurrently, Wingstop, another popular chicken chain in the UK, has unveiled its ambitious plan to launch at least 20 new outlets this year, generating hundreds of job opportunities. This announcement comes a month after Wingstop's UK division was acquired by a US private equity firm for over £400m. Wingstop UK plans to open at least 10 new locations in the first half of the year, including dine-in restaurants in Swansea, Newcastle, Lakeside shopping centre in Essex, Streatham in south London and Cardigan Fields in Leeds. Additionally, a new delivery kitchen will be opened in Brighton. Currently, Wingstop operates 57 sites across the UK, employing more than 2,500 people, following an aggressive expansion strategy. Last year, the company opened 18 new locations, including its largest site at Westfield Stratford in east London. Chris Sherriff, Chief Executive of Wingstop UK, expressed his enthusiasm for the company's trajectory: "2024 has been a landmark year for Wingstop UK, marked by record site openings, a new flagship location and industry accolades." He continued, "This year we are poised for even greater growth, with plans to expand into new regions and create hundreds of jobs." Sherriff also extended gratitude towards the staff: "Thank you to the brilliant work of all our employees, who drive us to keep growing, whilst providing a personalised and authentic experience to wing-lovers up and down the country." He concluded with optimism, "There is huge momentum and we can’t wait to bring our flavours to more areas across the UK." In December, City AM reported that Wingstop had significantly increased its sales amidst its ongoing expansion in the UK, creating numerous job opportunities and returning to profitability. The restaurant chain, famed for its buffalo wings, disclosed a turnover of £84.6m for the 12 months leading up to 31 March, 2024, as per documents filed at Companies House.

Retail & Consumer

UK retail footfall sees first January increase since 2016 as shoppers delay Christmas spending

2025-10-05 21:55:45

For the first time since 2016, retail footfall in January saw a year-on-year increase, likely due to UK consumers delaying their festive spending to take advantage of discounted goods in the new year sales. According to data from MRI Software, footfall across all UK retail destinations rose by 1.4 per cent in January 2025 compared to the same period in 2024, as reported by City AM. Shopping centres led the way with a 1.8 per cent increase in footfall, followed by a 1.4 per cent rise in retail parks and a 1.1 per cent increase on high streets. This marks the largest year-on-year increase, excluding lockdown periods, since January 2016 when footfall increased by 1.2 per cent. However, this increase may not be as positive for the retail sector as it appears. Recent data from advisory firm BDO indicates that while in-store sales grew by 3.2 per cent in January, mirroring MRI's data, there was a heavy reliance on discounted purchases. The weak growth leading up to Christmas, coupled with higher spending and footfall in January, suggests that UK consumers may have been waiting for January discounts, according to Sophie Michael, head of retail and wholesale at BDO. "January trading... requires heavy encouragement through discounting; this delayed spending will no doubt have a significant impact on already-thin margins," said Michael. She added: "The sector has been challenged for some time by the impact of significant cost increases, which will continue to mount throughout the year, particularly post the implementation of the changes in the budget this April." MRI similarly indicated that with February approaching, the effects of the Autumn Budget are "likely to start being felt by both consumers and retailers alike". Retailers are facing notably increased costs this Spring due to a combination of higher business rates, elevated wage taxes, and the introduction of a new packaging tax.

Retail & Consumer

Dunelm announces CEO's departure, highlights robust half-year financial growth

2025-10-05 21:55:45

Dunelm's CEO, Nick Wilkinson, has announced his decision to step down after seven years at the helm, during which he led the company through strategic changes, digitalisation, and the pandemic. Wilkinson will remain with the FTSE-listed firm until a successor is appointed. Dunelm has seen consistent sales growth over recent years, thanks to its personalised, relatively low-cost homewares that have proven popular with consumers, as reported by City AM. Alison Brittain, Chair of Dunelm, praised Wilkinson as a "tremendous leader for Dunelm", adding that he had successfully guided the group through the global pandemic, driven a significant shift in the digital offer, established strategic capabilities across the business including in tech and data, and maintained the unique, entrepreneurial culture which makes Dunelm so special. She added: "Nick will continue to lead the business over the coming months as we transition to a new CEO, maintaining a focus on delivering long-term, sustainable growth for all stakeholders." Wilkinson commented: "It feels like I’m approaching the right time to step away from full-time executive life [but] I’ve never been more confident in the opportunities ahead for this special brand. There remains lots to do, and much to learn, as Dunelm continues to grow and develop." The retailer also announced strong results for the 26 weeks ended 28 December, with a 2.4 per cent increase in sales. Dunelm has reported a rise in its market share in homewares to 7.8%, marking a year-on-year increase of 0.3%, alongside a customer base growth of 4.3%. The retailer's pre-tax profit edged up by 0.2% to £123.1m, while diluted earnings per share increased by 0.9% to 44.6p. CEO Wilkinson commented on the company’s resilience: "Our performance over the first half reflects the growing attraction of the Dunelm offer for a wide range of customers, and the quality and resilience of our business model." He further noted the company's success despite retail challenges: "Amidst a challenging backdrop for retail, those attributes have helped us deliver increased sales, a strong gross margin, and both customer and market share growth." Wilkinson has expressed his support for the Government’s higher living wage initiative, advocating that an increase is beneficial for the overall economy. Nonetheless, Dunelm is faced with various inflationary pressures, including a new packaging tax and a rise in employer’s national insurance contributions, mitigation efforts for which have led to only partial offsets through productivity improvements.

Retail & Consumer

Liverpool brewery and bar Carnival Brewing Company up for sale after administration

2025-10-05 21:55:45

A Liverpool bar and brewery has gone into administration- and its assets will now be sold at auction. Carnival Brewing Company on King Edward Industrial Estate near Liverpool city centre, appointed administrators Paul Stanley and Jason Dean Greenhalgh from Begbies Traynor on January 29. Established in 2017, the company was known for crafting a diverse selection of beers sold across Merseyside pubs and bars. It had a staff of three, and was known for teaming up with musicians and labels to create unique limited edition brews. Its weekend taproom drew beer lovers but efforts to secure a sale for the business fell through, leading it into administration. Items for auction include Carnival's canning line, reports the Liverpool Echo. Paul Stanley, partner at Begbies Traynor and joint administrator, said: "Many small, independent businesses are facing difficulties at the moment and despite establishing a number of trade and individual customers in a competitive industry Carnival has been unable to find a buyer and has been placed into administration. "We are working closely with creditors and directors to support on next steps. This includes seeking buyers for the assets of Carnival via an auction which will be held on 26 February." Several breweries in the region have recently shut down as the persistent cost of living crisis continues to severely impact the hospitality sector. Speke's Big Bog Brewing Company closed after falling into administration in March 2024, and the acclaimed Chapter Brewery, located in Sutton Weaver, also ceased operations in 2024.

Retail & Consumer

Wickes reports revenue growth and share price surge amidst challenging market conditions

2025-10-05 21:55:45

Wickes has announced a rise in revenue for the second half of the year, fuelled by smaller retail purchases and reduced losses in its installation segment. The company's shares surged over 10 per cent in early trading. Revenue at the home improvement firm increased by 1.8 per cent in the six months ending December 28, reaching £738.9m, as reported by City AM. This was propelled by growth in its retail segment, with revenue climbing three per cent year on year to £579.1m "despite challenging market conditions". Wickes attributed the sales increase to volume growth, noting a deflation of around two per cent in the second half of the year. The company also reported that TradePro sales, a retail membership programme for tradespeople in the UK, rose 14 per cent year on year, while active TradePro members grew by 19 per cent year on year to 581,000. In Wickes' second key segment, design and installation, revenue dropped 2.5 per cent to £159.7m. Wickes has been grappling with demand for larger-ticket items like installations, with revenue down 17 per cent in the first half of the year. "While the market environment for larger ticket purchases remains challenging and the outlook uncertain, the changes we [have] made to the business enabled ordered sales to move into year-on-year growth in the fourth quarter," Wickes stated. Wickes' new store in Leamington Spa, which opened in October, marked its fourth new store for the year. The company also refitted two additional stores. Chief Executive David Wood stated: "Wickes’ differentiated model continues to deliver. We’ve grown sales and volumes in Retail, and TradePro had yet another period of double-digit sales growth, as local tradespeople continue to choose us to save them time and money." He added: "Meanwhile, measures we took to improve our offer in Design & Installation have enabled us to return to ordered sales growth."

Retail & Consumer

Plymouth restaurant shuts its doors leaving owner broke

2025-10-05 21:55:45

A business owner is heartbroken after his Plymouth-based bagel and pizza restaurant succumbed to financial pressures. Brandon Hargrave now lives in a van after Koala Karlous was forced to shut down due to escalating costs. The entrepreneur launched his business from a van at Cornwall's Fistral Beach in 2019, later expanding to Plymouth, Falmouth and Cornwall Services near St Austell. He also had a pop-up in London's affluent South Kensington. However, all locations have ceased operations, resulting in the loss of employment for 50 individuals. "It's awful," said the 31-year-old, who is also a musician. "It's been a horrible few months. This was our dream, I put my music on hold to start this five years ago with a van on a beach. Now we are totally shattered, we're still dealing with it. It's extremely sad." Mr Hargrave attributes the downfall to the UK's economic situation and predicts a challenging future for many food businesses in 2025. He said: "It was the economic climate: rising costs, taxes, and everything. It became insolvent very quickly. "We did everything we could, we ran events day and night, and did yoga sessions. We put all our energy into it, worked 90-hour weeks, worked around the clock seven days a week. Me and my partner Daisy Peacock haven't stopped for five years.", reports Plymouth Live. "But it became extremely difficult to keep going. It's happening to almost everyone, the small companies. We did everything we could to avoid closing but there was no way around it." Mr Hargrave launched Koala Karlous from a repurposed 120ft shipping container at Mount Batten Pier in July 2023, taking over the former Seawings seafood restaurant site. Initially, the business enjoyed success, offering wood-fired pizzas, bagels, and specialty coffee. But the businessman soon discovered the outlet's popularity was heavily weather-dependent. He recalled: "It was really good on sunny days but very quiet on rainy days. It's a challenge if you are losing money and not earning." Ultimately, the business closed all its locations by the end of 2024, shutting down its website. This week, Mr Hargrave's company, Koaka Karlous, appointed liquidators and passed a resolution for voluntary liquidation. Mr Hargrave has since relocated to Devon, where he resides with his partner in a van, focusing on his music career. He reflected: "It's where we were five years ago. We have come full circle." The couple had invested all their savings, time, and energy into sustaining Koala Karlous, but unfortunately, it wasn't enough. Mr Hargrave acknowledged: "We put all our money in and lost it." Despite having a music career and setting aside funds for other ventures, he said: "I put a lot into Koala Karlous and lost all of it." Mr Hargrave expects more closures, expressing concern about the year ahead: "This year will be difficult for a lot of businesses." "If I was to do it again I would have kept it small, as an owner-operator, without other locations and outlays. It's the owner-operators that will survive, the smaller the better, unless you have significant funding. It's also hard to say what will work. I thought I knew but clearly I didn't. "Now we are trying to get back on our feet. We're still in Devon, we're a bit broke, we don't have anything and are living out of a van now because we lost everything. "We are just trying to figure out how to survive. But we have our arms and legs and are still breathing. I went through some hard stuff when my brother passed away, it puts life into perspective. So, as long as you have your health."

Retail & Consumer

Eden Project to axe 80 jobs amid 'considerable economic challenges'

2025-10-05 21:55:45

The Eden Project, one of Cornwall's most popular tourist and environmental attractions, is cutting up to 80 jobs. The losses represent around a 20% reduction in its current workforce of 400, equating to one in five roles. It is the second round of job cuts announced by the Bodelva attraction, which has been operating at a loss, in less than two years. In May 2023, Eden Project revealed that 20 positions were at risk, although efforts were made to minimise job losses through voluntary redundancies. At the time, management attributed the proposed redundancies to the impact of the cost-of-living crisis on visitor numbers and revenues over the preceding year, as well as organisational restructuring aimed at creating more efficient ways of working to support future growth plans. The attraction, known for its tropical and Mediterranean biomes, environmental initiatives, and Eden Session music events, has once again confirmed job cuts due to "considerable economic challenges". A decline in tourism, reduced visitor numbers, and escalating operational costs have been cited as reasons for the decision. A spokesperson for the Eden Project told our sister site CornwallLive: "The Eden Project is initiating proactive measures to ensure the long term economic stability of the organisation. We have explored every option and will create a new structure as a result of considerable economic challenges. This will involve reducing our payroll by an estimated 20 per cent, equivalent to around 80 redundancies, including 19 who have elected to leave voluntarily through voluntary redundancy or retirement. "A number of factors including the contraction of the visitor economy across the south west as well as significantly increased costs to businesses have made this process necessary. This process will set us on a path to continue our vital work as an environmental charity and a thriving visitor destination for our second quarter century and beyond." "The Eden Project will now begin a consultation period lasting at least 45 days. Affected team members will be supported by the Members Assembly, the Eden Project's staff representative body, and every effort will be made to minimise the number of job losses, with alternative roles or retraining offered where possible." As highlighted by BusinessLive, this announcement arrives as the charity reported a £1.5m loss for its latest financial year, despite a rise in visitor numbers, with over 604,000 guests in the year ending March 31, 2024, up from just over 551,000 the previous 12 months. Turnover increased from £23.2m to £24.2m due to the rise in visitor numbers. However, this growth was not enough to prevent pre-tax losses from nearly doubling, from £868,000 to £1.5m, as revealed in recently filed accounts at Companies House. This news comes as the Eden Project is expected to open a new location in Morecambe, Lancashire, between 2027 and 2028. At the end of January 2022, Lancashire City Council granted planning permission for the £125m project. Initially expected to open in 2024, the project has faced several delays but is anticipated to create over 400 direct jobs and support a further 1,500 employment opportunities in the region. The Eden Project North will be situated on the site of the former Bubbles leisure complex, near the Winter Gardens and Midland Hotel. When the development was approved by the local authority, it was estimated that the project would inject £200m annually into the local economy. In a statement approved by its board, Eden commented on its financial loss, stating: "During this financial year, we emerged from the aftershocks of Russia invading Ukraine and the knock on effect on global energy prices, to a period of receding inflation and lowering interest rates. "However, consumer confidence is still negative, but significantly improved over its all time low in October 2022. All of these factors impacted the trading results of Eden Project Limited during 2023/24. "Given the challenging conditions from last year and ongoing macro-economic uncertainty, we will continue to diligently control our resources but invest back into our principal asset, the Eden Project site, where necessary."

Retail & Consumer

Vertu Motors to reduce workforce and close showrooms on Sundays, citing Budget measures

2025-10-05 21:55:45

Car dealership group Vertu Motors has warned it will reduce its workforce and close most of its showrooms on Sundays, saying minimum wage and National Insurance rises will add £10m costs. The Gateshead-based business, which has nearly 200 sites in the UK, has lowered adjusted pre-tax profit expectations for the year the end of February, saying it will now be significantly below £34.5m estimates, which were down from £37.8m the previous year. Along with subdued demand, Vertu also blamed the Zero Emissions Vehicle (ZEV) Mandate for causing disruption to the market and that its ramping up to 28% for 2025 is likely to lead to more discounting on new cars which will squeeze margins further. But at the same time as announcing the £10m cuts, it also said it would spend £12m on share buyback scheme for investors. Vertu said that October last year heralded a "significant deterioration" in profitability from new vehicle sales, despite outperforming the market on battery electric vehicle sales and like-for-like retail volumes. Lower new retail volumes and pressure on manufacturer earnings were said to have led to reduced support for retailers. The measures introduced in the autumn Budget and coming into force from April are expected to impact the group in year to the end of February 2026. It said wage inflation would likely be passed through in areas, such as car valeting and cleaning costs. The number of jobs being axed at the 7,700-strong group is thought to be minimal, with reductions mainly coming from not replacing staff who leave. Vertu typically sees about 15% to 20% of its workforce leave each year due to natural staff turnover. Despite the headwinds, Vertu simultaneously announced it was launching a £12m share buyback - its largest to date. The action came as Vertu's board decided the group's shares were mispriced and trading at a discount to its own assessment of value. Robert Forrester, chief executive officer at Vertu, said: "The group's high margin aftersales business is performing strongly. However, the Government's ZEV Mandate is causing severe disruption to the UK new car market, and the consumer environment is subdued. Despite these headwinds, the Vertu team is delivering, as seen by our significant market share gains in BEV new cars in the final quarter of the year. We now have award winning BEV dealerships with Citroen, MINI and VW. The Government and the industry need to get together to address the root cause of the issues to allow the automotive sector in the UK to return to its traditional role of stimulating economic growth, which is a catalyst for employment. Vertu's strong balance sheet, underpinned by over £320m of freehold and long leasehold property, is a comfort to our colleagues, manufacturer partners and shareholders in these times. "We have returned over £94m to our shareholders since January 2011 in dividends and share buybacks and I am delighted that the board has authorised our largest share buyback to date, with £12m allocated to a buyback programme over the period to February 28, 2026."

Retail & Consumer

Jollyes to lower 3,000 prices as it opens new stores in challenge to Pets at Home

2025-10-05 21:55:45

Pet superstore chain Jollyes has unveiled plans to slash thousands of prices and launch new stores across the UK. The retailer, a significant competitor to Pets at Home, also announced a series of new benefits for its employees in an effort to attract fresh talent, as reported by City AM. This announcement comes nearly a year after TDR Capital, the private equity backer of Asda, pub group Stonegate and David Lloyd Leisure, acquired a majority stake in Jollyes. At that time, Jollyes stated that the deal would enable it to accelerate its store expansion as it aims to compete with London-listed rival Pets at Home. Jollyes now plans to reduce more than 3,000 prices to levels previously only available to loyalty card holders. The company said this move covers over two thirds of all the 4,500 ‘core’ items it typically stocks in a store. Jollyes is expected to file its accounts for its latest financial year, the 12 months to 31 May, 2024, by the end of February. However, the business confirmed that it achieved its biggest-ever trading day in its history on 23 December, 2024. Jollyes served more than 42,000 customers and its like-for-like sales increased by six per cent in the four weeks leading up to Christmas Eve. Total growth for the same four-week period was 13 per cent, which the retailer attributed to the opening of 14 new stores in 2024. Jollyes also confirmed plans to open new stores in Pontefract, West Yorkshire, and Chichester, West Sussex, in March. They will be followed by new shops in Swansea, Glamorgan, and Chesterfield, Derbyshire. An existing location is also being relocated to a new site in Perth. Chief executive Joe Wykes said: "We understand how much joy a pet brings to families, but we also know the cost of that commitment is high, especially at a time when household budgets are under pressure from energy bills and mortgage payments." "That’s why we’re simplifying our prices so customers won’t need to be a member to get the value that pet parents demand." "Being relentless in lowering prices to deliver on our promise to be the best value pet store in town is at the heart of our DNA and the promise we make to our customers."

Retail & Consumer

Rachel Reeves' Budget has scared off UK retail traders, survey finds

2025-10-05 21:55:45

A new survey indicates that retail traders are shying away from the UK market following Chancellor Rachel Reeves' recent Budget. The study by Graniteshares revealed that over a quarter of retail investors (26%) have reduced their stake in the UK after the Budget announcement, as reported by City AM. Moreover, out of the 1,000 British retail investors surveyed last month, one in five stated they are likely to decrease their investment in UK markets by 2025. "Economic news in the UK has been relatively downbeat over the past six months and last year’s Budget has been criticised by businesses," according to Catarina Donat Marques, head of European retail strategy at Graniteshares. The October Budget introduced by Reeves incorporated new taxes amounting to £40bn, including an increase in capital gains tax, leading to a substantial decline in business confidence. The strength of the US dollar is another significant factor deterring retail investors from UK stocks – 27% are being put off due to this reason. Following speculation about the Budget since late September 2024, there's been a noticeable drop in the value of the pound from $1.34 to just $1.24 today. In the long term, the sentiment among retail traders towards UK markets remains bleak, with 61% expressing disappointment with the performance of UK markets over the past three years and 24% admitting to diverting their investments elsewhere as a consequence. In the previous year, the FTSE 100 saw a modest growth of only 5.7 per cent, in stark contrast to the S&P 500's impressive return of 23.3 per cent. This disparity, largely due to the dominance of the US-based 'Magnificent Seven', has prompted a significant number of UK retail investors to turn their attention to American investments. Indeed, approximately 23 per cent of UK retail traders have reported a decrease in the proportion of their investment portfolio dedicated to British stocks and funds over the past three years. However, despite this trend, a third of these investors estimate an increase in their UK investments.