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Caffe Nero-owned Coffee#1 has reported a 7.4% rise in revenues, from £51.5m to £55.3m, in the year ended 20 May 2025, as the coffee shop chain opened eight new branches across the Midlands and Southern England.
During the period, Coffee#1 also recorded a 3.6% increase in like-for-like sales during the period, as the total estate now consists of 127 coffee shops.
The company attributed the rise in sales to higher average spending per customer. Management reported in its filing at Companies House that customer volumes remained stable despite price increases implemented to offset inflationary costs, though operating profit fell to £5m from £6.2m.
Gross profit for the year reached £13.4m, up from £13.2m in the previous period, while profit before taxation was £4.9m, compared to £6.1m in 2024. The company’s operating profit margin also narrowed from 12.1% to 9.1%.
The brand’s expansion contributed to a £1.4m rise in administrative expenses to £8.4m, driven by impairment costs and general expansion.
Investment in property, plant and equipment rose by £1m to £17m. Debtors due after one year increased by £4.8m to £23.6m, reflecting funding provided to other companies within the wider group for new store openings.
The business continues to operate in the delivery market through partnerships with Just Eat and Uber Eats. Approximately 85% of sales are currently generated through drink-in and eat-in customers at its physical locations.
Directors at Coffee#1 maintain that the business is “well placed as an affordable hospitality destination for consumers wanting to drink and eat away from home but unwilling to pay the higher prices commanded by many other hospitality venues”.
