Caffe Nero upbeat on Irish prospects, despite losses

The Irish arm of UK specialist coffee retailer, Caffe Nero, says that there are strong prospects for the growth of branded coffee in Ireland, though start-up costs here contributed to the firm recording a loss of €430,000 last year.

The firm will invest €20m here by opening 40 stores and creating 350 jobs.

The company’s second set of accounts, lodged with the Companies Office, show that the business increased its revenues nearly nine-fold, to €687,000, in the 12 months, to the end of May last.

The number of Caffe Nero outlets operating here during the period was four, with the firm opening three of those last year.

Caffe Nero’s first Irish outlet opened on Merrion Row, in Dublin, in March, 2014, and today the company operates six outlets — five in Dublin and one recently opened in Drogheda.

The firm also has planning permission for another store, in Dalkey, which it secured in September, 2014, in the face of local opposition. According to the directors’ section of the latest accounts: “the loss, for the year, arose due to continued start-up costs in this new territory”.

Caffe Nero was founded by Gerry Ford in 1997. It is the largest independent coffee retailer in Europe, and last year operated 571 stores in 247 UK and Irish towns, generating revenues of £240m.

It incurred €1m costs in acquiring property, plant, and equipment in Ireland last year, compared to €287,000 in 2014.