Caffe Nero snaps up rival sites

Coffee shop and deli chain Coffee Republic last week sold eight sites to high-street rival Caffe Nero for £900,000.

The deal is part of Coffee Republic's restructuring from coffee bar to deli chain and will also see Caffe Nero selling its 5.7% stake in the company.

Caffe Nero, voted consumers' favourite coffee brand for the last four years, also announced that trading for the second half of its financial year had "outperformed expectations" and that it had exceeded its target of openings. The firm now operates in 171 locations.

Nero chairman Gerry Ford said: "The acquisition provides added impetus to Caffe Nero's current store expansion.

"We have also increased our organic opening rate to approximately four stores a month since November 2003."

Caffe Nero said it intended to convert the new sites, including Weymouth, Yeovil, Brighton, Cardiff, Banbury and Cardiff, to its brand within the next two months at a cost of about £50,000 each.