Coffee Republic is to enter a period of consolidation after a frenetic year which has seen rapid growth through franchising, the group announced today.
The decision to move away from directly running outlets and rely on royalties saw the total number of Coffee Republics more than quadruple to 193 in the past year.
Concession outlet growth was particularly strong and the coffee chain now has ten international stores operating also, with plans for 200 within the next five years.
However, the switch from direct store income to a royalty model saw company turnover slide 39.8% to £5.8m in the year to 30 March 2008 (2007: £9.7m).
The company made a net loss of £2.5m, slightly up from £2.42m last year.
Peter Breach, Coffee Republic chairman, said: “This has been a year of significant change with the brand now represented across the UK an in twelve countries overseas. We are still in a turnaround period and our costs have continued to outpace our income as we vigorously invest in the future of our global brand.”
He added that the company was now working on improving the efficiency of head office procedures and directly-owned store operations.
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By Chris Druce
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