- The Times -
Caffè Nero, the fast-growing coffee shop operator, has opened its first store in Dubai and unveiled plans for at least 50 stores in the Gulf over the next five years.
Caffè Nero, the fast-growing coffee shop operator, has opened its first store in Dubai and unveiled plans for at least 50 stores in the Gulf over the next five years.
The company, which was taken private two years ago by Gerry Ford, its founder, made its first international foray in Turkey, where it has 12 stores, and is eyeing opportunities in India, the Nordic countries and Central Europe. Its entry into the Gulf is being spearheaded by its franchise partner, the Al Tayer Group, a Dubai-based conglomerate with a brand portfolio including Ferrari, Land Rover, Harvey Nichols, Armani and Gucci.
The first franchised outlet is an 86-seat store on the ground floor of Dubai Mall, next door to an ice rink.
Further sites have been secured in Dubai and locations are being sought in countries including Abu Dhabi and Saudi Arabia.
The Dubai store is the group's 400th store. It has 387 in the UK, where it recently recorded its 45th quarter of like-for-like sales growth, and recent trading has remained in positive territory, despite the economic downturn, rising by 1 per cent.
That compares with flat sales at the rival Costa chain, owned by Whitbread, and a rumoured fall of at least 7 per cent over recent months at Starbucks UK. The American group is selling 20 loss-making stores in Britain and is tipped to close or sell as many as 50 as it seeks to restore its fortunes.
Caffè Nero is looking to the Gulf to expand its profits. Already it has opened one store in Dubai and it plans to open another 50 in the region.