Coffee Republic to sell off bars after £7.5m losses
Coffee Republic has called a halt to its expansion programme following losses of £7.5m to the year ending 31 March, compared with losses of £2.7m the previous year.
Coffee Republic now plans to sell 18 underperforming bars and says it has started several schemes at bar level to increase sales and reduce costs. Executive chairman Bobby Hashemi said these included "a number of initiatives to increase the footfall and increase average transactions" through "new products, new promotions, and new merchandising".
The company has also launched a strategic review of the business. Said Hashemi: "We believe we have got a strong brand and fantastic sites across the country, and for us it's a question of how to leverage that in today's more competitive marketplace." He did not rule out the possibility of a merger with another operator.