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Coffee Republic cuts losses as sell-offs continue

16 August 2004 by
Coffee Republic cuts losses as sell-offs continue

Coffee bar chain Coffee Republic reduced its losses by more than £8m during the year to 28 March, as it sold off 17 outlets and began converting some to its new deli-bar format, the company said today.

The £1.7m loss for the 12 months to 28 March compares with a £9.8m loss in the previous financial year.

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Like-for-like sales for the year were 2.3% down. Since the year-end Coffee Republic has sold off a further 10 sites and now has 55 stores. A further five are earmarked for disposal. It has converted four of the remaining sites to the new deli-bar format and plans to convert six more by the end of March 2005. The company described this as Á¢Â€Âœa measured and prudent roll-out schedule.Á¢Â€Â Chairman Bobby Hashemi said: Á¢Â€ÂœThe past financial year has marked a turning point for Coffee Republic. The trading decline has now been stabilised and a platform for growth has been established.Á¢Â€Â The company claims the new deli-bar format increases sales by more than 20% on average, with a 30% rise recorded at its latest conversion in Heathrow AirportÁ¢Â€Â™s Terminal 1. The company has also tested a scaled-down version of the deli-bar for its smaller outlets. Refurbishment costs about one-third that of a full-scale conversion and sales are expected to increase by 5-10%. Buy this weekÁ¢Â€Â™s *Caterer* magazine for more industry news and analysis
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