Coffee Republic losses widen as firm moves further along the franchising path

30 July 2007 by
Coffee Republic losses widen as firm moves further along the franchising path

Losses have piled up at Coffee Republic as the company continues its transformation to a franchising model.

For the year-ending 25 March the coffee chain made a net loss of £2.45m, up from £1.45m a year ago and saw sales fall by 34.8% to £9.7m (2006: £14.9m).

Coffee Republic said it was this conversion to franchising, from direct ownership of the coffee shops, which had caused the fall in sales and profits.

However, it said in a results statement that the rapid expansion of franchised sites, from five in March 2006 to 31 as of this month, as well as a number of regional and international franchising agreements, gave plenty of reason for optimism about the company's future performance.

Steven Bartlett, chief executive of Coffee Republic, said: "There is a sense of excitement about the business and the brand from both within the company and from outside. This is translating into franchising and co-branded licensing opportunities which we are converting apace."

Greene King signs Coffee Republic franchise deal >>

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Coffee Republic to raise more funds to support franchising plan >>

Former Coffee Republic boss cashes in shares worth more than £400,000 >>

By Christopher Walton

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