Coffee Republic

Telephone:

020 7033 0600

Activities:

Coffee Republic is the owner, operator and franchisor of a chain of espresso coffee shops that was rescued from administration in July 2009 by Middle Eastern property company Arab Investments.

The group was founded in 1995 by brother and sister team Bobby and Sahar Hashemi. After making swingeing losses in 2002, the group decided to covert its coffee bars into a more food-focused US-style deli and pinned its future hopes on franchising.

The chain is now made up largely of concessions and franchised outlets, with a number of franchised coffee shops overseas.

Key People:

Director-owner: Tariq Affara
Director-owner: Khalid Affara
Chief financial officer: David Reynolds

Commentary:

 

Strategy:


Arab Investments sold 15 less profitable company-owned bars, leaving the company with the five best-performing units.

It blames Coffee Republic’s slide into administration on the large number of onerous head leases on franchises that were signed by head office and is busy transferring these leases away from central responsibility

The new owners intend to continue growing the brand through franchising where appropriate, including overseas.

Source: David Reynolds, July 2009

Operating Data:

Coffee Republic Trading comprises five company-owned UK bars (in Warwick, Hove, Bluewater and two in Birmingham) and around 101 UK concessions.

Coffee Republic Retail comprises around 54 UK franchised outlets and 18 overseas franchised outlets.

Financial Snapshot:

Full year 

Turnover: £5.85m (2007: £9.72m)
Pre-tax loss: £2.49m (2007: £2.42m)

Half Year

Turnover: £2.99m (2008: £2.88m)
Pre-tax loss: £527,000 (2007: £895,000)

Financial year end: 30 March 2008
Half year end: 28 September 2008

Address:

Ground Floor
109-123 Clifton Street
London,

UK