Deli bars lift Coffee Republic

COFFEE Republic has pledged to open its first new store in four years, after
drawing encouragement from its recently launched deli bar format.

Nine of the firm’s 46 outlets have so far been converted into delis –
offering fresh food as well as coffee – and a further four bars have been
franchised since Coffee Republic launched its franchise scheme in November.

In the six months to September, Coffee Republic reported an operating loss of
£661,000, against a loss of £800,000 in the same period in 2004. Sales fell 13.7
per cent to £7.7 million after the closure of several “non-core” bars. The
company said it hoped to restore profitability in 2006, when it is planning to
open new franchised sites.

The deli bars are at the heart of Coffee Republic’s turnaround plan – as it
takes on rivals such as Starbucks, Costa Coffee and Caffe Nero.

Its shares rose 5.9 per cent yesterday to 1.09p.

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Last updated: 23-Dec-05 00:26 GMT