Caffè Nero Warns Coffee Prices May Rise Again

Published: 08 March 2026. The English Chronicle Desk. The English Chronicle Online.

Caffè Nero has announced steady global growth while warning that coffee prices could rise again. The company says rising operating costs and geopolitical tensions may increase prices in cafés. Executives also confirmed that expansion plans will continue across the United Kingdom and international markets. However, industry pressures are shaping how quickly the business can grow during the coming year.

The coffee chain plans to open dozens of new stores across several countries during 2026. In Britain alone, the company intends to launch up to thirty additional cafés. International expansion will include between fifty and seventy outlets across ten overseas markets. The strategy reflects confidence in continued demand for premium coffee despite economic pressures affecting the hospitality industry.

Company founder Gerry Ford said the business has experienced consistent performance compared with major competitors. He explained that the privately owned company benefits from long-term planning flexibility. Unlike publicly traded corporations, the company does not face pressure from quarterly financial reporting expectations. According to Ford, that independence allows the brand to expand at a more sustainable pace.

Caffè Nero currently operates more than one thousand one hundred cafés worldwide and employs about eleven thousand people. The brand has gradually expanded through acquisitions and organic growth across several international markets. Ford believes the company’s measured strategy has helped avoid some challenges experienced by larger chains. Those difficulties include rapid expansion followed by operational restructuring.

In recent years, some global coffee brands have closed outlets while reassessing business strategies. Several chains faced declining sales in established locations alongside rising operational costs. Ford suggested that rapid expansion and frequent leadership changes can weaken long-term brand stability. He argued that slower, consistent growth provides stronger foundations for sustainable business development.

The company recently expanded its international presence through a new acquisition in the United States. It purchased Compass Coffee, a Washington-based chain with fifteen stores operating across the city. Those locations will eventually transition into the Caffè Nero brand as part of the company’s broader strategy. The acquisition also includes a coffee roasting facility supporting supply operations in North America.

Ford described the acquisition as a strategic step rather than aggressive market domination. He emphasised that the company does not aim to dominate every global coffee market. Instead, the goal involves building a respected premium brand with steady international presence. That philosophy reflects the company’s belief in measured expansion rather than rapid global saturation.

Recent acquisitions have played an important role in the company’s broader growth strategy. In October 2024 the group purchased Nottingham-based coffee roaster and café chain 200 Degrees. The acquisition cost approximately nine million pounds and strengthened the company’s presence in Britain’s speciality coffee sector. Caffè Nero has also previously acquired brands including Coffee#1 in Wales and Harris + Hoole.

These brands continue operating under their original identities while benefiting from shared corporate support. The parent company assists with supply chains, ingredient sourcing, and administrative services. Meanwhile local management teams retain operational independence and responsibility for business expansion. Ford believes this model encourages innovation and entrepreneurial management across the group’s various brands.

Despite its expansion ambitions, the company has temporarily paused further acquisitions for at least one year. Executives say the decision allows time to integrate recently purchased brands into the organisation. These acquisitions have increased borrowing levels and related financing costs within the company’s financial structure. Management therefore intends to stabilise operations before pursuing additional purchases.

Financial results published for the year ending May 2025 reveal strong revenue growth. Total sales increased by thirteen percent compared with the previous financial year. Revenue reached approximately five hundred eighty-seven million pounds, rising from just over five hundred nineteen million pounds. The growth demonstrates strong consumer demand for coffee shop experiences across several markets.

However, the company also reported widening pre-tax losses despite the increase in revenue. Losses reached forty-one million pounds during the financial year, compared with thirty-four million previously. Executives attributed the increase largely to higher financing costs associated with acquisitions. Rising global interest rates also contributed to increased borrowing expenses.

At the end of the financial year the company carried total debt exceeding four hundred eighty million pounds. That figure represented an increase from roughly four hundred twenty-eight million pounds the previous year. A portion of the borrowing, around forty-two million pounds, will become due for repayment later this year. Despite the debt levels, management remains confident about long-term financial performance.

Ford said underlying profits have continued improving despite temporary accounting losses. He argued that new acquisitions will generate additional income streams over time. These businesses are expected to strengthen both revenue and brand reach across different markets. Executives believe the benefits of expansion will become clearer during future financial reporting periods.

Recent trading results suggest continued growth in the company’s core British market. Sales in the United Kingdom increased seven percent during the six months ending November 2025. Total revenue during that period reached approximately one hundred eighty-five million pounds. Much of the growth came from existing stores rather than entirely new locations.

Established cafés experienced a five percent increase in sales during that period. Executives say product innovation contributed significantly to the improved performance. New menu items such as iced matcha beverages and pistachio-flavoured croissants proved popular with customers. These offerings helped attract younger consumers interested in new flavours and speciality drinks.

Ford said the company encourages individual brands within the group to experiment with new ideas. Each brand can develop unique products suited to its local market preferences. At the same time, centralised purchasing allows the company to negotiate better prices for ingredients. The combination helps maintain profitability while supporting creative menu development.

Despite these positive developments, the wider coffee industry continues facing serious cost pressures. Energy prices, labour costs, and supply chain disruptions have affected hospitality businesses worldwide. These challenges are influencing how many new cafés companies can open each year. According to Ford, the rising costs mainly reduce expansion speed rather than halting growth completely.

One of the most significant cost increases affecting coffee chains involves the price of raw coffee beans. Global coffee prices rose sharply during the past two years. Climate conditions in major coffee-growing regions disrupted harvests and reduced supply. Countries such as Brazil and Colombia experienced weather events affecting production volumes.

Ford said coffee prices nearly tripled between late 2023 and early 2024. Although prices have recently stabilised slightly, they remain historically high. He explained that commodity prices sometimes fluctuate dramatically due to environmental factors. However, these fluctuations often take time to influence retail prices charged to consumers.

The company founder has worked in the coffee industry for nearly three decades. During that time he has witnessed repeated cycles of rising and falling coffee prices. Nevertheless, he noted that recent price increases remained unusually persistent. According to Ford, the cost surge lasted longer than many industry analysts expected.

During the past three months global coffee prices have shown signs of modest decline. This development may bring some relief for coffee companies purchasing beans. However, Ford warned that the change will not necessarily reduce the price of coffee drinks. Many other costs affecting cafés remain significantly elevated.

Labour costs represent one of the largest expenses for hospitality businesses in Britain. Rising wages and staffing requirements have increased the cost of operating cafés nationwide. Business rates and other regulatory expenses have also contributed to higher operational spending. These factors combine with commodity prices to shape final consumer prices.

Energy costs remain another significant concern for coffee retailers across Europe. Global energy markets continue reacting to geopolitical tensions affecting supply chains. Recent conflict in the Middle East has increased uncertainty in energy prices again. Ford said these pressures could eventually influence the price customers pay for coffee.

Industry data shows the average price of a latte in Britain has increased significantly during recent years. According to the World Coffee Portal, the average latte now costs approximately three pounds seventy-six pence. That figure represents an increase of around thirty-five percent during the past five years. Consumers therefore continue adjusting to gradually rising café prices.

Ford believes coffee prices will likely continue following the historical pattern of gradual increases. Once prices rise within the hospitality sector they rarely return to earlier levels. Instead they stabilise temporarily before rising again due to inflation or supply changes. He said companies must carefully balance pricing with customer expectations.

Despite these pressures, Caffè Nero remains optimistic about long-term demand for premium coffee experiences. Consumers still view cafés as social spaces for meeting friends or working remotely. This cultural role has helped the industry remain resilient despite economic fluctuations. Many customers consider speciality coffee an affordable everyday luxury.

The company’s history reflects this steady expansion within a competitive market. Caffè Nero began in 1997 when Ford purchased a small group of coffee shops in London. Inspired by Italian café culture, he created a brand focused on quality coffee and relaxed environments. Over nearly three decades the business has grown into an international chain.

Today the company operates more than six hundred fifty cafés across the United Kingdom alone. Turkey represents its second-largest international market with over one hundred locations. Poland also hosts a growing network of cafés within the company’s European expansion strategy. The recent acquisition in Washington has expanded its presence within the United States.

The Compass Coffee purchase increases the company’s total American store count to around sixty. It also adds a roasting facility capable of supporting further growth across the region. Such infrastructure will help supply future cafés with freshly roasted beans. Executives believe this will strengthen the brand’s long-term position in North America.

Ford emphasised that the company does not aim to dominate every global market aggressively. Instead he believes significant opportunities remain for premium independent coffee brands worldwide. Many cities still offer space for distinctive café experiences that prioritise quality and atmosphere. For that reason he believes the market remains far from saturation.

Looking ahead, the company plans to continue expanding while monitoring economic conditions carefully. Rising costs and geopolitical tensions may influence pricing decisions across the industry. Nevertheless, executives remain confident that steady growth will continue during the coming years. For millions of customers worldwide, the daily coffee ritual remains an enduring habit.