Nero Cafe Financials

Greggs has been trialing new formats in new locations such as bus and train stations and planned to open its fifth "Gregg’s moment" coffee shop, in Gateshead. Additionally the Newcastle-based group opened 33 more shops than it closed in 2012.The openings helped push total sales up 4.5% to £350 million which means that the new rule of introducing pasty tax didn’t have a negative impact on Greggs.

Despite Peet’s Coffee and Tea being a corporate company, and the amount of stores it has produced, the goals and ambitions have not changed much. Coffee beans and tea’s are still the main focus of Peet’s and where they get most their revenue from. Bill Lilla, Peet’s executive vice president, said his company ensures quality through long-term relationships with growers, and by paying them more than the going rate. On the other hand, Starbucks Coffee insists their size has not affected quality, but it is hard to believe when their size is above and beyond the thousands. As the saying goes, too many cooks ruin the stew, and in this case, Starbucks would be the cooks, and its coffee and early aspirations are the

* Retail Company is growing- its direct-to-consumer business grew from 8%-11%, went from 155 stores before 2012 to over 200 today.

While the coffee bar market has obviously enjoyed strong growth some organizations can boast the financial performance of Caffè Nero. We believe that the group’s achievement base on main factors.

In this report, the mission statement for Caffe Nero is make sure food and service are excellence in all four areas to achieve their aim. Besides that, Caffe Nero also providing their customers with good quality coffee and comfortable environment to their customers. There are 3 main important to be successful - A high quality and well defined offering, focus on brand value, selective site acquisition and disciplined roll-out.

Tesco can be said to be a global leader in the UK retail business. It is one of the leading world retailers. The company started using the trading name TESCO in the 1920s and since the group has expanded in many ways venturing in different markets and with interest in different sectors. Over the years, Tesco has recorded growth which has been achieved through different strategies. There has been emphasis on the growth of Core UK business in order to expand internationally. This growth has allowed the company to position itself in food and non-food sectors based on retailing services. Over the years, the company has witnessed financial fortunes which have been reflected in its growing sales. Sales have risen from 31,726,280 from 2013 to 32,074,650 in 2014 (Kantar, 2014.) This has been achieved through growth strategies which have seen the company expand its retail outlets and at the same time enter into new markets with high growth potential using their famous ‘every little helps’ branding along the way. The ‘Every little helps’ branding helped Tesco’s attract 1.3 million new customers in the period from 1990-1995, and the campaign achieved good effects on staff morale, attracting quality marketers to join Tesco, directly affected the share price and allowed the brand to move into non-grocery sectors where brand credibility is a key requirement. Disadvantages….limitations etc

Because of their substantial growth over two decades, they have spent a considerable amount of time defending their image. Their “clustering” strategy put many small coffee shops out of business and many consumers began to wonder if there really was a need

Starbucks is known for their Frappuccino’s; unfortunately they are on a downward spiral in sales due to competitors such as McDonalds. In 2008 Starbucks admits to its losses due to their competitors. “Company executives now freely admit that such thinking is largely to blame for the woes that led to Tuesday’s announcement that Starbucks will close 600 U.S. stores and eliminate thousands of jobs. The coffee giant’s missteps have come at a spectacularly bad time, hitting as the economic slump deepens and consumers are seeing their discretionary spending eaten up by rising gas prices and grocery bills (Linn).”

More importantly, it is projected to grow more than 12% annually in the next 3-5 years. Moreover, from Exhibit 3, GDP per capita in UK is $35,900, which is $5,800 higher than Italy’s. This shows big market potential for premium coffee products in UK. With mature consumers generally capable of appreciating premium quality coffee, Illy can differentiate itself by selling its core competencies such as Italian-style, and top quality product. In addition, UK has small cultural and geographic distance to Italy, and is ranked 7 in terms of ease of doing business. All of the 4 factors from CAGE analysis indicate a favorable condition for Illy to do business in the UK market. The best market entry mode in UK is direct franchising as it preserves the authenticity of Illy’s brand by providing supplies and expertise directly from Italy. Under RAT analysis, UK also seems to be a good choice due to the similarity of the two markets. Illy’s high quality coffee is highly relevant to consumer’s taste in UK, and Illy will be able to transfer and appropriate its expertise in the UK market. Furthermore, under CAT analysis, the new capabilities and expertise derived from the UK market can in turn enhance Illy’s domestic business in Italy due to the small cultural distance between these two countries.

The Coffee Clubs first cafe opened in 1989, since then more and more stores have been opened worldwide. The Coffee Club has two different styles of stores those being either a small cafe or a restaurant. There are many stores scattered around New Zealand from Otago to Auckland with 55 outlets being in New Zealand and 350 plus worldwide.(Franchise New Zealand Limited, 2015) As an organisation their vision is to be a global leader in retail food, coffee and franchising. This means they want to lead by example to other companies in the same industry. Their mission is to provide good food, great service and excellent coffee and a welcoming meeting place with an inspiring contemporary lifestyle to its

The findings will demonstrate that Di Bella Coffee is one of Australia´s leading specialty coffee chains and is starting to expand into the international market successfully. The combination of a high quality product, the focus on customer service and new innovation together with the strong brand image have led to Di Bella Coffe´s success. In order to stay competitive and profitable in the coffee market and to meet consumer demand, Di Bella Coffee will need to evaluate the changing needs of the coffee

In the UK, the three leading competitive coffee brands are Costa Coffee (with 1,992 outlets), Starbucks Coffee Company (with 849 outlets) and Caffè Nero (with 620 outlets). They enjoy a 3-firm concentration of 53%; (Market concentration measures the market share of the largest companies in an industry)

GMCR’s warns of the potential impact of the price of coffee on the gross profit margin. To combat this, GMCR had made a number of purchase commitments to ensure an adequate supply of coffee (GMCR Annual Report, 2010). The market price for coffee is impacted by numerous factors including weather, economy, and competition. It is vital that GMCR continue to take proactive measures to secure against unforeseen spikes in coffee prices. The price of coffee does not only impact GMCR’s ability produce coffee for the Keurig brewer under its namesake but impacts their partner suppliers as well. GMCR purchases coffee from brokers, farms, estates, and cooperative groups and essentially diversifies its coffee supply, reducing some supply risk (GMCR Annual Report, 2010).

The specialty coffee industry had seen steady growth for years and the trend was expected to continue until at least 2015. Of the various segments within the specialty coffee industry, most of the growth was attributable to beverage retailers “Coffee and kiosks”. In 1979 there were approximately 250 specialty coffee retailers. The number quadrupled by 1989 to approx 1000 outlets, and it exploded to roughly 15000 by 2002. Nationally, specialty coffee sales totaled over $ 10 billion in 2005.

The demand for coffee shops is born from the increased number of individuals seeking coffee brewed outside of the home. This creates a larger market for coffee shops. An increased amount of people are starting their mornings off by purchasing breakfast and a cup of coffee away from home (Tuttle 2014), more people are enjoying gourmet coffee (NCA National Coffee Drinking Trends 2015 Infographic), and younger generations are demanding more coffee and coffee drinks from coffee shops (Tuttle 2014, S&D Coffee and Tea inc. 2014, Statista 2015). Coffee shops must compete with at home coffee, work place coffee, and teas for the caffeinated beverage markets (LN 2015). Demand for coffee within different markets varies, and provides competition for coffee shops. Single cup coffee makers, increasingly qualitative instant coffees, and gourmet beans are all sources of competition that could satisfy the demand for coffee. However, coffee shops are becoming more ingrained in social