Caffe Nero Sees Soaring Debts Amid Rapid Expansion

Caffe Nero has reported a significant rise in debts as the coffee chain accelerates its expansion strategy. Recent accounts reveal that the Nero Group borrowed an additional £53.3 million last year, fuelling its growth by opening new locations and acquiring smaller brands. This financial manoeuvre has propelled the firm’s total debt to an alarming £489.3 million, resulting in increased costs of servicing these debts, which have risen from £66.2 million to £73.7 million.

The company has experienced a statutory pre-tax loss of £41.6 million, a noticeable increase from the previous year’s loss of £34.6 million. Despite these challenges, Caffe Nero reported record sales of £587.6 million for the year ending in May 2025. Led by founder Gerry Ford, the company has rapidly expanded across Britain, operating more than 1,150 stores globally and employing around 11,000 staff.

Caffe Nero’s aggressive growth strategy includes opening over 630 locations in Britain and plans to add an additional 75 outlets in 2026. The firm has also acquired smaller coffee chains such as FCB Coffee and 200 Degrees in a bid to broaden its customer base and increase its market presence. According to company spokespeople, their preferred metric for evaluating performance is earnings before tax, amortisation, interest, and depreciation, or EBITDA, which they claim reflects their operational profitability.

The recent financial year has seen a more than 20 per cent increase in EBITDA, reaching £60 million, with early indicators suggesting that the figure for the current financial year will surpass this. Caffe Nero’s management asserts that strong performance in its various acquisitions is driving the company’s growth trajectory.