Caffe Nero posts annual loss despite demand for its coffees and snacks returning to pre-pandemic levels
‘Caffe Zero’: The company has paid just £2m in corporation tax in the past two years
Caffe Nero posted an annual loss despite demand for its coffees and snacks returning to pre-pandemic levels.
The red ink means the company, which was previously branded ‘Caffe Zero’ for its contributions to the Treasury, has paid just £2million in corporation tax over the past two years. This was despite sales of nearly £350m last year, according to filings at Caffe Nero’s parent company.
The chain runs over 600 cafes in the UK and employs 6,000 people. There is no evidence that Caffe Nero breached tax rules and the company insists it pays large sums in business rates, VAT and through employee contributions. But its meager corporation tax contributions have drawn criticism in the past.
Caffe Nero’s profits were wiped out after paying £35million in finance charges and interest to pay off debt. Documents also show he has received £45million in government aid since 2021.
A spokesperson said: “Over the past two years, Caffe Nero has paid over £80million in government tax. The furlough money we (and the rest of the country) received during Covid meant we could protect our employees’ jobs as the company struggled. . . caused by the forced closure of our business.
Earlier this month he said he had had a “very encouraging first half”.
