Dr. Ford: We started up our coffeehouse concept seven years ago. We are now a national brand in the UK, and our concept has a specific Italian style to it. We have very high quality coffee which is rated number one in the UK, and we also have an Italian deli high-quality food range - a range of food that travels throughout the day. The history and evolution of the company has been based around a fairly rapid roll-out over the last seven years to the point where we now have 152 shops. We went public in March 2001.
TWST: Can you elaborate on the Italian concept, the atmosphere you
create in your shops, and how you would differ from someone like a
Starbucks?
Dr. Ford: Starbucks is a North American focused coffee bar concept that
is slightly more fast food oriented. We are a traditional Italian-styled
concept, which offers high quality food products and coffee that is
stronger and richer in flavour. Whereas Starbucks food mix tends to
promote cookies and cakes, representing 20-25% of sales, Caffe Nero
offers customers a more savoury-orientated food range of pasta, soup,
panini and sandwiches. Our concept probably appeals to the coffee
enthusiast who places less emphasis on buying take-away and is more
likely to want to spend time meeting up with people, conducting business
meetings or taking a break from shopping. Consequently, customers tend
to stay longer. Our drinks offering is much more rooted in lattes,
cappuccinos and expressos. We have quite a variety of high quality food
products. In fact, 35% of our sales are food, whereas Starbucks would be
around 20-25%. Ours is a broader and more savoury-oriented food range.
The atmosphere is much more of a traditional European coffeehouse, which
means it is less about take-away and more about meeting up with people,
having business meetings or taking a break from shopping. So, customers
tend to stay longer and view our coffeehouses as a social setting.
For more information call (212) 952 7433. The Wall Street Transcript does not endorse any of the comments made by interviewees, and does not make stock recommendations.