Harris + Hoole has recorded another annual loss as it battles to establish itself. The coffee chain, which is part-owned by troubled supermarket giant Tesco, announced on tuesday a £12.8m pre-tax loss in the 52 weeks to February 23 on filing its annual accounts.
This compares with a loss of £5.6m the previous year.
The company was forced to close six branches earlier this year following disappointing trading figures.
Harris + Hoole opened 18 new stores over the course of the year, taking the total number to 30. Most are based in the south-east of England, with some inside Tesco superstores and others operating as stand-alone stories.
Tesco owns a significant minority stake in Harris + Hoole. Philip Clarke, the former chief executive of Tesco, installed coffee shops into the company’s hypermarkets in an attempt to attract more shoppers.
However, Dave Lewis, who replaced Mr Clarke in September, has indicated that he could sell off non-core assets, placing Tesco’s relationship with Harris + Hoole in doubt, according to sources.
Nick Tolley, director and part-founder of Harris + Hoole, said the loss “reflects the early life cycle stage of a number of the shops open at the end of the 52 weeks and also the early development costs of the business”.
Acknowledging the tough marketplace in which Harris + Hoole operates, Tolley added that the company is “well positioned to continue to grow sales and market share”.
Tolley also said the business will seek to build on its model of high-end artisanal coffee in the year ahead, using its mobile app to encourage customer loyalty.
The app, which was introduced in March this year, allows customers to pay for coffee via their phones in-store.
