‘Caffe Zero’: The company has paid just £2m in corporation tax over the past two years
Caffe Nero has posted an annual loss despite demand for its coffees and snacks returning to pre-pandemic levels.
The red ink means the company, which has previously been branded ‘Caffe Zero’ over its contributions to the Treasury, paid just £2 million in corporation tax over the past two years. That was despite sales of almost £350 million last year, according to the filings at Caffe Nero’s parent.
The chain runs more than 600 coffee shops in the UK and employs 6,000 people. There is no suggestion Caffe Nero has broken any tax rules and the firm insists it pays significant sums in business rates, VAT and through employee contributions. But its meagre corporation tax contributions have sparked criticism in the past.
Caffe Nero’s profit was wiped out after it paid £35 million on finance costs and interest to service its debt pile. Documents also show it has received £45 million in Government support since 2021.
A spokesman said: ‘Over the last two years, Caffe Nero has paid over £80 million in Government tax. The furlough money which we (and the rest of the country) received during Covid meant we could protect the jobs of our employees as the business struggled . . . caused by the forced closure of our business.’
Earlier this month, it said it had experienced a ‘very encouraging first half of the financial year’.
