The Guardian Business EN

Caffè Nero says growth is ‘steady’ but coffee prices are likely to rise

Founder of family-owned firm says it will pause acquisitions after takeover of 15 Compass Coffee stores in USCaffè Nero will continue opening new shops in the UK and overseas, but has warned coffee prices are likely to keep rising as the war in Iran and higher staffing costs feed through.The family-owned business, which has just bought the 15-store Compass Coffee based in Washington DC to convert to its main brand, is aiming to open as many as 30 UK stores and between 50 and 70 more this year across the 10 other countries it operates in. Continue reading...

Mar 08, 2026 &03000808202631; 08:00 UTC www.theguardian.com Trending 2/5

Read original on www.theguardian.com ↗

→

Neutral impact

Sentiment score: -15/100

Moderate impact Short-term (days)

WHAT THIS MEANS

Caffè Nero reports steady growth and plans 30 UK store openings plus 50-70 international locations, but warns of rising coffee prices due to geopolitical tensions and elevated staffing costs. The company will pause acquisitions after acquiring 15 Compass Coffee stores in Washington DC.

AI CONFIDENCE

72% High

SENTIMENT GAUGE

NEWS POWER SCORE

AFFECTED ASSETS

⇅

IT→.MI

IT→.MIStock

High volatility expected

Caffè Nero expansion plans are positive but offset by margin pressure from rising input costs and labor expenses

↑

Oil (WTI Crude)

CL=FCommodity

Expected to rise

Geopolitical tensions (Iran conflict) supporting crude oil prices, which indirectly affects coffee supply chain costs

↑

Gold Futures

GC=FCommodity

Expected to rise

Safe-haven demand from geopolitical uncertainty supporting precious metals

PRICE HISTORY

Loading chart...

⚡ SUGGESTED ACTION

Monitor Caffè Nero's pricing power and same-store sales trends closely; rising input costs may pressure margins despite expansion. Consider hedging exposure to coffee commodity prices or reducing positions in discretionary consumer stocks until pricing strategy clarity emerges.

KEY SIGNALS

Expansion strategy continuing despite cost headwindsAcquisition pause signals capital allocation cautionInput cost inflation warning suggests margin compression aheadGeopolitical risk (Iran) impacting commodity pricesLabor cost inflation persisting in developed markets

SECTORS INVOLVED

Consumer DiscretionaryHospitality & RestaurantsRetail

Analysis generated on Mar 09, 2026 at 16:53 UTC

Disclaimer: This analysis is generated by artificial intelligence for informational purposes only and does not constitute financial advice, investment recommendation, or solicitation. Original reporting by The Guardian Business. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

Caffè Nero says growth is ‘steady’ but coffee prices are likely to rise

RELATED INTELLIGENCE