Coffee Republic serves smaller losses

COFFEE Republic, almost killed off in Britain's coffee bar wars, today reported a like-for-like sales increase for the first time in three years.

The business, having sold off dozens of bars since 2002, is a very different beast from the company that was once a contender in the battle against Costa, Starbucks and Caffe Nero.

Now with just 55 sites, it is transforming its estate into a chain of delicatessens in search of higher margins.

Losses in the year to 28 March were £1.8m against £9.8m a year earlier. Like-for-like sales were up 1%.

Chief executive Bobby Hashemi, who returned from semi-retirement to rescue the company he founded, said: 'We don't even see ourselves competing with big coffee sellers any more. We're now much more up against the mom-and-pop sandwich bars.'