New CEO for Cooks Coffee Company
Cafe franchise Cooks Coffee Company has appointed a chief executive to turn around the business after its Triple Two cafe chain was placed into liquidation.
Ireland-based Aiden Keegan will lead the NZX-listed company, which conducts its business in Britain and Ireland with New Zealand-style cafe chain Esquires.
Until April 1, the company had been led by chairperson Keith Jackson, who is based in New Zealand, along with the rest of its board.
Cooks Coffee Company has faced a tumultuous few years, ravaged by Covid and grappling with regaining its footing and sales in a challenged hospitality market. It has posted three consecutive years of financial losses, and in October it made the decision to close its Triple Two coffee franchise, with 11 cafes put into voluntary liquidation.
In an interview with Stuff, Keegan said the business would focus on growing Esquires in the UK and Ireland in the immediate term, and look for opportunities to expand into Europe and further afield down the track.
Keegan has been working in the Esquires business since 2004. He has been credited with growing the business from 38 to 60 stores and “sales under his guidance have experienced an increase of 12.6% compound annual growth rate”.
Cooks Coffee has ambitious plans to double the size of its business over the next three years, with the aim of opening at least 40 more locations to take its cafe numbers to 100.
It has 59 franchise stores in the UK and 15 in Ireland. The business also has franchises in the Middle East.
Keegan said Britain was Cooks Coffee’s biggest market, but the Irish outlets tended to have a higher turnover. Britain would remain the major focus, where there was significant opportunity for growth, he said.
“The plan is to grow Ireland by two to three stores a year, and in the UK we are looking to have 100 stores by the end of 2027,” Keegan said.
Keegan said the company would explore options for a possible launch in New Zealand longer term, and expansion in other international markets.
Cooks Coffee tried to establish local business through an acquisition of coffee brand Mojo, which fell through when the company was unable to raise $19 million needed to purchase the brand in 2018. In a trading update, Cooks said store sales were up 15.8% to $53.8m in the year to December 31, compared to $46.4m a year prior.
Esquires made weekly store sales of over $1.2m for the first time across the UK and Ireland in December, its biggest month of sales ever.
Cooks’ shares were trading about 21 cents yesterday.