Liverpool Costa Coffee franchisee Optimum Group sees sales fall 3% to £11.5m as cost of living pressures hit its customers’ disposable incomes – but the business is still keen to expand. Tony McDonough reports

Liverpool Costa Coffee franchisee Optimum Group is still keen to expand despite a fall in annual sales and profits.

Based in Liverpool city centre, Optimum was founded in 2006 by Dave Connor who remains its owner and sole director. It operates almost 30 Costa Coffee franchises in the North West.

In 2016 he opened Kaspa’s Desserts outlets in Liverpool and St Helens. In 2022 Optimum also became the first Merseyside franchisee for the I am Döner kebab brand which was started in Yorkshire in 2016. Optimum also owns a newsagents.

However, despite the diversification of the group, almost 96% of its revenues are generated by the Costa Coffee shops. Optimum, which employs more than 180 people, has filed its annual accounts for the 12 months to August 31, 2025 on Companies House.

They show a 3% fall in sales to £11.5m and a fall in pre-tax profits from £646,135 in the previous year to £475,496. There was a small increase in net assets from £2.5m to £2.7m.

Writing in the annual report, group operating officer Michael Edgar said: “This year has seen the group maintain its position and deliver results consistent with the 2024 year despite challenging conditions relating to rising costs, inflation and cost of living increases affecting customers’ disposable income.”

He added: “The competitive nature of the coffee industry is increasing each year and has led us to actively source new sites or expand our Costa franchises using the popular brand name to our advantage.”

He explained that net profit had  decreased as a result of increases in operating expenditure as a direct result of increases in business rates and site rent costs.

“We have continued to invest in new fixtures and fittings to keep all stores modern and up-to-date,” said Michael.

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“This continued investment has led to higher depreciation costs in recent years… profit before depreciation is a strong indicator of how the business is operating and the group still shows a healthy cash position of £806,322.

Costa Coffee was founded by Sergio Costa in London in 1971.It was acquired by Whitbread in 1995 and was subsequently sold to Coca-Cola in 2019 for almost £3.8bn. It has more than 3,800 outlets worldwide and generates revenues of more than £1bn.