Liverpool firm Optimum Group, which operates 27 Costa Coffee shops, says full-year revenues have passed the £10m mark as it reveals further expansion. Tony McDonough reports 

Costa Coffee franchisee Optimum Group is reporting full-year revenues of £10.4m, a rise of almost 10% on the previous year.

Based in Liverpool city centre, Optimum was founded in 2006 by Dave Connor who remains its owner and sole director. 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 by chef Paul Baron. Its two I am Döner outlets are in Bootle and Woolton.

Optimum has just filed its full accounts for the 12 months to August 31, 2023, on Companies House. Although they show the increase in revenues they also reveal a fall in pre-tax profits from more than £374,000 in 2022 to less than £23,000.

However, the accounts also show a strong cash position of more than £900,000 at the end of the accounting period. They also showed the business employed a total of 185 staff during the year.

In the annual report Dave Connor reveals there will be a further expansion of Optimum with two new Costa outlets opening in the final quarter of 2024 and another I am Döner in early 2025. In 2022 Dave stated his intention to open 10 I am Döner shops.

“We just knew from the start that we had to bring this brand to Liverpool. I am Döner offers something that is truly different and it’s a concept that we’ve never seen before in the city,” he said in November 2022.

Optimum’s main focus remains its Costa outlets which can be found in Liverpool and other locations in the North West and account for 94% of its total revenues. The brand was founded by Sergio Costa in London in 1971.

It was acquired by Whitbread in 1995 and was subsequently sold to the giant Coca-Cola Company in January 2019 for almost £3.8bn. It has more than 3,800 outlets worldwide and generates annual revenues of more than £1bn.

In the annual report, Dave said: “The competitive nature of the coffee industry is increasing year-on-year with numerous players (both chains and independents). 

“We are managing to navigate this by continuing to source new sites for Costas and also plan on diversifying into new markets in the coming 12 months.

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“To ensure the Costa sites continue to trade well, investment is continually made to keep the fixtures and fittings etc modern. The group has further diversified into a new sector and has invested in a supermarket.

“Our financial performance in 2023 demonstrates resilience and operational efficiency in a challenging environment.”

According to the accounts, directors’ remuneration for the year, including salary and pension contributions, totalled more than £72,000. The company also paid dividends for the year of £88,000.