UK-based Triple Two Coffee is expected to enter administration “soon”, after its parent company, Cooks Coffee Company, announced plans to place the franchise coffee chain and its subsidiaries into an insolvency process.

Its flagship store was launched in Swindon in August 2016. Cooks Coffee Company acquired the business In 2020. Triple Two currently has 11 sites across the South East and South West parts of the country, with one site in Newport, Wales. 

Cooks’ Esquire’s Coffee chain, which had 51 stores in the UK and 15 in Ireland as of March 31, 2023, along with 26 stores in the Middle East, Asia, and Europe, will not be impacted.

Esquire businesses are performing in line with the management expectations.  However, this doesn’t seem to be the case with Triple Two. The business showcased a remarkable growth before the Covid-19 pandemic. But this momentum has not been able to sustain in recent months. This has adversely impacted the business’s cash flow and profits. It has also been escalated with the current rate of inflation in the UK market. 

Until recently, Cooks Coffee had praised the strength of the Triple Two business. In fact, the business had doubled the size of the franchise operator to 20 stores. They even launched the first ‘Triple Two Go’ mobile van stores last October.

However, its full-year group results in May 2023 told another story. Cooks Coffee shared that total sales had fallen 10% to £3.4 million ($4.2 million) in the 12 months ending March 31, 2023. Pre-tax losses widened to £1.6 million ($2 million), compared to £200,000 ($250,000) the previous year. This was attributed to slower-than-expected outlet growth in the second half of the year.

A 2023 annual report  revealed that the chain opened four stores and closed six last year. A report from May 2023 also highlighted that several planned outlets had been deferred due to supply chain disruptions.

Triple Two’s business closure will affect Cooks’ goal of reaching 120 stores globally in 2023. Nevertheless, withdrawing from Triple Two could enable Cooks to focus on its Esquires business, for which it aims to nearly double its UK footprint to 100 stores by 2026.

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