Tesco coffee chain Harris + Hoole goes off the boil

Harris + Hoole, the coffee shop chain backed by Tesco, is to shut a raft of unprofitable stores just a year after the supermarket hailed the brand as the saviour of its big shops.

The café chain, in which Tesco reportedly has a 49 per cent stake, is to close six struggling shops across London and the South-east. A source claimed the costly nature of the stores, which feature high-end décor and premium barista coffee machines, was to blame for the closures and questioned Tesco’s commitment to expanding the chain.

However, H+H’s co-founder Nick Tolley insisted: “Our working relationship with Tesco remains strong as ever.”

The branch closures will leave the chain with 41 stores. It still plans to open 16 new high street shops and 32 outlets in or alongside Tesco stores this year.