Ole & Steen posts stronger profits after efforts to ‘win back more customers’
The Danish-owned bakery and coffee chain reported that underlying profits grew by 25% to £4.89 million for 2024.
Bakery and coffee chain Ole & Steen has revealed stronger profits for the past year after focusing on winning back customers.
Bosses at the Danish-owned chain said it had focused on “value for quality” to boost sales over the past year after pausing recent expansion efforts.
Graham Hollinshead, UK managing director of the business, told the PA news agency that the company hoped to return to opening new sites and expanding into new markets in the coming years but said investment plans were focused on its current stores, customers and operations.
Ole & Steen reported that underlying profits grew by 25% to £4.89 million for 2024, supported by efficiency measures and a strong second half.
Meanwhile, turnover grew by 5% to £36.7 million for the year, compared with a year earlier.
The chain said it was particularly buoyed by an “outstanding” performance over the final quarter, with like-for-like sales growth at 17%.
It added that this “positive momentum” continued into 2025 despite pressure on consumer finances.
Mr Hollinshead said the company’s main strategy was working to “win back more customers” by focusing on the core offer its customers expected.
“I see it as focusing on value for quality rather than just value for money,” he said.
“I think some do view us as perhaps a more premium brand than some competitors, but as others have lifted their prices towards us I think it has put us in a good position because customers recognise the quality.”
Last year, parent group Lagkagehuset said it would focus on organic growth in its international businesses, including the UK, rather than expanding with more sites.
Mr Hollinshead said the business had become stronger over the past year as a result but that it still had growth ambitions in the longer term.
Nevertheless, he stressed that the current operating environment had “never been tougher”, amid intense competition and soaring costs.
The chain is among high street firms to have been impacted by increases in national insurance contributions and the rise in the national minimum wage.
The update came as the hospitality business launched an updated summer menu in collaboration with Danish chef and cookbook author Trine Hahnemann.
Ole & Steen will celebrate Midsummer by launching the new open rye sandwich range with the chef.