Hotel Chocolat plans to announce locations of new Yorkshire stores before end of 2023

A spokesman said: “We see several gaps in our store coverage in Yorkshire and we will be able to announce detailed locations before the end of the year.”

Hotel Chocolat Group, which already has seven stores in Yorkshire, said its wholesale revenue was lower than planned at the beginning of the year. It said this was partially due to cautious inventory management by its online partners. Group revenue was 9 per cent lower year-on-year, at £129.8m in the 26 weeks ended December 25 2022, and the underlying profit before tax was £10.2m.

Angus Thirlwell, the co-founder and chief executive officer of Hotel Chocolat, said: “This strong sales performance from Hotel Chocolat stores, underpinned by our scaled database, is a result of hefty investments we continue to make into our brand.”

He said the group was investing in more cacao and less sugar in its recipes, funding “nature positive” cacao farming and championing British-made quality and design flair.

He added: “Over the last three years, we have increased retail like for-likes by 25 per cent through product innovation and improving the quality of our database marketing.

“We have announced the opening of a further 50 UK locations over the next three to five years, with the first wave planned this autumn.

"Our new ‘store of the future’ design has succeeded against its objectives in test locations and so will be rolled out in these new locations: more space, Velvetiser cafes and constructed from reusable and sustainable materials.”

Mr Thirlwell said sales of the Velvetiser in-home drinking chocolate system had continued its positive momentum.

He added: “Having grown sales by 66 per cent since the start of the last pre-pandemic year, as previously announced, we are taking this year, over FY23, to sharpen-up our operating model before we embark on the next stage of growth.

"I am really pleased with the determination I have seen across our teams to get back to running a tight ship again.

“Our adapted plan for international growth – to pursue the proven brand appeal with low risk-low capex operating models – is making sound progress.

"In Japan, a new strategic partnership was signed and in the US our planning is looking encouraging. Our Saint Lucian cacao agro-tourism business drove revenues up 46 per cent, with our 6-acre Project Chocolat visitor attraction the star performer.”

He said the group continues to trade in line with market expectations for sales although as previously guided, it remains cautious about consumer sentiment over the upcoming seasonal events of Mother’s Day, Easter, Eid and Father’s Day.

He added: “Depending on the Easter performance, there is a range of PBT outcomes between £4m and £7m for the full year. Following this transitional year in 2023, in FY24 and FY25 we expect to see a return to sales and EBITDA growth with a continued target of 20 per cent EBITDA margin by FY25 (pre IFRS 16 basis).”

The business was founded by Mr Thirlwell and Peter Harris, who are still executives within the business, and has traded under the Hotel Chocolat brand since 2003.