Tesco now has full ownership of its in-store coffee shop business Harris + Hoole.
The retailer, which had owned 49% of the company, has bought the remaining 51% for an undisclosed amount.
Tesco helped set up the coffee chain in 2012 with Australian siblings Nick, Andrew and Laura Tolley, who also run London-based coffee chain Taylor St Baristas.
When current Tesco chief executive Dave Lewis took over in September 2014, there was talk of the coffee chain being sold off, as the grocer attempted to keep a tighter rein on finances.
Expansion and losses
But since then the coffee venture has rapidly expanded, albeit at a cost. Losses at Harris + Hoole doubled last year after store numbers jumped from 23 to 43. Pre-tax losses rose to £25.6m in the year to the end of March 2015, compared to £12.8m in the previous financial year.
Under former chief executive Philip Clarke, Tesco saw the move into coffee as an opportunity to drive footfall into its Extra stores. In 2013, the supermarket chain also invested in Islington bakery Euphorium, and last year took full ownership of the business.
Harris + Hoole now has 43 outlets, including 29 in Tesco stores, and employs over 500 people. Tesco also owns the Giraffe family restaurant chain, which recorded losses of £4.1m in the year to 1 March 2015.
Tesco’s sales fell 1.6% in the 12 weeks to the end of January, according to data from Kantar Worldpanel.
Elsewhere, Tesco revealed last month that UK like-for-like sales fell 1.5% in the 13 weeks to the end of November.