Costa Coffee Announces Appointment of New CEO

November 27, 2019

Costa Coffee announced today that Dominic Paul will step down as CEO of the company effective Nov. 30. He will be succeeded Dec. 2 by Jill McDonald, an experienced business leader who has worked in senior roles across several industries, including retailing and airlines.

Paul has led Costa through a strong growth phase, along with the sale of Costa to The Coca-Cola Company, the complex separation from Whitbread and the development of Costa’s new growth strategy.

“Dominic led a significant reshaping of Costa’s international footprint, the expansion of the brand across multiple new platforms and a wide-ranging reset of the core UK business strategy,” said Jennifer Mann, president of Global Ventures for The Coca-Cola Company, parent of Costa.

Related: Coffee Franchise UK – Should You Invest in a Coffee or Coffee Shop Franchise?

McDonald will report to Mann. “I am excited to welcome Jill to the Costa family,” Mann said. “Her track record, depth of international experience and excitement about joining our business makes her an ideal leader to build on the great work of Dominic and the rest of the Costa team.”

Most recently, McDonald was managing director of clothing and home for Marks & Spencer. Prior to being named to that role, she served as CEO of Halfords Group, a UK retailer of bikes, car parts, leisure products and a chain of garages. McDonald worked at Halfords from 2015 to 2017.

She held three roles with McDonald’s Corp. from 2006 to 2015, ultimately serving as UK CEO and division president, North Europe. From 1990 to 2006, McDonald worked for British Airways, ascending through a series of positions of greater responsibility, eventually serving as global head of marketing.

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McDonald started her career as a graduate trainee at Colgate-Palmolive in 1987.

She currently serves on the board of InterContinental Hotels Group. McDonald is a native of the UK and a graduate of the University of Brighton.

“I have long been a fan of Costa and have watched the company grow in the UK and far beyond,” McDonald said. “I look forward to joining the Costa leadership team and building on the great foundation and growth potential in the business.”

Paul will remain with Costa as a special advisor through February 2020, supporting the transition.

About Costa Coffee

Founded in London by Italian brothers Sergio and Bruno Costa in 1971, Costa Coffee operates over 2,600+ coffee shops in the UK and more than 1,300+ in 31 international markets and are proud to be the UK’s favourite coffee shop, having been awarded “Best Branded Coffee Shop Chain in the UK and Ireland” by Allegra Strategies for nine years running (2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018).

Related: Costa Coffee Franchise

Making a positive contribution to the communities we are part of is extremely important to us, both here in the UK and across the world. That’s why we established The Costa Foundation, a registered charity with the aim of improving the life chances of children in coffee growing communities by helping them access a safe, quality education. So far, the Costa Foundation has funded over 80 school projects and changed the lives of more than 75,000 children. We also have a UK-wide Community Programme, which enables our teams to volunteer their time to good causes locally and to invite community groups to make use of our welcoming space in store.

In 2011 Costa Coffee purchased Coffee Nation rebranding it to Costa Express. Today, Costa Express operates over 9,000+ coffee bars in nine international markets and proudly serves the same famous Mocha Italia blend found in stores, combined with fresh milk to create a delicious and warming cup of coffee on the go.

Source: Franchising

Costa makes fresh investment to boost transaction speed and cut queues

November 18, 2019

A revolutionary kiosk that works to increase transaction speed while simultaneously reducing wait times for customers is being rolled out by Costa Coffee.

The solution from EPOS specialist WRS Systems, in conjunction with partners Oxhoo and Datasym, is designed to meet the needs of busy office workers and travellers that want minimum interaction with cashiers.

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The first of the new kiosks has already gone into Costa’s Lewisham branch, with subsequent trial stores in and around London also implementing the new technology.

Currently, there are eight stores in the trial programme, typically with smaller shop fronts such as seen at railway stations and strategic shopping locations.

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WRS Systems has been working with Costa since 2011 when it completed its first installation for franchisee P2M in Cheam, Surrey. Since then it has installed systems across the UK and Ireland to all 947 current franchise estates.

The company now serves as the chain’s sole EPOS provider and supports more than 3,600 terminals across its store network.

Related: Costa Coffee Franchise

Emma Wilson, business development manager at WRS Systems, said: “Providing innovative, reliable and secure EPOS solutions for our clients is at the heart of all that we do. Oxhoo is our principle hardware partner and for good reason. Like us, they offer cutting edge innovation and a philosophy of collaboration at every stage in POS solution development; from design to service, delivery and support. These are all key requirements for our clients across hospitality and retail, and essential in delivering this revolutionary new kiosk for Costa Coffee.”


Source: Foodservice Equipment Journal

Costa Coffee Opens New Commuter-Focused Concept Stores

September 3, 2019

Rail passengers will now be able to grab their morning coffee on-the go, as the nation’s favourite coffee shop*, Costa Coffee, opens the doors on its first ‘commuter-focused’ concept store in Lewisham, London.

Commuters returning from the Bank Holiday weekend will be welcomed by a new Costa Coffee store located in Lewisham Station in London, re-formatting a space originally used as the station managers office. Lewisham Station is one of eight new mini-format stores that will be opening in some of London’s busiest railway stations over the next six months.

Designed with the daily commuter in mind, the new stores will be focussed on delivering a quick and efficient service, whilst not compromising on quality. Both the layout and ordering system has been designed to have customers in and out of the store in just a few minutes.

All the stores are takeaway only and operate contactless payment options – with some of the stores offering self-service ordering screens for those not wishing to queue to order.

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Coffee lovers can also cut down their queuing time by taking advance of Costa Coffee’s mobile ordering service, which is available through the free Costa Coffee club app. Perfect for busy, on-to-go coffee lovers who need to grab their favourite handcrafted coffee without having to queue and can collect loyalty points with every purchase.

Connie Emerson, Head of Global Store Propositions & Design at Costa Coffee said: “As the nation’s favourite coffee shop, we’re committed to putting customer experience at the heart of everything we do. We understand that in today’s busy, fast paced world, our customers want to ensure they can get their Costa Coffee fix, even if they are hurrying to work, so naturally, the next evolution of a store concept had to centre on meeting the needs of busy, on-the-go commuters.

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Our new mini-stores have been designed to offer customers a beautiful barista handcrafted Costa Coffee quickly and conveniently, taking any stress out of grabbing that much needed Costa on the way to work.”

Lewisham Station Costa store opened its doors on Saturday 24 August, with a further eight mini-stores set to open at stations across London within the next six months.

Related: Costa Coffee Franchise

Whether you are on your out and about on your travels or looking for a relaxing environment to meet a friend for a coffee, you can find your nearest Costa Coffee using our handy store locator:

Source: Franchising

Costa set to open in Handforth

July 19, 2019

The UK’s fastest growing coffee shop chain, Costa Coffee, is set to open its doors in Handforth on 23rd July.

Franchise operators Sim Trava have chosen The Paddock as the location for their 37th outlet, and founder Simon Vardy is delighted to announce the opening.

He said: “We have been waiting for the right place here for some time and are delighted to be opening in just a few weeks in this popular village centre.

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“We hope the Costa Coffee will add something very positive to the current Paddock shopping experience and encourage more local people to come and spend time with us and in other shops in the centre.”

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The 1,500 sq ft double-fronted location will join the local network run by Sim Trava – which includes branches in Holmes Chapel and Cheadle.

Related: Costa Coffee Franchise

Simon added: “We pride ourselves on delivering a high level of personal commitment and service in every Costa to give our customers the best of both worlds – all the benefits of a well-known coffee brand, but provided by local people who really care about it.”

Source: So Chesire

Costa Coffee set to open in Handforth, Cheshire

July 11, 2019

The fastest growing coffee shop in the UK will open its doors in the Paddock, Handforth, Cheshire on July 23rd providing local people with ‘the nation’s favourite’ coffee experience for the first time.

For the family-owned franchise behind the Costa Coffee brand in the North West – Sim Trava – and commercial landlords Orbit Developments, the opening will be the happy culmination of 18 months discussion and planning to find the right size and location for a Costa Coffee in the village.

It will be the 37th Costa Coffee outlet for Sim Trava and founder Simon Vardy is delighted to be coming into Handforth with the company’s unique combination of quality coffee and personal service.

He said: “We have been waiting for the right place here for some time and are delighted to be opening in just a few weeks in this popular village centre. We hope the Costa Coffee will add something very positive to the current Paddock shopping experience and encourage more local people to come and spend time with us and in other shops in the centre.”

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Costa Coffees are often to be found in village centres, complementing other businesses and driving more footfall in general. The 1500 sq ft double-fronted location in Handforth will join a local network run by Sim Trava, including Holmes Chapel and Cheadle, where its openings have had a beneficial impact.

A store manager has already been appointed to lead the new team, but Simon is looking for more passionate local people to join them.

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He added: “We pride ourselves on delivering a high level of personal commitment and service in every Costa to give our customers the best of both worlds – all the benefits of a well-known coffee brand, but provided by local people who really care about it. And the right people can build a fantastic career with us – they become part of our family.”

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James Nicholson, Leasing Assistant at Orbit Developments, commented: “We wish Simon and the team every success at the Paddock. It has taken time to find exactly the right location in Handforth to meet the needs of a busy and successful coffee house and we are very glad to have got there and be welcoming them into our community.”

By Sue Souter

Source: BDaily

Costa Coffee Signs World-Leading Pledge To Slash Food Waste By 2030

June 15, 2019

Costa Coffee has today signed up to the government’s pledge to help halve food waste by 2030.

Last month Costa Coffee attended the ‘Step up to the Plate’ symposium, hosted by the government’s Food Surplus and Waste Champion, Ben Elliot. Alongside several leading High Street brands and supermarkets, Costa Coffee pledged to act and help raise public awareness in partnership with the Department for Environment, Food and Rural Affairs.

Commenting on the pledge, Victoria Moorhouse, Head of Sustainability for Costa Coffee, said:

“At Costa Coffee we are committed to playing our part in reducing waste wherever possible. We have a number of initiatives to ensure there is minimal food waste, which includes, first and foremost, an efficient ordering system designed to reduce waste before it is created. We also allow food sold during the last hour of trading that is in date but cannot be sold the following day to be discounted by 50% and empower our stores to make food donations to local charities via our Food Surplus Policy. Finally, for those stores whose waste streams we manage, any food waste that cannot be redistributed we send to Anaerobic Digestion, where it is turned into biogas and bio fertiliser.

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We are delighted to be working alongside government to drive change and share best practice, stepping up to the plate and delivering collective action.”

Environment Sectary Michael Gove said:

“Congratulations to Costa Coffee for stepping up to the plate and committing to game-changing action to cut food waste.

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“The UK is showing real leadership in this area, and together we will end the environmental and economic scandal that is food waste.”

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To read more about our Costa Food Surplus Store Donations Policy, here.

Source: Franchising

Costa promotes Neil Lake to UK managing director

June 10, 2019

Costa Coffee has promoted Neil Lake to the position of managing director UK and Ireland, which he will take up on 1 July.

Lake, who joined Costa in September 2018 as retailer and operations director, relocated from Australia where he most recently worked as a senior executive for Coles Supermarket. His career spans retail operations, store development, merchandise and general management.

He replaces Jason Cotta who has resigned to take up a chief executive role elsewhere. Cotta has worked for Costa for over eight years across both the UK and global business.

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Commenting on the announcement, Costa Coffee CEO Dominic Paul said: “I am delighted to have appointed Neil to the role of managing director, UK&I. Neil brings with him extensive strategic and operational experience at a global level, with a strong track record of driving sustainable results.

“Following our recent sale to The Coca Cola Company, this is an incredibly exciting time for Costa Coffee, especially within the UK&I, where we are focused on unlocking a new phase of growth and further enhancing our customer experience. Neil is perfectly positioned to lead the UK&I team, leveraging his depth of retail experience and passion for Costa’s customers and team members.”

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Lake added that he was honoured to be taking on the role and looked forward to working with the UK and Ireland team, including corporate and franchise partners.

“Costa Coffee is a growing global business and I am excited for the opportunity to work to simplify, invest and grow the UK&I market, focusing on our customer experience, teams, partners and channel innovation,” he added.

Costa Coffee now has more than 2,600 coffee shops in the UK and more than 1,300 in 32 overseas markets. There are also more than 8,000 Costa Express self-serve machines in the UK.

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It is the largest retail bakery business in the UK. British Baker subscribers can find out more about how the market is shaping up by downloading the latest Bakery Market Report here.

By Amy North

Source: Bakery Info

Popular coffee chain Costa to open in Cheriton, Folkestone

May 22, 2019

Costa is to take over a site formerly occupied by Lloyds Bank.

Construction is currently underway in the unit formerly on Cheriton High Street.

Planning documents submitted to Folkestone and Hythe District Council in 2018 sought permission to turn the old bank into a mixed class coffee shop, including the conversion of part of the rear ground floor to a two-bed flat.

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The application was submitted by the Goldex Investment Group Ltd, which is “the largest Costa Coffee franchise in the UK”, according to its website.

It currently trades 70 stores across Kent, Essex, Surrey and Sussex.

The company is also advertising for a barista, a store manager and an assistant store manager on Google.

Speculation about what might move into the empty shop appeared on social media.

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One user confirmed: “It’s definitely Costa.

“I peeked in the window yesterday and there are lots of Costa signs/boards.”

A spokesman for the Goldex Investment Group Ltd said todaythat it hopes to open the new store “sometime in June”.

Costa has another cafe in Folkestone, two miles away in Sandgate Road.

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By Sam Williams

Source: Kent Online

Largest UK Costa franchisee offloads 25% of its estate

November 2, 2018

The UK’s largest franchised Costa Coffee store operator has offloaded 14 of its 60 stores to AM Coffee Holdings in a “multimillion pound” transaction.

Goldex Investments, which owned the stores through its subsidiary Goldex (Surrey), said all the branches were in shopping centres and high streets in the Surrey area.

Goldex, which also operates the Kaspas desserts brand, is owned by Diljit and Satnam Brar, who were early adopters of the Costa brand, starting around 12 years ago.

The first of the Surrey stores was opened in March 2006 on Orpington High Street and has grown year-on-year since. Today the business employs 120 staff who will remain with the company.

AM Coffee Holdings Ltd is owned by Ajaz Mirza and Ahsan Munir, who until recently were best known for operating Domino’s franchises in the London area.

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Business advisory firm, Smith Cooper Corporate Finance, assisted the transaction, led by John Farnsworth and David Crump, who have specialist experience in the franchise and food and beverage sectors.

Roger Welsh, head of partnerships, said: “We are delighted to see this recent transaction completed for all parties, and welcome Ahsan and Ajaz to the Costa Partnerships team. Costa has worked with Smith Cooper over the past few years on several Partner sale transactions.”

Costa is currently in the process of being sold by owner Whitbread to Coca-Cola in a deal worth £3.9 billion.

Source: FoodFoodservice Equipment Journal

City cheers windfall from Whitbread’s £3.9 billion Costa sale to Coca-Cola

August 31, 2018

Whitbread shares rocketed on Friday as investors lined up for a windfall from the shock £3.9 billion sale of coffee chain Costa to US drinks giant Coca-Cola.

The UK consumer giant, which also owns hotel chain Premier Inn, stunned the City by offloading Costa to Coke. Shares surged 16% today to the highest level in three years with Costa’s price tag £1 billion more than expected.

Whitbread will hand back most of the money to investors, with analysts expecting between £2.5 billion and  £3 billion to be returned.

The rest will pay down the pension scheme deficit and cut debt.

Whitbread chief executive Alison Brittain said: “It’s an all round fantastic deal for all stakeholders.”

The FTSE 100 giant unveiled plans to spin-off the chain in April after coming under pressure from activist shareholders Elliott and Sachem Head.

Costa had originally been valued at £2.9 billion and was due to be demerged into a standalone group by the middle of 2020.

Related: Largest UK Costa franchisee offloads 25% of its estate

Costa is unlikely to attract another bidder after Whitbread ruled out selling the firm to private equity groups.

“We have been very clear we were not interested in a sale other than to someone who had a strategic rationale and therefore would be able to create signficantly more value than Costa on its own,” said Brittain, who added Elliott had no role in the sale.

For New York-listed Coca-Cola the takeover gives the company an instant number two position behind Starbucks in the lucrative global coffee market.

It plans to further build out the Costa franchise, which has a presence in 30 countries globally, in places like China. Brittain said Coke had run the rule over Costa before the demerger plans were announced after Whitbread took sole control of a franchise in China. “When we bought out China last year that made them sit up and take notice,” she said.

Rothschild advised Coca-Cola while Goldman Sachs’ Anthony Gutman led the advice for Whitbread.

The price tag is around 16.4 times Costa’s earnings for 2018, higher than the 14.4 times value rival Starbucks trades at. “They’ve done very well (on the price). Clearly Coke’s a strategic buyer and will have grand plans for it,” said one top 20 shareholder.

Source: Standard