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.

Related: Costa Coffee Franchise

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.

Related: McDonald’s and Costa Coffee shortlisted for the British Franchise Association awards

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

McDonald’s and Costa Coffee shortlisted for the British Franchise Association awards

June 28, 2018

McDonald’s and Costa Coffee are among the finalists involved in the annual British Franchise Association (bfa) HSBC Awards.

The HSBC Franchise Awards acknowledge franchisees who show ‘outstanding business acumen, innovation and achievement’, with the finals being held today (28 June) in Birmingham.

Global fast food chain McDonald’s and coffee chain Costa are both in the running for the same title, Franchisor of the Year, as well as three other companies. McDonald’s has franchised in the UK and Ireland for over 30 years, recruiting 20 new franchisees from over 650 applicants within three years.

The bfa notes that McDonald’s has a strong engagement with each of its franchisees, organising meetings to pinpoint its priorities, while Costa Coffee has been successful in growth and innovation.

Costa opened its 1,000th franchise-owned store with one of its first franchisee partners and has introduced online tools, brand standards, store design innovation and more to assist its partners.

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Costa Coffee director of partnerships Jim Attwood said: “We are delighted to have been shortlisted for the bfa Franchisor of the Year Award, which recognises above all, the contribution all our franchise partners, who have helped to build one of the UK’s most successful consumer brands and franchise networks.”

McDonald’s has seen 48 quarters of growth in a row, with 85% of its new restaurants being franchised to its existing partners.

McDonald’s head of franchising and field services Abel Campos said: “We are honoured to be shortlisted for the bfa’s Franchisor of The Year Award. We take great pride in the close working relationships we have developed with our franchisees and are delighted to receive recognition for this approach.”

Shortlisted for the Brand Awareness category is Riverford Organic Farmers, an organic vegetable box scheme delivering 50,000 orders every week.

Andrew Brattesani, the UK head of franchising for award sponsor HSBC said: “Franchise businesses are often the hidden engine of business growth in the UK and it is essential to highlight the important contribution both large and small businesses make to our economy.

“It is also important to showcase to people that they can run their own businesses and if you don’t want to go it alone, or haven’t got a strong business idea of your own, you can still be successful and become your own boss.”

Source: Verdict Food Service