Costa Coffee

What Costa Coffee does

Costa Coffee is a British multinational coffeehouse chain founded in 1971, operating 2,707 stores in the UK and a presence in 40+ countries via company-operated sites and master-franchise partners. It holds approximately 26% of the UK branded coffee market and has been named the UK's Nation's Favourite Coffee Shop for 16 consecutive years, anchored by a 400+ drive-thru estate that makes it the country's largest drive-thru coffee operator. The brand is owned by The Coca-Cola Company following a 2019 acquisition valued at ~$5.1B, and Coca-Cola ran a 2024 divestiture process that did not produce a bid meeting the ~£2bn asking price.

The company's core product is hot and iced coffee built around the proprietary Mocha Italia signature blend, supported by a B2B Costa Express self-serve machine platform and, more recently, a US-focused Smart Café B2B coffee solution. Its UK retail business generated £1.23bn in 2024 revenue with a widened operating loss of £13.5m (vs. £5.8m loss in 2023), while international markets are run through localized franchise partners — Devyani International in India (220+ stores, ~₹198 crore FY25 revenue, ~30.76% growth) and Emirates Leisure Retail in the UAE (160 stores, franchise extended to 2040). The Costa Club loyalty program and ~16,000 team members complete the operating stack.

Costa's business model combines UK company-operated retail, international master-franchise royalties, B2B machine placements (Costa Express and Smart Café), and grocery/supermarket partnerships including an expanding Sainsbury's in-store footprint (14 additional shops planned for 2026). The brand sits in a saturated UK coffee market with intensifying competition, while international franchising and channel diversification represent the principal growth mechanics.

Name

Costa Coffee

Legal name

Costa Coffee

Website

https://costa.co.uk

Company type

Private

Founded year

1971

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

Costa Coffee is a British multinational coffeehouse chain founded in 1971 and owned by The Coca-Cola Company, operating 2,700+ UK stores and a presence in 40+ countries with a 26% UK market share. It serves retail consumers, B2B partners, and loyalty members via stores, drive-thrus, and Costa Express machines.

Ownership category

akta.pro rank

Product category

Coffeehouse Chain

NAICS

Snack and Nonalcoholic Beverage Bars (722515), Food Services and Drinking Places (722), Coffee and Tea Manufacturing (311920)

SIC

Retail-Eating & Drinking Places (5810), Retail-Eating Places (5812)

akta.pro primary industry

Coffee Chains & Franchise Cafes (THAFADAB)

akta.pro secondary industries

Drive-Thru Coffee Stands & Coffee Kiosks (THAFADAK), Cafe-Bakeries (Coffee + Pastry Focus) (THAFADAG), Beverage (Non-Alcoholic) Foodservice Distribution (CRAOABAJ), Coffee, Espresso & Tea Appliances Retail (CRACADAC)

Keywords

• Specialty coffee retail
• Coffeehouse chain operations
• Drive-thru coffee
• Coffee loyalty program
• B2B coffee solutions

Headquarters

HQ city

Dunstable

HQ country

United Kingdom

HQ region

Europe

Offices14 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Supply Chain, Operations, Marketing or Sales, Technology or R&D, Infrastructure

Revenue model

1. Physical Coffee Shop Sales: Traditional retail coffee shop sales through company-owned and franchise locations including drive-thru, airport, and high street stores. UK revenue reported at £1.23bn in 2024 with operating loss of £13.5m.
2. Costa Express Machine Revenue: Revenue from automated coffee machine placements in third-party locations including airports, hotels, petrol stations, and convenience stores. Currently deploying Smart Café units in US and UK markets.
3. B2B Coffee Solutions: Coffee supply and service agreements for offices, hotels, and corporate environments, positioning Costa as a B2B coffee provider rather than just retail locations.
4. Franchise and Licensing Fees: Revenue from master franchise arrangements in international markets including UAE (through Emirates Leisure Retail) and India (through Devyani International). Franchise partners operate stores and pay licensing fees.

Pricing tiers

Go-to-market motion4 records

Distribution channels9 records

Marketing channels7 records

Core offering

Costa Coffee operates a multi-format coffeehouse chain selling handcrafted espresso-based beverages, cold drinks and food items through company-owned and franchised retail stores, drive-thru locations, airport terminals, supermarket in-store cafés, Costa Express automated machines, and the Costa Coffee Professional B2B channel. The company also operates the Costa Club digital loyalty program and a mobile app for Click & Collect, mobile ordering and delivery, with international expansion driven by master franchise partnerships in markets such as India and the UAE.

Product overview

Costa Coffee operates as a multi-format coffeehouse chain under The Coca-Cola Company, offering handcrafted beverages, food items, and ready-to-drink products through traditional stores, drive-thru locations, airport terminals, and self-service Costa Express machines. The core customer-facing products include the Costa Club loyalty program with a companion mobile app for ordering, payment, and reward tracking, supported by delivery partnerships with Uber Eats, Deliveroo, and Just Eat. The business also serves corporate clients through Costa Coffee Professional B2B solutions and reaches at-home consumers via ready-to-drink products.

Differentiator

Problem solved

Functional benefit

Brands

• Costa Club: Loyalty program offering beans for purchases, free drinks, birthday rewards, and exclusive offers
• Costa Express
• Costa at Home

Products and services

• Handcrafted Coffee Beverages Range of espresso-based hot and cold beverages made with Costa's signature Mocha Italia blend, including Signature Latte, Flat White, Americano, Cappuccino, Mocha, Espresso, Cortado, Spanish Latte, Chai Latte, and seasonal specialty drinks. Sold to individual consumers across all store formats and via delivery.
• Food Menu Food items sold alongside beverages, including breakfast baps (pork sausage, smoked bacon, egg & mushroom), toasties (ham & cheese, vegan ham & cheeze, beanz & cheese), scones, snacks, and pastries. Consumed in-store or via delivery for individual consumers.
• Costa Club Loyalty Program Digital loyalty program where members earn 1 bean per handcrafted drink, redeem 10 beans for a free drink, and access birthday rewards, free cake, Swaps customizations (2 beans for syrup, cream, extra shot, or dairy alternative), and exclusive app-only offers. Available to individual consumers via mobile app.
• Costa Coffee Mobile App Mobile application enabling Costa Club loyalty tracking, Click & Collect ordering, mobile ordering, payment, and access to exclusive app-only rewards and offers. Targets individual consumers across the UK.
• Costa Delivery Home delivery service for handcrafted drinks and food ordered through third-party delivery platforms Uber Eats, Deliveroo, and Just Eat, with ordering facilitated through the Costa Club app. Targets individual consumers across the UK.
• Costa Express Self-service Smart Café automated coffee machine format deployed in convenience stores, petrol stations, airports, hotels, college campuses, hospitals and offices, providing barista-quality espresso drinks without traditional café staff. Targets both B2B venue operators and on-the-go consumers.
• Costa Coffee at Home (Ready-to-Drink) Ready-to-drink coffee products sold at retail for at-home consumption, including limited-edition co-branded RTDs such as the McVitie's Jaffa Cakes Chocolate Orange Frappe. Targets individual retail consumers.
• Costa Coffee Professional (B2B) Costa's business-to-business coffee solutions offering Smart Café automated coffee machines, pod-based machines, coffee supplies, and service support for offices, hotels, and other commercial establishments. Targets enterprise B2B customers seeking quality barista-style coffee without operating full cafés.

Quantifiable outcome

• Costa Coffee maintains 26% UK market share as Britain's biggest coffee chain
• +1 more outcomes

Named customers7 records

Segments5 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Six partnerships are on record, tiered core and minor.

• Sainsbury'scoreStrategic or Co-development Partner · 11 May 2026Costa Coffee and Sainsbury's expanding partnership to open 14 more Costa cafés inside Sainsbury's stores across the UK in 2026, following opening of the 50th in-store café. Investment of nearly £16 million creating over 400 jobs.
• Premcor EstatesminorStrategic or Co-development Partner · 25 March 2026Premcor Estates (developer) signed Costa Coffee as occupier for new 45-acre roadside development at Rossington site near Doncaster. Costa will operate a drive-thru restaurant outlet as part of Mode 18 scheme.
• Soudal Quick-Step Pro Cycling TeamminorGTM or Marketing Partner · 23 March 2026Costa Coffee partnership to supply pod-based coffee machines across the cycling teams' fleet, providing barista-quality coffee for riders and staff throughout the racing season. Riders gain access to coffee from race start to finish.
• Buc-ee'sminorChannel Partner/ Reseller/ Distributor · 14 March 2026Costa Coffee installing automated coffee machines at Buc-ee's Texas mega gas stations across the US, bringing barista-quality espresso drinks to nearly 70 existing locations across 11 states. This expands Costa's US footprint without traditional café locations.
• ENOC (Emirates National Oil Company Group)coreChannel Partner/ Reseller/ Distributor · 19 January 2026ENOC partnership through ELR to expand Costa Coffee across ENOC's Zoom convenience-store network in UAE, competing directly with Starbucks in the UAE convenience retail segment.
• ColliersminorImplementation/ SI/ Consulting Partner · 2 October 2025Costa Coffee appointed Colliers as its estates management partner for more than 1,600 UK sites under a five-year agreement. Colliers will support property management, lease administration, and data analytics.

Scale indicators17 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• Pret a Manger: UK-based café/sandwich chain competing with Costa for breakfast and lunch occasions in city centres and transport hubs. Comparable on format, daypart mix, and UK high-street real estate.
• Tim Hortons: Drive-thru-led coffee and food chain, the North American archetype of the format Costa is rapidly scaling in the UK. Highly comparable on drive-thru unit economics and brand-driven coffee leadership.
• Caffè Nero: UK-founded coffee chain with a comparable store count and café format, competing head-to-head with Costa on UK high streets and premium positioning. Closest direct UK peer by operating model and target consumer.
• Starbucks: Global coffeehouse chain and Costa's most direct worldwide competitor, operating company-owned and licensed cafés with a comparable loyalty programme and beverage-led model. Directly comparable on product, customer base, and multi-format strategy.

Emerging players

• Blue Bottle Coffee: Specialty/third-wave coffee operator with strong digital ordering and subscription model; relevant benchmark for Costa's premium-beverage positioning, app-driven loyalty, and Click & Collect digital infrastructure.
• Dutch Bros Coffee: US-based, drive-thru-focused coffee chain that has demonstrated the equity value of a pure-play drive-thru coffee model — directly relevant to Costa's 400+ UK drive-thru base and 2026 expansion plans.
• Greggs: UK food-on-the-go retailer that has overtaken Costa on store count and now holds 22% of the branded coffee market; comparable as a low-price UK high-street and roadside food-and-coffee competitor attacking Costa's premium positioning.

Broad incumbents

• McDonald's (McCafé): Global QSR incumbent whose McCafé line directly competes with Costa on coffee quality perception and price points. Comparable as a broad incumbent extending into premium coffee via established drive-thru footprint.
• Lavazza: Italian coffee brand with B2B/professional and foodservice coffee operations that overlap with Costa Coffee Professional and Costa Express; comparable on coffee supply, B2B machine deployment, and ready-to-drink retail.

Regional players

• Café Coffee Day: India's largest coffee chain and a direct competitor to Costa's India franchisee (Devyani International). Comparable on India café format, consumer demographic, and growth-stage unit economics.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks5 records

Key highlights6 records

Customer concentration

• Xx.com/costacoffee
• YouTubeyoutube.com/user/forcoffeelovers
• Facebookfacebook.com/pg/CostaCoffee
• Instagraminstagram.com/costacoffee
• TikToktiktok.com/@costacoffee
• LinkedInlinkedin.com/company/costa-coffee

Revenue estimate

Valuation estimate

Number of profiles

Profiles6 records

Subsidiaries3 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A2 records

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Costa Coffee