Growing globally

Nye Longman
- Leadership - Dec 07, 2015

Costa (part of the larger Whitbread group) has accrued a number of enviable accolades over the years and can boast equally impressive growth figures to boot. The coffee shop chain recently posted a massive 28.4 percent growth in underlying operating profits, from £52.4 million to £67.3 million. It has set itself the target of achieving £2.5 billion system sales by 2020; we examine how the company will expand globally and deliver a number of strategic initiatives.

Operations

Costa’s position as the UK’s favourite coffee shop is supported by a large network of outlets, backed up by a rigorously well-organised supply chain. In the past 12 months, it has continued to grow its UK store portfolio taking the total to 1,999 coffee shops and has a further 1,168 spread across the 30 countries; its vending machines (known as ‘Costa Express’) have grown by 416 new units, taking the total to over 4,700 globally with the company hoping to roll-out another 7-800 machines in the next year.

To get an idea of just how strong its position in the UK market is, you only need look at the number of people using its ‘Coffee Club Card’ which now make up 42 percent of all transactions across its stores – now that’s loyalty! What is more impressive is the fact that as many as 2.7 million people hold one of these cards – just under one in 20 people in the entire UK.

 A major part of Costa’s future growth will come from its international operations. Backing up these extensive, high-value operations is a combined operational and supply chain strategy. The supply chain component is headed up by Jan Jakubowski (Head Of International Supply Chain) and his centrally located team.

Read the full interview with Jan Jakubowski in the latest issue of Business Review Europe.

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