Costa Coffee: UK’s largest branded coffee shop chain

Costa Coffee: UK’s largest branded coffee shop chain

Published: January 2013
Publisher: MarketLine
Product ref: 160887
Pages: 25
Format: PDF
Delivery: By product vendor

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The UK coffee shop market continues to expand rapidly. Costa Coffee is by far the largest branded chain in the market, and an important revenue stream for parent company Whitbread. This Case Study uses Porter’s Five Forces and Ansoff matrix analyses to examine the competitive pressures faced by Costa, and possible strategies for expansion.

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The UK branded coffee shop market has been growing strongly for many years.

Costa is the largest such chain in the UK by store count, ahead of Starbucks and Caffe Nero. Since 1999, the company has expanded into new geographical markets, but remained focused on coffee shops as its core competency rather than reaching into radically different product categories.

Lack of switching costs for consumers strengthens buyer power, threat of new entrants, and level of rivalry in the market.

Your key questions answered
  • Which company leads the UK branded coffee shop market?
  • How is competitiveness in the market affected by the ease with which customers can switch between coffee shop companies?
  • What strategies is Costa using to defend its revenues and profitablity?

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Related research categories

By sector: Coffee (in Hot drinks)

By market: United Kingdom (in Europe)

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