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Costa Coffee
Food & Beverage· UK· Est. 1971

Costa Coffee

Parent: The Coca-Cola Company

FRA GoldMedium TransparencyInstitutional GradeEmerging Growth
76
Overview

Costa Coffee is the UK's largest coffee chain and one of the leading global coffee brands, backed by Coca-Cola's global distribution capability. Its vertically integrated roastery model gives supply chain differentiation.

Key Metrics

4,000
Total Units
40%
Franchised
$2.0B
System Revenue
$700K
Avg Unit Volume
$250K
Min Investment
$600K
Max Investment
6%
Royalty Fee
15%
Avg ROI
Model Breakdown

Business Model

Franchise and licensed partner model across international markets. Coca-Cola acquired Costa in 2019 for £3.9B, signalling global beverage distribution ambitions.

Supply Chain Control

Very High

Franchisee Support

High

Expansion Strategy

Franchise partners, licensed concessions, company-operated stores

Logistics Model

Roastery-led supply chain — Costa Roastery in Lambeth supplies all stores

Investor & Ownership

The Coca-Cola Company (NYSE: KO)

FRA Compliance Scores
Legal Fairness
74/100
Financial Transparency
78/100
Support Systems
78/100
Franchisee Success Rate
70/100

FRA Insight

Strengths

Coca-Cola parent provides unrivalled financial strength, global distribution capability, brand trust.

Weaknesses

AUV below Starbucks. Integration into Coca-Cola's model remains a work-in-progress strategically.

Key Risks

Starbucks competition in all markets, consumer trade-down risk, Coca-Cola corporate prioritisation changes.

Data sources: Public filings, Estimates