Costa Coffee Costa Coffee was formed by the Costa Brothers, Sergio and Bruno in 1971 in London as a wholesale operation supplying roasted coffee to caterers and coffee shops. In 1978, the Costa Brothers opened the first store in London and growth expanded rapidly. BACK GROUND: The role of coffee in Latin America ( http://dev. ico. org/event_pdfs/paiva. pdf) PESTLE Political Economic Social Costa Coffee has announced a ban on smoking in its 370 UK outlets. The aim was to protect customers and employees from the effects of passive smoking, the company said.
Costa Coffee had already banned smoking in 90 per cent of its coffee shops. Mark Phillips, the managing director, said: ‘This is a significant step as there is a traditional image of coffee breaks going hand-in-hand with a cigarette. ‘ http://search. proquest. com. ezproxy. liv. ac. uk/docview/310820713/13557920CE868B25A5A/16? accountid=12117 Technological Ecological 1. Costa Coffee is the first UK coffee chain to announce it is switching supplies to sustainably grown beans from certified coffee suppliers.
The company will introduce the policy this year and hopes to source at least 30 per cent of its coffee sustainably.
For more information visit Rainforest Alliance or an article in the Telegraph. (http://www. coolearth. org/306/whats-new-32/news-155/costa-coffee-goes-green-374. html Legal) 2. HIGH street operator Costa Coffee is to convert its entire supply of coffee to environmentally friendly beans in the latest move by a UK food and drink retailer to enhance its green credentials. Costa will switch its coffee supply across its 1,000 stores worldwide to sustainably grown beans from Rainforest Alliance-certified coffee suppliers by 2010.
The move follows McDonald’s decision last month to switch from selling Tetley tea in favour of an environmentally friendly product from PG Tips. The fast food operator changed its supply of coffee to Rainforest Alliance products in January last year, since when sales have risen by 22pc. Costa, which is owned by Whitbread and is the UK’s biggest coffee shop chain, will begin the switch this year. The company wants to source 30pc of its beans – or about 1,000 tonnes a year – from Rainforest Alliance-certified suppliers by September.
The Rainforest Alliance is a non-governmental organisation promoting sustainability by transforming consumer behaviour, land use and business practices. The ethical goods market in the UK is small but growing fast. Last year, companies sold pounds 4. 8bn of ethical food and drink, up by 17pc on 2006. (Copyright 2008 Telegraph Group Limited) (http://search. proquest. com. ezproxy. liv. ac. uk/docview/321585961/135579041B142809504/14? accountid=12117) External environment ( five forces)
New Entrants Suppliers Buyers Substitutes: the coffee substitutions (http://www. hai-tea. org/coffee-substitute. html) Competitors: Market share by company * AMT Coffee * BB’s Coffee & Muffins * Caffè Nero * Caffè Ritazza * Coffee Replublic * Costa Coffee * Puccino’s/Segafredo Espresso Starbucks Coffee (mintel 2010) Internal environment ( SWOT ) Threat: Weakness Costa Coffee, one of Britain’s biggest coffee brands with more than 400 outlets, was refused planning permission for a shop in Loughton, Essex. The decision, seen as a potential landmark, is a rare reverse for an industry that has seen explosive growth over the past decade.
Buckhurst Hill councillor Ann Haigh told the area planning committee: “Since Starbucks arrived we seem to have had an upsurge in coffee shops and I’m sympathetic to existing traders who feel we have enough of this type of premises in Loughton High Road. ” The council dismissed Costa’s argument, with [Loughton] councillor Tony Lee saying: “Coffee does draw people in but a mass of coffee houses will result in thin numbers of customers for each one. ” (http://search. proquest. com. ezproxy. liv. ac. uk/docview/329956691/1355205B74253B141B7/4? accountid=12117)
Opportunity Costa Coffee recently confirmed that they would open the first of their planned Metropolitan Stores, in London, England, United Kingdom (UK) next week. The firm is looking to lure city workers into their coffee shops with the design of their latest outlets. The Costa Coffee Metropolitan stores will primarily focus on the speed of service for those city workers in a hurry and will even have express till areas. Costa Coffee have further said that their shop interiors will use simplistic materials such as glass, stone and timber and will also have feature walls of exposed brick work.
Through the use of quirky lighting and eye catching wall art, the stores will rival the “retro” design that many Starbucks coffee stores have. Costa Coffee also said that they were opening their new look coffee stores in response to consumer research, which found that those in the city wanted high speed service when in hurry but a more relaxed atmosphere with zoned seating areas for when they were not in a rush.
The first store is opening on Great Portland Street and it is likely there will be more metropolitan coffee stores opening in other cities across England such as Liverpool, Manchester and Birmingham. http://www. eafca. org/coffee%20news/newsdetail. asp? newsid=1191) Strength: Leisure giant Whitbread yesterday revealed it is to expand its Costa Coffee chain into China. The first Costa store is scheduled to open in Shanghai early next year and Whitbread aims to have 300 stores throughout China over the next few years. Whitbread said coffee would be supplied from Costa’s Roastery in central London and the stores would serve the traditional menu. (INTERNATIONAL EXPANSION) http://search. proquest. com. ezproxy. liv. ac. uk/docview/341557444/13552CF2C44704E6930/9? accountid=12117
Cite this Essay – History of Costa Coffe
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