Who Owns Costa Coffee?

Costa Coffee was founded in 1971 by brothers Sergio and Bruno Costa. The brothers were born in Italy and moved to London in the 1960s. They began roasting coffee in a small facility in Lambeth, South London, supplying coffee to Italian restaurants and cafes. The Costa brothers developed a specific blend of Arabica and Robusta beans that became the foundation of the Costa Coffee brand.

The first Costa Coffee shop opened in Vauxhall Bridge Road, London, in 1978. Initially, the shops were small operations focused on selling roasted coffee beans and brewing coffee for customers. The concept of a dedicated coffee shop was relatively new in the UK at the time, as most British consumers drank tea or instant coffee at home.

In 1995, Whitbread PLC acquired Costa Coffee for 19 million pounds. Whitbread, a British hospitality company, saw potential in the growing coffee shop market and invested in expanding Costa's store network. Under Whitbread's ownership, Costa grew from approximately 40 stores to over 2,000 stores in the UK by 2018.

The 1990s and 2000s saw a coffee shop boom in the UK, driven by changing consumer habits and the popularization of espresso-based drinks. Costa competed with Starbucks, which entered the UK market in 1998, and Caffe Nero, founded in 1997. Costa's positioning as a "proper Italian coffee" brand differentiated it from the American Starbucks experience.

Costa expanded internationally through franchise partnerships. The brand entered India, China, the Middle East, and other markets through local franchise operators. In India, Devyani International Ltd operated Costa Coffee stores as exclusive franchise partner. Costa's global footprint grew to over 30 countries, though the UK remained by far its largest market.

In 2018, Whitbread announced it would spin off or sell Costa Coffee to focus on its hotel and restaurant businesses. Coca-Cola emerged as the buyer, acquiring Costa for 3.9 billion pounds in a deal completed in January 2019. The acquisition was Coca-Cola's largest brand acquisition in its history.

Under Coca-Cola ownership, Costa faced challenges. The COVID-19 pandemic in 2020 severely impacted coffee shop footfall, particularly in city centers and transport hubs where Costa had many locations. Costa adapted by expanding its Costa Express self-serve kiosk business and pushing into retail coffee products sold in supermarkets.

Costa's financial performance under Coca-Cola has been mixed. The brand posted an operating loss of 13.5 million pounds on revenues of 1.2 billion pounds in 2024, according to accounts filed at UK Companies House. The operating loss more than doubled compared to the prior year. Costa blamed weak high street footfall and competition from cheaper rivals.

In India, Costa's store count shrank from 220 in FY25 to 198 in FY26, marking the first annual decline in over five years. However, revenue grew 7% to Rs 212.5 crore, reflecting a shift from network-led growth to higher revenue per outlet. Costa's global CEO Philippe Schaillee said in April 2025 that India is among the top 20 markets for Costa and expected it to be among the top five in coming years.