Overview
Costa Coffee is a British-founded coffee chain whose business extends beyond conventional high-street cafés. Its branded coffee reaches customers through company-operated and franchised stores, Costa Express self-service machines and packaged products. The Coca-Cola Company acquired Costa from Whitbread in January 2019, bringing the business into a global drinks group with extensive distribution capabilities.
For franchise research, the distinction between these channels is essential. Operating a staffed Costa café is not the same proposition as hosting a Costa Express machine or selling Costa-branded drinks. Each involves different premises, staffing and commercial arrangements. The availability of café franchises also varies by territory, rather than following one universally accessible application process.
History and growth
Brothers Sergio and Bruno Costa founded the business in London in 1971, initially roasting coffee for wholesale customers. Costa's first coffee shop opened on Vauxhall Bridge Road in 1981. Its development from roaster to café operator established a business built around espresso-based drinks, later supported by food sales and a wider range of beverages.
Whitbread bought Costa in 1995 and oversaw substantial expansion in Britain and overseas. The acquisition of Coffee Nation in 2011 supported the development of Costa Express, extending the brand into locations where a full café was unnecessary or impractical. Coca-Cola subsequently agreed to buy Costa in 2018, completing the transaction in 2019. Those ownership changes explain Costa's evolution from a hospitality-led chain into a multi-channel coffee business.
Global footprint
The United Kingdom remains Costa's home market, with stores serving high streets, shopping centres, retail parks, transport locations and drive-through customers. International development has combined directly operated businesses with franchise partnerships. The balance between those arrangements differs by market, reflecting local property conditions, consumer demand and the capabilities of operating partners.
As a historical benchmark, Whitbread reported around 3,800 Costa stores across approximately 30 countries in 2018. These figures describe the business before Coca-Cola ownership and should not be read as a current estate count. Costa Express adds a separate network of self-service points, which must not be counted as equivalent to staffed cafés. Prospective operators should request current, territory-specific information rather than relying on a headline global total.
How the franchise model works
Costa uses franchise partners alongside its own operating businesses. Depending on the market, a partner may run stores within an existing territory or hold broader development responsibilities. International agreements can involve substantial local businesses rather than individual applicants seeking a single café. An established presence in a country does not necessarily mean that new franchise rights are available there.
A café franchise typically requires the operator to deliver Costa's product, service and presentation standards while managing day-to-day operations. The precise division of responsibilities for premises, equipment, training, purchasing and marketing depends on the agreement. Costa Express is a distinct commercial route involving automated coffee provision within a host location. It should not be treated as a lower-cost version of an otherwise identical café franchise.
Investment and requirements
Costa does not publicly disclose a single franchise fee or investment range applicable across its markets. Prospective franchisees should request the relevant franchise disclosure documents and current commercial information directly from Costa or its authorised territorial partner. Online estimates may concern a different country, an older offer or a format that is not comparable with the proposed business.
The investment needed for a café depends on its size, condition and location, as well as the required fit-out, equipment and opening programme. A drive-through development presents different property and construction requirements from a unit inside an existing building. Applicants should establish the expected financial resources, operating experience and development commitments. Any proposed budget also needs to account for staffing, stock and working capital, not simply the cost of fitting out the premises.
What franchisees should consider
Location economics are central to a coffee business. Commuter traffic, office attendance, residential demand and nearby competitors can produce very different sales patterns. A busy-looking site is not necessarily attractive once rent, labour, opening hours and delivery costs are considered. Food and seasonal drinks may broaden demand, but they also introduce stock-management, preparation and waste considerations.
The agreement deserves equally close scrutiny. Relevant questions include territorial protection, renewal conditions, refurbishment obligations, purchasing requirements and the treatment of delivery orders and loyalty promotions. Operators should understand how discounts and digital programmes affect their own receipts and costs. They should also clarify whether other Costa channels, including nearby Express machines or company-operated shops, can serve the same catchment. Brand recognition alone does not establish the commercial prospects of an individual location.
Competitive landscape
Costa competes with specialist coffee chains, bakery-led businesses, quick-service restaurants and independent cafés. Starbucks and Caffè Nero are close comparisons for branded coffee-shop occasions. Pret A Manger competes across coffee, breakfast and lunch, while Greggs and McCafé provide alternatives for customers combining convenience with an emphasis on price. The most relevant competitors vary by site and country.
Competition concerns more than the quality of espresso. Speed, accessibility, seating, food choice, loyalty benefits and digital ordering all influence customer decisions. Drive-through stores compete for road traffic, while transport and workplace locations depend on their particular customer flows. International partners also face local chains and independent operators whose menus, pricing and familiarity with domestic tastes may be difficult to replicate.
Outlook
Costa's position within Coca-Cola supports a strategy spanning cafés, self-service coffee and packaged beverages. That breadth creates several ways to reach customers, but expansion in one channel should not be confused with increased availability of conventional café franchises. A market may offer Costa products widely while providing few opportunities for a new store operator.
For prospective franchisees, the practical starting point is confirmation of the available territory, permitted format and responsible contracting entity. The longer-term operating challenge is to maintain consistent service while managing property, staffing and ingredient costs in a crowded market. Costa offers an established brand and operating system; assessing a particular opportunity still requires current disclosure material, a clear understanding of contractual obligations and evidence about the proposed location.
Costa Coffee franchise: frequently asked questions
How much does a Costa Coffee franchise cost?
Costa does not publicly disclose a single franchise fee or investment range covering all markets. Costs depend on the territory, premises and operating format. Prospective franchisees should request the relevant franchise disclosure documents and current commercial terms from Costa or its authorised partner, including information on fit-out, equipment, ongoing charges and working capital.
Can an individual open a Costa Coffee franchise?
That depends on the territory and the opportunities currently available. Costa works with franchise partners, but some markets involve established operators with broader development responsibilities rather than an open single-store programme. An applicant should confirm whether applications are being accepted, which formats are offered and what financial and operating experience is required.
How many Costa Coffee locations are there?
A historical benchmark is around 3,800 stores across approximately 30 countries in 2018, before Coca-Cola completed its acquisition. This is not a current estate count. Costa Express self-service machines form a separate network and should not be treated as staffed cafés. Current figures should be requested directly from the business.
Who owns Costa Coffee?
The Coca-Cola Company owns Costa Coffee, having completed its acquisition from Whitbread in January 2019. Costa was founded in London by Sergio and Bruno Costa in 1971. Ownership of the brand does not mean that Coca-Cola directly operates every café: Costa's estate includes stores run by franchise partners.
Is Costa Express the same as a Costa Coffee franchise?
No. Costa Express supplies coffee through self-service machines in host locations, while a conventional Costa café involves a staffed store with a broader operating remit. The commercial arrangements, space requirements and staffing implications differ. A prospective partner should establish which proposition is being offered and obtain the terms specific to that format.
Latest Costa Coffee news
Our news engine monitors Costa Coffee announcements. New reports will appear here as they are published.
Figures are approximate and based on publicly reported information as of 2018; historical pre-acquisition store footprint, not a current estate count. Franchise costs and terms change; prospective franchisees should obtain the brand’s current disclosure documents and take independent legal and financial advice. Profile updated October 2026.