The Hindu Business Line : Costa Coffee on expansion mode; to enhance presence

The company would also be beefing up its marketing operations and kick-start campaigns to increase its popularity once it has achieved a certain scale of operations.

New Delhi , May 5

UK's Costa Coffee is on an expansion mode. The company has plans to increase its presence in the country from the current 13 to 300 outlets in the next three to four years.

"We expect to be in all the major cities and metros in the next couple of years," the Chief Executive of Whitbread Plc, Mr Alan Parker said here.

Costa, which is owned by the UK's Whitbread group, is expanding in the country through its master franchisee, Devyani International Ltd, a drink and food group, which is also the franchisee for fast food restaurants such as Pizza Hut and KFC.

The company is looking to expand at a rapid pace in and around the Capital and later target the markets of Mumbai and Pune.

"We hope to add another 40 to 50 outlets by the next year," CEO of Devyani International Ltd, Mr Virag Joshi, said. He added that the company would also be beefing up its marketing operations and kick-start campaigns to increase its popularity once it has achieved a certain scale of operations.

The company is also looking to indigenise its offering to the consumer. "We are also looking to introduce certain menu items specially tailored to suit the Indian market," Mr Joshi said, adding they might also introduce a luncheon meal priced at around Rs 100-150 apart from its current offerings of sandwiches and European paninis. The coffee chain has been present in the Indian market for nearly a year now.

According to Mr Joshi the company has been on a learning curve and has incorporated several of its learnings into its new outlets. "We are now looking to open larger format outlets. These would be located in atriums and locations that have higher footfalls."

According to market research reports, the Indian fast food segment is poised to grow at a rate of around 40 per cent per annum, with a higher growth rate predicted for coffee consumption and retailing.

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