# What makes Costa different?



## papsdan (Mar 21, 2014)

Hi everyone.

I was wondering if I could have some help. Any help would be appreciated! I am currently brainstorming about Costa Coffee and need to find different things that make Costa different to other coffee shops such as Starbucks or Cafe Nero. So far I have Costa Express self service machines and the Costa Coffee Club (loyalty points card). Any ideas?

Thanks.


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## Charliej (Feb 25, 2012)

Costa aren't really any different from the other chains, staff with no real interest in coffee, over roasted commodity grade beans, ridiculous company "standard guidelines" which mean there is no chance of getting a decent shot, unlike Starbuck they don't use bean to cup machines (which Costa Express are), they over heat the milk to the point at which it would melt flesh.

Whis is it you need to know these things , because if you are seeking a business model to copy and use yourself there are far better examples out there, IMHO following their business model would lead to rapid closure of your business, you need to aim at much higher standards to differentiate yourself and pull in customers.


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## Mrboots2u (May 10, 2013)

They would be different to other chains if they could make coffee I could drink.....


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## aaronb (Nov 16, 2012)

They're no different to starbucks or nero. Burnt, low quality coffee made badly.


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## Geordie Boy (Nov 26, 2012)

More franchises, hence available in lots of additional places without it being a dedicated branded 'shop' (e.g. Gym's, work canteens, etc)


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## m4lcs67 (Mar 16, 2014)

Out of all the chains they are certainly the best in my opinion. Don't get me started on Starbucks. They should be done under the trade descriptions act for calling it coffee.

Personally I frequent an independent coffee shop in my town. Fantastic coffee well made by a skilled barista. Just the ticket.


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## Eyedee (Sep 13, 2010)

Masses of hype and if you followed their latest slogan of "say goodbye to mediocre coffee" (ROFLMAO) you would never set foot in the place.

Ian


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## Drewster (Dec 1, 2013)

Charliej said:


> <stuff>
> 
> Whis is it you need to know these things , because if you are seeking a business model to copy and use yourself there are far better examples out there, *IMHO following their business model would lead to rapid closure of your business*, you need to aim at much higher standards to differentiate yourself and pull in customers.
> 
> </stuff>


Then again they have multi-million pound turnover, large profit and (I think) still expanding!! - Maybe their business model isn't that bad??

You might not like their coffee, you might object to their claims/marketing you may legitimately dislike the all pervading ubiquity of such organisations but to claim the business model is not successful is pretty silly!


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## oracleoftruth (Jan 15, 2014)

If you had a heap of money to set up a shop like costa years ago before they existed then that business model will Work. As charlie said, it won't Work now and you'd go bust. People use costa because it is familiar and marketed well and they fear change or being different. To differentiate yourself you'd have to make a product people are willing to overcome fear for and crap coffee isn't it.

The independents that do well are either in an area where costa or another of the big chains haven't yet arrived or they have a good product. The product may not be coffee but they are certainly not following costas model.


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## Charliej (Feb 25, 2012)

Drewster said:


> Then again they have multi-million pound turnover, large profit and (I think) still expanding!! - Maybe their business model isn't that bad??
> 
> You might not like their coffee, you might object to their claims/marketing you may legitimately dislike the all pervading ubiquity of such organisations but to claim the business model is not successful is pretty silly!


As Oracle has already said, to follow Costa's business model on a small scale is business suicide, everyone knows McDonalds and all the other major fast food brands but you don't see smaller successful alternatives following their methods, they all, including Costa, serve mediocre at best and utter crap at worst products; but they are predictably awful wherever you go, a McDonalds is as bad in Australia, Dubai, the USA, China as it is here, they offer approximations of local food in each country but a Big Mac is just the same the world over. One of the major issues with Costa is the employees, there are a few who are into making a good coffee, but they are few and far between, and the majority of employees don't really care they just go with the Company directives which are to optimise speed of service and turn tables rather than quality of product.

If you want to distinguish yourself in what is really a saturated market, then stand out by making a quality product with care and then you will attract a decent customer base rather than trying to play the chains at their own game, which you will never win due to their economies of scale.


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## Drewster (Dec 1, 2013)

I agree trying to take on Costbucks head to head is a pretty sure way to failure.... my point was that the massive "take over the world" business model is actually quite successful! (Not in %age terms obviously. Lots more people with the "next Costbucks/PlasticMac" idea fail and sink without trace than those that become the next CB/PM)

I also agree that the TOTW model is never going to produce a good product... The most expensive part of the whole PlasticMac Meal is the lettuce which is about 2p which tells you it's not based on high quality ingredients - just huge mark-up.

Personally if I was looking out to start a business to make large profits I would avoid anything that I had much of a passion for.... because the profit motive will always conflict with the passion!!

Plus when you the profit becomes important - it can/will ruin your passion.

I run a business that is "successful" in that it pays the bills and feeds the kids etc. I even quite enjoy quite a lot of the stuff I do.... but the non-work stuff I care about and really enjoy I do because I care about and really enjoy.....


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## Mrboots2u (May 10, 2013)

If answer to the original posters question ( which I think may have be asked for some cheap market key research to be honest ),what makes costa different .

Nothing , it's the same as all the others


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## papsdan (Mar 21, 2014)

Basically, I am not trying to launch my own coffee shop and use the Costa business model. I just am researching the reasons why people choose one coffee shop over another (in this case Costa). I have found that all of them are similar in that they have loyalty cards, and now starbucks have self service machines as well as Costa. So are there any current differences people have, for instance the atmosphere, seating, lighting, computers, customer service etc.


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## Neill (Jun 26, 2013)

papsdan said:


> Basically, I am not trying to launch my own coffee shop and use the Costa business model. I just am researching the reasons why people choose one coffee shop over another (in this case Costa). I have found that all of them are similar in that they have loyalty cards, and now starbucks have self service machines as well as Costa. So are there any current differences people have, for instance the atmosphere, seating, lighting, computers, customer service etc.


It's all about the coffee on here so you'll find most member do not visit any of the above establishments as they're coffee just isn't made well.


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## Glenn (Jun 14, 2008)

You're probably better off asking customers who frequent these cafes as they exit the store.

The answers you get here are not likely to be of assistance to you.


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## glevum (Apr 4, 2013)

Might be worth a visit to Gloucester to ask their folk, Costa just been given the go ahead for its 11th shop. every direction you look there's a Costa. If you like pound stores and a drop of Costa, Gloucester is the place to be


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## truegrace (Jan 29, 2014)

Im from the Gloucester area and it is a bit ridiculous, especially as the coffee is so bad! If i absolutely have to get something from costa (which thankfully as i drive past rave everyday is once in a blue moon) i would rather visit a garage automated bean to cup costa as it makes a better cup! (barely)


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## DavecUK (Aug 6, 2013)

I think the answer to what makes Costa Different is that they spell it differently to Starbucks. In truth I don't generally drink any coffee outside the house any more. I did try a Starbucks at a motorway services on the way to Norfolk, was told it was good. I had a Filter coffee, it was tasteless, just tasted of burnt stuff and horrible. I complained, they said we will make you another for free from our espresso machine. The "Barista" carefully ground the totally black beans, extracted them in 10 seconds and before I knew it I had another coffee in my hands....I took a sip, winced and left it on the table.

The sad thing was the large queue of people coming to have some burnt stuff mixed with toffee whipped cream and sugar that they called coffee and the others who weren't queuing up because they don't think they like coffee. I actually think these establishments are an insult to the product they serve to their customers, I won't call it coffee, because it ceased being coffee after it was roasted to their requirements.


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## CamV6 (Feb 7, 2012)

One thing Costa has over starbucks (at least) is that they don't use bean to cup machines and still rely on the Barista


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## truegrace (Jan 29, 2014)

CamV6 said:


> One thing Costa has over starbucks (at least) is that they don't use bean to cup machines and still rely on the Barista


Thats only a good thing if the staff actually care about what is going in the cup, in my experience you are better off with the bean to cup!


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## emin-j (Dec 10, 2011)

truegrace said:


> Thats only a good thing if the staff actually care about what is going in the cup, in my experience you are better off with the bean to cup!


Or a jar of Nescafe


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## wmoore (Dec 19, 2012)

papsdan said:


> Basically, I am not trying to launch my own coffee shop and use the Costa business model. I just am researching the reasons why people choose one coffee shop over another (in this case Costa). I have found that all of them are similar in that they have loyalty cards, and now starbucks have self service machines as well as Costa. So are there any current differences people have, for instance the atmosphere, seating, lighting, computers, customer service etc.


Costa is of course owned by Whitbread the largest UK hospitality company. So money is no problem to them and they are able to open up in prime retail spots, which independents couldn't afford.

There are some places like where I work (a Hospital) which only has a Costa coffee shop. So there is no choice.

It also comes down to sheep mentality and it's easier to do this when your city has over 11 Costa's, yes I live in Gloucester. As far as chains go, I would choose Coffee#1 over Costa.


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## Dylan (Dec 5, 2011)

I think people are mostly missing the point here. Granted Costa doesn't make coffee most of us here would consider good, however they are by far and away the most successful UK coffee company. Perhaps the question would be better asked to a business forum, as asking us here we only think about the quality of the coffee.

Costa is a great example of the power of brands, with huge investment they have expanded at a dizzying rate, the more we see brands the more we trust them. Most of us will avoid taking a chance on a new product when we see one that we trust, I often do coffee runs at work and people never take kindly to me wanting to go to an independent, and even when I do I will then get people tell me they don't like the coffee, the brand is powerful enough to make people THINK they are enjoying the drink. Most people are sheep, if so many others enjoy it they dont want to think about challenging the status quo.

In the end the coffee is irrelevant, so long as it hits a very basic standard of being drinkable the brand is the more powerful buying signal. You will find this anywhere in the industry, in any food or drink you care to imagine, you can find better, likely cheaper examples that dont have the brand power.

None of this is completely exclusive to Costa then, they have simply done it better than the other coffee brands in the UK, and ultimately what it comes down to is investment. If any of the other brands could have expanded at the rate Costa did, and were as visible in every day life as Costa I imagine they would be doing just as well.


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## oracleoftruth (Jan 15, 2014)

That's true but the point is that an independent cannot mimic that as it takes huge marketing budgets and an interest in only the bottom line.


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## Dylan (Dec 5, 2011)

oracleoftruth said:


> That's true but the point is that an independent cannot mimic that as it takes huge marketing budgets and an interest in only the bottom line.


Of course, but as far as I can tell independents were never part of the OP's question.


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## radish (Nov 20, 2011)

Costa have a franchise model as part of their business. As far as I'm aware Nero don't have any franchise outlets and Starbucks have only just started going down this route.


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## series530 (Jan 4, 2013)

I own a franchise business. One of the things about franchises is the general requirement to follow a tried and tested model. Most of us buy into the franchise so as to profit from a working system. I am no different in this regard.

franchises cost money and, in many cases, huge amounts of it. The cost of the ticket purchase provides some safe guard that the investment will be successful. fast food franchises are some of the most expensive out there and are also the most tightly wrapped systems in the franchise world. Consequently, the rules are tight and the possibility of variation is the least available. This is both a blessing and a curse : a blessing because the customer gets consistent product and a curse because the franchisee has no room to be creative.

there is nothing wrong with Costa. It satisfies a market need and people gravitate toward it because it serves their requirements. If you want a creative offering then avoid the chains and go independent. The thing is though, most people wouldn't know good coffee from bad coffee. They know what the like and, in this regard, the large chains are a self fulfilling prophecy.

Our business is not coffee. We are lucky in that we have some wriggle room and can make a mark. I would hate to be stitched up and stifled of any creativity.


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## Taylor The Latte Boy (Dec 9, 2013)

glevum said:


> Might be worth a visit to Gloucester to ask their folk, Costa just been given the go ahead for its 11th shop. every direction you look there's a Costa. If you like pound stores and a drop of Costa, Gloucester is the place to be


In the Manchester Arndale there is one starbucks and another just 200 yards away in the same shopping centre. I hate the world we live in. I wish I lived in a time where there was just independent stores. E.g. when you need some meat you go to the butchers, when you need some hardware tools you go to the only hardware store where you know the owners name, if you need vegetables you go to the veggie grocery. Now everything can be bought in one shop let alone a shopping centre.

Its like no one cares about craft anymore, "I want a coffee, let me go buy the worst coffee I can find".


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## The Systemic Kid (Nov 23, 2012)

Think the issue, Taylor, is the herd instinct. The majority go with the flow. Look at out of town shopping centres like the Trafford - heaving. Result is the high street is dying on its feet. How many indies of any description do you see in places like the Trafford or the Metro Centre, Gateshead? If you find yourself in the tail of any bell shaped distribution curve - be it preference for independent shops, artisan coffee etc, you will be in a small minority - fact of life.


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## Taylor The Latte Boy (Dec 9, 2013)

The Systemic Kid said:


> Think the issue, Taylor, is the herd instinct. The majority go with the flow. Look at out of town shopping centres like the Trafford - heaving. Result is the high street is dying on its feet. How many indies of any description do you see in places like the Trafford or the Metro Centre, Gateshead? If you find yourself in the tail of any bell shaped distribution curve - be it preference for independent shops, artisan coffee etc, you will be in a small minority - fact of life.


I agree. And maybe it's my personality why I hate corporate, I hate crowds, and since I became interested in opening my own business I find myself increasingly frustrated at corporate coffee shops taking up any possible nook and cranny. Sometimes they do it just for brand and not for profit, I hate this idea that everything is never enough for these companies. I wish they would take their several hundred million pounds earned this year and fcuk off and close some stores. Greed!

My wife and her family are from Wisconsin, US, and her grandparents live in some gorgeous remote location just south of the Canadian boarder, thousands of acres of untouched land and the only towns they have are the old fashioned American ice cream parlor style towns where everyone knows your name. Everyone is simply content. I miss that. Eventually it's just going to be one shop, or no shop.


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## The Systemic Kid (Nov 23, 2012)

A lot of it is the illusion of choice. Recall visiting the Metro Centre, Gateshead in its early years and being blown away by the sheer scales. Then it struck me there were no indies - they couldn't afford the rents. Also, the shops are all the same - offering versions of the same thing. Sadly, it appears to be what most shoppers want.


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## 4085 (Nov 23, 2012)

All of the chains business models have proven, that the average punter using them does not know their arse from their coffee elbow. If you go into a coffee shop to buy a coffee, should you be impressed by plants, leather sofas and bought in muffins?

If I had a coffee shop, I would make sure they did not stay too long with one drink by serving it at the correct temperature and also making sure that the coffee was to such a standard that they would actually see my coffee as being different to the next place and come back again........of course that will mean I would have to forgo my beloved Jampit in favour of some new third world barely roated acidic fruity stuff in a red bag but hey ho!


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