Costa Revenue up 9% as They Signal Growth in Drive Thru, Transport Link and Retail Park Locations

It is thanks to the creation of a strong pipeline of coffee and food product innovation and progress with its digital initiatives.

Costa has undertaken a significant amount of strategic activity over the past 18 months. This has included reshaping store network plans towards growth channels, creating a strong pipeline of coffee and food product innovation and progress with its digital initiatives. The coffee beheamoth signalled two thirds of next year's growth will come from drive thru, transport link and retail park locations.

Following the development of a product innovation team, a new range of breakfast food was also launched in the first quarter. Customer feedback has been strong with like for like breakfast food volume growing by 9% in the period since launch. To complement the launch of the breakfast range, a new range of salads was launched over the summer and new hot food in September.

In addition to the introduction of the new food range, Costa launched new cold drinks in advance of the summer, including cold brew coffee, frostino iced drinks and a trial of nitro coffee. The recently formed innovation team has also created a strong pipeline of new hot and cold drinks to launch in the year ahead.

Overall profits were down 4.6% in the UK due to increased labour costs, the falling pound and business rate changes.