Starbucks Effect? Costa Coffee Sales Shoot Up

Written By Unknown on Selasa, 11 Desember 2012 | 16.01

Sales at Costa Coffee have shot up by over 25%, the chain's owner Whitbread has reported.

Like-for-like sales at its coffee shops increased by 7.1%, while total sales were up by 25.5% in the three months to November 29.

It comes amid an ongoing row about the way that some companies - including its rival Starbucks - pay tax in the UK.

In October, it was revealed that Starbucks had paid just £8.6m in corporation tax despite taking billions of pounds in revenue from more than 750 outlets since 1998.

Whitbread's chief executive Andy Harrison said he acknowledged that "Starbucks has issues", and added: "UK consumers are voting with their taste buds."

Last week, Starbucks UK's managing director Kris Engskov told Sky News it had decided to "take action", and would pay around £20m in corporation tax over the next two years.

Whitbread, which is the UK's largest hotel and restaurant group, also reported a hike in total sales across the group, which were up 14.4%.

The company, which also owns Premier Inn and the Beefeater and Brewers Fayre pub chains, said its brands continued to outperform the market.

"Whitbread continued its strong growth momentum with total sales up 14.4% together with good like for like sales growth of 3.3%. This once again demonstrates the strength of our brands," Mr Harrison said.

"The economic environment remains challenging with no change in our background consumer market. We are on track to deliver full year results in line with expectations."

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