Costa Coffee selects Dubai for first international forum

Representatives of the UK and Middle East management teams, together with Middle East franchise holders, attended the forum, which took place from June 21-23 at the Rydges Plaza hotel. The forum was an important part of the process of formulating an ambitious five year strategic plan for the Middle East.

Costa Coffee currently has 40 outlets in seven countries in the Middle East region and plans to open in another four countries by the end of 2004. The company is also looking at opportunities in Pakistan and plans to open a roastery in India, in 2005. While the company aims to grow organically, it does not rule out the possibility of acquisitions, to facilitate entry into new countries.

Mr Paul Smith, Costa Coffee's Franchise Director for the Middle East Region, explained the significance of the event: "Costa Coffee is an international brand with operations growing rapidly in the Middle East, as the premium coffee sector continues to develop strongly. Dubai is at the heart of the region and with its developing retail/leisure and tourism sectors, was a logical choice for our first ever international forum, and incidentally, the same reasons why I am now permanently based here. All our regional franchise holders - from the GCC, Lebanon and Egypt -attended to discuss the future needs of our business partnerships.

According to Mr Smith, the Costa Coffee franchise model is based around working with local partners to leverage the international brand in order to build successful local businesses. The business model is therefore flexible and can even mould itself to local varieties in taste and style.

"Costa Coffee is increasingly in demand in the Middle East and the brand is becoming more recognized internationally. For example, our high profile outlets at Dubai international airport are helping create awareness amongst regional and international travelers. Increased brand recognition is leading to brand preference and further requests for Costa Coffee to open in a variety of diverse locations, "said Paul Smith.

"The Middle East will make an important contribution to Costa company ultimate aim, which is to turn the serving of 2.5 million Costa Coffee customers per week into delighting 2.5 million Costa Coffee customers per day," he concluded.

The Costa brothers opened the first Costa Coffee store in London in 1978 and initially expanded at the rate of two stores per year with the help of their family and friends in the business. Following the acquisition of Costa Coffee by Whitbread in 1995, the business experienced strong growth, building a network of over 400 outlets by 2003, making it the UK's largest coffee retailer.