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Wednesday, June 18, 2025

Costa Coffee Bets Big on India: 50 Stores a Year, 200+ Locations, and a Shot at Cracking the Top-5 Global Markets

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India’s coffee culture is heating up—and Costa Coffee wants a front-row seat. The British coffee chain, owned by Coca-Cola, is stepping on the gas in India with plans to open around 50 new outlets annually. The goal? To make India one of its top five markets worldwide within the next five years.

“We’re in it for the long haul,” said Philippe Schaillee, Global CEO of Costa Coffee, during a visit to India on Wednesday. “We’re not chasing aggressive store counts for the sake of it. We’re focused on expanding steadily, with the right locations and the right experience.”

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Costa currently runs more than 200 cafés across the country through its local partner, Devyani International Ltd (DIL). This year also marks the brand’s 20th anniversary in India—a market that Schaillee believes is on the verge of a coffee boom.

“Right now, fewer than 50 million people in India are willing to pay extra for good coffee—but that number is growing fast, well into double-digit percentages,” he said. “It’s this shift that makes India so exciting for us.”

While India sits within Costa’s top 20 global markets today, it’s quickly climbing the ranks. The company is zeroing in on metro cities to fuel its expansion, while also exploring new types of locations—from flagship cafés on high streets to highway fuel stops and shopping malls.

Globally, the UK remains Costa’s biggest market, followed by China, the Middle East, and Eastern Europe. But India is where the future growth action is, especially as younger consumers move from chai to cappuccinos.

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Costa faces stiff competition here—not just from global heavyweights like Starbucks, Tim Hortons, and McCafe, but also from fast-growing Indian brands like Blue Tokai, Third Wave Coffee, Barista, and a reinvigorated Café Coffee Day.

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