Starbucks encounters contenders British COSTA coffee advances into China

Since the American coffee chain giant Starbucks released its ambitious Chinese expansion plan, another coffee chain giant has targeted China.

The reporter learned yesterday that WHITBREAD Group, an old British restaurant management company, will work together with Yueda Group to introduce COSTA, its coffee shop brand, to China. Unlike the American culture represented by Starbucks, COSTA is behind the European coffee culture.

COSTA China's first store is located on the Nanjing East Road in Shanghai
The street was officially opened on the 22nd. This is COSTA's first store in the Asia Pacific region. The company will continue to open two directly-operated stores on Bailian and Wujiaochang in Zhenbei on December 27. According to conservative estimates from COSTA, COSTA will open at least 300 stores in China in the next few years. However, COSTA also stated that it will consider increasing the number of stores according to the actual situation in China.

According to Wang Yongxiang, President of COSTA Asia Pacific, “In the case of Shanghai alone, COSTA’s plan is to have at least one store in every main street and major shopping mall in the next year. At present, we have identified 40 stations.”

Unlike the American coffee culture represented by Starbucks, the forerunner of the Chinese market, COSTA originated from the Italian style and had a European nobility, so it was positioned slightly higher than Starbucks. In addition, COSTA and Starbucks and other coffee chain brands advocated by the "global chain of standardization" is different, its style in different countries and regions will be based on local tastes and aesthetics to determine. Wang Yongxiang revealed that as early as a year ago, the company conducted consumer surveys in 10 major cities in China in order to quickly adapt to the Chinese people's demand and taste for coffee culture. According to Wang Yongxiang, COSTA's handmade European pastries and snacks will also be adjusted according to Chinese dietary habits.

In the European market, COSTA has developed quite rapidly. Especially in the British Isles, COSTA has opened a new store every 4 days. At present, the total number of British stores is 515. While developing at home, COSTA is also actively planning global expansion. China is the first leg of its Asia-Pacific plan and will rapidly expand to Japan, South Korea and other Asian countries next year. In addition, COSTA has also opened more than 60 stores in the Middle East, India, and Northern Europe this year.

COSTA Coffee was founded in 1971 by an Italian brother Sergio Costa and Bruno Costa in London, England. At present, COSTA is the WHITBREAD Group's own international brand. The WHITBREAD Group also owns assets such as Premier Travel Inn (PTI) and Pizza Hut (UK), the UK's largest hotel chains.

As of the end of August 2006, Starbucks had 180 stores in 14 cities in China. Starbucks plans to achieve full-scale direct marketing in the Chinese market in the next five years and will expand the number of stores to 500.