Considering a Costa Coffee franchise in the UK? With strong brand recognition and a loyal customer base, Costa offers entrepreneurs a solid opportunity in the competitive coffee market.
However, understanding the full franchise cost and setup requirements is essential before committing. From initial fees to profitability potential, this guide breaks down everything you need to know about starting your own Costa Coffee outlet and deciding if it’s the right investment for your business goals.
About Costa Coffee
Costa Coffee began its journey in 1971 when brothers Sergio and Bruno Costa opened a small roastery in London with a vision to bring authentic Italian coffee to British consumers.
Their distinctive blend and commitment to quality quickly gained popularity, laying the foundation for what would become the UK’s largest and most recognised coffee brand.
Costa Coffee operates:
- Over 2,700 stores across the UK and Ireland
- More than 1,300 stores internationally
- A presence in 50+ countries worldwide
In 1991, the launch of Coffee Nation brought American-style takeaway coffee to the UK, inspired by New York’s bustling café culture. Acquired by Costa Coffee in 2011 and rebranded as Costa Express, this self-service model redefined convenience coffee and scaled rapidly across the UK and beyond.
Costa Express now features:
- 14,200+ machines across the UK
- 1,600+ machines in 20 international markets
The brand continued to expand after its acquisition by The Coca-Cola Company in 2018, which provided the scale and infrastructure to grow globally.
In 2022, Costa introduced the AltoX1 Ice, the first free-standing machine capable of delivering both hot and iced drinks, enhancing Costa’s innovation credentials in the away-from-home coffee segment.
In 2024, Costa Express evolved into Costa Coffee Professional, focusing on commercial coffee solutions tailored to businesses across industries. With over 50 years of hospitality expertise and the backing of Coca-Cola’s global distribution power, Costa now supports more than 30,000 business sites in the UK and internationally.
Coffee Solutions Across Industries
Costa Coffee Professional offers customised coffee services designed for a range of sectors. Here’s a summary of their targeted solutions:
| Sector | Coffee Solution Highlights |
| Hotels | Delight guests with barista-quality coffee while creating new revenue streams |
| Workplaces | Offer premium café-style drinks to employees on-site |
| Leisure | Enhance member experiences at gyms and clubs with popular Costa favourites |
| Education | Cater to students with a variety of quality coffee drinks |
| Convenience Stores | Expand services with quick, self-serve coffee units |
| Petrol Stations | Provide 24/7, low-maintenance quality coffee for travellers |
| Grocery | Complement shopping with customised takeaway coffee options |
| Healthcare | Serve staff and patients with reliable, hygienic coffee access |
| Travel Hubs | Deliver high-speed, high-quality coffee in airports and train stations |
| BaReCa | Add value to menus with expertly crafted coffee across bars and restaurants |
Key Highlights:
- Over 50 years of industry expertise
- Backed by The Coca-Cola Company since 2018
- Leading the UK’s away-from-home coffee market
- Innovator in convenience coffee with Costa Express and AltoX1 Ice
Costa Coffee remains committed to evolving how and where coffee is enjoyed, maintaining its ethos of delivering coffee that’s better by design—whether in a bustling café, an office breakroom, or on-the-go.
What Does It Cost to Open a Costa Coffee Franchise in the UK?
Opening a Costa Coffee franchise requires significant investment, but it provides access to one of the UK’s most recognisable high street coffee brands. The cost to start a Costa franchise varies depending on the type of store and location.
Cost Breakdown Table:
| Cost Category | Estimated Range (£) |
| Franchise Fee | 20,000 – 30,000 |
| Store Fit-Out | 150,000 – 500,000 |
| Equipment | 50,000 – 100,000 |
| Initial Stock | 5,000 – 10,000 |
| Working Capital | 25,000 – 50,000 |
| Legal and Professional Fees | 5,000 – 10,000 |
| Total Investment | 250,000 – 800,000 |
The most significant costs are associated with store fit-out and equipment. Fit-out expenses fluctuate based on location, whether it’s a high street, retail park, or smaller unit. Equipment includes espresso machines, grinders, refrigeration, and point-of-sale systems.
Franchisees must also account for working capital to support operations in the initial months. Legal and professional fees are essential for lease reviews, franchise agreement consultations, and initial setup assistance.
What Are the Qualifications and Requirements to Own a Costa Coffee Franchise?
Costa Coffee seeks individuals or investment groups who meet specific professional and financial standards. Candidates should show a passion for business ownership, strong financial management, and a commitment to upholding the Costa brand.
Key qualifications include:
- Ability to invest between £250,000 and £800,000
- Previous business or team management experience
- Willingness to be actively involved in operations
- Knowledge of local markets and customer habits
- Interest in expanding into multi-unit operations
- Shared values with Costa’s emphasis on quality, sustainability, and service
Candidates do not necessarily need previous experience in the hospitality sector, though it is considered an advantage. More importantly, Costa looks for partners capable of managing operational demands and leading teams.
How Does the Costa Coffee Franchise Application Process Work?
Becoming a Costa Coffee franchisee is a structured process that allows both the franchisor and franchisee to assess compatibility. The entire process may take between 6 and 12 months, from initial inquiry to store opening.
Franchise Application Steps
| Stage | Description |
| Initial Inquiry | Submit an expression of interest via Costa’s website |
| Preliminary Assessment | Costa evaluates financial credentials and franchise potential |
| Initial Interview | Meeting to discuss goals, experience, and initial fit |
| Business Plan Submission | Applicants provide business and financial plans for review |
| Due Diligence | Background checks and financial reviews conducted by Costa |
| Panel Interview | Candidates present their business case to Costa’s leadership team |
| Site Selection | Location identified and approved with assistance from Costa |
| Final Approval | Sign-off on agreements and onboarding into the franchise system |
| Training and Setup | Begin training and store preparation |
Each stage is designed to ensure that both parties are aligned in expectations, resources, and operational readiness. Costa provides support throughout the process, particularly in site selection and planning.
What Are the Ongoing Fees for a Costa Coffee Franchise?
After setup, franchisees are responsible for ongoing fees which support national operations, branding, and continuous innovation. These fees are standard within franchise models and are used to sustain the network and reinforce Costa’s market position.
Ongoing obligations typically include:
- Royalty Fee: Around 6% to 7% of net sales, paid regularly
- Marketing Fee: Approximately 2% of net sales, pooled for national advertising
These charges allow access to a broad range of services, including brand advertising, promotional materials, operational guidance, and inclusion in new product rollouts.
Additional costs may include staff training, store maintenance, equipment updates, and local advertising efforts depending on performance and location-specific needs.
What Kind of Training and Support Do Costa Franchisees Receive?
Costa Coffee ensures that all franchisees receive detailed training and consistent support to help build long-term operational success. The training programmes are structured to cover every critical component of the business, from service standards to compliance and financial management.
Training Provided
- An initial training programme lasting 6 to 8 weeks
- Combination of classroom learning and in-store hands-on experience
- Focus areas include store operations, health and safety, HR, stock control, and customer service
Ongoing Support
- Regional support managers visit stores regularly to assist with operations
- Access to Costa’s proprietary manuals, online tools, and digital platforms
- New menu and product launch guidance and training
- Performance reviews and benchmarking
Marketing support is also included, helping franchisees engage with local audiences while leveraging national campaigns. Franchisees receive marketing materials, access to social media toolkits, and participation in Costa’s promotional calendar.
What Store Types and Locations Does Costa Coffee Offer to Franchisees?
Costa Coffee offers a range of store formats tailored to various business strategies and consumer traffic patterns. This flexibility allows potential franchisees to invest in a format that suits both their market and budget.
Store Format Options
| Store Type | Description |
| High Street Store | Traditional café setup in busy town or city centre areas |
| Retail Park Unit | Larger stores, often with drive-thru capabilities |
| Travel Hub | Small-scale stores in train stations, airports, and services |
| Shopping Centre Kiosk | Compact stores located inside malls |
| Costa Express | Self-service units typically placed in petrol stations or offices |
Each store type has its own advantages. High street stores benefit from steady footfall and visibility, while retail park units can cater to motorists and families. Costa Express units, though not franchise-owned, offer insight into Costa’s broad reach across non-traditional locations.
Store selection is done in consultation with Costa’s real estate and development teams. Franchisees are supported in choosing a site that aligns with market demand and long-term growth.
How Profitable Is a Costa Coffee Franchise in the UK?
While profitability depends on location, management, and operational efficiency, Costa Coffee remains one of the most promising coffee franchise opportunities in the UK. Its widespread brand recognition and premium product offering position it favourably in a competitive market.
Estimated financial performance includes:
- Average annual turnover for a standard Costa outlet ranges from £500,000 to over £1 million
- Net profit margins are estimated at 10% to 15% depending on location and operating costs
- Return on investment (ROI) is typically achieved within 3 to 5 years of operation
Profitability is influenced by foot traffic, rent, staffing, utility costs, and how effectively the business is run. Multi-unit franchisees may achieve economies of scale that lead to improved profitability across locations.
While Costa Express units are not franchisee-owned, their performance supports overall brand reach and helps drive customer familiarity with Costa products, indirectly benefitting traditional franchise outlets.
Why Choose Costa Coffee Over Other UK Coffee Franchises?
When considering a coffee franchise opportunity in the UK, the options are plentiful but not all are created equal. Costa Coffee has established itself as a market leader, with a combination of brand strength, operational support, innovation, and scale that few competitors can match.
With over five decades in the industry, Costa has built a franchise model that delivers both reliability and flexibility. Its wide range of store formats, national marketing campaigns, and consistent product quality make it a standout option for entrepreneurs looking to enter or expand within the coffee sector.
Competitive Advantages
Costa Coffee offers a number of benefits that differentiate it from other UK-based coffee franchises:
- Strong Brand Recognition: As the UK’s largest coffee chain, Costa is a household name trusted by millions.
- Multi-Channel Business Model: Operates across high street stores, travel hubs, Costa Express, and Costa Coffee Professional.
- Comprehensive Franchise Support: From site selection to training, Costa provides end-to-end operational guidance.
- Proven Scalability: Franchisees can operate multiple units with access to a replicable, high-performing model.
- Product Innovation: Costa invests heavily in product development, including iced beverages, plant-based options, and seasonal launches.
- Sustainability Focus: Ethical sourcing, waste reduction initiatives, and environmental responsibility are built into the brand.
Comparison with Other Coffee Franchises in the UK
| Feature | Costa Coffee | Competitor A (Generic Brand) | Competitor B (Generic Brand) |
| UK Market Share | Largest coffee chain | Medium | Small to medium |
| Store Formats Available | High Street, Express, Kiosks, Drive-Thru | Primarily High Street | High Street and limited Drive-Thru |
| Franchise Support | Comprehensive (training, marketing, ops) | Moderate | Basic |
| Initial Investment Range | £250,000 – £800,000 | £150,000 – £400,000 | £100,000 – £350,000 |
| Brand Recognition (UK) | Very High | Medium | Low to Medium |
| Innovation & Tech Integration | Advanced (e.g., Costa Express, AltoX1) | Limited | Moderate |
| Global Backing | Owned by The Coca-Cola Company | Independently Owned | Private Equity Backed |
| Sustainability Initiatives | Extensive CSR & ethical sourcing | Basic environmental standards | Some sourcing policies |
While Costa may require a higher initial investment compared to some smaller franchises, it offers a significantly greater return on brand equity, customer loyalty, and operational stability.
The long-term value is especially evident in Costa’s ability to support franchisees in multi-unit expansion, new market entry, and product diversification.
Ideal for Growth-Oriented Entrepreneurs
Costa Coffee is especially well-suited to franchise partners who:
- Have ambitions to manage multiple outlets across diverse locations
- Value structured training, continuous product innovation, and national brand alignment
- Are looking for a franchise with a proven ability to thrive across formats from full-service cafés to self-service kiosks
- Want to partner with a brand that adapts to changing consumer behaviours and expectations
For investors seeking a scalable, well-supported, and future-ready business opportunity, Costa Coffee represents one of the most robust franchise propositions in the UK.
Is the Costa Coffee Franchise Right for You?
A Costa Coffee franchise can be a rewarding venture for entrepreneurs who are financially prepared and committed to building a business aligned with a strong national brand. It suits those with the ambition to manage multiple units and a passion for delivering consistent customer experiences.
Before applying, prospective franchisees should:
- Conduct a personal financial assessment
- Evaluate market competition in their target location
- Be prepared for a full-time operational role, at least initially
- Align with Costa’s long-term growth strategies and brand values
Conclusion
A Costa Coffee franchise provides a promising route into the UK’s thriving coffee industry, backed by a trusted brand and proven model. While the initial investment is substantial, the potential for long-term returns and multi-store growth makes it an attractive choice for qualified entrepreneurs.
If you meet the financial and operational requirements and share Costa’s customer-first ethos, this could be a rewarding business opportunity worth exploring with confidence and commitment.
FAQs About Costa Coffee Franchise Cost and Setup in the UK
How much profit does a Costa Coffee franchise owner make?
While actual profit varies, industry estimates suggest franchisees may earn a net profit margin of 10% to 15% of annual revenue.
Are there financing options available for opening a Costa franchise?
Some banks may offer franchise loans, particularly if you have a solid credit history and a comprehensive business plan.
Can I open just one Costa store or do I need to commit to multiple units?
Costa typically prefers franchisees interested in managing multiple stores but may consider single-unit applicants in select regions.
Do I need prior experience in hospitality to own a Costa franchise?
Experience in food and beverage is helpful but not mandatory. Business acumen and a customer-first mindset are more critical.
How long does it take to open a Costa Coffee franchise?
From the initial application to store opening, the process usually takes between 6 and 12 months.
What are the key risks associated with a Costa Coffee franchise?
Potential risks include high startup costs, location dependency, and ongoing competition in the coffee market.
Is a Costa Express unit cheaper to set up than a full-service store?
Yes, Costa Express units are typically lower in cost due to smaller size and limited staffing needs.
