“Having spent £59.5m on the acquisition, Whitbread has stated its intention to convert the existing Coffee Nation sites into a new Costa Express format to go with its existing Costa outlets. The move signals Whitbread’s intentions to tap into the convenience trend, but it must be wary of retaining brand credentials.
“While the targeting of two separate types of consumer should result in increased sales, there’s potential for consumers to feel fatigued by the constant sight of the brand. There’s a fine line between offering convenience and turning consumers off by flooding the marketplace.
“The other concern is that self-serve coffee doesn’t have the same reputation for quality and taste as that brewed by baristas. Costa Express therefore runs the risk of devaluing the perception of the coffee itself, and this lowering of expectations could have wider ramifications in the form of fewer visits to traditional outlets.
“Efforts must therefore be made to convey the premium nature of the self-serve product so that consumers don’t resign themselves to having to compromise.”
Source: Datamonitor
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