How Costa Coffee Built Its China IT System

When Costa Coffee expanded into China in the mid-2000s, it wasn’t just bringing European-style coffee to new customers—it was adapting an entire business model. But as stores multiplied across vastly different regions, the chain’s original IT setup, based in the UK with servers in Germany, couldn’t keep up. For a company betting on rapid growth, slow systems were a bottleneck waiting to happen.

By November 2011, Costa had replaced its legacy UK system with a fully localized IT solution from Fujitsu, including POS and inventory management—deployed across 100+ southern stores and 70+ northern outlets.

The Italian Roots of a British Brand

Costa Coffee was founded in London in the 1970s by two Italian brothers who saw a lack of quality coffee in the city. Their vision quickly gained traction, and the brand grew under the Whitbread Group, a 260-year-old UK conglomerate also behind Premier Inn hotels. By the early 2000s, with global economic focus shifting east, Whitbread identified China as a strategic market.

Entering China: Market Research & Local Partnerships

Costa’s team began researching the Chinese market back in 2004. They partnered with local firms to navigate regional differences: south of the Yellow River, operations were managed by Yueda-Kasmo (Shanghai), while north of it was handled by a Beijing Hualian joint venture. The first Costa store in China opened in December 2006 at Shanghai’s Ramada Hotel.

Adapting Coffee to Chinese Tastes

While Costa stayed true to its European coffee DNA, it adapted offerings for local preferences. That meant adding matcha-flavored drinks, offering softer cakes instead of European-style cold sandwiches, and expanding salad options—typically featuring 2–3 fruit and 1–2 vegetable varieties in China versus a single type in Europe. Store environments also shifted: in China, coffee shops serve as social hubs, calling for comfy seating, music, and a more upscale ambiance compared to Europe’s grab-and-go model.

Why Localized IT Was Non-Negotiable

Costa’s IT Manager, Xu Feng, explained that the UK-based legacy system, with servers in Germany, created serious speed issues as the chain expanded in China. In 2010, Costa began evaluating vendors and chose Fujitsu after assessing its service responsiveness, customization capabilities, and integration expertise. Fujitsu wasn’t just providing software—it offered a full-stack solution tailored to a growing enterprise.

Fujitsu’s Custom Solution Rollout

Fujitsu started working with Costa in April 2011. By July, system research was complete and pilot stores went live. Full switchover began in September, and by November 28, 2011, the new system—including front-end POS and back-end inventory modules—was fully operational. The solution supported features like timed promotions and product bundles, adaptable by region. For example, summer drinks launched earlier in southern provinces like Guangdong (April–November) than in Jiangsu and Zhejiang (June–September).

What Made Fujitsu’s System Better?

Compared to the old UK system, Fujitsu’s offering featured a full Chinese-language interface, boosting staff efficiency. It also supported complex, region-specific promotions—like group-buying deals and local review-site discounts—that the original system couldn’t handle. Crucially, Fujitsu provided localized customer support, avoiding the delays of overseas technical help. Competitors like Starbucks and Japan’s Saint Marc Café also use Fujitsu’s restaurant solutions in China.

Training & Support After Launch

Fujitsu conducted batch training sessions for store managers post-launch, while Costa delivered internal training too. For the first year, Fujitsu offered four free training rounds to ensure smooth operation. The system’s usability and responsiveness contributed to its quick adoption across stores.

Costa’s IT Strategy & Future Plans

As of the report, Costa operated around 100 stores in southern China (via Yueda-Kasmo) and 70+ in the north (via Beijing Hualian). Expansion focused on economically growing inland cities, where rising incomes created new coffee consumers. While store growth outpaced IT rollout, Costa prioritized building the right foundation. IT Manager Xu Feng likened IT to two pillars: architecture and application modules. Fujitsu advised on server infrastructure, backup, and disaster recovery, and maintained ties with both Costa’s UK parent and its Chinese branches.

The current POS and inventory systems are seen as foundational. Future phases include a membership module with points redemption, multi-payment e-commerce support, and business intelligence tools for data analysis. Costa’s long-term goal is 400 stores within five years, though expansion pace will depend on yearly conditions. Financial Director Bian Minna stressed that numbers aren’t the mission—“best choice of coffee” is.

Frequently Asked Questions

Why did Costa Coffee replace its UK IT system in China?

Costa replaced its UK-based system—which had servers in Germany—with a localized solution from Fujitsu because the original setup couldn’t handle the speed and scale needed for rapid expansion in China’s diverse regions. The new system improved performance and supported region-specific features.

What year did Costa Coffee launch its new IT system in China?

Costa Coffee’s new IT system, developed with Fujitsu, was fully launched on November 25, 2011. This included POS and inventory management modules tailored for the Chinese market.

Which company provided the IT solution for Costa Coffee in China?

Fujitsu (Fujitsu (China) Information Systems Co., Ltd.) provided the IT solution for Costa Coffee in China, including hardware like POS machines and servers, as well as software for store operations and inventory management.

How many stores did Costa Coffee operate in China at the time of the system launch?

At the time of the new system launch in 2011, Costa Coffee operated around 100 stores in southern China (managed by Yueda-Kasmo) and over 70 stores in northern China (managed by the Beijing Hualian joint venture).

What features did Fujitsu’s POS system offer that the UK system didn’t?

Fujitsu’s POS system offered a full Chinese-language interface, support for region-specific promotions (such as timed discounts and product bundles), and localized customer service. It also handled complex promotions common in China, like group-buying and review-site deals, which the UK system couldn’t manage.

What are Costa Coffee’s future IT plans beyond the 2011 system?

Future IT plans include a membership system with points redemption, support for various payment methods via e-commerce, and additional business intelligence modules for analytics. The goal is to build a comprehensive IT ecosystem rooted in the original POS and inventory foundation.

Recommended FrontStreet Beans for Costa-Style Espresso

For a Costa-style coffee experience, try FrontStreet’s Ethiopia Humbera for bright floral and citrus notes, their Yirgacheffe for juicy berry tones, or the Classic Blend for a balanced espresso base with chocolate and caramel undertones. These beans highlight the nuanced, high-quality espresso foundation that aligns with Costa’s European roots and adaptability. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.