Starbucks vs Costa: Battle of the London Headquarters

When two coffee giants—both born in the 1970s, one American, one British—set up shop on your high street, you notice. Especially when both claim the same new drink within days of each other, tweak their menus to compete, and battle not just for customers but for cultural relevance in Europe and Asia. That’s the story of Starbucks and Costa.

As of 2015, Starbucks had 2,362 stores in the EMEA region—including 842 in the UK—while Costa operated over 1,900 locations. Both brands recently introduced identical drinks (Flat White / vs ), launched new store formats, and are expanding loyalty programs. But who’s really winning?

Same Drink, Different Name: The Flat White Showdown

In September 2015, Starbucks China unveiled its Flat White at its first coffee culture festival, dubbing it . Within a week, Costa released an almost identical drink—reportedly launching it as early as March 2015—and called it . Costa’s WeChat post, titled “Flat White,” seemed like a direct challenge. Same style of velvety microfoam espresso, same market push—but different branding.

London HQ Strategy: Why Both Chose the UK

In a move signaling its European ambitions, Starbucks relocated its global headquarters to London in 2014, citing the UK’s more competitive business environment compared to the Netherlands. By the end of 2015, Starbucks had partnered with major retailers like Casino Restauration, Monoprix (France), and REWE (Germany) to open outlets in supermarkets and hypermarkets. The brand reported 2,362 EMEA stores, with 842 in the UK alone—closing in on Costa’s then 1,900+ UK locations.

The UK, long dominated by Costa, wasn’t conceding ground. According to a Telegraph report in April 2015, “While most US-UK brand battles favour the Americans, Costa has beaten Starbucks—in the UK, at least.” But with Starbucks expanding fast, Costa needed to respond.

Menu Innovation & Store Experiments

Starbucks rolled out Starbucks Evenings in some markets, serving hot food like baked vegetables and hummus from 4 PM onward. Not to be outdone, Costa launched Costa Fresco, a new store concept in London offering lunch items such as porridge, pasta, and salads—diverging from its coffee-first identity. Costa’s Asia managing director, Liang Yuhao, hinted at upcoming loyalty rewards and merchandise, areas where Starbucks excels (think collectible cups and holiday red cups).

Both companies are also locked in a game of retail and cultural one-upmanship: not just in the UK, but across Europe and Asia, including China, where Starbucks introduced the Flat White during a high-profile coffee culture event and Costa quickly followed suit.

Frequently Asked Questions

When did Starbucks move its headquarters to London?

Starbucks relocated its global headquarters to London in 2014 as part of its strategic push into the European market, citing the UK’s more favourable business environment compared to the Netherlands.

How many Starbucks and Costa stores are in the UK?

As of 2015, Starbucks had 842 stores in the UK, while Costa operated over 1,900 locations. Starbucks had a total of 2,362 stores across the EMEA region at that time.

What is the Flat White, and which brand launched it first in China?

The Flat White is a espresso-based drink with velvety microfoam. Starbucks China introduced it in September 2015 at its first coffee culture festival under the name . Costa released a nearly identical drink around the same time or earlier (reportedly March 2015), calling it .

What new store concepts have Starbucks and Costa launched?

Starbucks introduced Starbucks Evenings, serving hot food in the evening. Costa launched Costa Fresco, a concept store offering lunch items like porridge and pasta, moving beyond its traditional coffee focus.

Are Starbucks and Costa competing outside the UK?

Yes. Both brands are expanding aggressively in Europe and Asia, including China, engaging in simultaneous product launches, store format experiments, and loyalty program enhancements.

FrontStreet Coffee Picks for Flat White Milk Drinks

For baristas crafting Flat Whites or similar milk-based espresso drinks, try FrontStreet Coffee’s Classic Blend: a balanced espresso with chocolate sweetness and a smooth mouthfeel, ideal for lattes and flat whites. For something fruitier, their Ethiopia Yirgacheffe offers bright citrus and floral tones that shine through steamed milk. Both beans are roasted to highlight clarity and texture, making them excellent choices for detailed milk drinks. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.