Costa Coffee vs Starbucks: Roast, Blend & Business Model

If you’ve ever stood in a busy city street wondering why one coffee chain feels like an American diner while the other resembles a European café, you’re not alone. With nearly identical logos and espresso machines, Costa and Starbucks might seem interchangeable—but their coffees, business strategies, and global identities tell a very different story.

Costa uses a 6:1 Arabica-to-Robusta blend roasted slowly for 22 minutes at low heat, creating a richer, less bitter espresso base. Starbucks, by contrast, follows a standardized US approach with a lighter roast profile and no Robusta in its signature espresso. That single ratio and roast method explain much of the taste and brand gap between the two.

The Origins of Costa Coffee

Costa Coffee began in 1971 when Italian brothers Sergio and Bruno Costa launched a coffee bean wholesale business in London, supplying roasted beans to restaurants and Italian-style cafés. Sergio’s training in Parma gave the brand its foundation: a unique slow-roast technique (22 minutes at low heat) that enhances natural aromas and minimizes bitterness. Their signature blend, MochaItalia, combines Arabica and Robusta beans in a 6:1 ratio to create a distinct Italian espresso. This roast style and blend remain central to Costa’s identity today.

Global Expansion & Market Strategy

By 2010, Costa had grown to 1,069 stores in the UK, opening a new location every four days at its peak, and surpassed Starbucks to become the country’s largest coffee chain. Globally, it operated 442 stores across 30+ countries (including Bahrain, China, Egypt, India, and the UAE), with its largest outlet in Dubai seating 320 people. Notably, Costa avoided the US market and focused on Europe and Asia. In China, Costa positioned itself as “slightly more premium” than Starbucks, emphasizing a European, even aristocratic, vibe. Its expansion strategy included locating stores near Starbucks (a “co-location” tactic) to leverage existing foot traffic and boost visibility. By 2018, Costa aimed for 2,500 stores in China, targeting one-third of the market.

Ownership & Business Backing

Costa has been owned by Whitbread Plc since 1995. Whitbread, founded in 1742, is a UK-based leader in hospitality with over 60,000 employees, £1.789 billion in 2003 revenue, and 14+ brands (including Marriott, TGI Friday’s, and Pizza Hut). Costa is one of its international brands, supported by Whitbread’s extensive resources and operational expertise.

What Makes Costa Coffee Different

• Slow Roast Process: All Costa coffee beans are slow-roasted for 22 minutes at low temperatures, enhancing natural flavors and reducing bitterness and common harsh notes from high-heat roasting.
• Unique Espresso Blend: Costa’s signature espresso uses a proprietary 6:1 ratio of Arabica to Robusta beans, developed to deliver a richer, more authentic Italian-style shot.
• Trained Baristas: Every Costa store employs baristas trained in traditional Italian espresso techniques, ensuring handcrafted drinks made with care.
• Investment in Roasting: Over £1 million was invested in new roasting equipment at the Lambeth Roastery, with capacity later expanded to roast 65 tons of coffee weekly. A dedicated, professionally qualified roaster oversees production.
• Handcrafted Drinks: Unlike chains using automated machines, Costa prepares all coffee beverages manually, maintaining quality control and a crafted experience.
• Ethical Sourcing: Customers can opt for coffee sourced through Fairtrade programs, and Costa partners with Cafédirect and Teadirect to offer ethically traded teas.

How Costa Entered the Chinese Market

Costa entered China in 2006 with its first store on Shanghai’s Nanjing East Road, managed by joint venture (Whitbread 51%, 49%). Beijing operations began in 2008 under (Whitbread 50%, 50%), quickly growing to 43 stores. By 2011, Whitbread’s five-year plan targeted 3,500 global stores and £1.3 billion in sales—with China’s expansion critical to success. Costa’s strategy in China included locating near Starbucks (e.g., taking over Beijing Capital Airport’s T3 terminal after Starbucks exited) to capitalize on established customer traffic. The brand positioned itself as a “premium, European-style” alternative, appealing to a growing coffee culture in China (annual growth ~15%, compared to global ~2%).

Frequently Asked Questions

What year was Costa Coffee founded?

Costa Coffee was founded in 1971 by Italian brothers Sergio and Bruno Costa in London.

What is the roast time and temperature for Costa Coffee beans?

Costa Coffee beans are roasted slowly for 22 minutes at low heat to enhance aroma and reduce bitterness.

What is the coffee bean blend ratio used in Costa’s espresso?

Costa’s signature espresso uses a 6:1 ratio of Arabica to Robusta beans, a proprietary blend developed for a richer Italian-style espresso.

How does Costa’s coffee differ from Starbucks?

Costa uses a slow 22-minute low-heat roast and a 6:1 Arabica-Robusta blend for a richer, less bitter espresso, while Starbucks follows a lighter, standardized US roast with no Robusta in its espresso.

Where is Costa Coffee most popular?

Costa became the largest coffee chain in the UK by 2010 (1,069 stores) and has expanded to over 30 countries, including China, the Middle East, and Eastern Europe.

Who owns Costa Coffee?

Costa Coffee is owned by Whitbread Plc, a major UK hospitality company founded in 1742 with brands like Marriott and TGI Friday’s.

How does Costa’s expansion strategy in China differ from Starbucks?

Costa uses a “co-location” tactic, opening stores near Starbucks to leverage foot traffic, and positions itself as a premium, European-style brand rather than a mass-market chain.

Recommended FrontStreet Blends for Espresso Lovers

For fans of Costa’s bold, Italian-style espresso, FrontStreet Coffee’s Classic Blend delivers rich crema and a full-bodied cup with chocolate and nut notes—perfect for lattes and cappuccinos. Its traditional blend profile mirrors the depth Costa achieves with its 6:1 Arabica-Robusta mix. If you prefer a slightly sweeter, smoother option, the Specialty Blend combines Brazilian and Colombian beans for a classic espresso taste without compromising complexity. Both blends are crafted for espresso machines and milk drinks, offering the richness and texture that espresso enthusiasts appreciate. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.