Eye 300 more Costa Coffee stores in India: Whitbread PLC

Whitbread PLC, a FTSE-100 company and the owner of Costa Coffee and Premier Inn Hotels, is brewing big plans for India. In an interview to CNBC-TV18, Andy Harrison, CEO, Whitbread, spoke about the company's expansion plans.

 

Harrison plans to expand their business in India with its chain of hotels Premier Inn. "We already have two hotels open, there are three more in the pipeline and we hope to sign up a number of new hotels every year," he adds.

Further he expects some 300 more Costa Coffee stores in India. "We will continue to develop our product, our coffee, our food, our store environment, just completely focus on the customer to deliver a better experience," adds Harrison.

 

Below is an edited transcript of Andy Harrison's interview on CNBC-TV18

 

Q: What are your plans for Premier Inn? The hospitality business did not have a good year so far but what's on the anvil? What are your expansion plans like for Premier Inn in India?

A: We have got very exciting plans for Premier Inn in India. Our Premier is already UKs largest hotel company with 640 hotels and we can see a tremendous opportunity to build our brand here in India. We already have two hotels open, there are three more in the pipeline and we hope to sign up a number of new hotels every year.

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Q: Is there a new strategy for Premier Inn? Such an ambitious joint venture (JV) was announced with Emaar MGF. The JV never actually took off?

A: The hotels that we've already built are the ones that are in the pipeline. We have built with our own money; we have invested USD 70 million to build the brand and to establish the business model. We now want to work with a number of local partners to manage other people's property.

 

Q: Are you happy with Costa Coffee's performance? What's your market share and what are your plans now that Starbucks has entered the Indian market?

A: Costa we have 100 stores, it is growing nicely. We are used to competing with Starbucks all over the world and back in the UK. We have out-competed Starbucks. We have twice as many stores in the UK as they do.

 

Q: You have a 100 Costa Coffee stores but how many more can we expect?

A: We can see an opportunity here for around 300 stores.

 

Q: Will you do anything different now that Starbucks is here? We have Dunkin Donuts opening shops as well. Is there going to be a change in strategy on your part?

A: We will continue to develop our product, our coffee, our food, our store environment, just completely focus on the customer to deliver a better experience.