Costa Coffee is making a strategic move to expand its presence in the U.S. market, focusing on non-traditional locations through its unique offering called the "Smart Café." This innovative coffee machine, resembling a vending machine, is designed for places like hospitals, college campuses, and hotels. The company has already opened five locations in Atlanta after being acquired by Coca-Cola, but it is not rushing into traditional coffee shop openings. Instead, Costa aims to provide quality coffee experiences in environments where people are always on the go.
• The Smart Café offers 200 customizable beverage options, including both hot and cold drinks, ready in just 90 seconds.
• Costa Coffee has about 350 of these machines in operation, focusing on high-impact channels for convenience.
• The company shares revenue with the locations hosting the machines, which only need to maintain cleanliness and provide milk.
• This approach eliminates the need for baristas, making it a cost-effective solution for businesses.
This expansion strategy matters because it allows Costa Coffee to tap into the growing demand for convenient, high-quality coffee without the overhead of traditional coffee shops. By leveraging technology and customization, Costa aims to cater to modern consumers' preferences while establishing a foothold in the competitive U.S. market.
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