Costa Coffee, going once, going twice, sold!
Posted by: Qaiss in Franchise opportunity, Health & Food Related IssuesThe Italian founder British based franchise, costa coffee has been sold to khorafi group. I got the news over the weekend, that kharafi group bought all costa coffee chains in Kuwait from its original owner, KASCO. Its the catering company servicing Kuwait Airways. So whats the benefit of such a deal: khorafi group can introduce a new coffee chain or any other chain for that matter, they may even replace costa coffee with Krispy Kremes, or they may keep the costa brand. Such a deal is beneficial because instead of khorafi going around Kuwait buying off different people and each of them asking for different buy out payments ”Kholou”. He just makes one bulk purchase and buys all costa coffee outlets around Kuwait. At the end, this deal what ever the price attached is cheaper than buying independant store’s. Smart move by khorafi group to introduce what ever they want into the ever expanding food sector in Kuwait!The same deal was done by subway, if you remember well, most subway store in co-op now use too be the old restaurant “Beep Beep”. Same thing happened, al mutairy, present owner of subway bought out beep beep owner al 3ameri, and moved in subway in most co-ops. Thats the advantage of capital when available, you just move in and buy others out. Â
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May 4th, 2007 at 6:39 pm
So Subway bought a competitor and basically eliminated it.. Smarrrt
May 4th, 2007 at 7:34 pm
hope they’ll keep costa up to the standards..
May 4th, 2007 at 9:47 pm
I believe thay bought the whole chain in the middle east. coz they cant buyjust kuwait one or Kuwait assembly will take this in another say since KASCO is ownder and oporated by the GOVERNMENT.
May 4th, 2007 at 11:57 pm
the owner for the GCC isn’t the same as the owner for Kuwait
KaSCO own Kuwait Costa Franchise
other GCC countries it was a partnership between Gulf Finance house and a Saudi investor as i remember and he bought their share a year later
May 4th, 2007 at 11:58 pm
just found link
http://v2.gfhouse.com/v2/pages/media-news1.asp?NewsArg=91
May 5th, 2007 at 12:44 am
This post for me is very informative! I enjoyed it, however I do not enjoy Costa’s coffee I do not like the taste of their espresso.
May 5th, 2007 at 12:45 am
Enigma: yah these are some business tactics
Maze: yah compared to the uk, here they are not that great
Haamour: forzaq8 is correct its only kuwait not GCC, but startbucks yes.
Forzaq8: thanks for the link:)
May 5th, 2007 at 5:40 pm
Actually I really expect that to happen, since Americana (Alkharrafi) already manage Costa here in Egypt and other abroad branches in the Middle east which costa has the right, So It was a stage before buying, They are going down so deep, bad managment from what i’ve seen here, they dont even throw the cups, I saw a guy actually taking it and washing it and re-filling it to other customers.
May 6th, 2007 at 1:30 am
Vincent: we did not know that khorafi managed costa at Egypt!! thats bad service you got there!
March 30th, 2009 at 12:20 pm
I noted these messages about the sale of Costa Coffee to Khorafi (Americana). I am not so sure the Costa Coffee franchise in Kuwait was already sold. I thought the sale was started again in 2008 and advertised in August that year? Does anyone know the status of the Costa Coffee sale and who has bought it?