Costa Coffee are set to brew

Costa Coffee Market Share

Image of a Costa Coffee takeaway cup with lidWhitbread is expected to open nearly 150 new coffee shops in the UK this financial year, along with 40 Premier Inn budget hotels and a handful of restaurants in the latest phase of major expansion plans.

Whitbread, which employs 43, 000 people, revealed that its profits jumped 16.5% to £411.8million in the past year.

The surge will pile pressure on US rival Starbucks, which suffered its first drop in UK sales last year.

Accounts published last week showed turnover fell in the year to the end of September 2013 to £399m, from £413m the previous year.

The drop coincided with criticism of Starbucks for paying hardly any corporation tax.

Yet Whitbread boss Andy Harrison insisted the tax scandal hadn't delivered a big boost.

He said: “We were outperforming Starbucks in the years before they had they had their tax issues.”

Costa is the UK’s biggest coffee chain, with a 12% market share, and Whitbread has set a target of increasing its shop numbers from 1, 700 now to 2, 200 in four years.

In global sales, the firm sold 400 million cups of coffee last year, and has stores in the Middle East and China that are forecast to by jump from £1.2billion to £2bn by 2018.

Raw coffee prices have surged 60% this year because of poor harvests in Brazil.

Harrison said it wouldn’t lead to a price rise in its shops because it had bought its coffee stock needs for the year.

Premier Inn sales rose 13.9% to £967m, with the number of its rooms up 6.6% to just over 55, 000.

Turnover in its restaurants, including the Beefeater and Brewers Fayre chains, increased 3.9% to £526.1m.

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Source: www.mirror.co.uk
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