Costa Coffee and Alghanim Industries expand partnership in the Middle East


June 30, 2019 | By RetailME Bureau

UK-based coffee shop chain, Costa Coffee and Alghanim Industries have announced an expansion of their successful partnership. Moving forward, Alghanim Industries will have development rights to Costa Coffee not just in Kuwait but also in Saudi Arabia and Oman, making Alghanim the largest franchisee by territory.

The Costa Coffee-Alghanim partnership has flourished since its 2013 formation, growing to more than 75 stores today. Of these, 35 opened in less than a year, including in top-tier locations such as Al Hamra Tower and Kuwait International Airport.

The growth is driven by the companies’ shared commitments to delivering outstanding handcrafted coffee, credible healthy menu choices and exceptional customer service. Costa Coffee and Alghanim Industries have revamped the Kuwait menu to reflect local tastes and preferences, including local specialties.

Together both companies have recently introduced a number of sustainability initiatives, switching from plastic to paper straws and offering discounts to those customers who bring a reusable cup into store. In addition, they established a barista training centre, arranged pastry collaborations with celebrity chefs, upgraded store design and interiors and opened a concept store at Al Hamra Tower, where customers can enjoy specialty coffees and an expanded food offer. Put together, these forward-looking strategies will power Costa-Alghanim’s expansion efforts in Saudi Arabia and Oman.

“Three traits are critical to success in the food and beverage sector,” said Kutayba Y. Alghanim, executive chairman, Alghanim Industries. “You must have a patient, long-term outlook, you must act decisively when opportunity arises, and above all, you must put the customer at the heart of your business. We share these values with Costa Coffee, a world-class brand, which will grow even stronger following its acquisition by Coca-Cola. These shared values are the foundation of our work together, and the reason we look forward to an enduring, prosperous partnership.”

“Coffee is a Middle Eastern creation. As far as historians can tell, drinking coffee traces back to the 15th century in our region,” added Omar K. Alghanim, group CEO, Alghanim Industries. “It comes as no surprise that most people in this region have a deep appreciation for good coffee. And that’s why we’re thrilled to grow with Costa Coffee, and to build on our success in Kuwait. We’re ready to hit the ground running in Saudi Arabia and Oman, bringing world-class hand-crafted coffee to some of the most sophisticated consumers in the world.”

“Today marks another exciting new chapter for Costa Coffee in the Middle East,” stated Dominic Paul, CEO of Costa Coffee. “Our vision is to inspire the world to love great coffee and in Alghanim Industries we have an innovative and exciting partner who will help us unlock the next phase of growth in the Middle East, bringing further investment and job creation across a number of countries where demand for Costa Coffee is growing.”

Alongside Costa Coffee, Alghanim Industries has forged successful partnerships with American quick-service restaurant brands Wendy’s (2015) and Slim Chickens (2017). Alghanim Industries expects to open its first store outside Kuwait in Saudi Arabia by the fourth quarter of 2019.

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