Costa Coffee and Devyani International extend Indian franchise partnership

DIL became the franchise partner for Costa Coffee in India in 2005 | Photo credit: Costa Coffee

Devyani International Limited (DIL), the largest franchisee of Pizza Hut, KFC and Costa Coffee in India, has extended its partnership with Costa Coffee for five years. 
 

According to a report in Business Today, DIL entered a ‘revised development agreement for its existing Costa business on August 14 2021, pursuant to which DIL has been granted development rights for pan-India in a phased manner’. 
 

Costa Coffee operates coffee shops in 32 countries, with nearly 2,700 of its 4,000 coffee shop portfolio located in its native UK market. 
 

DIL is among the largest operator of quick service restaurant chains in India with 655 stores across 155 cities. The company became the franchise partner for Costa Coffee in 2005, and now operates 40 outlets located in high streets, shopping malls, airports, hospitals, corporates and motorways. 
 

India was hit hard by the delta variant of Covid-19 in 2021. However, recent activity in the country's consumer coffee market suggests an economic recovery could be gathering pace. 
 

In August 2021, instant coffee brand Rage Coffee raised $5m to bolster marketing, distribution and hiring capabilities. In June 2021, Lavazza’s Fresh and Honest subsidiary sought to grow its Suprabha coffee concession brand in India, targeting 100 locations in the south of the country within the next two years.