Costa Coffee is, according to reports from Sky News, up for sale. Coca-Cola, the café chain’s parent company, has tapped the investment bank Lazard to review options for offloading the business.
But what kind of business will the prospective owners be acquiring? In terms of public perception, at least, a relatively healthy one. Data from YouGov BrandIndex UK shows that Costa outperforms the average UK coffee chain across several key measures. Impression scores, which track general positive and negative sentiment towards a brand, sit at 22.4, 8.5 points ahead of the sector average of 13.9. Perceptions of the brand’s Quality are also better than the typical UK coffee chain: scores sit at 18.7 compared to an average of 14.0, a 4.7-point difference. Customers are broadly happy with Costa Coffee, with Satisfaction scores of 23.9 compared to an average of 13.7 for the industry (a gap of 10.2 points), while Recommend scores – a measure of advocacy – are 15.3 compared to a score of 10.5 for coffee chains on the whole (a +4.8 difference).
These positive perceptions contribute to Costa’s overperformance when it comes to Index scores, a measure of brand health. These of 13.5, which are ahead of the industry average of 9.9 by +3.6 points. There is, however, one area of underperformance: Value for Money scores. These are -6.5 compared to an industry average of 2.0: a difference of -8.5 points.
So if Coca-Cola successfully sell Costa, the new owners (whoever they may be) will be acquiring a well-liked brand associated with quality, with better-than-average customer satisfaction and with advocacy to boot. But they might also want to look at how they can address perceptions that other coffee chains offer better bang for buck: it could be the one weak area in an otherwise strong brew.
This article originally appeared in City A.M.