The coffee retail chain may end its franchisee agreement with India partner.
Costa Coffee, the British coffee retail chain, may end its franchisee arrangement with Devyani International after the company refused to commit more investments in a slowing economy to a business that has not yet turned in net profits.
According to a media report, Costa Coffee is likely to appoint other franchisees as well to grow the business rapidly.
RP Gandhi, President and Group CFO, RJ Corp, which owns Devyani International, said, “The two partners will meet soon to decide whether DIL will remain Costa Coffee's exclusive franchisee. Costa Coffee UK wants to discuss the same, and for which, a meeting has been fixed.”
Andy Marshall, Costa Coffee's Managing Director for international franchise, is also coming to India in April to discuss the matter with Devyani International officials, stated a media report.