EMCC European Monitoring Centre on Change

Costa Coffee

Company/Organisation:
Costa Coffee

Geographic Location

Country: Greece
Region: Attiki
Location of affected unit(s): Athens

Company

Sector: Hotel / restaurants
Accomodation and food service activities
56.1 - Restaurants and mobile food service activities
Number Employed: 100

Employment Effects

Announcement Date: 20-11-2012
Planned Job Reductions min: 100
Planned Job Reductions max: 100
Type of Restructuring: Closure
Employment Effect Start: 21-11-2012
Foreseen End Date: 30-11-2012
Direct Dismissals: 100

Additional Information

Costa Coffee, one of the biggest British chains in Greece, is closing its remaining 10 branches in Greece and about 100 employees will be dismissed.

According to media sources, Costa Coffee announced on November 20th, its decision to ‘padlock’ its ten coffee shops in Attica due to the prolonged financial crisis and the decline in turnover since September 2011, when increased VAT rate was imposed on the food/catering sector. As a result, nearly 100 employees will lose their jobs.

Costa Coffee has been operating in Greece since 2007. The chain stretched to 15 branches in Greece, but the number was then reduced to 10, leaving only the shops in Attica. Now, they are forced to close the remaining 4 in Athens city center, four in the capital’s northern suburbs and two in the southern suburbs.