Costa Coffee Closing Down in Hungary

  • 26 Jul 2021 9:17 AM
  • Hungary Around the Clock
Costa Coffee Closing Down in Hungary
Café chain Costa Coffee is closing down its Hungarian units with the exception of its unit at Budapest Airport, the company said in a Facebook post, citing the impact of the pandemic and a dispute with the parent company.

The Lagardére Group, the French owner of Lapker, a company engaged in newspaper distribution, opened Hungary’s first Costa Coffee café in 2008.

L-Coffee took over three years later and signed a new franchise contract with Costa Coffee International in 2011. Subsequently, 29 cafés were opened by 2019.

Costa Coffee International was bought by Coca-Cola for £3.9 billion in August 2019.

Conflicts emerged between the new owner and L-Coffee, which ran the shops, over brand rights. The Hungarian-owned company took legal action, but without success.

L-Coffee, which employs 47 people, had a net turnover of Ft 2.4 billion in 2019, and a pre-tax profit of Ft 56.9 million, according to its latest available report.

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