Costa Coffee grew UK retail sales by 11.4% to £226.5m in the 13 weeks to 2 June as like-for-like sales in company stores grew 2.6%.
Parent company Whitbread reported group like-for-like sales for the period up 1.8% with total sales up 8%.
In the Restaurants division like-for-like sales rose 0.2% and total sales grew 1.4% while in Hotels & Restaurants the figures were 1.5% and 5.9% respectively (with restaurants delivering total sales growth of 1.4% and like-for-like sales growth of 0.2%). In Premier Inn like-for-like sales were up 2.1% and total sales 8%.
Whitbread Chief Executive, Alison Brittain said: “Whitbread delivered total sales growth of 8.0% in the first quarter as we continue with a relentless focus on our customers, innovation and investing in our strong brands. Costa has started the year well and Premier Inn continues to win share, albeit in a weaker than expected hotel market.
“Industry data has continued to show a soft hotel market in the UK, particularly in London. During the quarter Premier Inn grew total sales by 8.0% and like for like sales by 2.1%, which benefited from our substantial hotel extension programme. Against a strong comparator Premier Inn like for like revpar declined by 0.5% and total revpar declined by 1.2%. This reflects the market environment, the expected dilution of the impact of the extension programme and the c.3,600 new rooms added in the final quarter of last year, which will mature over the next few years. We are on plan to open 4,000-4,500 new hotel rooms in 2016/17.
“Costa grew total sales by 11.5% with UK retail like for like sales growth recovering to 2.6%. We remain on plan to open 230-250 Costa stores worldwide and have increased our target to install at least 1,250 new Costa Express machines this year.
“Although it is early in our new financial year and despite current market conditions, with the benefit of our cost efficiency programme we remain confident of making good progress for the full year.”