Case Study: Costa Coffee – Enhancing Customer Engagement with LS Retail Solution

Costa Coffee, one of the world’s leading coffeehouse chains, has rapidly expanded its presence across India with over 250 outlets. As the brand grew, it faced multiple operational challenges, from managing aggregator dependencies to ensuring real-time stock visibility and timely financial reconciliations. To address these hurdles, Trident implemented LS Retail and Microsoft Dynamics 365 Business Central, helping Costa Coffee streamlines its operations, enhances customer engagement, and drives business growth.

Business Setup

• • 250 outlets across India, covering metro cities and Tier-1 & Tier-2 markets.

• • 250+ POS terminals, with larger cafés running 2–3 terminals.

• • Product range of 150–180 SKUs, including hot/cold beverages, bakery, snacks, and
    seasonal items.

• • 180–220 daily transactions per café across dine-in, takeaway, and delivery.

• • B2B partnerships, including kiosks in corporate offices and co-working spaces.

• • Omnichannel presence across dine-in, takeaway, Swiggy, Zomato, and Costa Coffee’s
    own app/website.

Key Business Challenges Before Implementation

• • Aggregator Dependence: High commission costs and delayed settlements from platforms like Swiggy and Zomato.

• • Stock Visibility Gaps: Lack of real-time tracking for coffee beans and ingredients across outlets.

• • Reporting Delays: Store-level performance data was consolidated manually, slowing down decision-making.

• • Freshness & Shelf-life Issues: Difficulty managing perishable items like milk, bakery goods, and coffee beans.

• • Slow Menu Rollouts: New seasonal SKUs were delayed in implementation across multiple outlets.

• • Fragmented Customer Data: Lack of a unified view of customer behavior across app and store transactions.

Solutions & Benefits

• • Smart Inventory Control: Automated demand forecasting reduced wastage and ensured product freshness.

• • Centralised Menu Updates: Seasonal SKUs pushed instantly across all POS systems for consistency.

• • Unified Loyalty Platform: Improved customer retention with insights into customer behavior preferences.

• • Automated Financials: Faster reconciliations with delivery partners and compliance with GST regulations.

• • Real-time Analytics: Dashboards provided instant insights into sales, inventory, and outlet performance.

• • Scalable Expansion: Standardised IT systems made it easier to roll out new cafés across India.

• • Omnichannel Integration: Aggregator, app, and POS orders synced for seamless customer experience.

Conclusion

By implementing LS Retail and Microsoft Dynamics 365 Business Central with Trident’s expertise, Costa Coffee successfully transformed its operations. The unified system enabled better stock control, faster reconciliations, and consistent customer experiences across channels. With a scalable IT infrastructure, Costa Coffee is now well-positioned to continue its expansion across India while ensuring freshness, efficiency, and customer loyalty at every step.

Frequently Asked Questions

Q 1: How did Costa Coffee reduce its dependency on aggregators?
Ans: With LS Retail, Costa Coffee integrated its own app and website with POS systems, reducing over-reliance on third-party platforms.

Q 2: How does the solution improve customer loyalty?
Ans: A unified loyalty platform allows Costa Coffee to track customer behavior across channels, providing personalised offers and improved retention.

Q 3: What role does real-time analytics play?
Ans: Real-time dashboards enable management to monitor sales, inventory, and performance instantly, helping in faster and more informed decision-making.

Q 4: Is the solution scalable for future growth?
Ans: Yes, the standardised IT backbone ensures easy rollout of new cafés while maintaining consistent processes and data visibility.

Q 5: How were financial operations improved?
Ans: Automated reconciliation with delivery partners and GST compliance significantly reduced delays and manual errors in financial reporting.