Philippe Schaillee, chief executive of Costa Coffee, has overseen a significant turnaround of the UK-based coffee chain after a period of uncertainty under its owner, Coca-Cola. Since assuming leadership in April 2023, Schaillee has focused on revitalizing the brand’s store experience, product offerings, and overall profitability.

Coca-Cola acquired Costa in 2018 for £3.9 billion, aiming to expand beyond its core soft drinks business into hot beverages. However, the acquisition did not initially meet expectations. In early 2026, Coca-Cola attempted to sell Costa, anticipating a price far below its original investment. The auction process failed to attract suitable buyers, and the sale was ultimately called off in January, leaving the chain’s 20,000-strong workforce facing uncertainty.

Despite concerns, Schaillee characterized the sale process as non-disruptive internally. He emphasized a clear message to employees to focus on business performance amid external speculation. Drawing on more than three decades in the consumer goods sector—25 years specifically within the coffee industry—Schaillee brought experience from roles at companies including JDE Peet’s to his current position.

Under Coca-Cola’s ownership, Costa expanded its presence from 32 to roughly 50 countries. Schaillee has sought to align further growth with evolving consumer preferences, particularly targeting younger customers who had previously felt the brand’s outlets were outdated. Store refurbishments include brighter lighting, updated furnishings, and adjustments to barista workflows designed to enhance customer experience. The traditional heavy burgundy décor has been replaced with a lighter palette to reflect a more premium coffee offering.

Costa has also revamped its menu, with a particular focus on cold brew beverages to meet shifting consumer demand. This combination of store enhancements and product innovation contributed to a 3.5 percent revenue increase to £1.74 billion for the 12-month period ending December 2025. Pre-tax profits rose significantly to £63 million, compared to £16 million the previous year. Transaction growth in the first half of 2026 was the strongest Costa has recorded in over a decade.

Since 2023, the company has refurbished more than 1,060 stores in the UK and Ireland, with over 200 additional refreshes planned for 2026. Costa is also expanding its footprint, targeting 51 new stores this year, including drive-through locations and airport sites. Schaillee identified Scotland and London as under-served markets where the brand seeks greater penetration, noting London’s strategic importance due to its international customer base.

While the future ownership of Costa remains uncertain, with Coca-Cola yet to confirm whether it will retain or resell the chain, the company acknowledges considerable progress under Schaillee’s leadership. Coca-Cola’s new CEO, Henrique Braun, reiterated in July that Costa remains an integral part of the company’s portfolio.

Schaillee attributed the improved performance to a focused strategy informed by consumer insights, reinforcing the importance of adapting the brand to contemporary market demands. He noted the company’s cautious approach to publicizing its recovery, preferring to ensure consistent results before making announcements. The recent momentum suggests Costa may be emerging stronger following several challenging years.