Costa Coffee Wins High Court Injunction Against Rival Chain Jamaica Blue

Costa Coffee has successfully obtained a High Court injunction to stop a rival chain, Jamaica Blue, from opening at a Co Down shopping centre. The court's decision was based on a restrictive covenant in the lease agreement between the shopping centre's owner and Costa Coffee, which prohibits any other unit from being used for the principal business of a coffee shop. The court ruled that Jamaica Blue's business was primarily focused on coffee, despite the fact that it also offered food, and granted an interim injunction to prevent the rival chain from operating at the shopping centre.

Key Takeaways:

• Costa Coffee has been trading at the Lesley Bloomfield Shopping Centre since 2011, with a lease that includes a restrictive covenant prohibiting any other coffee shop from operating in the centre.
• The covenant would not apply if the use of the unit as a coffee shop was additional to the main use by the tenant.
• Talks began in March this year about letting two units to Jamaica Blue, but the company's promotional materials and website showed a clear focus on coffee.
• The court was shown a promotional video, extracts from Jamaica Blue's website, photographs of the layout of the store, and franchise promotional material, all of which indicated that its business was primarily focused on coffee.
• The judge ruled that the question of whether Jamaica Blue was in direct competition with Costa Coffee was whether it provided a similar offering to the consumer.
• The judge found that, based on Jamaica Blue's literature and promotional materials, its business was primarily focused on coffee, with food being a secondary offering.

Statistics:

• Costa Coffee has been trading at the Lesley Bloomfield Shopping Centre since 2011.
• The lease agreement between the shopping centre's owner and Costa Coffee was extended in 2021 until 2031.
• According to Jamaica Blue's promotional video, coffee was its primary offering, with food coming second.
• Jamaica Blue's sales split was reportedly 56% for food, 28% for coffee, and 16% for other drinks.
• The court ruled that the average consumer would view Jamaica Blue as a coffee shop where coffee is the primary offering, with the add-on of food.

Sources:

• Belfast Telegraph
• Judgment of Madam Justice McBride, June 5
• Michael Conroy, Costa Coffee director, affidavit
• Mr Herbert, landlord's affidavit
• Jamaica Blue, promotional video
• Jamaica Blue's website
• Franchise guides and promotional material