KUALA LUMPUR, March 16 — Costa Coffee, the world's second largest coffee chain, will start opening concept stores and kiosks in Malaysia via master franchisee Gapurna Permai Sdn Bhd in the third quarter.

Gapurna Permai director Nor Izzati Mohamad Salim told Malay Mail the firm plans to open between six and 10 outlets from then, mainly in Klang Valley areas.

"We are expecting 70 per cent of our outlets to be in the kiosk format and 30 per cent will be in the form of cafes (concept stores),” she said during an interview today.

Nor Izzati said the group has identified several strategic Klang Valley locations in based on surroundings and market demand.

She added that the focus will be at major transport hubs, office complexes, malls and universities, but declined to name the exact locations.

According to Nor Izzati, Costa Coffee’s main draw is the bespoke drinks crafted for each customer.

Likening Costa Coffee baristas to "artisans”, she said the beverages will be prepared to the exact requirements of customers.

Commenting on the expected pricing strategy, she said the aim is to be competitive with other players while offering the best handcrafted coffee.

"Our focus is delivering the best tasting coffee as well as customer experience,” she said.

For the longer term, Gapurna Permai aims to set up 65 concept stores and kiosks in five years, with an estimated RM52 million investment.

Gapurna Permai signed a heads of terms agreement with UK-based Costa Coffee PLC earlier this month to be the chain’s master franchisee in Malaysia.

Costa Coffee has a presence in 31 countries, with over 2,100 coffee outlets in the UK, another 1,200 elsewhere and 6,000 Costa Express vending facilities worldwide.