Costa Coffee has revealed it is investing £12 million towards pay increases for 16,000 team members across its 1,520 UK stores.
Hourly wages for employees are set to increase by between 6.1% and 7.3%, excluding bonuses, as part of £12 million annual investment in its teams with effect from 1 April 2023.
This is the third time Costa Coffee has increased its pay rates over the last 12 months. In this time, the company’s base rate of pay has risen from £9.36 to £10.70 per hour – an increase of over 14%.
From April, base pay rates for Costa Coffee’s baristas will increase from £10 per hour to at least £10.70 per hour, whilst more experienced baristas will see an uplift from £10.53 to at least £11.23 per hour, depending on location and role.
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The coffee shop says that all store team members, regardless of age, will receive at least £10.70 per hour thanks to its commitment to not differentiate based on age.
Upon completion of an introductory training programme, baristas can receive an extra uplift of 20p per hour, with barista maestros seeing a boost of 50p per hour – meaning three-quarters of its team members will be on at least £10.90 per hour from April.
All team members can benefit from a bonus linked to the performance of their store; previously rewarded in vouchers, but now provides the bonus as a direct payment. Free drinks are always available whilst on shift and the company has this year increased its team member discount from 25% to 50% across its whole menu.
Additionally, Costa team members continue to be able to access wide-ranging discounts on household purchases, bills, and entertainment; up to 10% matching on pension contributions; income protection, life assurance; and a cycle-to-work scheme.
“Our expert Baristas are at the heart of our business and the communities we serve, and we are proud to be rewarding their amazing work. This increase reflects everything they continue to do for our customers to make their day that little bit better,” interim managing director for UK and Ireland, Nick Orrin said.
He added: “We continue to live in uncertain times, but we are passionate about putting our teams and communities first.
“By always investing in our stores and our teams, we can give everyone a little boost each time they step inside their local Costa Coffee,” Orrin said.
It comes as Kind Snacks partnered with Costa Coffee in January, launching new low-calorie snack bars across 1,500 Costa Coffee stores.
