Costa Coffee to invest £7m in staff pay rise as wage pressure builds
Costa Coffee will increase hourly pay for more than 16,000 team members across its 1,500 UK company-owned stores from 1 April 2026.
The increase reportedly marks the seventh pay rise for store staff since 2021.
The £7m investment will see barista pay rise from £12.60 to £13.12 per hour, while more experienced Barista Maestros, who act as team leaders and coffee trainers, will see their hourly rate increase to £13.75, up from between £12.93 and £13.43.
Store managers will receive an overall 3 per cent pay uplift.
In Central London, team members will continue to receive a £1 per hour premium above the national rate, taking barista pay to £14.12 per hour and Barista Maestro pay to £14.75 per hour.
Costa said it does not operate age bandings, meaning all hourly-paid team members in company-owned stores will benefit from the increase. Targeted bonuses will also remain in place for high-performing store teams.
The move comes ahead of changes to the National Living Wage in April and reflects continued wage pressure across the retail and hospitality sectors, including supermarkets and food-to-go operators competing for frontline talent.
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Nick Orrin, UK&I managing director at Costa Coffee, said the uplift demonstrates the business’s commitment to rewarding store teams.
“Our talented baristas and team members are the heart of Costa Coffee, with every drink shaped by their expertise, skill and passion,” he said.
“This latest pay uplift reflects our ongoing commitment to recognise, reward and invest in the people who deliver great coffee experiences and daily rituals for our customers across the UK.”
Chancellor of the Exchequer Rachel Reeves welcomed the announcement, noting that the government’s National Living Wage increase from April will leave full-time workers on the rate £900 a year better off.
“It’s fantastic to hear that Costa Coffee are recognising and supporting their hard-working staff with this pay increase,” she said.
