The UK’s largest coffee chain will increase hourly barista pay by up to 7.3% across more than 1,500 company-owned stores, its third rise for UK staff within 12 months
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Costa Coffee said this is the third time it has increased pay rates within the last 12 months | Photo credit: Costa Coffee
Costa Coffee has announced an average 6.7% pay rise for baristas across its 1,520 company-owned UK stores.
As part of a £12m ($13.6m) investment in its staff, Costa Coffee said more than 16,000 employees will receive a rise of between 6.1% and 7.3% from 1 April 2023.
The UK’s largest coffee chain will increase hourly base pay rates for its baristas from £10 ($12) to at least £10.70 ($12.90), while hourly pay will rise from £10.53 ($12.70) to at least £11.23 ($13.50) for more experienced ‘Barista Maestros’.
Costa Coffee said this is the third time it has increased pay rates within the last 12 months, with the Bedfordshire-based coffee chain’s base rate of pay rising 14% over the period.
The move follows a recent announcement by Pret A Manger, which said its 7,870 baristas, store managers and in-store team members across the UK will receive an additional 3% pay increase from April 2023 — also representing a third wage rise within 12 months.
“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. 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,” said Nick Orrin, Interim UK&I Managing Director, Costa Coffee.
Costa Coffee has also introduced a new performance-based direct payment bonus for employees and an improved 50% staff discount across its whole menu.
Company-operated stores comprise more than 55% of Costa Coffee’s circa 2,700 UK store estate.
World Coffee Portal research shows Costa Coffee holds a 27% share of the total UK branded coffee shop market, ahead of Greggs and Starbucks, at 24% and 12% respectively.