Costa Coffee announces 6.7% pay rise for more than 16,000 staff

Costa Coffee has announced a boost in its hourly wages at its 1,520 company-owned stores in the UK by between 6.1% and 7.3%.

From 1 April, base pay rates for its baristas will increase from £10 per hour to at least £10.70 per hour, regardless of age, while barista team leaders will see an uplift from £10.53 to at least £11.23 per hour, depending on location and role and excluding bonuses.

On completion of an introductory training programme, baristas can quickly receive an extra uplift of 20p per hour, with team leaders seeing a boost of 50p per hour. This means three-quarters of its team members will be on at least £10.90 per hour from April.

This is the third time Costa Coffee has increased its pay rates in the last 12 months, with the company's base rate of pay rising from £9.36 to £10.70 per hour during this period – an increase of over 14%. Just last week Pret also announced a pay rise for staff for the third time in 12 months.

Nick Orrin, interim UK&I managing director, said: “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.”

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.”

Costa Coffee has also enhanced its wider offer to team members as part of a total annual investment of over £12m, with all team members able to benefit from a bonus linked to the performance of their store. Previously rewarded in vouchers, following team feedback this bonus will be provided as a direct payment.

Employees can also access free drinks while on shift, and the team member discount has increased from 25% to 50%.

Founded in London by Italian brothers Sergio and Bruno Costa in 1971, Costa Coffee is present in 45 countries around the world, with more than 2,800 coffee shops in the UK and Ireland and 1,100 globally.