Costa Coffee will give a 5% pay rise to baristas across its 1,500 company-owned stores.
From 1 April, over 15,000 hourly-paid team members across the UK will see their starting pay rise from £12 to £12.60 per hour, regardless of age bandings.
This is nearly 40p higher than the new National Living Wage for those aged over 21, which will increase from £11.44 to £12.21 in April.
Costa stated that the £8m investment is part of its commitment to providing staff with a sustainable pay rate amid the rising cost of living.
Hourly pay for ‘barista maestros’, who are team leaders and coffee trainers, will rise by an average of nearly 5%, with a minimum rate of £12.93. Those who complete role-specific training will earn £13.43 per hour.
Team members in central London will receive an additional £1 per hour above the national minimum rate, bringing starting pay to £13.60 per hour for baristas, £13.93 for new barista maestros, and £14.43 for those who complete role-specific training.
Costa stated that staff also benefit from a buy-one-get-one-free share incentive plan, 50% employee discounts, and complimentary coffee while on shift.
Nick Orrin, Costa Coffee’s UK&I managing director, said: “At Costa Coffee, our expert baristas and dedicated store teams are the driving force behind everything we do. This latest pay increase reflects our ongoing commitment to investing in and supporting our people. We are proud to recognise the passion, talent, and hard work they bring to their roles every day, ensuring exceptional experiences for our customers.”
Private-sector pay in Britain, excluding bonuses, increased by 6.2% in late 2024—the fastest annual growth in a year—according to the Office for National Statistics.