LONDON, UK – Costa Coffee has announced that it will increase pay rates from 1 April 2025 for over 15,000 team members in its 1,500 UK company-owned stores. This £8m investment raises the starting national pay rate for its Baristas to £12.60 per hour, from £12 per hour. This is part of Costa Coffee’s efforts to ensure team members continue to receive a sustainable pay rate that factors in the cost of living.
Barista Maestros, who are team leaders and coffee trainers, will see their hourly pay increase by an average of almost 5%, to at least £12.93, from £12.33. Those who complete role-specific training will then see their hourly rate boosted by a further 50p to £13.43.
Team members in central London will receive an extra £1 per hour than the national rate, bringing their starting rate to £13.60 per hour for Baristas, £13.93 per hour for new Barista Maestros, or £14.43 once role-specific training has been completed.
Costa Coffee does not operate age-bandings, so all 15,000 hourly-paid UK-based team members in company-owned stores will receive a pay uplift. Targeted bonuses are also offered to high performing store teams.
Announcing the pay rise, Costa Coffee’s UK&I Managing Director, Nick Orrin, 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.”
Following a visit to a Costa Coffee store, Rt Hon. Rachel Reeves MP, Chancellor of the Exchequer, said:
“It was fantastic to visit Costa Coffee this week and hear from staff on the difference their pay rise will make. Hard work should be rewarded, which is why from April, our increase to the National Living Wage will make three million people £1,400 a year better off.
“This is part of our Plan for Change to kick start economic growth so working people have more money in their pockets.”
This announcement builds on Costa Coffee’s comprehensive benefits, including:
- Expanded share incentive plan: Team members now have access to a buy-one-get-one-free share incentive plan.
- Training: An investment of circa £7m annually for learning and development across retail.
- Enhanced discounts: Doubling the in-store employee discount to 50%, up from 25%.
- Comprehensive support: 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.
- Complimentary coffee: Team members enjoy free Costa coffee while on shift.
- Financial support: Through a partnership with the Retail Trust, team members can access the Costa Financial Support Fund for unexpected or urgent financial pressures.
