London Daily

Focus on the big picture.
Wednesday, Jul 22, 2026

Costa Coffee gives staff 5% pay rise as it looks to recruit 2,000 workers

Costa Coffee gives staff 5% pay rise as it looks to recruit 2,000 workers

Increase for 14,500 shop workers comes into effect from 1 October
Costa Coffee is increasing pay for its 14,500 shop workers by 5%, as it looks for 2,000 more staff before Christmas.

The company, which was bought out by Coca-Cola in 2018, said that from 1 October all store team members would receive increases of at least 45p an hour, raising minimum pay to £9.36 an hour, up from £8.91, thenational minimum wage for those aged over 23. Top rates of pay, depending on location and experience, will increase from £10.64 an hour to £11.29.

Other perks include a quarterly incentive scheme, free coffees on shift, a team member support fund and a pension scheme. The company confirmed staff would not be paid during their statutory breaks.

Neil Lake, the managing director of Costa Coffee UK and Ireland, said: “Our team members are the heart of our business and as we continue to emerge stronger from the pandemic, this 5% pay increase is one way we are able to show our thanks to them.

“Our teams have been through the most challenging year and a half in living memory and have shown incredible passion, resilience, and commitment as they continue to serve perfectly crafted cups of Costa coffee to consumers across the country. We are committed to putting our team members first, investing in their safety and wellbeing and their long-term development, ensuring we remain a great place to work for all our current team members and the 2,000 team members we’ll be welcoming in the coming months.”

The pay rise comes amid a recruitment squeeze that has forced up wages for some lorry drivers, fruit pickers and chefs as businesses battle to retain and hire them.

The Covid-19 pandemic has worsened problems caused by Brexit, which prompted thousands of EU nationals to leave the UK.

Recent research by the job search group Indeed found rapid growth in vacancies in food preparation and service, as well as in cleaning and sanitation, customer service, driving and retail. As a result, food service jobs are paying 3.7% more than they did in February when the UK government announced its “roadmap” out of lockdown.

However, not all companies have followed the rising pay trend. Costa’s pay increase announcement came after a pay cut at struggling rival Pret a Manger, which has permanently ended paid breaks, resulting in a 6% pay cut those on an eight-hour shift. The majority of Pret staff earn £8.91 but about 80% of them receive a £1 an hour bonus if they give satisfactory service judged by a mystery shopper.
Newsletter

Related Articles

0:00
0:00
Close
UK Universities and Industry Expand Space and Defense Research Partnerships
House of Lords Approves Social Housing Bill Amendments on Shared Ownership Rights
House of Lords Advances Civil Aviation Bill With New Passenger Protection Measures
UK Government Suspends Tariffs on Fertilizer and Food Imports to Reduce Costs
Russell Group Universities Support New UK Business Department Focused on Innovation
UK Parliament Opens Inquiry Into Transport Barriers Facing Young Jobseekers
Home Builders Federation Calls for Lower Costs as New UK Government Sets Housing Priorities
Andy Burnham Meets UK Devolved Leaders to Strengthen Regional Cooperation
Andy Burnham Holds First International Calls With Trump, Macron, and Zelenskyy
Andy Burnham Reshuffles Cabinet With John Healey Appointed Chancellor of the Exchequer
Andy Burnham Government Removes VAT From Electricity Bills to Cut Household Costs
Andy Burnham Becomes United Kingdom Prime Minister After Sir Keir Starmer Resigns
Miliband Sets Climate and International Law at Centre of UK Diplomacy
US Gasoline Returns to $4 as Renewed Iran Fighting Disrupts Oil Flows
Czech Central Bank Governor Rejects Early Euro Entry and Rate-Cut Pressure
Trump Orders 50% Tariffs on Selected Canadian Imports
Pentagon Discloses Nearly 100 US Troop Injuries During Renewed Iran Fighting
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
US Judge Pauses Paramount Skydance and Warner Bros Discovery Merger Over Antitrust Concerns
NHS England Faces Growing Retention Pressure Among Younger Midwives
UK Data Centre Expansion Faces Water and Grid Capacity Challenges
UK Defence Shares Rise After John Healey Appointment and Continued Spending Commitments
OECD Urges UK Government to Review Pension Triple Lock to Protect Public Finances
Bank of England Keeps Cautious Approach as Energy Costs Threaten Inflation Progress
County Councils Call for Wider Devolution and Long-Term Social Care Funding Reform
IMF Urges UK Government to Maintain Fiscal Discipline as Growth Forecast Slows
Russian Warship Holds Live-Fire Exercises Near UK Coast as Royal Navy Monitors Activity
Mitie Agrees Three Point One Billion Pound Takeover by OCS in Another Blow to London Listings
JPMorgan Chase Warns Bank Levies Could Hit UK Growth and Drive Capital Away
UK Unemployment Holds at Four Point Nine Percent as Labour Market Shows Resilience
UK Government Borrowing Falls Below Forecasts as Treasury Receives Early Fiscal Boost
John Healey Cuts VAT on Household Electricity Bills After Cancelling National Digital ID Scheme
Andy Burnham Forms New Labour Government With Ten-Year National Renewal Plan
EU Imposes Record €550 Million Digital Services Fine on AliExpress
UK Publishes Updated Consumption-Based Carbon Emissions Data
English Regions Prepare for Expanded Devolution and Infrastructure Powers
Russell Group Backs New Government and Calls for Stronger University-Industry Links
Bank of England Maintains Restrictive Monetary Policy Amid Persistent Inflation
Climate Progress Report Renews Debate Over the UK's Net Zero Strategy
New UK Government Launches Drive to End Rough Sleeping and Expand Social Housing
Prime Minister Andy Burnham Appoints John Healey as Chancellor in Cabinet Reshuffle
OECD Calls for Structural Reforms as UK Economy Faces Slower Growth
International Monetary Fund Expects UK Economic Growth to Slow to One Percent in 2026
Andy Burnham Takes Office as UK Prime Minister and Unveils Decade-Long Reform Agenda
London’s Housing Starts Collapse as Planning and Building Costs Stall Development
Charlie Sheen’s Daughter: "My Dad Didn’t Buy Me a House, My Breasts Bought It"
Vivienne Westwood Casts Cicciolina, 74, in Its New Autumn Campaign
Dejavu: Germany’s Military Expansion Reshapes Europe’s Strategic Balance With France
Naturally Conceived Identical Quadruplets Born in Rare Brisbane Delivery
Tate Brothers Fight British Extradition Bid After Miami Arrests
×