Costa Coffee to boost pay in April

Costa Coffee has announced that from 1 April 2024 it will increase pay rates for over 15,000 team members in its 1,500 UK company-owned stores. 

This is the fifth time the company has increased pay rates for store team members since April 2021. 

As part of an investment of over £15m, the company’s starting national pay rate for its Baristas will increase to £12 per hour, from £10.70 per hour. It takes Costa Coffee’s starting rate to 56p per hour above the National Living Wage and is part of its efforts to ensure team members continue to receive a sustainable pay rate that factors in the cost of living.

The company’s more experienced Barista Maestros will see their hourly pay increase by on average 8%, to at least £12.33. This is boosted further by 50p to £12.83 per hour once role-specific training has been completed. 

Team members in Central London will receive an extra £1 per hour, bringing their starting rate to £13 per hour, or £13.33 for new Barista Maestros. 

Costa Coffee does not operate age-bandings, so all 15,000 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: “We are pleased to have had a strong 2023 that was powered by our expert Baristas, who remain critical to our ongoing success. We are delighted to announce this latest investment in our team members to thank them for the passion and skill they display each and every day.”

Chancellor of the Exchequer, Jeremy Hunt said: “It’s fantastic news that Costa Coffee has confirmed a pay rise for 15,000 people across the country. Rewarding work matters which is why we have cut taxes for 29 million people and increased the National Living Wage by a record amount.”

This announcement follows Costa Coffee’s investment last year in team member benefits, including opening access to the Company’s buy-one-get-one-free share incentive plan and the doubling of the employee in-store discount across the full menu to 50%, from 25%. 

Team members can also access wide-ranging discounts on household purchases, bills, and entertainment, up to 10% matching on pension contributions, income protection and life assurance, and a cycle-to-work scheme.   

Chief people officer, Jonathan Crookall, added: “Whenever you visit our stores you can’t help but be lifted by the great customer experience delivered by our teams. By investing in a sustainable wage for our team members and creating the conditions for everyone’s continued development and growth, we can make a real difference for our people, customers, and communities across the country.”