Costa Coffee baristas to receive a pay rise in April 2024

Source: Costa Coffee

Costa Coffee is increasing pay rates for more than 15,000 employees working at its 1,520 company-owned stores in the UK.

An average rise of 9% will be applied to staff wages from 1 April, marking the fifth successive time the coffee chain has improved barista pay since April 2021.

The same initiative last year saw Costa invest £12m, while this time around it is making a £15m outlay. Part of this investment is going towards increasing the starting national pay rate for its baristas from £10.70 to £12 per hour.

This new rate is 56p per hour above the National Living Wage, which Costa said reflected 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, meanwhile, will see their hourly pay increased by an average of 8% to at least £12.33 per hour. This is to be boosted by a further 50p to £12.83 per hour once role-specific training has been completed.

Central London-based employees are to receive an extra £1 per hour, bringing their starting rate to £13 per hour, or £13.33 for new Barista Maestros – the 50p add-on also applies to these after training.

Rival brand Pret has also rolled out a series of pay rises for its employees in recent years, its latest being a 3% increase last April.

Staff powered

Costa stated that it does not operate age-bandings, granting the pay uplift to the entire workforce at its UK stores while also offering targeted bonuses to high performing teams.

“We are pleased to have had a strong 2023 that was powered by our expert baristas, who remain critical to our ongoing success,” said Costa Coffee’s UK&I managing director Nick Orrin. “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 Jeremy Hunt called it “fantastic news” that Costa had 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,” he added.

The 9.8% increase in National Living Wage announced in the government’s Autumn Statement received mixed reactions from the baking industry, with Craft Bakers Association chief executive Karen Dear voicing concern about its impact on small bakery businesses.

Costa’s latest menu launched at the start of 2024 unveiled new vegan, sweet and savoury baked goods including a Plant-Based Saucy Chicken Fajita Wrap, a Pork & Apple Sausage Roll, and a Caramelised Biscuit Rocky Road.