Costa Coffee will increase pay for more than 15,000 employees in its 1,500 UK employer-owned stores from 1 April.
The starting rate will rise to £12 per hour from £10.70 for baristas, which is a 9% increase and part of a more than £15 million investment. This is also 56p per hour above the national living wage and is part of the organisation’s efforts to ensure employees receive a sustainable pay rate that factors in the cost of living.
More experienced barista maestros will see their hourly pay increase by an average of 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.
This is the fifth time Costa has increased pay rates for store-based employees since April 2021.
Nick Orrin, UK and Ireland managing director at Costa Coffee, said: “We are pleased to have had a strong 2023 that was powered by our 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.”
Jonathan Crookall, chief people officer at Costa Coffee, added: “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.”
Last year, Costa opened access to its buy-one-get-one-free share incentive plan and doubled employees’ in-store discount across the full menu to 50%. Employees can also access discounts on household purchases, bills, and entertainment, up to 10% matching on pension contributions, income protection, life assurance, a bikes-for-work scheme and the Costa Financial Support Fund through a partnership with the Retail Trust.