Costa Coffee hikes pay for third time this year, as part of £12m investment in staff

Costa Coffee has increased hourly pay for its 16,000 café staff for the third time in a year, as part of a wider £12m investment in employee benefits.

Base pay for all store members will rise to at least £10.70 an hour, from £10 per hour, from 1 April. Any member trained as a barista will receive an additional 20p an hour once they’ve completed their training, while more experienced ‘Barista Maestros’ will get an added 50p an hour, seeing pay rise from £10.53 to £11.23 dependent on location and role.

It means that three quarters of Costa’s members will be on at least £10.90 per hour. 

“Our expert baristas are at the heart of our business and the communities we serve, and we are proud to be rewarding their amazing work,” said Costa Coffee interim UK&I MD Nick Orrin. “This increase reflects everything they continue to do for our customers to make their day that little bit better.

“We continue to live in uncertain times, but we are passionate about putting our teams and communities first. By always investing in our stores and our teams, we can give everyone a little boost each time they step inside their local Costa Coffee.”

It’s the third time the chain has raised pay within the past 12 months, with hourly pay increasing more than 14% during that time. It comes alongside a wider package of discounts and perks offered to Costa staff accross its 1,520 UK stores. 

It includes a change to an incentive linked to individual store performance. Previously, store staff were rewarded with vouchers, but will now receive a cash bonus. Costa has also doubled the discount offered to staff for food while on shift, from 25% to 50%, and will continue to provide free drinks.

Like all the major supermarkets, coffee chains are increasing pay in order to remain competitive during the cost of living crisis. Last week, Pret a Manger also announced what is its third pay rise during the last year, hiking base per to at least £10.60 an hour from £10.30.

In February, Costa appointed Philippe Schaillee as its new CEO, starting from 10 April.