Skip to content
City PM
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Opinion
  • DE
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Opinion
  • DE
Monday 06 March 2023 11:56 am  |  Updated:  Monday 06 March 2023 11:57 am

Costa Coffee hikes staff pay as cost of living crisis prompts chain to raise wages for third time in 12 months

By: Laura McGuire

Add as a preferred source on Google
Idhl said winning new clients such as Costa Coffee helped to increase its revenue during 2023.
Idhl said winning new clients such as Costa Coffee helped to increase its revenue during 2023.

Costa Coffee became the latest coffee chain to give its staff a pay rise, as employers seek to retain employees who are battling a cost of living crisis.

Beginning in April, some 16,000 baristas at the high street coffee chain will see wages increase from £10 per hour to £10.70 per hour. 

The rise is the third pay rise in over 12 months, for staff during which the base rate has risen from £9.36 to £10.70 per hour – an increase of over 14 per cent. 

More experienced Barista staff will see an uplift from £10.53 to at least £11.23 per hour, depending on location and role. 

Nick Orrin, interim UK&I managing director at Costa Coffee, said.: “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 comes as rival chain Pret a Manger revealed last week that it would increase staff pay by 19 per cent in April.

The rise will now see Pret baristas be amongst the highest paid in the industry, earning up to £11.80 – £14.10 per hour based on location, level and bonus inclusion. 

Read more

Coca-Cola brings in restructuring lineup over failed Costa sale

Costa Coffee was acquired by Coca-Cola in 2019. (Photo by Dan Kitwood/Getty Images)

Guy Meakin, interim managing director at Pret A Manger UK & Ireland said:“Our people work incredibly hard to make Pret such a well-loved place on the high street, and we wanted to thank them for their continued energy and commitment. 

“As the cost of living continues to rise, we hope this latest increase in pay, and our expanded benefits package, goes some way in providing further support for our hardworking teams.”

Supermarket Tesco also announced last month that it would raise hourly pay for about 220,000 store workers by seven per cent from April.

It was followed by Asda who also announced a 10 per cent pay rise for its staff and Sainsbury’s announced an increase in January.

Kate Nicholls, chief of UK Hospitality, told City A.M: “Ensuring staff are paid a fair wage is a priority for businesses to both recruit, reward and retain employees.

“At its heart, hospitality is a people business and the millions that work in the sector to make that happen deserve to be paid a fair wage, particularly during the challenging circumstances many now face.”

Read more

Jobs crisis: UK unemployment to hit highest level in a decade

London office workers collaborating on AI and tech projects, surrounded by computers and digital interfaces in a modern wo...

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Retail

Trending Articles

  • Exclusive: Big Four giant KPMG to cut more jobs

  • Music tycoon Simon Cowell sued by prominent City lawyer

  • The former African gold miner taking on the billionaire Issa brothers

  • Tesco ‘in talks’ to exit eastern Europe

  • As it happened: FTSE 100 slump as oil soars; Trump says Iran will be ‘hit hard’ tonight

More from City PM

  • Coca-Cola brings in restructuring lineup over failed Costa sale

    Advisory
    Costa Coffee was acquired by Coca-Cola in 2019. (Photo by Dan Kitwood/Getty Images)
  • Jobs crisis: UK unemployment to hit highest level in a decade

    Business
    London office workers collaborating on AI and tech projects, surrounded by computers and digital interfaces in a modern wo...
  • M&S chair: Tax and employment costs holding back Britain

    Retail
    Archie Norman, business leader, speaking at a corporate event wearing a suit and tie, engaging with the audience.
  • Legal & General handles King’s staff pension schemes as monarch’s £13m tax bill revealed

    News
  • Pret A Manger dumps US franchise agreement after just two years

    Retail
    A busy Pret A Manger storefront with customers entering and exiting during lunchtime in a bustling city center.
  • The fallacy of blaming rich footballers for inequality

    Opinion
    Cristiano Ronaldo celebrates a goal during the 2026 World Cup match on June 17, showcasing his iconic jersey and skills.
  • Freddie’s Flowers losses double after firm shuts London warehouse

    Retail
    Freddies Flowers vibrant floral arrangement highlighting diverse blooms in a stunning display for a business spotlight fea...
  • Zero-hour crackdown could wipe out seasonal work, Labour warned

    Retail
    Labour MPs are being warned a “perfect storm” of costs facing the retail sector could see seats lost to Reform UK.

City PM — European politics, business and analysis.

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Topics

  • Business
  • Markets
  • AI
  • Technology
  • Opinion
  • Energy

More

  • Politics
  • Economics
  • Fintech
  • Legal
  • Sport
  • Life

Company

  • About City PM
  • Editorial Policy
  • Corrections
  • Contact
  • Terms of Use
  • Privacy Policy
  • Cookie Policy
© 2026 City PM · Published by CityPM Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
About · Editorial Policy · Corrections · Contact · Privacy · Facebook