Cost of living: Costa Coffee to increase staff wages by up to 7.3% for 16,000 UK employees
Costa Coffee is the latest coffee chain on the high street to announce a wage increase for staff.
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Costa Coffee has announced pay rises for staff across its 1,520 company-owned stores in the UK. From April 1, 2023, base pay rates for Costa Coffee’s baristas - regardless of age - will increase from £10 per hour to at least £10.70 per hour. More experienced ‘barista maestros’ will see an uplift from £10.53 to at least £11.23 per hour.
The wage increase rate depends on location, role and the completion of a comprehensive introductory training programme. After baristas have finished their training, they can quickly receive an extra uplift of 20p per hour, with maestros seeing a boost of 50p per hour. This means three-quarters of its team members will be on at least £10.90 per hour from April.
This is the third time Costa Coffee has increased its pay rates in the last 12 months. In this time, the company’s base rate of pay has risen from £9.36 to £10.70 per hour – an increase of over 14%.
Alongside the higher rates of pay, Costa Coffee has also enhanced its wider offer to team members as part of a total annual investment of over £12m. All team members can benefit from a bonus linked to the performance of their store.
Previously rewarded in vouchers, the company will now provide the bonus as a direct payment. Free drinks are also available for workers whilst on shift and the company has this year increased its team member discount from 25% to 50% across its whole menu.
Nick Orrin, Interim UK&I Managing Director, said: “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. 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.”
Costa is the latest company to announce a wage increase for staff. Last week, Pret A Manger announced its third wage increase for staff in the last 12 months. Retailers including Tesco have also given staff a pay rise recently due to workers suffering amid the cost of living crisis, with inflation now sitting at 10.1%.