Costa Coffee Returns to Profit After Menu Overhaul and Store Growth
Costa Ltd posted a £20m operating profit in 2024 after a £13.5m loss, crediting iced drinks, matcha, and fresher pastries.
Costa Coffee's core retail arm swung back to profitability in the year ending December 31, 2024, recording an operating profit of £20 million after absorbing a £13.5 million operating loss the prior year, according to newly released figures from Costa Ltd.
The turnaround followed a deliberate effort to modernize the chain's high street presence, with updated store formats and a broadened menu that introduced iced beverages, matcha-based drinks, and an upgraded selection of fresher pastries — categories that have driven growth across the wider coffee-shop sector.
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The British chain, which operates roughly 2,700 locations across the UK and Ireland as part of a global estate of around 4,000 outlets, also posted its first net increase in UK store count in several years, adding a net 50 new sites during the period. The expansion signals renewed confidence in the brick-and-mortar coffee segment despite sustained pressure on consumer spending.
Costa employs approximately 20,000 people in the UK, making it one of the country's largest high-street employers in the hospitality sector. The staffing footprint underscores the broader economic significance of its financial recovery, as the company manages costs tied to wages, energy, and raw materials that have weighed heavily on the sector in recent years.
The results suggest Costa's repositioning strategy is gaining traction at a time when rival chains have also leaned heavily on cold and specialty drinks to attract younger consumers. Continue reading at Business | The Guardian.
