Costa's coffee shops return to profit with iced drinks and matcha on the menu
News Source
β’Sun, 04 Oct 2026 09:50:28 GMT
π° What Happened
Costa's main coffee shop arm has returned to an operating profit. It made 20 million pounds in the year to 31 December 2025. That followed losses of 13.5 million pounds in 2024 and 5.8 million the year before.
Sales rose 5% to almost 1.3 billion pounds. The chain also opened a net 50 new UK outlets last year, its first net increase in several years. It plans 50 more this year, including drive-throughs. Costa changed its menu, adding iced drinks, matcha and fresher pastries.
π The Backstory
Costa has 2,700 outlets in the UK and Ireland out of 4,000 worldwide. It employs about 20,000 people. In recent years, its classic coffee sales faced heavy competition from Greggs, Gail's, Caffe Nero and many smaller shops.
Younger customers want decaf and other choices, and many avoid caffeine in the afternoon. Costa says it is now the largest seller of matcha through cafes in the UK. These menu changes helped the chain turn its losses around.
π― Why It Matters
Costa's comeback shows how changing what you sell can win back customers. It also means more jobs and new shops on high streets across the UK.
Costa's main coffee shop arm has returned to an operating profit. It made 20 million pounds in the year to 31 December 2025. That followed losses of 13.5 million pounds in 2024 and 5.8 million the year before.
Sales rose 5% to almost 1.3 billion pounds. The chain also opened a net 50 new UK outlets last year, its first net increase in several years. It plans 50 more this year, including drive-throughs. Costa changed its menu, adding iced drinks, matcha and fresher pastries.
Costa has 2,700 outlets in the UK and Ireland out of 4,000 worldwide. It employs about 20,000 people. In recent years, its classic coffee sales faced heavy competition from Greggs, Gail's, Caffe Nero and many smaller shops.
Younger customers want decaf and other choices, and many avoid caffeine in the afternoon. Costa says it is now the largest seller of matcha through cafes in the UK. These menu changes helped the chain turn its losses around.
Costa's comeback shows how changing what you sell can win back customers. It also means more jobs and new shops on high streets across the UK.