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