Costa’s coffee shops return to profit with iced drinks and matcha on the menu
Summary
Costa’s coffee shops have returned to making a profit after updating their stores and adding new drinks like iced coffee and matcha. The company plans to open more stores and continue improving its services while facing competition and rising coffee prices.Key Facts
- Costa has 2,700 outlets in the UK and Ireland and about 4,000 worldwide.
- The company made an operating profit of £20 million in 2025, after losses in the previous two years.
- Revenues increased by 5% to nearly £1.3 billion in 2025.
- Costa added 50 new UK stores in 2025 and plans another 50 this year, including more drive-throughs.
- The menu now includes iced drinks, matcha (a type of green tea), and fresher pastries.
- Younger customers prefer decaffeinated options and low-calorie iced coffees like "Velvetino."
- Costa is the UK’s largest seller of matcha in cafes and the third biggest brand in home coffee machines.
- Owner Coca-Cola abandoned plans to sell Costa after bids did not meet their expectations.
- The price and availability of coffee beans remain a concern due to possible effects from the El Niño climate phenomenon.
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