Costa Coffee returns to profit as UK revenue rises 5%
Costa plans to open 50 additional UK outlets, remodel around 250 stores annually and expand into office coffee machines as it targets changing consumer preferences.
UK – Costa Coffee has returned to operating profit after investing in store renovations, expanding its drinks range and opening new outlets, as the UK coffee chain recorded stronger revenue growth and its best increase in customer visits in a decade.
Costa Ltd reported an operating profit of £20 million (US$26.4 million) for the year ended 31 December 2025, reversing a £13.5 million (US$17.8 million) loss in 2024.
Revenue rose 5% to almost £1.3 billion (US$1.7 billion), compared with 1% growth in the previous year, according to accounts filed at Companies House.
The company opened a net 50 new outlets across the UK in 2025, marking its first annual net increase in several years. It plans to add another 50 locations this year, including drive-through sites and high street cafés.
Costa has approximately 2,700 outlets across the UK and Ireland and 4,000 worldwide, employing around 20,000 people.
Chief executive Philippe Schaillee said the business was adapting to changing consumer preferences and a wider range of drinking occasions.
“The coffee shop is increasingly a destination for morning and afternoon,” he said. “People not only want caffeine but iced herbal teas and those drinks that people will drink in the afternoon and evening.”
Costa has broadened its menu to include iced coffees, matcha, decaffeinated coffee and lower-calorie beverages, targeting younger consumers and those seeking alternatives to caffeinated drinks later in the day.
The company said it is now the UK’s largest café seller of matcha, while its Velvetino low-calorie iced coffee has proved popular with younger customers.
The chain is also upgrading its physical estate, with plans to remodel around 250 stores annually. More than 1,200 of its 1,700 company-owned outlets have already been refurbished. Digital self-order kiosks are operating in approximately 200 UK locations.
Costa is extending its presence beyond traditional cafés through Podio, an office coffee machine proposition launched in May. The company describes the machines as a barista in your office.
Schaillee said Costa was already the UK’s third-largest brand in home coffee machines, describing the opportunity in the category as “limitless”.
The company is preparing to open a new headquarters in St Albans, Hertfordshire, in January, with capacity for approximately 300 employees. Schaillee said the move “really signals our confidence in the business”.
The improved performance follows Coca-Cola’s decision in February to abandon plans to sell Costa after failing to attract bids that met its expectations. Coca-Cola acquired the chain from Whitbread in 2018 for £3.9 billion (US$5.2 billion).
Rising coffee bean prices and intensifying competition continue to challenge the business.
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