Costa Coffee Unveils Significant Expansion Plans for Wales
Costa Coffee has confirmed a major expansion of its presence in Wales, with plans to open four new outlets this year as part of a £1.5 million investment. This initiative is set to create 40 new jobs across the region, bolstering the local economy and providing enhanced convenience for customers.
New Store Openings and Locations
The expansion has already begun with the opening of a new store at a Sainsbury’s supermarket in Newport, which has generated seven employment opportunities. In the coming months, at least three additional stores are scheduled to launch, including two new drive-thru restaurants at Border Retail Park in Wrexham and Buttington Cross in Welshpool. Furthermore, a new store will open at a Sainsbury’s supermarket in Rhyl during the summer of 2026.
In addition to these new openings, Costa Coffee is investing £1 million to upgrade nine existing stores in Wales during the first half of 2026. This dual approach of expansion and refurbishment underscores the company's commitment to strengthening its footprint in the area.
Leadership Insights on Growth Strategy
Matthew Cyprus, Costa Coffee's regional operations director for the south west of England, Wales, and the Midlands, emphasized the importance of Wales as a key growth region. He stated, "Wales remains a key growth region for Costa Coffee, and we’re proud to be continuing our investment across South, Mid and North Wales this year. The opening of our Costa Coffee store in Newport Sainsbury’s is the first of several planned for 2026, as we expand our footprint and bring Costa Coffee to even more communities. These new stores will not only provide greater choice and convenience for customers, but also create valuable job opportunities locally."
Pay Increase for UK Staff
Alongside the Welsh expansion, Costa Coffee has announced a £7 million investment to increase pay for over 16,000 team members in its 1,500 UK company-owned stores from April 2026. This marks the seventh pay increase for store team members since 2021, reflecting the company's ongoing commitment to its workforce.
Under this new pay structure, baristas will see their hourly wage rise to £13.12, up from £12.60. More experienced staff, including team leaders and coffee trainers, will receive an increase from between £12.93 and £13.43 to £13.75 per hour. Store managers will benefit from an overall 3% pay increase.
Executive Comments on Employee Investment
Nick Orrin, Costa Coffee’s managing director for Ireland and the UK, highlighted the value of the company's employees, saying, "Our talented baristas and team members are the heart of Costa Coffee, with every drink shaped by their expertise, skill and passion. This latest pay uplift reflects our ongoing commitment to recognise, reward and invest in the people who deliver great coffee experiences and daily rituals for our customers across the UK."
Chancellor Rachel Reeves also welcomed the pay increase, noting, "It’s fantastic to hear that Costa Coffee are recognising and supporting their hard-working staff with this pay increase. Hard work should be rewarded, which is why from April, our increase to the National Living Wage will benefit 2.4 million people, with full-time workers on the National Living Wage being £900 a year better off."
Company Background
Founded in London by Italian brothers Sergio and Bruno Costa in 1971, Costa Coffee has grown into a global brand with a presence in 50 countries. The company operates more than 4,000 coffee shops worldwide, including 2,700 in the UK and Ireland, making it a significant player in the international coffee market.
