Costa Coffee Gives Everyone a Raise

Posted on: 2017-02-15 4:48 PM

To much fanfare, the UK’s biggest coffee chain announced it was set to lift employee pay above the minimum hourly rate without pushing up the cost of its lattes and cappuccinos.
 
Costa Coffee has hiked the price of its in-store drinks by 20p. Then we discovered the Whitbread-owned business has added 20p to the cost of favorites such as Americanos and flat whites bought in its 2,000-plus cafes.
 
And drinks purchased using Costa Express machines – there are more than 6,000 found on forecourts, train stations, and corner shops – have risen by 10p. The move has prompted outraged customers to take to social media to question whether they had been overcharged.
 
The cost increases are to cover an increase in staff pay to meet the national living wage
Alan McCluskie tweeted the firm: “Why has the price for a cappuccino at the Costa next to Swindon station gone up yet again? It’s time to go elsewhere.”
 
The company replied: “This price increase aligns us in price with our nearest competitors while remaining cheaper on a number of core drinks.”
 
On Facebook, Rob Thewlis added: “Another Costa price rise. £2.35 for a small latte!
 
“I think it’s time to find somewhere else to have a morning coffee.”
 
“Such a shame cos the staff at my local Costa are lovely.”
 
Angry customers took to social media to hit out at the price hikes, claiming they’d take their business elsewhere.
 
The firm announced in September 2015 it would pay its baristas more than the Government’s new £7.20 “national living wage” that came into force in April 2016.
 
At the time, Costa boss Chris Rogers said that the firm’s prices would not automatically rise in tandem with the chain’s new wage policy.
 
But last night the firm confirmed it had now hiked prices due to increased costs.
 
In 2015, the company’s boss Chris Rogers claimed that the wage increase would not affect the price of drinks.

A spokeswoman said: “We have made a small increase in our prices to help us further invest heavily in our store refurbishments, barista training, and new products.
 
“We remain highly competitive, with our large cappuccino retailing at up to 30p cheaper than our nearest competitor.”