Full Breakdown
Greggs Overtakes Costa as the UK’s Largest Branded Coffee Operator
By Drooid · · How we work
Core Event
Greggs has displaced Costa Coffee as the UK’s biggest branded coffee operator by outlet count. Allegra World Coffee Portal’s Project Cafe UK 2026 report lists Greggs at 2,737 locations versus Costa’s 2,707, marking the first time the bakery chain leads the coffee segment. The shift follows Greggs’ addition of 34 new stores in the first half of the year, bringing its total to over 2,700 outlets.
Market Context
The UK coffee-shop market grew to £6.8 billion in 2025, a rise of more than 5 % year-on-year, with the total number of branded coffee outlets reaching 12,300—a 3.5 % increase on the prior year. Consumer preferences are trending toward lower-priced coffee combined with quick-serve food, a niche where Greggs positions itself as a value leader. Costa, traditionally a coffee-and-cake specialist, is focusing on refurbishment and product refresh rather than expansion and reported losses exceeding £13 million for 2024. Coca-Cola’s planned sale of Costa stalled after limited bidder interest.
Financial Performance & Expansion
Greggs’ half-year results for the 26 weeks to 27 June 2026 show total sales up 7.2 % to £1.10 billion and pre-tax profit rising 19.7 % to £76.0 million, with the share price gaining 12 % on the announcement. Like-for-like sales increased 2.1 % in company-managed shops and 1.3 % in franchised outlets. The company plans to open more than 100 new stores in 2026 and ultimately reach 3,500 outlets, including smaller “Bitesize” formats.
Official Statements & Responses
Greggs chief executive Roisin Currie attributed the market share gains to stronger performance in coffee, breakfast, vegan-friendly options and iced drinks. The firm also highlighted its No. 1 ranking on YouGov’s Brand Index for value among quick-stop and coffee-shop services, reinforcing its strategy of affordable coffee offerings.
Conflicting Reports & Gaps
Allegra’s Project Cafe UK 2026 report cites Greggs at 2,737 outlets, while Streamlinefeed’s market summary notes the estate at 2,773 shops after the same 34 net openings. The source of the discrepancy is not explained, and no additional data on Costa’s exact outlet count beyond the 2,707 figure is provided.