Full Breakdown
Costa Coffee Returns to Operating Profit After Menu Revamp and Store Refresh
By Drooid · · How we work
Recent Performance and Expansion
Costa, the UK’s largest coffee chain, posted an operating profit of £20 million for the year ending 31 December 2025, reversing losses of £13.5 million in 2024 and £5.8 million the year before, according to Companies House filings. Revenue rose about 5 % to nearly £1.3 billion, up from 1 % growth the prior year. The chain now operates roughly 2,700 UK and Ireland outlets out of 4,000 worldwide and added a net 50 UK stores last year—the first net increase in several years. It plans another 50 openings this year, emphasizing drive-through and high-street locations.
Official Commentary
Chief executive Philippe Schaillee said the brand has seen its strongest visitor growth in a decade, driven by younger consumers seeking decaffeinated coffee, iced drinks and matcha.
Data Highlights
- Operating profit: £20 million (2025) vs. losses of £13.5 million (2024) and £5.8 million (2023).
- Revenue: ~£1.3 billion, a 5 % increase year-on-year.
- Store footprint: 2,700 UK/Ireland outlets; net +50 stores in 2025; remodel target of 250 stores annually, with over 1,200 of 1,700 company-owned sites already updated.
- New product focus: matcha drinks, low-calorie iced coffees such as the “Velvetino,” and expanded office coffee-machine sales.
Future Plans
Costa intends to remodel about 250 stores each year, continue adding digital kiosks, and expand its “Podio” office coffee-machine line launched in May. The chain also aims to increase its presence in the home-coffee-machine market, where it ranks as the UK’s third-largest brand. Owner Coca-Cola confirmed in February that it has abandoned plans to sell Costa after bids fell short of expectations, signaling continued investment in the brand.
Verbatim Quotes
- “The coffee shop is increasingly a destination for morning and afternoon. People not only want caffeine but iced herbal teas and those drinks that people will drink in the afternoon and evening.” — Philippe Schaillee, the chief executive of Costa