Costa Coffee returns to profit after menu overhaul and store expansion

Costa Coffee's main coffee shop arm has returned to profitability, reporting an operating profit of £20m for the year to 31 December 2025, a sharp turnaround from losses of £13.5m in 2024.

The company attributed the recovery to a revamp of its high street outlets and a broadened menu that now includes iced drinks, matcha and fresher pastries, as the chain adapts to shifting consumer tastes in the competitive coffee shop market.

Costa operates roughly 2,700 outlets across the UK and Ireland, part of a global network of about 4,000 stores, and employs approximately 20,000 people.

First net store growth in years

The chain also opened a net 50 new outlets in the UK over the past year, marking its first net increase in store numbers in several years after a period of consolidation and closures.

The menu changes reflect a broader trend among major coffee chains to diversify beyond traditional espresso-based drinks, as demand grows for cold and specialty beverages, particularly among younger consumers.

The results suggest Costa's turnaround strategy, which has focused on refreshing its store estate and product range, is beginning to pay off after a difficult period for the UK high street coffee sector.