It plans a further 50 new UK outlets this year, including more drive-throughs and high street outlets.<\/p>\n
Demand from younger consumers for decaffeinated coffee and other options is driving sales growth amid concerns about drinking caffeine in the afternoon, while there is heavy competition on classic coffees from companies such as Greggs, Gail\u2019s, Caff\u00e8 Nero and numerous smaller operators. Costa says it is now the largest seller of matcha via cafes in the UK.<\/p>\n
The Costa Ltd arm made an operating profit of \u00a320m in the year to 31 December 2025 after losses of \u00a313.5m in 2024 and \u00a35.8m the year before, according to accounts filed at Companies House. Revenues rose 5% to almost \u00a31.3bn compared with 1% growth in 2024.<\/p>\n
Philippe Schaillee, the chief executive of Costa, said the chain had experienced the strongest growth in visits in a decade.<\/p>\n
Sipping a Velvetino, a low-calorie iced coffee popular with younger drinkers, Schaillee said: \u201cThe 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.\u201d<\/p>\n
Showing off Costa\u2019s new headquarters in St Albans, Hertfordshire, which will have space for 300 workers when it opens in January, he said it \u201creally signals our confidence in the business\u201d.<\/p>\n
Costa plans to remodel about 250 stores a year after updating more than 1,200 of 1,700 company-owned outlets. That includes adding more digital self-order kiosks, which are already in 200 UK outlets.<\/p>\n
The group is also selling more Podio office coffee machines, which launched in May and are intended to be \u201ca barista in your office\u201d.<\/p>\n
Schaillee said Costa was already the UK\u2019s third biggest brand in home coffee machines, and said the potential there was \u201climitless\u201d.<\/p>\n
skip past newsletter promotion<\/a>Free newsletter |Every weekday<\/p>\n Sign up to Business Today<\/p>\n Get set for the working day \u2013 we’ll point you to all the business news and analysis you need every morning<\/p>\n after newsletter promotion<\/p>\n Costa\u2019s campaign to flag its strong performance comes after its owner, Coca-Cola, in February officially confirmed it had abandoned plans to sell the chain after bids failed to meet its expectations.<\/p>\n Coca-Cola had high hopes for Britain\u2019s largest coffee chain when it bought it for \u00a33.9bn<\/a> in 2018 from Whitbread, the owner of Premier Inn hotels.<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/10\/1791143305_676_500.jpg\")
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