UK hits ‘peak Costa’ as soaring prices see coffee chain’s losses double
Why Costa Coffee is struggling as hot drink giant’s losses double
- Costa Coffee's operating losses have more than doubled to £13.5 million for 2024, a significant increase from £5.8 million the previous year.
- This financial downturn contrasts sharply with the period before the Covid pandemic, when the coffee chain frequently posted annual profits of up to £100 million.
- Parent company Coca-Cola is reportedly exploring a sale of Costa Coffee for approximately £2 billion, which is less than half the nearly £4 billion it paid seven years ago.
- The company attributes its struggles to heightened competition from other coffee houses, decreased high street footfall, and rising costs for coffee beans and other operational expenses.
- An analyst suggested the UK market has reached 'peak Costa,' facing strong competition from independent, artisanal coffee shops, while Costa stated it delivered like-for-like revenue growth and operational resilience.