Costa coffee shops return to profit after menu overhaul and new openings

Costa Ltd’s primary coffee shop business reported an operating profit of £20m for the year to 31 December 2025, reversing an operating loss of £13.5m a year earlier. The company attributed the turnaround to revamps of its high street stores, a broader menu and a net increase in outlet numbers in the UK.

Menu changes and store refurbishments

The company expanded its food and drink offering, adding iced drinks, matcha and what it described as fresher pastries. Those changes coincided with a programme of shop refurbishments on the high street that the business said helped attract more customers and improve sales per site.

Growth in outlet numbers and workforce

Costa operates about 4,000 outlets globally, including some 2,700 in the UK and Ireland. In 2025 the chain opened a net 50 new outlets in the UK, its first net increase in several years. The business employs around 20,000 people.

Why the results matter

The return to profitability marks a notable swing from the prior year’s loss and suggests the operator’s strategy of modernising stores and diversifying the menu is having a tangible effect on its core high street operation. The net expansion of outlets in the UK also signals renewed confidence in demand for branded coffee shops after a period of contraction.

Costa’s results relate specifically to its main coffee shop arm; the company’s global footprint and workforce underline its scale in the sector.

(Information based on Costa Ltd’s results for the year to 31 December 2025 as reported by Guardian outlets.)