Costa Coffee Hails 'Strong Progress' Amid Refurbishment Plans

Costa Coffee's owner, Coca-Cola, abandoned plans to sell the coffee chain in January after potential buyers failed to meet their expectations. The move comes as Costa reported a year of 'strong progress', with revenue growth and improved profitability.

The UK's second-largest coffee chain grew its revenue by five percent to £1.3bn last year and returned to operating profit, overturning a £13.5m loss in 2024. This improvement was attributed to the company's investment plan, which included branch refurbishments and product innovation.

Costa chief executive Philippe Schaillee said the firm's results demonstrate 'the strength of the Costa brand' and reinforce its focus on building sustainable long-term growth. The group plans to refurbish about 210 further sites in 2026, having refreshed 1,063 stores in the UK and Ireland since 2023.

Costa also serves more than 4m cups of coffee every day and has 6m active members of its loyalty scheme. The company had been seeking a sale to private equity buyers, but Coca-Cola decided to keep the chain after bidders failed to meet their expectations.